To Cushion Impact on Companies
The South Korean government has decided to introduce a six-month grace period for the implementation of a new shorter working hours system, which is set to take effect from July 1.
The decision was made at a hurriedly arranged meeting between senior officials the ruling Democratic Party (DP), the government and the presidential office at the National Assembly on June 20.
The decision came just 10 days before the full implementation of the new work hours system. The government and the ruling party accommodated the corporate community’s request for a six-month grace period.
The new Labor Standards Act, which was revised in February and goes into effect on July 1, sets the maximum work week at 52 hours for companies with 300 or more employees. Currently, employees can work up to 68 hours a week.
But many companies have been calling for a six-month grace period, saying that they are not fully prepared for the new system.
The government said that during the grace period, violations of the new work week system would not be subject to punishment.
"We need to be flexible in introducing the new arrangement to cushion the impact on companies," said Park Beom-kye, a spokesman for the ruling party.
A shortened work week is one of President Moon Jae-in's main election pledges. It is intended to reduce Korea’s excessively long work hours and enhance work-life balance.
But the system faces opposition from workers and employers alike. Some labor groups are against the new system as it cuts the salaries of employees at smaller companies. Employers are opposed as shortened work hours tend to increase labor costs.
To cut long work hours without creating adverse effects, workers and employers need to cooperate to improve their productivity, but they do not appear ready for it.