- Individual Labor Relations
| Feature | Before Revision | After Revision | Related Laws & Enforcement Date |
| Minimum wage hike | · Per hour: KRW 6,470
(USD 6.11) |
· Per hour: KRW 7,530
(USD 7.11) ※ Per month (40 hours/week, 209 hours/ month including 8 hours of paid leave/week): KRW 1,573,770 (USD 1,485) |
· Notification No. 2017-42 of the Minimum Wage (2018) |
| Reduce the coverage of lowered minimum wage | ‧ A person who has been employed on probation for no more than three months may be paid a reduced minimum wage | · A person who has been employed on probation for no more than three months gets the entire amount of minimum wage if they are simple laborers
※ The MOEL will designate and notify the scope of simple laborers |
· Article 5 (2) of the Minimum Wage Act
(Enforcement date: 20 March 2018) |
| Job stability fund to support minimum wage | ‧ New | ‧ Employers in workplaces with fewer than 30 workers who receive KRW 1.9 million (USD 1,792) for at least 1 month will receive KRW 130,000 (USD 122) monthly per worker
※ Employers will receive money in proportion to working hours of part-time workers |
· Implementation Plans for Supporting the Job Stability Fund (2018) |
| Delete provision deducting from the next year’s annual leave for workers working less than 1 year | ‧Provide annual leave (1 day per month) for workers working less than 1 year (deducting from the next year’s 15 days of annual leave) | ‧Deleted | ‧Article 60 (3) of the Labor Standards Act deleted
(Enforcement date: 29 May 2018) |
| Deem childcare leave as time worked when calculating annual leave | ‧ New | ‧Include childcare leave as time worked when calculating annual leave | ‧Article 60 (6)-3 of the Labor Standards Act
(Enforcement date: 29 May 2018) |
| Leave for infertility treatment | ‧ New | ‧Grant a 3-day leave for infertility treatment, such as artificial insemination, once per year (at least 1 paid day)
※ Penalty: a fine not exceeding KRW 5 million
|
‧Article 18 (3) of the Equal Employment Opportunity and Work-Family Balance Assistance Act
(Enforcement date: 29 May 2018) |
| Increase the maximum fine in Labor Standards Act | ‧ Article 107: imprisonment of not more than five years or a fine not exceeding KRW 30 million.
※ For forced labor, violence, intermediary exploitation, violating period of restriction against dismissal, interference with employment, etc. ‧ Article 109: imprisonment of not more than three years or a fine not exceeding KRW 20 million ※ For violations related to payment settlement, wage payment, payment of wages for contract work, shutdown allowances, allowance for extended/night/holiday work, etc. ‧ Article 110: imprisonment of not more than two years or a fine not exceeding KRW 10 million ※ For violations related to guaranteeing civil rights, prohibition against compulsory saving, advance notice of dismissal, work hours, restrictions on extended work, etc. |
‧ Imprisonment of not more than five years or a fine not exceeding KRW 50 million.
‧ Imprisonment of not more than three years or a fine not exceeding KRW 30 million.
‧ Imprisonment of not more than two years or a fine not exceeding KRW 20 million |
‧ Articles 107, 109 and 110 of Labor Standards Act,
(Enforcement date: 29 May 2018) |
| Enhance
employer’s responsibility to prevent and deal with sexual harassment on the job
|
‧ Employers shall conduct education against sexual harassment according to Presidential Decree
‧ New
‧ New
‧ New
‧ In the event of sexual harassment by a client, employers shall endeavor to protect alleged victims
|
‧ Employers shall conduct education against sexual harassment according to the Act
※ Penalty: a fine not exceeding KRW 5 million ‧ In the event of sexual harassment on the job, employers shall take measures to protect alleged victims such as by changing their workplace, granting paid leave, etc., and also take disciplinary actions against those found guilty of harassing ※ Penalty: a fine not exceeding KRW 5 million ‧ Investigations of complaints of sexual harassment on the job shall be considered confidential ※ Penalty: a fine not exceeding KRW 5 million ‧ Employers shall not take any disadvantageous action against workers who take action to receive compensation for sexual harassment ※ Penalty: imprisonment of not more than three years or a fine not exceeding KRW 30 million
‧In the event of sexual harassment by a client, employers shall endeavor to protect alleged victims ※ Penalty: a fine not exceeding KRW 3 million |
‧ Articles 13, 14, 14 (2), 37 and 39 of the Equal Employment Opportunity and Work-Family Balance Assistance Act
(Enforcement date: 29 May 2018) |
- Social Insurance & Employment Policy
| Feature | Before Revision | After Revision | Related Laws & Enforcement Date |
| Expand the scope of businesses required to publicly announce information related to status of employment by type
|
‧ Businesses employing 300 employees or more shall publicly announce information related to status of employment, by type, for each workplace
|
‧ Unchanged
‧ Businesses employing 3,000 employees or more shall publicly announce information related to status of employment, by type, for each workplace, as well as major job descriptions of its contracted, dispatched, and sub-contracted workers ※ To apply to businesses employing 1,000 employees or more from 2019 |
‧ Article 1 (2) of Enforcement Rules to the Framework Act on Employment Policy
(Enforcement date: 21 Nov. 2017)
|
| Increase premium for National Health Insurance coverage | ‧ Premium for workplace-based NHI: 6.12% in 2017
(Unit price for community-based NHI: KRW 179.6) |
‧ Premium for workplace-based NHI: 6.22% in 2018
(Unit price for community-based NHI: KRW 183.3)
※ 2.04%p increase YOY |
‧ Article 44 of the Enforcement Decree to the National Health Insurance Act (Enforcement date: 1 Jan. 2018) |
| Increase the upper/lower limit of job-seeking benefits | ‧ Upper: KRW 50,000/day
‧ Lower: 90% of minimum wage (As of 2017, KRW 46,584) |
‧ Upper: KRW 60,000/day
‧ Lower: 90% of minimum wage (As of 2018, KRW 54,216) ※ Pre-announcement of legislation on increasing the current upper limit (50% of average wage to 60%) (Enforcement date: 1 July 2018) |
‧ Article 45 (2) of the Employment Insurance Act and Article 68 of its Enforcement Decree, (Enforcement date: 1 Jan. 2018) |
- Occupational Safety & Health, Industrial Accident Insurance
| Feature | Before Revision | After Revision | Related Laws & Enforcement Date |
| Ease standard for recognizing a commuting accident as occupational | ‧ Accident that occurs while a worker commutes to or from work using transportation provided by his/her employer is recognized as an occupational accident | ‧ Accident that occurs while a worker commutes by various transportation means such as on foot, public transportation, or private car is recognized as an occupational accident | ‧ Article 37 (1)-3 of the Industrial Accident Compensation Insurance Act (Enforcement date: 1 Jan. 2018) |
| Recognize accidents that occur off the normal commuting route as industrial accidents in exceptional cases | ‧ New | ‧ Recognize accidents that occur off the normal commuting route as industrial accidents if they occur while purchasing daily supplies, engaging in education/training, exercising voting rights, guiding children or people with disabilities to care facilities, obtaining medical treatment, or caring for family members | ‧ Article 34 (3) of the Enforcement Decree to the Industrial Accident Compensation Insurance Act
(Enforcement date: 1 Jan. 2018) |
| Create premium for Industrial Accident Compensation Insurance for ordinary commuting accidents | ‧ Ordinary commuting accidents are not recognized as industrial accidents , thereby, IACI premiums are not affected by the number | ‧ Additional IACI premiums (single rate for all industries) are to be added to the existing IACI premium (different rates for each industry) | ‧ Article 14 (7) of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (Enforcement date: 1 Jan. 2018) |
| Mandatory announcement of total number of industrial accidents by primary contractors and subcontractors
|
‧ New
|
‧ For subcontractor employees working at the workplace of a primary contractor, the primary contractor shall publish statistics of industrial accidents that include the figures of its subcontractors. (to be published by 30 April every year)
– Scope of application: workplaces ordinarily hiring 1,000 employees or more in the manufacturing, urban railway & transportation sectors ※ To apply to businesses ordinarily employing 500 employees or more from 2019 ※ Penalty: a fine not exceeding KRW 10 million |
‧ Article 8 (4)-3 of the Occupational Safety and Health Act, Article 9 (2)-2~3, and its Enforcement Decree (Enforcement date: 1 Jan. 2018) |