Guro-gu, Seoul's First 'City Without Layoffs' Declaration

To Encourage Employment Insurance Enrollment, District Office Supports 6 Months of Employer Contributions...Supports 6 Months of Employer Contributions for Employment Retention Subsidy During Employee Paid Leave...On the 12th, District Office, Businesspeople, and Labor Groups Hold 'Guro, a City Without Layoffs' Win-Win Declaration Ceremony

[Asia Economy Reporter Jong-il Park] “Businesses, workers, and district offices join hands to protect jobs!”

Guro-gu (District Mayor Lee Seong) has declared itself the first autonomous district in Seoul to become a ‘No Layoff City.’

Guro-gu stated on the 16th, “Due to the prolonged COVID-19 pandemic, the economy has contracted, threatening jobs. We plan to build a social safety net to prevent situations where companies lay off employees due to management difficulties and create a ‘No Layoff City.’”

The ‘No Layoff City’ refers to a city where companies maintain employment, and local governments support companies to stabilize jobs. It was planned with the intention that economic actors such as local governments, companies, and employees share the burden and coexist amid increased employment insecurity caused by COVID-19.

Guro-gu has prepared various support measures for companies participating in the ‘No Layoff City’ initiative.

First, for companies not enrolled in employment insurance, the district will fully support the employer’s share of the ‘Durunuri Social Insurance (Employment Insurance and National Pension)’ for six months to enable them to enroll in employment insurance. If a company joins the Durunuri support program of the Korea Workers’ Compensation & Welfare Service and prepays the insurance premiums, the district office will subsidize it.

For companies enrolled in employment insurance, the district office will cover the employer’s share of the Employment Maintenance Subsidy, which must be paid when employees take paid leave, for six months. This is to create conditions allowing paid leave instead of layoffs. Companies apply for the Employment Maintenance Subsidy at the Employment Welfare Center, prepay the employer’s portion, and then claim reimbursement from the district office.

Additionally, Guro-gu plans to offer benefits such as deferred local tax payments and reductions in occupancy fees to all participating companies. Companies wishing to participate can apply through the district office website starting from the 22nd. For more details, inquiries can be made to the district office’s Regional Economy Division (860-2855).

To this end, on the 12th, Guro-gu held a ‘No Layoff City Guro’ coexistence declaration ceremony at the Guro Digital Complex Venture Business Association’s main conference room.

About 30 officials attended, including District Mayor Lee Seong, Guro District Council Chairman Park Chil-seong, Seoul Regional Small and Medium Venture Business Administration Director Kim Young-shin, Seoul Chamber of Commerce Guro District Chamber of Commerce, Korea Digital Complex Entrepreneurs Federation, Seoul Digital Industrial Complex Managers Association, Venture Business Association, Labor-Management Development Foundation, Seoul Guro Small Business and Self-Employed Association, Seoul Guro Small Business Federation, National Pension Service Guro Geumcheon Branch, Korea Industrial Complex Corporation Seoul Regional Headquarters, Korean Confederation of Trade Unions Seoul Southern District Council, and Federation of Korean Trade Unions Seoul Southwest Regional Labor Union Council. The event included reading the declaration and signing ceremonies.

A Guro-gu official said, “Although everyone is facing difficult circumstances, we ask business owners for their keen interest and participation to protect jobs, which are the foundation of the local economy. We will do our best to create a dense employment safety net to overcome the COVID-19 economic crisis early.”

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