Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Gov't gives SMEs 1 year grace period to adopt 52-hour work week
Employment and Labor Minister Lee Jae-kap announces a one-year grace period for small- and medium-sized enterprises (SMEs) to adopt the 52-hour workweek system at the Seoul Government Complex, Wednesday. Yonhap
By Kim Hyun-bin
By Kim Hyun-bin
The government has decided to give a one-year grace period to small- and medium-sized enterprises (SMEs) for the full introduction of the 52-hour workweek system, which was originally scheduled to take effect Jan. 1. The move comes after smaller companies complained about the increase in wages costs they would have to shoulder amid the economic slowdown.
The measure, which delays the full adoption of the shortened workweek for companies with 50 to 299 employees, is drawing a backlash from unions. They are criticizing the government for retreating from its policy goal of reducing the long working hours endured by Koreans.
“After considering that many SMEs will have difficulty implementing the 52-hour workweek due to financial reasons, there needs to be a systematic support through a law revision. But as the revision has been delayed, we had no choice but to announce this supplementary measure,” Employment and Labor Minister Lee Jae-kap said at the Government Complex Seoul, Wednesday.
“The 52-hour workweek is a key policy and imperative in solving social problems such as a better work-life balance, productivity and the low birthrate. So the government will do its best to ultimately implement the system.”
According to data released by the Ministry of Employment and Labor, 42.3 percent of SMEs were not ready to adopt the system, claiming they could not afford to hire more workers to pick up the slack from existing employees who currently work longer hours.
With the additional grace period taking effect from next year, SMEs will have until the end of 2020 to prepare for the shortened workweek and their employees will have to work the same hours as they do now.
When implementing the shortened workweek system for large companies with at least 300 employees in 2018, the government also gave a six-month grace period and a three-month additional extension for firms in specific industries.
The government also announced support measures for SMEs to help prepare for the policy implementation. Among them were temporarily allowing an increase in foreign employee quotas, financial aid for hiring workers, facility investments and consulting services.
The administration will also ease regulations for companies to utilize flexible work hour systems, allowing employees to work longer during peak seasons and less in not-so-busy periods, as long as the weekly average of 52 hours is maintained over a three-month period.
While the current enforcement regulations state the flexible work hours can be used only for disaster or disaster-level cases, the change will allow for other causes as required by management, such as when dealing with emergencies such as facility malfunctions or a temporary increase in workloads.
However, unions criticized the government's decision, calling it “labor despair.”
The Korean Confederation of Trade Unions held a press conference in front of the government complex to call for Minister Lee's resignation.
“The Moon Jae-in administration gave up the policy to shorten work hours. It delayed a law to protest labor rights but pushed ahead with a measure for longer work hours,” the group said.