'Fri-Sat-Sun vs Sat-Sun-Mon'... The Return of Substitute Holidays' "Red Days," Remaining Issues

Expansion of Substitute Holidays: 'Friday' vs 'Monday', Detailed Coordination on Adding Arbor Day and Parents' Day

[Asia Economy Reporter Oh Ju-yeon] Although the bill to expand substitute holidays is likely to pass the June National Assembly session, final adjustments remain regarding the scope and target of holidays, considering the production inducement effect and corporate burden. The standing committee in charge, the Administrative Safety Committee, stated that it will create the optimal plan by considering economic, industrial, labor, and social impacts from multiple perspectives. (Refer to the front page of our June 4 issue)

On the morning of the 16th, the Administrative Safety Committee held a public hearing on the "Legislative Bill for the Legalization of Holidays" and discussed the expansion of substitute holidays with representatives from the Korea Employers Federation and the Korean Confederation of Trade Unions.

On that day, the Korean Confederation of Trade Unions emphasized the necessity of enacting a holiday law. They pointed out that until now, matters related to holidays have been regulated by the Presidential Decree "Regulations on Holidays of Government Offices," which applies to public officials and public institutions but not to small-scale workplaces, causing discrimination. Lee Sang-yoon, Deputy Director of Policy Division 2 at the Korean Confederation of Trade Unions, said, "Although the Labor Standards Act was amended in 2018 to extend to the private sector, workplaces with fewer than five employees were excluded, and substitute holidays were not applied when holidays overlapped with days off such as Saturdays, showing limitations," adding, "To expand to the entire population, holidays should be established by 'law' to guarantee universal rest rights."

However, the Korea Employers Federation clearly expressed opposition. They argued that amid the economic crisis caused by COVID-19 and rising minimum wages, the business environment has worsened, potentially solidifying a dual structure in the employment market. Jang Jung-woo, head of the Korea Employers Federation, said, "Recently, burdens on companies have increased further due to reduced working hours and expanded vacation and holiday systems." The Federation emphasized that as of 2019, South Korea's hourly labor productivity was 40.5%, lagging behind major competitors such as the United States (71.8%), France (67.5%), Germany (66.4%), and Japan (46.8%). They argued that expanding workers' rest is better achieved by utilizing existing systems such as annual leave usage.

Based on the public hearing, the Administrative Safety Committee will hold a bill review subcommittee in the afternoon to examine eight proposed bills. Since a broad consensus has already been reached between the ruling and opposition parties, the bill to expand the substitute holiday system is expected to pass smoothly in the subcommittee. However, detailed coordination is needed on whether substitute holidays should be observed on the preceding Friday or the following Monday.

In an internal poll conducted by Seo Young-kyo, Chair of the Administrative Safety Committee, 45.6% chose Monday, 30.3% chose the preceding Friday, and 15.2% said it does not matter. Several bills proposing additional holidays are also pending, but whether holidays will be expanded to include Arbor Day (April 5) and Parents' Day (May 8) remains to be seen.

Park Wan-soo, a member of the People Power Party and the Administrative Safety Committee's secretary, said, "When elevating holidays to the status of law, the impact on the private sector must be considered," adding, "Detailed discussions are needed on whether the scope of substitute holidays should cover all holidays."

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