Tuesday, August 2, 2011

Labor Standards and EPS Updates regarding 40 hours working schedule

Work hours to be reduced to improve productivity and quality of life. Starting from 1st July 2011, 40-hour workweek will be further extended to apply to workplaces hiring 5 or more but less than 20 employees. The Ministry of Employment and Labor announced on 5 October 2010 its plan to revise the enforcement ordinance of the Labor Standards Act. 40-hour workweek has been under implementation since 1st July 2004 firstly applying to workplaces hiring 1,000 or more employees as well as finance and insurance businesses and public institutions. It has gradually expanded its coverage and currently it applies to workplaces with 20 or more employees. It was introduced to reduce statutory work hours from 44 to 40 in a view to enhance quality life of workers.

Upon the revision of the enforcement ordinance, around 2 million workers of 300,000 workplaces hiring 5 or more but less than 20 employees will be covered by the workweek. However, it will not apply to workplaces with less than 5 employees as work hour and leave-related regulations of the Labor Standards Act are not applicable for them.

The Ministry of Employment and Labor estimates when the 40-hour workweek system is applied to the workplaces hiring 5 or more but less than 20 employees, Korea�s work hours, which are the longest among the OECD countries, would decrease substantially. Also it expects that productivity at workplaces and quality life of workers would improve.
As for the worry for additional labor costs for small businesses, the Ministry expects that decrease in additional allowance for overtime1, repeal of monthly leave and paid menstrual leave would deflate the burden for additional labor costs.

On the other hand, the Ministry considers that for the businesses hiring less than 20 employees can suffer difficulties in introducing the 40-hour workweek system as they are not familiar with related labor laws. So, it will hold education, PR and consulting programs in cooperation with business owners of targeted areas with many applicable workplaces so that the system can take firm root.

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EPS News dated last 2010-12-05

Topic In case of Saturday work under 40 hour work week system, holiday work allowance

ㅇ In case workers do not work on Saturday under the five-day workweek in which statutory working hours are reduced to 40 hours per week, Saturday is naturally considered a holiday or non-working day. In this case, Saturday is an unpaid, non-working day unless otherwise agreed upon by labor and management.
In such a case, if the employer gets his/her employee to work on Saturday, the employee will not be paid holiday allowances, but if his/her weekly working hours exceed 40 hours, will be paid overtime allowances.

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Labor Standards dated last 2010-12-29

Topic After changing 44 work-hour week system into 40 work-hour week system, when the number of workers is reduced due to economic reason, etc, does the legal application still remain effective?


For legal security and protection of reliability, the 40 work hour system remains effective.

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Labor Standards dated 2010-12-29

Topic Legal characteristics of saturday under 40 work week system(5 work day week system)

If there is no agreement between labor and management about saturday, saturday is unpaid duty off day, not holiday.

o So, for saturday working, the company pays extended work allowance additionally in the case of work in excess of legal working hours(40 hrs a week)

ex) under 40 work hour week system, in case of a worker who was absent on Tuesday works and worked on saturday for 5 hours,

->The total work hours of the concerned week is less than 40 hours, an employer can pay wages for actual working hours without extended work allowance.



Source: http://www.moel.go.kr/english
--> on 40 hours working schedule

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Ito po ang mga kasagutan sa inyong mga katanungan tungkol sa pagpapatupad ng 40 hours

working schedule para sa lahat hindi lamang sa mga foreign workers (EPS) pati na rin sa mga

Koreans. Ang mga impormasyon na ito ay base sa pakikpanayam namin ng boss ko at sa

labor Office hinggil sa nasabing 40 hours working schedule simula july 01, 211

. --- dated July 1, 2011

Basic Pay - 4, 320 won per hour OT pay (basic pay * 1.25) - 5, 400 won per hour


Night Differential is 4, 320 * 0.5 and/or ( 2160 from 10pm-6am )

2 , 160 won * 8 hours =17 280 in 8 hours



In one week, regular days without overtime

(regular weekdays basic pay / hour * 8 hours/ day) * 5 days = 172, 800 in one week

( 172, 800 in a week * 4 weeks in a month ) = 691, 200 won in a month with only 40 hours


In overtime work

**ang overtime pay na po is 1.25 (like 4 320 basic pay per hour * 1.25) sa walong oras na

work ay 5, 400 per hour...

**ang overtime sa weekdays ay mula natapos ang 8 hours, ang oras na ito ay overtime pay

na,subalit iba dito ang night differential kung saan nagsisimula sa 10 pm to 6 pm..

**ang overtime din ay pag pumasok sa sabado, at itoy 8 hours work * 1.25, ang 1.25 ay

bago na pong rate simula ngun july 1, 2011, na di tulad ng nauna na 1.50 rate.


** subalit sa ibang company kung dati may work ang sabado,ang ginagawa ay distribute

nila sa lahat ng weekdays ung 8 hours work para maging OT parin...

Subalit ang sabado ay walang pasok, kung papasok man kayo depende narin sa company

ito, kung ay papasok sa sabado itoy magiging Overtime, ngunit no work no pay ang policy sa

sabado..

** sa ibang company naman, kahit hindi sila pumasok sa sabado, nagbibigay ng company ng

70 % or 100% full basic salary pay, NGUNIT WALA ITO SA CONTRACT, ibig sabihin sa

company mismo..

** sa 40 hours working sched, tinanggal na po ang Monthly allowance or Wolcha... ang wolcha

ay nsa batas ng labor kung saan binibigay ito sa lahat ng workers kung saan wala kang

absent sa isang buwan, at ito po ay tinanggal na..

** sa pagtanggal ng wolcha na nsa batas ng labor dati,isa pa din dito ang Nyeon cha or yearly

allowance kung saan makakatanggap ang bawat workers ( ang nyeon cha ay ang kabuuang

15 days / year na kung saan wala kang absent, ang nyeon cha ay nsa batas ng labor law.

Ang ju cha o weekly allowance ay WALA sa labor kundi nsa jurisdiction lamang ito ng bawat

company

** at ang mga bunos namn ay wala sa LABOR law, kung saan sa company lang ito galing

o nagbibigay para sa workers...galing ang pay na ito.


Maraming Salamat po, at sana maliwanagan ang lahat tungkol sa 40 hours work sked.

source: sulyapinoy