Lee Jaegab "Strengthening Employment Retention Support"... Considering Extension of 90% Employment Retention Subsidy

Meeting with Travel Agencies to Hear Difficulties
"Labor-Management Cooperation and Employment Maintenance Amid COVID-19 Challenges"
Rapid Support for Unpaid Leave, Expansion to General Industries from July

Lee Jae-gap, Minister of Employment and Labor / Photo by Jin-hyeong Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] On the 10th, Lee Jae-gap, Minister of Employment and Labor, visited Modetour, a travel agency maintaining jobs by utilizing employment retention subsidies despite the impact of the novel coronavirus infection (COVID-19).

The minister held a meeting with company officials to share experiences of maintaining employment amid difficulties such as a sharp decline in travel demand due to the COVID-19 crisis and to listen to their challenges.

Minister Lee stated, "In the unprecedented economic crisis caused by COVID-19, solidarity and cooperation between labor and management are more important than ever," adding, "The government will support the efforts of labor and management to maintain employment through all possible policy measures."

Modetour, despite a sharp drop in sales since February this year due to COVID-19 and unavoidable employment adjustments, formed a consensus between labor and management to overcome the crisis. Through concessions and cooperation such as executives returning up to 70% of their salaries and implementing a four-day workweek, labor and management are coexisting and maintaining employment.

In particular, from March, paid leave and paid furloughs were implemented, and from May, when the conditions for unpaid leave were met, paid leave, paid furloughs, and unpaid leave were conducted concurrently. They are actively utilizing employment retention subsidies to protect jobs while striving to overcome the management crisis.

Currently, for businesses in special employment support sectors like Modetour (travel industry) to receive unpaid leave employment retention subsidies, labor and management must agree, conduct one month of paid leave, and submit a plan for unpaid leave of 30 days or more to the employment center.

Minister Lee said, "We will ensure the prompt and accurate execution of employment retention subsidies," and added, "From July 1, the rapid support program for unpaid leave will be expanded to general industries, and employment retention loan projects will be newly established to strengthen employment retention support."

Meanwhile, at the 'Tripartite Representatives Meeting for Overcoming COVID-19,' there is ongoing discussion about extending the system that supports up to 90% of small and medium-sized enterprises' leave and furlough allowances with employment retention subsidies. As the impact of COVID-19 prolongs, the support level, which was temporarily increased from April to June, is likely to be applied next month as well.

Employment retention subsidies are a system that supports labor costs (allowances) when companies facing difficult management conditions choose leave or furlough instead of employment adjustment. Previously, the Ministry of Employment and Labor temporarily increased the support level for paid leave and furlough conducted by employers of priority support companies (small and medium-sized enterprises) from 75% to 90% from April 1 to June 30.

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