KEF Submits 20 Proposals to National Assembly: "Clarify Definition of Employer in Yellow Envelope Law"

The Korea Employers Federation (KEF) announced on November 4 that it had submitted the "2025 Second Half Legislative Proposals from the Business Community," which consists of 20 key issues aimed at revitalizing the economy and strengthening corporate competitiveness, to the National Assembly.

The business community's proposals were categorized into three groups for the remaining month of the regular National Assembly session: ▲ bills that need to be introduced, ▲ pending bills that require swift passage, and ▲ pending bills that require careful review.

Korea Employers Federation

First, the KEF proposed a legislative amendment to the so-called Yellow Envelope Law (amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), suggesting that the definition of "employer" be clarified as "a person who has decision-making authority comparable to that of the direct employer regarding working conditions." The KEF stated, "Despite the recent amendment to Article 2 of the Trade Union Act, there have been cases where subcontractor unions indiscriminately demand collective bargaining from the principal contractor. Therefore, clarifying the scope of 'employer' is necessary to minimize confusion in the field."

The KEF also urged that the working hours system, which is currently pending in the National Assembly's standing committees, be promptly improved. Since the current working hours system makes it difficult to respond quickly to changes in the business environment, the KEF proposed changes such as modifying the unit for managing overtime work, introducing exemptions for research and development as well as for high-income and professional positions.

Furthermore, the KEF explained that, following recent amendments to the Commercial Act, the increased corporate burden is being exacerbated by the crime of breach of trust, which is discouraging even normal business activities. The KEF called for the prompt passage of improvement bills, including the abolition of the crime of breach of trust under the Commercial Act and the Act on the Aggravated Punishment of Specific Economic Crimes, and the abolition or relaxation of the crime of breach of trust under the Criminal Act.

Regarding pending bills, the KEF suggested that the extension of the statutory retirement age should be carefully reviewed. The KEF also expressed concerns that extending the retirement age could intensify generational conflict and deepen the dual structure of the labor market, and proposed the enactment of a separate law to promote the reemployment of older workers.

Lee Donggeun, Executive Vice Chairman of the KEF, stated, "We hope the National Assembly will pay closer attention to the voices from the field to understand what businesses truly need in this rapidly changing business environment," adding, "We will actively present the opinions of the business community, focusing on the relevant standing committees."

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