On April 29, 2021, a total of eight amendments to Republic of Korea ("Korea")'s labor laws, including the Labor Standards Act ("LSA"), passed the plenary session of the National Assembly, promulgated on May 18, 2021. The key changes that need to be taken into consideration when managing human resources are as follows:

Amendments to the Labor Standards Act

(Enforcement Date: November 19, 2021)

1. Employer's Obligation to Issue Wage Statements and the Items To Be Written on Wage Statements

Under Article 48 (1) of the previous LSA, the duty to record a wage ledger has been imposed upon all employers. Nevertheless, there were cases where the transactions were not entered correctly, or workers were not permitted to access the wage ledger or were unaware of its existence, making it difficult for them to utilize it as evidence in the event of wage arrears.

However, due to a recent amendment to the LSA, employers now have a legal obligation to provide their workers with wage statements that contain the required information (Article 48 (2)). This Act applies to all businesses or workplaces in Korea, including businesses with fewer than five workers. In addition, the amended Enforcement Decree of the Labor Standards Act stipulates that the wage statement must specify the prescribed matters, such as wage items, calculation method, and details of any deduction (Enforcement Decree Article 27). Employers that fail to provide wage statements will be subject to an administrative fine of up to KRW 5 million (Article 116 (2) 2).

2. Working Hours Adjustment During Pregnancy

In the past, LSA only allowed pregnant female workers in their first 12 weeks, or 36th weeks and above to shorten their workday by up to two hours a day. However, the amended LSA expands the scope of eligibility that the pregnant workers can now request a change of working hours at any stage of their pregnancy. This applies to all pregnant workers irrespective of their tenure in the company, and if requested, the employer must allow the pregnant worker to change the start and end time while maintaining the prescribed working hours per day (Article 74 (9)). If the employer does not allow the pregnant worker to change their working hours, he/she shall be subject to a fine of up to KRW 5 million (Article 116 (2) 2).

Amendments to the Equal Employment Opportunity and Work-Family Balance Assistance Act

1. Use of Childcare Leave During Pregnancy (Enforcement Date: November 19, 2021)

Childcare leave in Korea, which was only available for workers with children aged eight and under or second grade of elementary school and under, has become available for pregnant workers under the amended Equal Employment Opportunity and Work-Family Balance Assistance Act ("Equal Employment Act") (Article 19). In addition, the Equal Employment Act only allows the workers to split childcare leave up to twice a year, but under the Amendment, the split limit does not apply to pregnant workers. As such, childcare leave during pregnancy can be used in divided periods without limit (Article 19-4). If childcare leave is used during pregnancy, the remaining childcare leave for children born after that can be split into two periods only.

2. Remedies for Gender Discrimination in Employment and Sexual Harassment in the Workplace (Enforcement Date: May 19, 2022)

Currently, in the Equal Employment Act, there are only punishment provisions for employers' non-fulfillment of their duty to take measures in the event of gender discrimination in employment and sexual harassment in the workplace, and there is no means through which workers can directly apply for corrections or relief specified. However, from May 19, 2022, workers can directly apply for relief to the Labor Relations Commission in relation to the violation of the employer's obligation to take measures against victims of sexual discrimination in the workplace, and sexual harassment in the workplace (Article 26). The burden of proof in dispute resolution is stipulated on the employer (Article 30). The Labor Relations Commission shall issue a correction order containing corrective measures such as cessation of discriminatory treatment, improvement of working conditions such as wages, and appropriate compensation (Articles 29 and 29-2). The effect of the correction order shall be extended to other workers who are discriminated against in the workplace (Article 29-6). In addition, if the employer does not comply with the corrective order confirmed by the Labor Relations Commission, a fine for negligence as stipulated in the Enforcement Decree may be imposed (Article 39).

Amendments to the Occupational Safety and Health Act

  (Enforcement Date: November 19, 2021)

1. Service Recipient Company's Obligation to Coordinate

The amended Occupational Safety and Health Act ("OSHA") requires that the service recipient company ("SRC") inspect the work time, details, and safety and health measures of the SPC. This is to minimize the potential risks posed due to the work scheduled in the same location and the new regulation imposes an obligation on the SRC to coordinate the timing and contents of the work in the event of mixed work. (subparagraph 7 and 8 of Article 64). Specifically, when the SRC is scheduled to work at the same place as the SPC's workplace, the SRC shall check the work time, contents, and safety & health measures of the related SPC. If there are risks such as fire, explosion, crushing, collision, falling or flying, overturning, collapse, suffocation, poisoning, etc., the work period and contents of the relevant SPC must be adjusted.

2. Expanding the Scope of Application for Dependent Self-Employed Workers

The existing OSHA stipulates that the nine occupations including insurance planners, providing a similar nature of work to laborers but excluded from the LSA should take necessary safety and health measures to prevent industrial accidents (Article 77). The amended Enforcement Decree of the OSHA includes an additional five types of occupation engaging in door-to-door services such as salespersons, visiting inspectors, and home appliance repair workers, as well as truck owners and software engineers for them to receive the necessary protection for the prevention of industrial accidents (Enforcement Decree Articles 68 and 67). Accordingly, the scope of occupations covered by the Special Workers Regulations in the Industrial Safety and Health Act has been expanded from nine occupations including insurance planners to a total of fourteen occupations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.