The following are our updates on important HR/labor law amendments that will be pertinent to companies in 2022.

1.   Serious Accidents Punishment Act (“SAPA”) to go into effect on January 22, 2022 for businesses with 50 or more employees

• SAPA seeks to secure the safety and health of workers in the workplace or the general public by holding the top decision maker of the business accountable for “serious accidents.”

• The responsibilities of employers and responsible management personnel under the SAPA include establishing a safety and health management system that covers workforce and budgetary issues, implementing necessary plans to prevent recurrence of serious accidents, and taking necessary measures to ensure compliance with relevant safety and health-related laws.
   

2.   Substitute Holidays Expanded

• With the enactment of the Public Holidays Act, starting January 2022, employers must grant the next business day as a substitute holiday in cases where a national holiday (Independence Movement Day (March 1), Independence Day (August 15), National Foundation Day (October 3) and Hangul Proclamation Day (October 9)) or Children's Day (May 5) falls on a Saturday or Sunday. The substitute holidays must be treated as paid holidays.

• However, substitute holidays will not be granted for New Year’s Day (January 1), Buddha’s Birthday (April 8 in the lunar calendar), Memorial Day (June 6) and Christmas (December 25), even if such public holidays fall on Saturday or Sunday.
   

3.   Employees can now seek relief at the Labor Relations Commission for gender discrimination and sexual harassment

• Starting May 19, 2022, if an employer displays sexual discrimination in recruitment, hiring, wages, educational opportunities, promotions, or retirement policies, fails to appropriately address the concerns of a victim of sexual harassment, or terminates the employment of or otherwise penalizes a victim who reports sexual harassment, the victim may seek remedy through the Labor Relations Commission.

• This change opens up the possibility for the Labor Relations Commission to issue corrective orders to an employer (which may include ordering the employer to cease such discriminatory acts, amend its working terms and conditions under the rules of employment or collective bargaining agreement, or pay out appropriate compensation (of up to three (3) times the amount of damages)). Failure to comply with a finalized corrective order without justifiable grounds may result in an administrative fine of up to KRW 100 million.
   

4.   Support system for employees returning to work after an industrial accident

• From January 1, 2022, the Korea Workers' Compensation and Welfare Service can request an employer to set up a support system for victims of industrial accidents who are returning to work. This support system will be geared towards employees who require long-term medical care after an industrial accident or those who are expected to have a disability after medical care.
   

5.   The minimum hourly wage is KRW 9,160 in 2022

• The minimum hourly wage in 2022 is KRW 9,160, which is a 5.05% increase from the 2021 minimum hourly wage of KRW 8,720.

• Regular bonuses exceeding 10% of the 2022 minimum hourly wage calculated on a monthly basis (KRW 1,914,440 based on a 209-hour work month) will be included in the calculation of minimum wage. Cash welfare benefits in excess of 2% of such monthly minimum wage will be included in the calculation of minimum wage as well. The scope of items to be included in the calculation of minimum wage will continue to be expanded through 2024.

In addition, the following are key changes to HR and labor laws that took effect in the second half of 2021:
 

1.   Duty to provide written wage statements (Effective as of November 19, 2021)

• Employers must issue written wage statements that lay out the total wage, the amounts of each wage item (including how each item is calculated if its amount varies depending on the number of days and hours worked), the number of overtime, nighttime or holiday work hours, and details of any deduction of wages. This written wage statement may be issued electronically.

• The exact number of overtime hours worked, as well as how the relevant wage was calculated, should be included in the wage statement.
   

2.   Expanded authority of the Labor Relations Commission (Effective as of November 19, 2021)

• The Labor Relations Commission can now issue a remedy order even for an employee whose fixed-term employment has expired or who has reached retirement age. Accordingly, even in cases where it is not possible for the company to reinstate the employee to his/her former position due to expiry of the contract term or reaching statutory retirement age, the LRC may issue a remedy order requiring the employer to make payment for backpay for the period of dismissal if the dismissal is found to be wrongful.

• The upper limit of the penalty for noncompliance with the LRC’s remedy order, which was KRW 20 million for each instance of noncompliance (which can be levied up to 4 times in total), has now been increased to KRW 30 million (with no change to the frequency).
   

3.    Adjustment of work start/finish times for pregnant employees (Effective as of November 19, 2021)

• The start and finish times of work for a pregnant employee must be adjusted upon her request as long as the employee continues to work her prescribed daily working hours.
   

4.   Stronger workplace harassment rules (Effective as of October 14, 2021)

• Prior to this amendment, an employer that received a report or became aware of harassment in the workplace was obligated to promptly conduct an investigation and take appropriate measures but could not be penalized for failure to comply with these obligations.

• From October 14, 2021, if an employer or certain members of his/her family engages in workplace harassment, an administrative fine not exceeding KRW 10 million may be imposed.

• In addition to the obligation to conduct a prompt investigation and take necessary measures, the amendment also imposes a confidentiality obligation on parties involved in the workplace harassment investigation. Violation of these obligations may result in an administrative fine of up to KRW 5 million.
   

5.   Childcare leave during pregnancy available (Effective as of November 19, 2021)

• Previously, childcare leave was available for male or female employee with a child under the age of 8 or in the second grade of elementary school or below. From November 19, 2021, however, childcare leave has become available for pregnant female employees as well.

• The overall period of childcare leave may not exceed one year and childcare leave can be split up to two times, the same as before. However, childcare leave during pregnancy will not be deducted from the allowed number of split uses.
   

6.   Amendment to the Occupational Safety and Health Act to enhance protection of employee health (Effective as of October 14, 2021)

• Previously, the obligation to take measures to protect workers from verbal abuse from customers was stipulated only for those who employ customer service workers. Starting October 14, 2021, all employers have an obligation to take necessary measures, such as temporary suspension, reassignment of work, or extension of the recess period, to protect workers who are exposed to verbal abuse from third parties such as customers if a health issue arises or is highly likely to arise.

[Korean version]