[Takryucheongron] A Grace Period for the 52-Hour Workweek System Is Needed for Small and Medium Enterprises

Lee Jung, Professor at Hankuk University of Foreign Studies Law School

The one-year grace period for the 52-hour workweek system for small and medium-sized enterprises (SMEs) will end at the end of this year. This grace period was granted to allow preparation time, as a sudden reduction in working hours could cause confusion in the industrial field. However, due to the prolonged COVID-19 pandemic, many businesses focused on recovering losses, making it difficult to prepare effectively. Discussions in the National Assembly on institutional improvements to accommodate reduced working hours, such as flexible work systems, were also insufficient. As a result, many SMEs are earnestly requesting an extension of the grace period for the 52-hour workweek system until the COVID-19 situation stabilizes, management normalizes, and flexible work systems like the flexible working hours system are supplemented.

In particular, the manufacturing industry, which has been hit hard by COVID-19, has seen the loss of 160,000 jobs just this year, indicating severe management difficulties. If the 52-hour workweek system is fully implemented from next year, the situation is expected to worsen further. For example, in small manufacturing industries such as the root industry, where overtime work is routine, the implementation of the 52-hour workweek system will drastically reduce the maximum weekly working hours from 68 to 52. This reduction, combined with already difficult conditions due to COVID-19, could deal a fatal blow to companies due to the need for workforce expansion and increased additional costs.

Meanwhile, some critics argue that extending the grace period again could undermine the policy of reducing working hours. The government plans to stabilize the 52-hour workweek system by linking government subsidies and expert consulting, having already provided a one-year grace period. While there is agreement on the purpose of improving long working hour practices and securing workers' health rights, the implementation should consider the difficulties and preparation status of SMEs to mitigate the shock caused by the sudden reduction in working hours and ensure a smooth transition to the 52-hour workweek system. To this end, it is appropriate to postpone implementation at least until flexible work systems are improved to alleviate the impact of reduced working hours.

First, to reduce the burden on SMEs caused by the reduction in working hours, it is essential to expand and reform the flexible working hours system. Both ruling and opposition parties already agree on this. Last year, the Economic, Social and Labor Council reached an agreement to extend the unit period of the flexible working hours system from the current three months to six months. Therefore, it is necessary to extend the flexible working hours system period to at least six months and also expand the settlement period for the selective working hours system from the current one month to at least three months. Recently, the ruling party leader, during a meeting with SMEs and small business owners, stated that since the flexible working hours system and selective working hours system have not yet been legislated and are currently managed by temporary administrative measures, it is necessary to legislate them this year. The reform of the flexible working hours system and selective working hours system is ultimately a matter of will and should not be delayed any longer.

Additionally, while the 52-hour workweek system should be the principle, it is necessary to allow flexible operation of working hours in cases of disasters or other unavoidable reasons. Under the current Labor Standards Act, extended work up to 12 hours per week is allowed only if agreed upon by the parties involved. However, in special circumstances such as natural disasters or accidents, workers may work beyond 12 hours per week with the approval of the Minister of Employment and Labor. Meanwhile, industries such as IT companies, which need to concentrate work before new product launches, or manufacturing industries like shipbuilding, where cargo volume is variable and heavily influenced by climate, require intensive overtime work to meet deadlines. Under the 52-hour workweek system, meeting delivery deadlines is almost impossible. Therefore, considering the characteristics of each industry, it is necessary to allow the use of a special extended working hours system and, like in Japan, enable flexible use of extended working hours on a monthly or yearly basis with labor-management agreement, rather than on a weekly basis. Under the pretext of promoting a life with evenings off, we must not threaten the survival rights of SMEs and small business owners.

Lee Jung, Professor, Graduate School of Law, Hankuk University of Foreign Studies

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