TITLE : FAQ on FDI in Korea 2023 (Q143~Q146)
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■ FAQ on FDI in Korea 2023 (Q143~Q146)
Labor
Q143 | What is the discrimination rectification system for non-regular workers? |
The discrimination rectification system was newlyintroduced under the Act on the Protection, etc. of FixedTerm and Part-Time Workers and the Act on the Protection,etc. of Temporary Agency Workers. It was introduced toprohibit unfavorable treatment against non-regular workerson the ground of his/her employment status comparedwith other workers engaged in the same or similar kind ofwork at the business concerned in terms of wages or otherworking conditions without any justifiable reasons. Theaforementioned non-regular workers include fixed-termemployees, part-time employees, and temporary agencyworkers, while the aforementioned other workers includenon-fixed term contract workers, full-time employees,and directly-employed workers. Any non-regular workerwho has received discriminatory treatment may request acorrection to the Labor Relations Commission
- The prohibition of discriminatory treatment against non-regular workersis not meant to demand the same treatment as regular workers inall working conditions, but to ban unfavorable treatment without anyreasonable ground. Different treatments are allowed on reasonablegrounds, such as differences in labor intensity, labor quality, authorities,and responsibilities. The discrimination rectification system for nonregular workers applies to all businesses or places of business with fivefull-time employees or more.
Q144 | Is it regarded as a discriminatory treatment if the regulations on holiday and leave are not applied to a part-time employee who works less than 15 hours per week? |
A part-time employee means an employee whose contractualwork hours per week are shorter than those of a full-timeemployee engaged in the same kind of work at the workplaceconcerned. Some regulations do not apply to part-timeemployees whose work hours are significantly shorter thanthose of a full-time employee (those who work less than 15hours per week). The relevant laws are as follows:
- Article 8 (2) of the Act on the Protection, etc. of Fixed-Term and PartTime Workers states that no employer shall give discriminatory treatmentto any part-time employee on the ground of his/her employment statuscompared with full-time employees engaged in the same or similar kindsof work at the business or workplace concerned. There is no differenttreatment per the length of the work hours among part-time employees.
- The Labor Standards Act states that the terms and conditions ofemployment of part-time employees shall be determined on the basisof the relative ratio computed in comparison to those work hours offull-time employees engaged in the same kind of work at the pertinentworkplace. It also states that the criteria and other necessary mattersto be considered shall be prescribed by Presidential Decree. However,according to Article 18 (3) of the same Act, holidays (Article 55) andannual paid leaves (Article 60) do not apply to employees whosecontractual work hours are significantly short (those who work less than15 hours per week). Therefore, not applying the holiday and annual paidleave clauses to employees who work less than 15 hours per week on anaverage of four weeks cannot be considered discriminatory treatment.
Q145 | Can a fixed-term worker whose two-year contract has expired be hired as a temporary agency worker? |
If the employment status has been modified from a fixedterm worker to a temporary agency worker merely toevade the maximum contract period limit for a fixed-termworker (two years), this is technically considered a measureto avoid the regulations of Article 4 of the Act on theProtection, etc. of Fixed-Term and Part-Time Workers. Inthis case, it should be deemed that the fixed-term worker ishired for more than two years under Article 4 (2) of the sameAct, and it is reasonable to regard the worker as havingsigned a non-fixed term employment contract.
Q146 | What is the relationship between the labor- management council and the trade union? |
A labor-management council refers to a consultative bodyformed to help promote peace in industry and to contributeto the development of the national economy by increasingcommon interests of labor and management throughmutual participation and cooperation ooperation by workersand employers under Article 1 of the Act on the Promotionof Workers’ Participation and Cooperation. According toArticle 4 of the same Act, the labor-management councilshall be established at each business or workplace which isvested with the right to decide working conditions; providedthat this shall not apply to any business or workplaceemploying less than 30 people on a regular basis.
- A trade union refers to an organization aimed at maintaining andimproving the working conditions of workers and enhancing theireconomic and social status by guaranteeing the rights of association,collective bargaining, and collective action as prescribed in theConstitution, and contributing to the maintenance of industrial peace andthe development of the national economy by preventing and resolving industrial disputes through the fair adjustment of the labor relationsunder Article 1 of the Trade Union and Labor Relations Adjustment Act.According to Article 5 of the same Act, workers shall be free to establisha trade union or to join it:
- The labor-management council represents all workers in activitiesthat promote the common interests of labor and management, and inconsultations or decisions for labor and management. In contrast, thetrade union represents its members in collective bargaining and makinga collective agreement for maintenance and improvement of workingconditions. Particularly, the rights to collective actions such as industrialactions are guaranteed for the trade union.
Labor-managementconsultation | Collective bargaining | |
Relevant law | The Act on the Promotion ofWorkers’ Participation andCooperation | The Trade Union and LaborRelations Adjustment Act |
Purpose | Enhance productivity, improveworkers’ welfare, increasecommon interests of laborand management | Maintain and improve workingconditions |
Representation | Represent all workers of thebusiness or workplace | Represent the union members |
Parties | Workers’ members andemployers’ members | Trade union and employer(employer’s association) |
Activities | Report overall managementplans and actual results,consult and resolve betweenthe labor and managementon the agenda | Reach a collective agreementthrough collective bargaining |
Industrialactions | Not allowed | Industrial actions are possiblein case bargaining efforts fail toreach an agreement |