"Unpaid Leave Cuts Monthly Salary in Half" COVID-19 Impact Leaves Workers 'In Tears'

Increase in Office Workers Reporting Damage Due to COVID-19
4 out of 10 Office Workers "Experienced Changes in Work or Salary"
Government Operates Anonymous Reporting Center for Leave, Suspension, and Vacation Until June 30

On the 24th of last month, office workers were moving for lunch at the Gwanghwamun intersection in Seoul. Photo by Yonhap News

[Asia Economy Reporter Kim Ga-yeon] "It's like not receiving almost a month's salary."

A job seeker A (25), who is working 40 hours a week, recently said this after being notified of unpaid leave due to the novel coronavirus disease (COVID-19) situation. A said, "I was notified of unpaid leave and rested for three weeks," adding, "After deducting hourly wages, weekly holiday allowances, and so on, it was almost like not receiving any salary."

She continued, "The company may be struggling due to COVID-19, but such a unilateral notice doesn't seem right," expressing frustration, "Workers' livelihoods are at stake, so shouldn't at least their minimum rights be guaranteed?"

As the COVID-19 situation prolongs, some companies have decided on temporary shutdowns or have recommended unpaid leave to employees to reduce economic losses. Among them, the number of office workers complaining about wage cuts and other damages is increasing. Some workers raise their voices against unilateral wage reduction measures as unfair, while others express fear of being forced to resign.

According to a survey, 4 out of 10 office workers experienced salary cuts or unpaid leave after COVID-19.

Last month, a survey conducted by the job portal Incruit on 449 office workers found that 40.8% of respondents answered that their attendance or salary had changed. They cited changes such as 'unpaid leave' (36.1%), 'temporary shutdown' (24.5%), 'wage cuts' (13.0%), and 'recommended resignation' (6.5%). The average wage reduction rate was found to be 22%. The unpaid leave period was identified as 'within 1 week' (30.8%) and 'more than 2 weeks but less than 4 weeks' (38.5%).

There are also voices of concern that if the COVID-19 situation continues, some fear closure or forced resignation. Small and medium-sized enterprises that have suffered significant damage to operating profits appeal that closure is inevitable if such circumstances persist.

B, a worker in their 30s working at a business with fewer than five employees, said, "I recently heard about the closure of another company in the same industry," expressing anxiety, "Smaller companies naturally suffer more damage now. I worry every day that the company might close."

On February 27th, workers and others wearing masks are passing through the Youth Street in Jongno-gu, Jonggak, Seoul. Photo by Yonhap News

Given the situation, there are also concerns that unpaid leave or forced use of annual leave could lead to dismissals or recommended resignations.

According to the Korean Confederation of Trade Unions on the 1st, an analysis of consultations received by 16 labor counseling centers nationwide from February 1 to March 31 confirmed 153 cases of worker damage due to COVID-19.

In February, unpaid leave accounted for the highest proportion of damage cases at 28.2%, but by the end of March, dismissals and recommended resignations were the most frequent at 20.4%. The KCTU pointed out, "Based on the nature of the consultations, it can be seen that initial unpaid shutdowns, forced use of annual leave, shutdown notices, and dismissals/recommended resignations are spreading."

Meanwhile, the government plans to operate an anonymous reporting center so that workers can receive rights protection related to shutdowns, leaves, and vacations.

The Ministry of Employment and Labor recently announced on the 2nd that, following the spread of COVID-19, some companies have been forcing workers to take unpaid shutdowns or annual paid leave, and thus decided to operate an anonymous reporting center. The shutdown/leave/vacation anonymous reporting center will operate from the 6th until June 30.

Reports can be made in cases such as ▲ employers unilaterally implementing shutdowns without paying shutdown allowances when they should, ▲ forcing unpaid leave against workers' will or forcing the use of annual paid leave, ▲ employers not allowing care leave, among others.

Kwon Ki-seop, Director of the Labor Inspection Policy Division, stated, "Through the operation of the anonymous reporting center, we plan to promptly resolve disputes between workers and employers so that workers receive rights protection and employers use government support systems to prevent violations of the law."

This content was produced with the assistance of AI translation services.