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Newsletter | July 2016, Issue 2
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LABOR & EMPLOYMENT
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New and Revised Guidelines on the Protection of Non-Regular Workers Now In Effect
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As a follow up to its recent policy announcement on plans to curb labor market duality to promote fair employment for both employers and employees, the Ministry of Employment and Labor (“MOEL”) announced implementation measures to the policy by introducing “Guidelines on Fixed-Term Workers’ Security of Employment.” Simultaneously, the MOEL also amended “Guidelines on Protections for In-House Subcontracted Workers” (collectively, the “Guidelines”).
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The main provisions of the Guidelines are outlined below:
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Guidelines
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Main Provisions
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Guidelines on Fixed-Term Workers' Security of Employment (new)
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Employers are advised to convert employees who engage in routine and continuous work from "fixed term" contracts to "indefinite term" contracts.
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Work types subject to conversion: Works continued year-round for the last two years or more, and expected to continue in the future.
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Employees subject to conversion: Fixed term employees whose contract has not expired (including those who have worked less than two years).
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Discrimination against fixed-term workers who engage in the same or similar work as regular workers is prohibited.
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Unreasonable discrimination in terms of benefits reasonably expected to apply to all workers is prohibited (such as holiday gifts and meal allowances).
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Guidelines on Protections for In-House Subcontracted Workers (amended)
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The principal company must endeavor to guarantee fair amounts for the subcontract fee it pays to the contractor. This is to prevent unreasonable discrimination against subcontracted workers regarding wages and working terms (compared to employees of the principal company who engage in the same or similar work as the subcontracted workers).
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The purpose of the Guidelines is to narrow the gap between regular and non-regular workers by prohibiting discrimination, and by encouraging conversion of fixed-term workers to indefinite term workers.
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The Guidelines emphasize the importance of protecting non-regular workers through proactive participation of the industrial sector, and to encourage an atmosphere of fair employment.
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Impact
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Going forward, the MOEL stated that it will strengthen monitoring of employers' compliance with the Guidelines by establishing an expert advisory committee, which will focus on discrimination against non-regular workers during the MOEL's regular workplace audits.
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The MOEL emphasized that it will take any necessary administrative measures if it finds any non-compliant practices.
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Back to Main Page
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