Direction of MOEL Labor Policy in 2017

The Ministry of Employment and Labor (MOEL) plans to push ahead with job creation as its priority in 2017. During Q1, 30% of the year’s national budget for job creation (KRW 17 trillion or USD 14.8 billion) will be spent.

 

[Table 1] Major MOEL Policies in Support of Job Creation for 2017

Youth

▲ Announce joint comprehensive measures of the related departments to support job creation for the youth

▲ Revise the Labor Standards Act (reduce working hours)

▲ Prepare performance-based recruiting guidelines

Seniors & the Middle-aged

▲ Develop policies to support outplacement services for middle-aged persons and seniors in SMEs

▲ Improve unemployment benefits coverage (65 years old → 69 years old)

Restructuring

▲ Strengthen measures to support employment in the shipbuilding industry

– Ease the assistance requirements in case of using unpaid leaves instead of employment adjustments

⊙ Shorten leave period (90 days → 30 days)

⊙ Extend period of industry designation for special employment assistance

▲ Strengthen monitoring of employment situation in steel and petrochemical industries

– Set up meetings to check field employment situations, chaired by the Minister of Employment and Labor

 

The MOEL plans to strengthen labor inspections of workplaces where many interns & youth are employed and of construction sites to prevent delayed payment of wages to ensure basic employment order.

[Table 2] Labor Inspections to Ensure Basic Employment Order

▲ Inspect basic employment order (February ~ November)

– 1st half of the year: Convenience stores, fast-food restaurants, bakeries

– 2nd half of the year: Restaurants, gas stations, beauty shops

▲ Strengthen obligation of timely payment of wages in construction sector (May ~ August)

– Strengthen the obligation of primary contractors regarding payment of wages to eradicate unfair retention of wages in the construction industry

▲ Regular inspection on low pay given to young workers, and inspect target franchises (August ~ November)

The MOEL plans to carry out labor inspections of workplaces where subcontracted and dispatched workers are used with a view to alleviating disparities in the labor market.

 

[Table 3] Labor Inspections to Alleviate Disparities in the Labor Market

▲ Inspect multi-layered subcontracting

– Industries: IT, cement (in the 1st half of the year) / manufacturing of automobileželectronic components (in the 2nd half of the year)

▲ Inspect workplaces which use dispatched workers, in-house subcontracting

– Dispatch: Workplaces that have not undergone recent inspections, and workplaces where many dispatched workers are employed (in the 1st half of the year)

– In-house subcontracting: Call centers, electronics repair and retail or distribution (in the 2nd half of the year)

▲ Inspect workplaces already caught using illegally dispatched workers (throughout the year)

– workplaces where the courts have made a final ruling that dispatched workers were used illegally, and workplaces where concerns exist that illegally-dispatched workers are used, as presented by the press and the National Assembly

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