① Populist labor-related promises from the opposition parties likely to burden enterprises
The three opposition parties each made similar promises leading up to the general elections, and included a youth employment quota for the private sector, introduction of a job-seeking allowance for the youth and an increase to the minimum wage. As these three opposition parties, together forming a majority, all promised to impose a youth employment quota (3% ~ 5%) in private enterprises, their solidarity on legislation is highly likely.
Of particular importance is that a number of promises were related to restrictive policies on working hours and non-regular work.
The Saenuri Party plans to pass labor reform bills with priority. The Minjoo Party has promised to legislate a maximum 52-hour work week, introduce a cooling-off system (making it possible for employees to withdraw their resignations within a month), and a requirement for employers to receive approval from a majority of workers when an employee is advised to resign.
Promises from the People’s Party include restrictions on the use of fixed-term workers for 6 months when a substitute fixed-term worker is used for constant & continuous work, and enactment of a Fair Wage Act (which imposes the burden of proof on employers regarding wage discrimination). The Justice Party has promised to introduce legislation requiring workers to be allowed to leave work on time and extending paid leave, and has made some promises related to non-regular work such as restricting the use of fixed-term workers and abolition of the Act on the Protection, etc. of Temporary Agency Workers in stages.
② The ruling and opposition parties both made election promises to increase minimum wage
Leading up to the general elections, the Saenuri Party proposed increasing minimum wage in stages and to induce restructuring of wage systems so they are based on competency and performance. The opposition parties proposed increasing the minimum wage to KRW 10,000 (the Minjoo Party and Justice Party) and to introduce a living wage system (the Minjoo Party).