The field which requires the most attention is social policy. Before revision of the Infant Care Act, workplaces with a legal obligation to establish daycare facilities were able to fulfill this obligation through an infant care allowance or contracting out daycare services if they were unable to establish such facilities in the workplace. The burden on companies is expected to increase in 2015 since the article allowing infant care allowances has been abolished.
Concerning individual labor relations, special discount rules for minimum wage in relation to surveillance/intermittent workers will expire this year, requiring these workers to be paid the full minimum wage from 2015.
In occupational safety and health, harsher regulations against companies will come into force, such as stronger penalties for chemical accidents or increased legal obligations for primary contractors to apply their safety measures to subcontractor workers. Although regulatory policies will not further reduce accidents and policy should focus on the need for companies to prevent accidents on their own (and in accordance with their individual situations), it is still important for companies to recognize the revised Act and be prepared for enforcement.
1. Individual Labor Relations
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Feature
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Before Revision
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After Revision
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Note
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Minimum wage
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‧ KRW 5,210 per hour ($4.73)
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‧ Per hour: KRW 5,580 ($4.73)
‧ Per day (8 hours):
KRW 41,680 ($37.83)
‧ Per month (40 hour work week): KRW 1,166,220 ($1,058.47)
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‧ Effective 1 Jan 2015
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Minimum wage for surveillance/ intermittent workers
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‧ KRW 4,689 per hour ($4.26)
(KRW5,210×0.9)
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‧ Per hour: KRW 5,580 ($4.73)
‧ Per day (8 hours): KRW 41,680 ($37.83)
‧ Per month (40 hour work week): KRW 1,166,220 ($1,058.47)
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‧ Expiration date for 90% of minimum wage paid to workers engaged in surveillance/ intermittent work: 31 Dec 2014
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2. Social Policy
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Feature
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Before Revision
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After Revision
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Effective Date
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Affirmative Action
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–
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․ Disclose a list of companies failing to employ the minimum number of female employees after 3 consecutive orders.
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1 Jan 2015
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Alternative to establishment of in-house daycare facilities
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․ In lieu of establishing in-house daycare facilities, companies can give to employees an infant care allowance greater than 50% of the allowance from the government
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․ Infant care allowance abolished
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1 Jan 2015
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Workplaces failing to establish daycare facility
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․ List of such workplaces published in government newspapers or Ministry of Health & Welfare website for 6 months
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․ List of such workplaces published in government newspapers or Ministry of Health & Welfare website for 1 year, and also on 2 or more daily newspapers.
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1 Jan 2015
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National Health Insurance Premiums
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․ 2014: 5.99% (Worker & employer responsible for 50% each)
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․ 2015: 6.07%
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1 Jan 2015
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Introduction of wage-peak system with working hour reduction
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–
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․ Wage-peak subsidy paid to employers who hire retirement-age workers by reducing such workers’ working hours (Amount of subsidy to be announced by Minister of Employment & Labor)
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1 Jan 2015
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Employment security for non-regular workers
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–
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․ Prepare measures to provide employment security to change employment status of temporary/ dispatched workers, health and safety managers, and part-time workers to regular employment (Criteria, applicant eligibility, duration of the service to be determined by Minister of Employment & Labor)
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1 Jan 2015
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Subsidies for employment of age 60 or over
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․1Temporary subsidy paid from 2012 to 2014
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․ Subsidy extended for another 3 years from 1 Jan 2015 to 31 Dec 2017
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1 Jan 2015
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Qualification for subsidy to maintain employees
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․ Subsidies differ according to size & priority of companies which take measures to maintain employees (temporary shutdowns, time off/training for employees etc.)
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․ Subsidies differ according to company size and temporary shutdown (TS) rate within 1 month
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1 Jan 2015
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Reduced working hours during child-rearing period
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‧Maximum days with reduced working hours during child-rearing period is unused maternity leave days (1 year)
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․ Extended to 2 years if maternity leave days (1 year) are not used
* If some maternity leave days have been used, then the maximum duration = unused maternity leave days 2
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1 July 2015
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‧ Reduced working hours during child-rearing period can be divided into 2 periods
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․ Unless a worker takes 1 full maternity leave year, the duration can be divided into a maximum of
3 periods.
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1 July 2015
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3. Occupational Safety & Health & Industrial Accident Insurance
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Features
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Before Revision
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After Revision
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Effective Date
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Responsibility for chemical accidents
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–
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․ Operator of business handling poisonous substance to be held responsible for chemical accidents if found to be deliberate or caused by gross negligence and leading to loss of life
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1 Jan 2015
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Standards for control of poisonous substances
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․ Standards for control of poisonous substances to be observed
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․ Operators of businesses handling poisonous substances shall observe standards for control of poisonous substances and observe common and individual standards when handling permitted /restricted /prohibited substances and substances requiring preparation for accidents
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1 Jan 2015
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Protective equipment
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–
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․ Those who handle poisonous substance shall use appropriate protection equipment.
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1 Jan 2015
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Permission for business involving poisonous substance
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․ Register business handling poisonous substances with local government
․ No additional registration required for handling substances which require preparation for accidents
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․ Register business with Ministry of Environment
․ Those who handle substances requiring preparation for accidents shall register business and plans for management reviewed by Ministry of Environment
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1 Jan 2015
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Sub–
Contractors |
–
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․ Businesses handling poisonous substances shall report plans for subcontractors and safety management to Ministry of Environment
․ Primary contractors should ensure subcontractors use qualified persons to handle such substances
․ Primary contractors shall not make unreasonable demands of subcontractors
․ No fines are applied, but administrative actions such as business suspension can be used
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1 Jan 2015
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Management of poisonous substances
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․ Managers to be hired for management of poisonous / restricted substances
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․ Hiring of poisonous substance managers to be reported to Ministry of Environment, with 1~5 inspectors needed in accordance with amount of poisonous substance and number of workers
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1 Jan 2015
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Fines in lieu of business suspension
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․ Fines of no more than 300 million won in lieu of suspension of business.
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․ Fines equaling no more than 5% of sales made from that workplace (2.5% or less if the business operator owns only one workplace)
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1 Jan 2015
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Calculating premiums for industrial accident compensation insurance
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․ Apply individual risk premium to businesses with 20 or more in the regular workforce (For construction businesses, total construction cost should be KRW 4 billion or more)
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․ Extend individual risk premium to businesses with 10 or more in the regular workforce (For construction businesses, total construction cost should be KRW 2 billion or more)
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1 Jan 2015
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