The Ministry of Employment and Labor (Minister Lee Chae-pil) said on June 21 that an amendment to the Enforcement Decree of the Act on Foreign Workers' Employment etc., containing this feature had been passed at a cabinet meeting.Any employer who employs non-professional foreign workers (those holding E-9 or H-2 visas) under the Employment Permit System should take out departure guarantee insurance so that he/she can make retirement payments to the foreign workers when they depart from Korea. This has so far applied only to businesses or workplaces with five workers or more.
However, the retirement benefit system was extended from workplaces with five workers or more to those with four workers or less on December 1, 2010.
In addition, because foreign workers have to leave Korea as soon as their employment period expires, it is greatly needed to make retirement payments to them on time. For these reasons, the scope of workplaces required to buy departure guarantee insurance is expanded to include workplaces with four workers or less.
The revised decree will enter into force on August 1. According to it, workplaces with four workers or less should buy departure guarantee insurance only for foreign workers whose employment contracts will take effect on or after August 1.
* Foreign workers employed before August 1 will receive retirement pay according to the retirement benefit system.
Besides, the amendment abolishes the requirement for employers to return employment permits issued to them if they have any reason for having such permits revoked.
* Each employment permit contains the name and passport number of the relevant foreign worker, so there is little chance of misuse even if it is not returned. However, up until now the law has required a return of employment permits if they are revoked, which has done nothing but cause unnecessary inconvenience to employers.
In order to enhance punishment for repeat offenders, the amended law imposes additional fines if it has been repeatedly violated over a two-year period.
"The amendment will help foreign workers in small workplaces to receive retirement pay promptly and reduce workplaces' burden of making retirement payments all at once," said Lee Jae-gap, Deputy Minister of the Employment Policy Office. "The Ministry will distribute detailed implementation guidelines relating to the amendment to every job center and individual workplaces by the end of this month."
http://www.moel.go.kr/english/topic/employment_policy_view.jsp?&idx=803
Courtesy of Gennie KIM
( She is the Adviser- Sulyapinoy Website)
