Ministry of Employment and Labor

Meanwhile, the Act on the Protection, etc. of Fixed-Term and Part- Time Employees and the Act on the Protection, etc. of Temporary Agency Workers were established and implemented to strengthen protection for non-regular workers (whose number stood at 7.481 million as of August 2019, accounting for 36.4% of all wage workers) on matters including working conditions, etc.

* (Fixed-term employees) Limits period of service to two years, (Part-time employees) Obligates payment of additional wages work performed during hours that exceed the contractual work hours, (Temporary agency workers) Limits the type of work that may be performed by temporary agency workers, and period of service

In particular, the government operates a discrimination correction system, and provides education‧counseling‧consulting services to resolve discrimination between regular and non-regular workers.

In addition, the government is seeking to reform the current discrimination correction system, including the expanding the comparison groups for non-regular workers, to double up the efforts to narrow the gap between regular and non-regular workers’ working conditions.

System of correcting discrimination against non-regular workers

Employers are prohibited from giving unfavorable treatment to non-regular workers performing jobs that are same as or similar to those of regular workers in terms of wages, regular bonuses, performance pay and other working conditions and fringe benefits without reasonable grounds.

A non-regular worker subjected to discrimination may file a request for correction of discrimination within six months from the date of occurrence of the discrimination (the end date of the discrimination in cases of continuing discrimination).

Each discrimination case is handled by the Regional Labor Relations Commission or the Regional Employment and Labor Office having jurisdiction over the seat of the workpalce where the discrimination occurred.

Any party dissatisfied with the competent Regional Labor Relations Commission's corrective order or decision to dismiss the case may file an appeal with the National Labor Relations Commission. If the party is still dissatisfied with the results of the appeal, it may bring an administrative lawsuit.

*In cases where a complainant files a request for correction of discrimination with the Regional Employment and Labor Office, if the respondent refuses to comply with a corrective order of its labor inspector, the case is notified to the competent Regional Labor Relations Commission.

• Complainant

  Fixed-term worker / Part-time worker

  Dispatched worker

• Respondent

  Employer (party to the employment contract)

  Employer using or sending the dispatched worker

interlocking with each other

Furthermore, the government offers the Employee Assistance Program (EAP), livelihood security loans, credit guarantee support, etc. to promote the welfare of workers. As corporate welfare measures, the government implements the Employee Stock Ownership Plan (ESOP) which allows workers to acquire their company's shares, thereby helping workers build wealth and contributing to labor-management cooperation, and the Employee Welfare Fund System which requires employers to contribute a portion of their company's operating profits to create a fund and use it for employee welfare. In addition, the government operates the Retirement Pension System which requires employers to set aside an amount equivalent to retirement benefits at a financial institution outside the company and pay their employees pensions in the form of an annuity or a lump sum at retirement in order to strengthen employees’ retirement income security.

Livelihood security loan

Livelihood security loans are offered at a low interest rate to workers from low-income vulnerable groups and workers who are experiencing livelihood difficulties due to pay cuts or payment delays, to support their livelihood security.

(Loan requirements) Repayments should be made in equal installments over three years at an annual interest rate of 1.5% after a one-year grace period. In the case of requests for two or more types of loans, the maximum amount of loan should be 20 million won per person. (The maximum loan amount differs according to type of loan.)

* Temporarily eased the loan requirements, etc. due to the spread of COVID-19

1. ❶ (Temporarily eased the loan requirements) for three-person households, earning 2/3 of median income or less→for three-person households, earning less than median income (Mar.9.~Dec.31.)
2. ❷ (Temporarily raised the maximum loan amount) Living cost to support income reduction (from 10 million won→20 million won), Small amount of living cost (2 million won→5 million won) (May.1.~Dec.31.)
3. ❸ (Temporarily raised the limit on the total amount of loan per person) from 20 million won→30 million won (Jul.1.~Dec.31.)

(Types of loans) medical expenses, parent care expenses, funeral expenses, wedding expenses, children's school expenses, living expenses during pay cuts, living expenses during payment delays and living expenses in small amounts

Employee Stock Ownership Plan

The Employee Stock Ownership Plan allows workers to acquire or hold their company's shares with their own money or money contributed by their employer through the employee stock ownership association, thereby helping workers build wealth, creating cooperative labor-management relations and improving corporate productivity.

Employee Welfare Fund System

The Employee Welfare Fund System requires employers to set up a fund using part of their operating profits and manage and operate it efficiently, thereby contributing to workers' livelihood security and welfare, increasing workers' real incomes and boosting the desire to work and a sense of community between labor and management.

Retirement Pension System

The Retirement Pension System is a retirement benefit system introduced in 2005. It requires companies to accumulate necessary funds for retirement benefits at an outside financial institution in advance, so that workers can receive pensions in the form of an annuity or lump sum when they retire. The system (defined-benefit type and defined-contribution type) enables workers to plan for their life after retirement.

• Classification

  Form of retirement benefit payment

  Characteristics

  Operator of the pension assets

• Retirement pay

  Lump-sum payment

  The employer accumulates the full amount inside the company. → Benefits are vulnerable to bankruptcy.

  Employer

• Defined-benefit retirement pension plan

  Annuity or lump-sum payment

  The worker's retirement benefits are pre-determined, and the employer's contributions may change depending on the results of fund management. (outside accumulation of a partial amount)

  Employer

• Defined-contribution retirement pension plan

  Annuity or lump-sum payment

  The employer's contributions are pre-determined, and the worker's retirement benefits may change depending on the results of fund management. (outside accumulation of the full amount.)

  Worker