Since revision of the Labor Standards Act (LSA), 40 hours workweek system has been adopted by most companies in Korea. The only segment left uncovered by the system at this time is companies with less than 20 employees.
40 hours workweek and related work conditions in the LSA will apply to those companies before the end of 2011. The specific date has yet to be decided by the presidential decree. (Addendum of the LSA)
The problem is most foreign companies in Korea usually starts with employees fewer than 20. This means that those companies are basically under the 44 working hours system under the labor standards act before 2003 revision.
Although, most of starting foreign companies I have seen for the past few years seem to adopt the new 40 working hours system regardless of their size, it won’t hurt them to know what the differences are between the old and new systems.
So here they are.
|
|
44 working hours |
40 working hours |
| Statutory standard working hours |
44 hours a week/ 8 hours a day |
40 hours a week/ 8 hours a day |
| Flexible work hours scheme |
.On a monthly basis - May be adopted with written agreement by the employer and employees - Up to 12 hours a day, 56 hours a week |
.On a 3-month basis -May be adopted with written agreement by the employer and employees -Up to 12 hours a day, 52 hours a week |
| Annual leave and promotion for use of leave |
.Monthly leave: 1 day a month .Annual leave - Length: 10 days for employees with consecutive service of 1 year or longer, and 8 days for those with 90% attendance or higher; an additional 1 day for each following year - Monetary compensation can be paid in lieu for the unused annual leave longer than 20 days. |
.Monthly leave repealed .Annual leave: 15-25 days .15 days for those with 80% attendance or higher of consecutive service of 1 year or longer and an additional 1 day for every following 2 years - 1 day a month for those with service shorter than 1 year .A new provision on promotion of use of leave |
| Optional compensational leave (Compensatory time-off) |
.No provision |
.May be adopted through agreement by the parties concerned - Optional leave in lieu of pay for extended work, night work or holiday work |
|
Menstruation leave |
.1 day a month with pay |
.1 day a month without pay |
| Extended work ceiling |
.Up to 12 hours a week |
.Up to 16 hours a week on a 3-year temporary basis (Article 3 (1) of the Addenda of the LSA) |
| Extended work pay premium |
.Additional 50% or more |
.Additional 25% for the first 4 hours on a 3-year temporary basis (Article 3 (2) of the Addenda) |
| Pay loss compensation |
.No provision |
.The pay level and normal wage hourly rate shall not be lower than before (Article 4 (1) of the Addenda) |
| Modification of collective agreement/ the rules of employment |
.No provision |
.Obligation to make effort to |
|
Youth working |
.Those aged 15 or older but |
.Those aged 15 or older but |
