We summarize some of the key amendments to Korea’s labor and employment-related legislations for 2020 as follows: 
 

1.   Public holidays for government offices will be paid holidays for private companies as well and will take effect in phases depending on the number of employees (Article 55 (2) of the Labor Standards Act (the “LSA”), effective as of January 1, 2020)
 

Private employers will be obligated to provide their employees paid holidays on public holidays of government offices, including traditional holidays (Lunar New Year’s Day and Chuseok), national holidays and substitute public holidays.  In order to substitute public holidays, employers are required to execute a written agreement with the employee representatives.

The amendment will take effect in three phases depending on a company’s headcount over a period of two years.

• Private businesses with 300 or more employees, state and local governments, and public organizations: January 1, 2020
• Private businesses with 30-299 employees: January 1, 2021 
• Private businesses with 5-29 employees: January 1, 2022 

2.   Introduction of family care leave (Article 22 (2) of the Equal Employment Opportunity and Work-Family Balance Assistance Act (the “Equal Employment Act”), effective as of January 1, 2020)
 

From January 1, 2020, employees may use “family care leave” for up to ten days in case of a family member’s illness, accident or old age, or to take care of a child (the ten days may be used in one day increments, and the days used for family care leave are included in the leave of absence period for family care).

In addition, from January 1, 2020, an employee may use family care leave or a leave of absence for family care in order to care for his/her grandparents or grandchildren (previously, family care leave or a leave of absence for family care was only allowed for an employee to take care of his/her parents, spouse, children or spouse’s parents).

3.   Introduction of reduction in working hours for family care (Articles 22 (3) and (4) of the Equal Employment Act; effective in phases depending on the company size, effective as of January 1, 2020)
 

From January 1, 2020, when an employee working in a public or private workplace with 300 or more regular employees applies for a reduction in his/her working hours in relation to “family care, his/her own health conditions, preparations for retirement (for those who are 55 years or older) or school work/studies,” the employer will permit the employee to work for the reduced number of working hours.

• Private businesses with 300 or more employees, state and local governments, and public organizations: January 1, 2020
• Private businesses with 30-299 employees: January 1, 2021 
• Private businesses with 5-29 employees: January 1, 2022 

The reduced working hours will be at least 15 hours per week but not exceed 30 hours per week.

The duration of reduced working hours will not exceed one year, but upon reasonable grounds may be extended for up to two additional years (however, no extension is allowed if the reason for the extension is “school work/studies”).

4.   Enforcement of the amended Occupational Safety and Health Act (the “OSHA”) (effective as of January 16, 2020)
 

To accommodate recent changes in the industrial sector, the OSHA was amended to improve the overall legal framework through broadening the scope of statutory protection and prohibiting companies from contracting out dangerous and harmful work.  The amended OSHA became effective as of January 16, 2020.  The key changes are as follows:

• The scope of protected class has been expanded from “employees” to “persons providing labor.” (Article 1, Articles 77-79)
• Responsibilities for workplace health and safety on part of representative directors of joint stock companies (in Korean, jusik hoesa) prescribed by the Presidential Decree have been strengthened—now representative directors will be required to prepare plans for workplace health and safety, which will be reported annually to the respective board of directors for their approval. (Article 14) 
• Regulations and penalties regarding the subcontracting of “outsourcing of risks” have been strengthened. (Articles 58, 63 and 65)
• The Ministry of Employment and Labor’s ability to issue work suspension orders in case of serious casualties such as fatalities has been strengthened. (Article 53)
• Responsibilities for industrial accident prevention on the part of construction project owners have been strengthened. (Article 67) 
• Material Safety Data Sheet (“MSDS”) preparation/filing obligations and pre-screening system for trade secrets have been introduced for those who intend to manufacture or import chemical products falling under the Globally Harmonized System of Classification and Labelling of Chemicals (“GHS”). (Articles 110 and 112) 
• Penalties related to the occurrence of industrial accidents have been increased. (Articles 167 and 174)

5.   Hourly minimum wage of KRW 8,590 in 2020 (effective as of January 1, 2020)
 

The minimum wage for 2020 is KRW 8,590 per hour, which increased by KRW 240 (approximately 2.9%) from KRW 8,350 in 2019.

Regarding the inclusion of fixed bonuses and welfare benefits in the minimum wage calculation, the portion of fixed bonuses which are in excess of 20% of the monthly minimum wage of 2020 (KRW 8,590 x 209 (hours) = KRW 1,795,310) and the portion of welfare benefits which are in excess of 5% of the monthly minimum wage of 2020 are included in the minimum wage calculation (the scope will be incrementally expanded from 2019 to 2024).

The changes made to major labor laws from 2020 affect key aspects of employee working conditions, such as holidays, leaves and working hours, and are therefore of great interest to employees.  In addition, as employers face stricter workplace regulations under the newly amended OSHA, we advise employers to review the relevant laws and regulations and establish business strategies accordingly.