FKCCI: "Han Must Innovate Labor System to Meet Global Standards"

Rigid Working Hours in South Korea, Strict Penalties for Employers
Major Countries Apply Various Exceptions

Provided by the Federation of Korean Industries

[Asia Economy Reporter Kim Pyeonghwa] A survey revealed that South Korea's labor hours and dispatch system operation are more rigid compared to major countries. It also included findings that the strike system is regulated in favor of labor unions and that penalties for employer violations are severe. Consequently, there are calls to innovate labor systems that do not meet global standards.

On the 2nd, the Federation of Korean Industries (FKI) compared five systems?▲working hours, ▲strikes, ▲labor-management relations, ▲dispatch and fixed-term employment, and ▲penalties?with major countries such as the United States, the United Kingdom, Germany, France, and Japan, announcing these results.

South Korea's Working Hours System Is Strict... Major Countries Apply Various Exceptions

According to the FKI survey, South Korea's working hours system is more strictly regulated than in major countries. South Korea's statutory working hours are regulated both daily (8 hours per day) and weekly (40 hours per week), whereas the United States and the United Kingdom regulate only on a weekly basis, and Germany limits working hours on a daily basis. South Korea strictly limits overtime to 12 hours per week, but the United States has no such limit, Japan manages overtime on a monthly or yearly basis, and France controls overtime within an annual total volume.

Flexible working hour systems are also more rigid in South Korea compared to major countries. South Korea's unit periods for flexible and selective working hours are 6 months and 1 month, respectively, the shortest among major countries. Flexible working hours can be up to 1 year in the United States, Japan, Germany, and the United Kingdom, and up to 3 years in France. The unit period for selective working hours can be set by labor-management agreement in the United States, Germany, the United Kingdom, and France, making their systems more flexible than South Korea's.

Unlike South Korea, the United States, Japan, Germany, and the United Kingdom operate various exceptions to working hour regulations tailored to the characteristics of each job. The United States and Japan have 'White Collar Exemption' and 'Highly Professional' systems that exclude high-income and professional workers from working hour regulations. Germany has a 'working time account system' that allows saving overtime and taking time off when desired, and the United Kingdom has 'zero-hour contracts' where workers are paid hourly without fixed working hours.

The FKI stated, "Since the spread of COVID-19, the concepts of working hours and workspaces have changed in workplaces," and argued, "It is necessary to reform the working hours system and redesign flexible working hours systems to support workers working autonomously, free from time constraints."

Limited Use of Dispatch and Fixed-Term Employment... "Flexible Labor Laws Needed"

Unlike major countries, South Korea prohibits employers from hiring replacements, subcontracting, or dispatching substitute workers to cover work stopped by labor strikes. It also partially and concurrently allows workplace occupation. In contrast, major countries define workplace occupation during disputes as illegal, aiming to protect employers' property rights, possession rights, and freedom of business. The United States and Germany can refuse entry of non-participating workers to the workplace, but South Korea allows entry.

The FKI stated, "While labor unions have various rights during strikes, employer rights are insufficient," and added, "To minimize industrial damage, it is necessary to allow substitute labor and prohibit workplace occupation in line with global standards."

The FKI also claimed that South Korea's use of dispatch and fixed-term employment is limited compared to other countries. In South Korea, the scope of dispatch is limited to 32 categories such as security and driving. The usage period for fixed-term workers and dispatch workers is also limited to a maximum of 2 years. In contrast, the United States and the United Kingdom have no restrictions on industries related to dispatch and fixed-term employment, and the periods can be indefinite. Japan allows dispatch workers in all fields except construction and medical care, with no limit on the dispatch period.

Penalties for employer violations of labor relations laws in South Korea are also stricter than in major countries. South Korea imposes fines followed by imprisonment for violations of labor laws such as the Labor Standards Act, Industrial Safety Act, and Serious Accident Punishment Act, whereas major countries impose fines for labor law violations. Some countries impose imprisonment only when violations are intentional and repeated. According to the FKI, South Korea's Serious Accident Punishment Act has a broad scope of targets and strict levels of punishment.

Choo Kwang-ho, head of the FKI's Economic Headquarters, said, "It is necessary to move away from rigid and uniform labor laws of the past to flexible labor laws suitable for changing industrial structures and worker awareness levels," and added, "Labor reform aligned with global standards should be promoted based on public consensus."

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