Applications for 1.5 Million KRW Payment to Unpaid Leave Workers Start Tomorrow... Reviewing Eligibility Requirements

Ministry of Employment "Unpaid Leave Rapid Support Program Expanded to All Industries"
Applications Accepted from the 15th... Employers Must Apply and Obtain Approval Monthly
Special Employment Support for Shipbuilding Extended by 6 Months... Excluding the Big Three Companies

Asia Economy DB=Photo by Honam Moon munonam@

[Asia Economy Reporter Kim Bo-kyung] The government's 'Unpaid Leave Rapid Support Program,' which provides up to 1.5 million KRW to workers on unpaid leave, will begin accepting applications tomorrow (the 15th). Employers must submit an employment retention action plan at least 7 days before implementing unpaid leave.

The Ministry of Employment and Labor announced on the 14th through a press release that the Unpaid Leave Rapid Support Program will be expanded to all industries and will start accepting applications from the 15th.

Accordingly, employers can submit employment retention action plans from the 15th for unpaid leave to be implemented after July 1. Employers of workplaces that conduct unpaid leave until December 31 of this year can apply for support funds monthly, and up to 1.5 million KRW will be paid directly to the workers.

Revenue Decline, Labor-Management Agreement... What Are the Requirements for Unpaid Leave Support?

To receive support funds, ▲ employers who have no choice but to adjust employment ▲ must meet the legal requirements for unpaid leave. To determine the inevitability of employment adjustment, supporting documents showing inventory levels increased by more than 50% compared to the previous year, or sales and production volume decreased by more than 30%, are required.

Additionally, unpaid leave must be implemented for at least 30 days following one month of paid leave to be eligible for support. If the unpaid leave plan is approved by meeting the rapid support requirements, up to 1.5 million KRW will be paid to the worker in installments of 500,000 KRW per month for up to 3 months.

Prior labor-management agreement is also necessary. To prove this, minutes of labor-management council meetings, labor-management agreements, or individual worker consent forms must be submitted. A Ministry of Employment official stated, "Labor-management agreement is an essential requirement," adding, "Support funds are paid based on labor-management agreement, including individual worker consent."

Workplaces with Fewer Than 10 Employees, No Overlapping or Retroactive Support

Large companies can apply, but companies with fewer than 10 employees cannot. A Ministry of Employment official explained, "In small workplaces, labor-management parity is weak, and unpaid leave is likely to be implemented by the employer's unilateral decision," adding, "To minimize infringement on workers' rights, workplaces with fewer than 10 employees are excluded."

Even in workplaces with 10 or more employees, at least 10 insured workers must be on unpaid leave to receive support. Also, insured workers who acquired their insured status before February 29 of this year are eligible.

During the period of receiving support funds, the same worker cannot receive overlapping support such as employment promotion incentives, employment creation incentives, elderly employment extension support, or youth additional employment incentives.

Unpaid leave conducted before July 1 is not eligible for retroactive support. The Ministry of Employment explained, "Retroactive support makes it impossible to verify actual unpaid leave, increasing the risk of fraudulent claims and system abuse."

If unpaid leave is not implemented according to the employment retention action plan or support funds are obtained fraudulently, payment restrictions and disadvantages such as additional collection up to five times the amount may be imposed.

Extension of Special Employment Support for Shipbuilding Industry... Large Three Companies Excluded

Meanwhile, the Ministry of Employment has decided to extend the support period for the special employment support sector for the shipbuilding industry, which was scheduled to end at the end of this month, until December 31, extending it by six months.

However, the large three companies?Samsung Heavy Industries, Daewoo Shipbuilding & Marine Engineering, and Hyundai Heavy Industries?and their affiliates are excluded from the support.

This extension review of the special employment support sector was conducted following the submission of an extension application by the Korea Shipbuilding & Offshore Plant Association. The decision was made after comprehensively considering recent industry trends, employment indicators, and results from on-site monitoring meetings.

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