SME Industry: "Application of Labor Standards Act to Workplaces with Fewer Than 5 Employees? We Will Not Stand By"

Asia Economy DB=Photo by Moon Honam munonam@

[Asia Economy Reporter Kim Bo-kyung] The small and medium-sized enterprise (SME) sector has expressed concerns over the National Assembly and labor unions' moves to apply the Labor Standards Act to workplaces with fewer than five employees.

The Korea Federation of SMEs issued a statement on the 9th, saying, "The two major labor unions have announced a declaration calling for the full application of the Labor Standards Act to workplaces with fewer than five employees, and the National Assembly plans to hold a related public hearing," adding, "The 6.88 million SMEs and small business owners cannot help but express serious concerns."

They pointed out that the ongoing COVID-19 crisis has worsened the management difficulties of small business owners and self-employed individuals, and that the government's compensation scheme falls far short of the demands from the field.

They raised their voices, saying, "In the unprecedented pandemic situation, the National Assembly's discussion on applying the Labor Standards Act to workplaces with fewer than five employees ignores the urgency and difficulties faced by SMEs and small business owners, while unreasonably accepting the one-sided claims of the labor sector."

They continued, "Applying the Labor Standards Act to workplaces with fewer than five employees is highly likely to push small business owners and self-employed individuals to the brink and cause employment instability for workers," adding, "The SME sector, especially small business owners, will never stand idly by in such a situation."

Finally, they said, "We hope that the National Assembly and the government will once again deeply consider the realities faced by SMEs and small business owners."

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