On April 29, 2021, a total of eight proposed amendments to labor-related laws, including the Labor Standards Act (the “LSA”), were approved in the plenary session of the National Assembly and were promulgated into law on May 28, 2021 (collectively the “Amendments” and “Amendment” singularly).  Different effective dates have been specified for the Amendments, as some are expected to take effect immediately, while others are granted a one-year grace period.  In addition to the introduction of regulations imposing criminal sanctions for violations, the Amendments include several issues that companies should note with regard to HR management, such as the duty to issue a wage statement and the duty of safety managers and health managers.  In this regard, we provide further guidance for companies on the Amendments as follows:

Key Changes to the LSA (Effective from November 19, 2021)

• Provisions have been added to the law to allow the Labor Relations Commission (the “LRC”) to issue an order of remedy even for an employee whose fixed-term employment has expired or who has reached the age of retirement.  Accordingly, even in cases where it is not possible for the company to reinstate the employee to his or her former position, the LRC may issue a relief order requiring the employer to pay money and valuables equivalent to wages that the employee concerned would have received during the period of dismissal. 

• The upper limit of the penalty for non-compliance with the LRC’s relief order, which was KRW 20 million for each occurrence of non-compliance (which can be levied up to four times in total), has now been increased to KRW 30 million (with no change to the frequency).

• In addition, when wages are paid to employees, the LSA was amended to introduce an obligation on the company to issue a wage statement to employees either in writing or electronically, specifying the matters prescribed by the Presidential Decree, such as wage items and calculation method.

Key Changes to the Equal Employment Opportunity and Work-Family Balance Assistance Act (the “Equal Employment Act”)

• New provisions have been added to expand the reasons for childcare leave by pregnant employees.  In the past, childcare leave was allowed only for employees who had children aged eight or younger or in the second grade or lower.  However, the amendment expands the scope of eligibility for granting childcare leave to female employees who are pregnant so that they may use childcare leave if they have a risk of miscarriage or stillbirth.  Also, the current law enables employees to split childcare leave up to two periods, but under the Amendment, the childcare leave that a pregnant employee uses for maternity protection will not be subject to the split limit.  This Amendment will take effect starting November 19, 2021.

• The law has also been changed to introduce relief measures with the LRC for violations of the Equal Employment Act, enabling the LRC to issue corrective orders to cease discriminatory acts, improve working terms and conditions, and award appropriate compensation.  Furthermore, this Amendment provides additional regulations prohibiting disadvantageous treatment of employees who file a request for relief (criminal liability upon violation thereof) and imposing fines for violating the confirmed corrective orders.  This Amendment will take effect from May 19, 2022.

Key Changes to the Industrial Accident Compensation Insurance Act (Effective from January 1, 2022)

• Provisions requiring advance payment of funeral expenses have been added, allowing employers to pay funeral expenses in advance at the request of the bereaved family if the employee concerned is presumed to have died in the performance of his or her duties. 

• Under this Amendment, in cases where an employee who suffered an industrial accident requires a long-term medical treatment or is expected to have a disability thereafter, the Korea Workers’ Compensation and Welfare Service may request the employer to prepare and submit a reinstatement work plan with respect to the said employee.  And accordingly, a new system to support the return-to-work of employees by the Korea Workers' Compensation and Welfare Service has been established, which support is to be based on the reinstatement work plan submitted.

Key Changes to the Occupational Safety and Health Act (the “OSHA”) (Effective from November 19, 2021)

• Under the current OSHA, there is no provision restricting safety managers from concurrently serving as health managers and vice versa.  However, the amended OSHA requires employers of workplaces which fall under the size of a workplace prescribed by the Presidential Decree to have safety managers and health managers exclusively responsible for their designated duties.

• In case where a service recipient company and a service providing company perform work in the same location, the service recipient company is obligated to check the time and details of work and safety and health measures for the service providing company.  Additionally, the service recipient company is obligated to adjust the time and details of work if there is a risk of fire or explosion due to performance of work in the same location (criminal liability upon violation thereof).

Key Changes to the Protection, etc. of Fixed-Term and Part-Time Employees Act (the “PFPEA”) (Effective Immediately)

• The amended PFPEA provides grounds for being exempt from vicarious liability, allowing employers who can demonstrate that they have exercised due care or supervision to prevent a violation of the PFPEA by the employers’ agents and employees to be exempt from paying a criminal fine.

In addition to the above, the Amendments include various matters such as the enactment of the Act on the Protection and Support of Essential Employees, amendment of the Labor Relations Commission Act, and amendment of the Framework Act on Employment Policy.  Please let us know if you need more detailed information in this regard.

[Korean version]