Reduction of Working Hours

1. Discussion in the National Assembly

Both the ruling and opposition parties proposed revisions to the Labor Standards Act which included holiday working hours in statutory overtime working hours. However, the details and enforcement timing differ.

The ruling and opposition parties narrowed their differences regarding the reduction of working hours in the legislative review subcommittee of the National Assembly in June, and will continue to discuss this issue during the regular session of the National Assembly in September.

<Table 1> Major points of revised bills

Saenuri	Opposition parties
• Include holiday working hours in statutory overtime working hours. – Gradual enforcement based on company size – Allow exceptions for overtime working hours • Expand the unit period of flexible working hours • Introduce the Working Hour Savings Account System • Reduce the types of industries exempted from statutory work hours	• Include holiday working hours in statutory overtime working hours – Enforce immediately • Delete the types of industries exempted from statutory work hours • Ban inclusive wage contracts • Guarantee 11 consecutive hours of rest

2. Tripartite Meetings

ESDC Committee on Working Hour Reduction (March 2012~April 2013)

Although the Economic & Social Development Commission (ESDC) Committee on Working Hour Reduction had long discussion over the issue of including working hours on holidays into the calculation of overtime work, the tripartite members were unable to reach an agreement. Eventually, on April 5th, the Committee adopted the ‘Public Interest Members’ Recommendation’ on this issue and closed its discussion.

【Public Interest Members’ Recommendation】 Inclusion of holiday work into overtime work (to be enforced on a gradual basis depending on company size, with exceptional overtime work allowed), expanding the unit period of the flexible work time system, improvement of the current work shift system, etc.

Tripartite Jobs Pact to Achieve 70% Employment Rate (May 30, 2013)

In the Tripartite Jobs Pact, the tripartite members agreed to hold further discussion on the restrictions of holiday work, along with measures to minimize burden on workplaces.

< Chapter Ⅲ, 1. Reducing long working hours>

g. In order to reduce long working hours, the tripartite partners will undertake consultation on the issue of including holiday work into the overtime limit, along with other measures to minimize the consequential burden on workplaces.

 Tripartite working group meeting for improvement of working hours (2nd week of July ~ )

In accordance with the Tripartite Jobs Pact, the Ministry of Employment & Labor (MOEL), the Federation of Korean Trade Unions (FKTU) and the Korea Employers Federation (KEF) have been holding working group discussions to minimize any burden on workplaces which may be caused by the limit on holiday work.

【Main Issues】

Provision of a grace period before enforcing stricter overtime limits, which would include holiday work into overtime work calculations.
Application on a gradual basis depending on company size.
Expanding overtime limit under the labor-management agreement (permitting for exceptional cases for special overtime work).
Extending the unit period of the flexible work time system.
Introduction of work time savings account system.

3. The Way Forward

The government along with the ruling and opposition parties is in agreement that holiday work should be included into the calculation of overtime work. In this regard, if they reach an agreement on how to minimize the related risks and negative impact on workplaces, the bill which includes holiday work into overtime work calculations is likely to be passed this year. This strict restriction on holiday work will significantly reduce the number of legal working hours; therefore, it is imperative to devise concrete measures to ease the additional burden on industry. The KEF will make its business position clearly understood in the tripartite working-group meeting.

admin