- Presidential Committee on Job Creation set the groundwork for effective job policies
The Presidential Committee on Job Creation held its 2nd meeting of on 8 August, and approved ‘the action plan for employment-oriented national policy.’ Under the action plan, the government will strengthen employment impact assessments and provide financial and taxation support for companies that create jobs.
[Table 1] Main points of the action plan for employment-oriented national policy
| Strengthen employment impact assessments (EIA)
– Assess employment impact of more public programs such as job creation project, R&D investment with a budget of KRW 10 billion (USD 8.81 million) and government procurement, etc. ( current 249 programs→1,000 programs) – Conduct the EIA for new legislations |
| Reform job creation projects and financial aid programs
– Check for overlapping or similar programs carried out by the central and regional governments, and adjust their functions. – Combine and simplify existing job-creation incentive programs |
| Financial and taxation support
– Allow regular tax audit exemption for top job-creating companies – Raise loan limit and offer exclusive financial benefit for top job-creating companies |
| Improve systems for government procurement and public contracts
– Offer benefits to top job-creating companies in terms of bidding on public contracts – Give penalty points to companies with history of delayed wage payment or minimum wage violations |
| Employment awards
– Give ‘the Employment award’ to top job-creating companies and allow regular tax audit exemption and labor inspections for 3 years |
During the meeting, labor representatives asked that labor be invited into the process of establishing and enforcing job policies. These representatives also stated their opposition to the plan allowing labor inspection exemption to companies with outstanding records of job creation.
- New Minister of Employment and Labor appointed, will enforce the new government’s employment and labor policies
Ms. Kim Young-ju was officially installed on 14 August as the new Minister of Employment and Labor. During her appointment ceremony, Ms. Kim stated that she would focus on job creation, improving job quality, preventing industrial accidents, abolishing unfair labor practices, and reducing working hours. However, she emphasized that her labor policy would not be slanted towards labor.
President Moon Jae-in asked Minister Kim to strengthen labor inspections with regard to minimum wage violations and delayed payment of wages.
- Strengthen punishment for primary contractors if an industrial accident results in death…Maximum sentence of 7 years or a fine up to KRW 100 million
The government held a policy coordination meeting on 17 August, and announced measures to prevent industrial accidents.
According to the measures, primary contractors will face stronger punishments for deaths that occur due to mandatory safety measures not being in place. The existing penalty for primary contractors is imprisonment for one year or less, or a fine of up to KRW 10 million (USD 8,873). However, the new measures strengthen the punishment so that it is the same as for subcontractors: imprisonment for up to seven years or a fine of up KRW 100 million (USD 88,731). The new punishment will also apply to heads of corporations.
[Table 2] Measures to Prevent Industrial Accidents: Main Points
| ⦁ Prevent outsourcing dangerous tasks
– Prohibit outsourcing personnel for harmful or dangerous tasks – Expand the range of business requiring permission for outsourcing, and prohibit sub-subcontracting
⦁ Strengthen responsibilities of primary contractors for safety and strengthen penalties (identical to those applied to subcontractors) – Increase the number of industrial categories where primary contractors are responsible for safety (22 categories for in-house subcontracting→ every category) – Apply an increased punishment (imprisonment of up to seven years, or a fine of up to KRW 100 million (USD 88,731) in case that a fatality occurs due to a primary contractor failing to take the mandatory occupational safety measures,
⦁ Sentence to a minimum prison term of 1 year and a fine of up to KRW 100 million to corporations in the event of an industrial accident resulting in death
⦁ Prohibit the use of temporary workers for safety and health management jobs and require public institutions and large workplaces to directly hire people for these positions.
⦁ Expand the scope of the Industrial Accident Compensation Insurance Act to cover those in special type of employment
⦁ Legislate an act to protect the health of emotional workers (customer service representatives, etc.) and establish and distribute guidelines
⦁ Gather worker opinions when lifting work suspension orders from the MOEL (for workplaces where industrial accidents occur), establish an investigation committee with citizen representation for industrial accidents that result in fatalities. |