[K Population Strategy] "Expand 'Splitting Annual Leave' in SMEs"... Discussion on Establishing Flexible Work Arrangements

Korean Women's Development Institute 41st Anniversary Seminar
"One-Third of Childcare Work Hour Reduction System Used by Small Businesses"
Ministry of Employment and Labor: "Annual Leave Management System Must Be Introduced to Small Businesses"
"Amend the Gender Equality Employment Act to Create Mandatory Provisions"

A study has emerged suggesting the need for concrete discussions on enabling work-family balance through the use of flexible work systems in small and medium-sized enterprises (SMEs) where it is practically difficult to take parental leave. In particular, it was proposed that a system allowing the use of not only annual leave but also half-day and quarter-day leave should be established.

On the afternoon of the 18th, the Korean Women's Development Institute held a seminar titled 'Making Flexible Work the New Normal - The Key to Closing the Gender Gap and Solving Low Birth Rates' at its location in Eunpyeong-gu, Seoul, analyzing and discussing the current utilization status of work-family balance systems in Korean society.

Jung Sung-mi, Research Fellow at the Korean Women's Development Institute, is giving a presentation at the seminar titled "Flexible Work as the New Normal - The Key to Closing the Gender Gap and Solving Low Birthrate" held on the afternoon of the 18th at the Korean Women's Development Institute located in Eunpyeong-gu, Seoul.
[Photo by Park Joon-yi]

Low Parental Leave Usage in Small Enterprises and Among Men... High Utilization of Reduced Working Hours System

Researcher Jung Seong-mi, who gave the first presentation, analyzed the utilization rates of various work-family balance systems such as parental leave, reduced working hours during childcare, and flexible work systems, emphasizing the need to increase the utilization rate of flexible work systems in SMEs. Regarding the current status of parental leave usage, she pointed out, "While the number of parental leave users is steadily increasing and the usage rate among eligible individuals in the current year is also rising, the low usage rates among SMEs and men remain a persistent issue." According to Statistics Korea's parental leave statistics, 70.0% of women used parental leave after childbirth in 2022, whereas only 6.8% of men did so.

However, in the case of the reduced working hours system during childcare, it was found that users are predominantly distributed in small-scale enterprises. Researcher Jung analyzed, "Users in small businesses with fewer than 10 employees and large enterprises with more than 300 employees each account for about one-third," and speculated, "Small businesses tend to prefer reduced working hours rather than leave due to concerns about work gaps." This means that in small businesses with low parental leave usage, the reduced working hours system is more frequently used to prevent work gaps.

[Source: Korean Women's Development Institute]

The utilization rate of flexible work systems among married individuals aged 30 to 44 was found to be relatively high, with about 25% for men and about 20% for women. However, in smaller enterprises (fewer than 10, 10-29, 30-99 employees), women had higher utilization rates than men, whereas in larger enterprises with 100 or more employees, men’s utilization rates were higher.

Labor Time Adjustment Guaranteed by the Act on Equal Employment and Support for Work-Family Balance... Need for Mandatory Regulations

Next, researcher Koo Mi-young explained in her presentation that there is a normative basis for workers providing family care to adjust their working hours. According to Article 19-5, Paragraph 5 of the Act on Equal Employment and Support for Work-Family Balance, employers must strive to take measures such as ▲adjusting start and end times of work ▲restricting overtime work ▲adjusting working hours to support workers raising children under the age of 8 or in the second grade of elementary school or younger.

She noted, "There is an advantage in that it reduces the burden of career interruption or wage loss," but also diagnosed, "However, there is a limitation in that it is a duty to strive rather than a mandatory obligation." She then proposed, "It is necessary to revise the law to establish a mandatory obligation for employers to reasonably review requests for working hour adjustments through consultation between labor and management."

Family-Friendly Certification System Applied Companies... Effectiveness of Maternity Leave Usage

Additionally, Deputy Researcher Shin Woo-ri analyzed that companies applying the Ministry of Gender Equality and Family’s family-friendly certification system showed significant effects in the use of maternity leave. She explained, "In particular, among 603 responding companies, when asked about their intention to apply for certification if tax incentives were expanded, 58.2% expressed willingness to apply if corporate tax reductions were provided."

On the afternoon of the 18th, panelists are engaged in discussion at the seminar titled "Making Flexible Work the New Normal - The Key to Closing the Gender Gap and Solving Low Birth Rates," held at the Korean Women's Development Institute located in Eunpyeong-gu, Seoul.
[Photo by Park Joon-yi]

Need to Expand Flexible Work Management Systems and Related Discussions

Participants in the discussion focused on ways to realistically enable the use of flexible work systems in SMEs. Lim Young-mi, Director of the Integrated Employment Policy Bureau at the Ministry of Employment and Labor, said, "We are considering how to encourage the use of parental leave and reduced working hours when necessary," adding, "It is necessary to introduce a management system that allows the use of annual leave, half-day leave, and quarter-day leave in SMEs." She also suggested to the Ministry of Gender Equality and Family, "We could try implementing a system that allows splitting annual leave mainly in family-friendly certified companies, and if the Ministry of Employment and Labor supports the system, it could spread much more."

Researcher Jung also emphasized, "We need to discuss where and to what extent telecommuting is possible," adding, "During the research process, we found no data that properly captured the rapid expansion of flexible work since 2019. It is time for multifaceted research related to flexible work."

Professor Jang Soo-jung of Dankook University’s Department of Social Welfare said, "It is important that universal norms regarding caregiving are institutionalized and established as organizational culture in all workplaces," and added, "I hope that more concrete discussions on system improvements will be expanded."