The Ministry of Employment and Labor (the “MOEL”) recently announced the revised “Guideline for Employment Stabilization and Protection of Working Conditions for Fixed-Term Workers” (“FT Guideline”) and “Guideline for Employment Stabilization and Protection of Working Conditions for Subcontract Workers” (“SW Guideline,” collectively “Guidelines”). The two Guidelines are intended to improve working conditions of fixed-term workers and subcontract workers and encourage employers to comply with their obligations under the Guidelines. Set forth below is a summary of the revised Guidelines.
The revised FT Guideline recommends that employers hire workers performing “regular and continuous works” on employment agreements without a specific expiration date. The revised FT Guideline expanded the scope of the term “regular and continuous works” to include “works that are expected to continue for the next two years.” Moreover, the revised FT Guideline recommends that employers refrain from entering into short-term employment agreements or having gaps in between employment agreements without a justifiable reason. In addition to the prohibition of discrimination in employee welfare for fixed-term employees who perform works not performed by regular employees at the same workplace, the revised FT Guideline also prohibits discrimination in benefits and working conditions that are not explicitly specified in the employment agreement (e.g., access to certain company facilities or entertainments provided by the company). Other forms of prohibited discrimination under the revised FT Guideline include discrimination in fixed-term employees’ use of childcare leave and the company’s daycare center, among others.
Meanwhile, the most notable change in the revised SW Guideline is the inclusion of provisions on industrial safety and improvement of working conditions for subcontract workers. For instance, the revised SW Guideline recommends that the subcontracting agency (i) process hazardous and dangerous works directly instead of leaving it to the subcontract workers, (ii) provide relevant safety and health information, and (iii) take appropriate safety and health measures. Moreover, under the revised SW Guideline, subcontracting agencies are to focus on improvement of welfare of subcontract workers by establishing and contributing to employee welfare funds and ensure prevention and punishment against workplace harassment and sexual harassment.
The MOEL will distribute the revised Guidelines and encourage compliance through labor inspectors and the Employment Improvement Support Group for Non-Regular Workers comprised of various professionals. Moreover, the MOEL is planning on conducting audits of around 250 businesses in 2021 to assess their operations with non-regular employees.
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