1. Government focus on job creation and labor inspection of long working hours
The government plans to revise 8 major labor bills related to job creation during the regular session of the National Assembly.
[Table 1] Labor bills to be revised at the National Assembly
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Bills
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Details
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Labor Standards Act
(reduction of working hours)
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‣ Inclusion of work on holidays in “extended work” (current 68 hours → 52 hours per week)
‣ Reduce the number of industrial sectors allowed exemption from the legal standards on working hours (current 26 sectors → 10 sectors)
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Act on the Employment Promotion & Protection of Part-time Workers
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‣ Prohibit discrimination against part-time workers
– Provide part-time workers with bonuses and other benefits proportionate to their hours of work
– Allow full-time workers to claim for working hour reduction
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Framework Act on Employment Policy
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‣ Introduce a system of evaluating the impact of new policy on employment
– Provide government support for regions suffering financial difficulties due to unemployment
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Act on the Prohibition of Discrimination based on Academic Background
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‣ Prohibition of academic discrimination in employment and national qualifications
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Act on Equal Employment and Support for Work- Family Reconciliation,
Labor Standards Act
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‣ Extend the scope of maternity leave
(currently employees with children under age 6 → employees with children under age 9)
‣ Publication of a list of companies which have
not initiated active employment measures
‣ Reduction of working hours for pregnant employees to 6 hours per day
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Act on the Tripartite Commission for Economic and Social Development
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‣ Inclusion of youth and SMEs in social dialogue at the Economic and Social Development Commission
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Labor Relations Commission Act
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‣ Provide support for independent workers in the settlement of labor disputes
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National Technical Qualification Act
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‣ Establish training courses to link education with work
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On October 7, the KEF expressed its concerns over the legislation of working hours, emphasizing that reducing working hours by law would place a huge burden on businesses and trigger labor conflicts in individual workplaces.
In the meantime, the Ministry of Employment & Labor (MOEL) conducted labor inspections regarding working hours on 33 companies in the beverage, textile and paper industries. Their findings showed that 29 of the 33 companies inspected violated the law on extended working hours (12 hours per week). Since the MOEL issued a corrective order, the 29 companies have submitted plans to revise their work shift system to remedy the situation.
As for inspections regarding the use of in-house subcontract work, the MOEL exposed the Nonghyup Hanaro Club and E-land Retail Co. Ltd. for using a total of 83 dispatched workers illegally. Following the inspection, the Nonghyup Hanaro Club and E-land Retail decided to hire directly all their in-house subcontract workers (830 for Nonghyup and 507 for E-land Retail).
As the MOEL expects to revise the Labor Standards Act at the regular session of the National Assembly and strengthen its labor inspections on long working hours, companies are advised to prepare strategies in order to avoid confusion in workforce planning.