Major amendments to Korea Labor Law in 2022

South Korea is about to make a series of major amendments to employment related laws and regulations in 2022.

The changes include a new minimum wage, new penalties for harassment in the workplace, remedies for claims of gender discrimination and sexual harassment, and leave and working hours adjustments for pregnant employees.

On July 19, 2021, the South Korean government announced that the minimum wage in 2022 was 9160 won (about US $7.92) per hour. This is 440 won (about 5%) more than the minimum wage of 8720 won per hour in 2021.The announced hourly minimum wage in 2022 is equivalent to the monthly minimum wage of 1914440 won. It is assumed that the standard work week is 40 hours and there are 8 hours of paid leave per week (209 hours in total per month).

The labour standards act has required employers to immediately investigate reports of (non sexual) workplace harassment; Take appropriate measures, if any, to protect alleged victims (e.g. resettlement); If harassment occurs, take appropriate action against the offender. However, there are no specific penalties for not doing so.

From October 14, 2021, the employer's obligations will be expanded and new penalties will be introduced. It is clearly required that the investigation of reported workplace harassment should be not only timely, but also "objective".

In addition, persons involved in the investigation will be required to protect information about harassment that the victim does not want to disclose (except when reporting to the employer or authorities for assistance). If the employer or his relatives (blood or kinship up to level 4) harass in the workplace, they will be subject to a new administrative penalty of up to 10 million won.

If the employer fails to timely and objectively investigate the report of workplace harassment, he will be subject to a new administrative penalty of up to 5 million won; Or if harassment is found to have occurred, no necessary protective measures are taken against the victim, or appropriate disciplinary or other action is taken against the offender. Individuals involved in the workplace harassment investigation will be subject to an administrative penalty of up to 5 million won if they improperly disclose the secrets learned during the investigation.

As an employer, it should evaluate whether it has formulated the correct policies and procedures to prevent workplace harassment, objectively and timely investigate any incidents and take appropriate actions.

※ note: the Labor Standards Law defines "employer" as "the owner of the enterprise, the person in charge of enterprise management or the person handling employee related matters on behalf of the owner of the enterprise". This can basically include legal entities or sole proprietors who legally employ employees, as well as some senior managers. However, as mentioned above, the "employer" who harasses in the workplace will be the individual who actually harasses.

Gender discrimination and sexual harassment claims

The equal employment opportunity and work family balance Assistance Act has provided penalties for gender discrimination in employment and sexual harassment in the workplace. Employees can file complaints of discrimination or sexual harassment with the labor office, which can investigate, issue corrective orders, impose administrative fines or institute criminal proceedings under certain circumstances (such as retaliation).

However, from May 19, 2022, employees will be able to apply to the Labor Relations Committee for relief in cases of gender discrimination and sexual harassment for the first time, and the available remedies will include damages. So far, compensation for employee victims can only be obtained through civil legal proceedings.

If the Labor Relations Commission finds gender discrimination in employment, it can issue a correction order and require the employer to pay compensation up to three times the actual loss of the employee. Any such corrective order may also apply to other employees who have been discriminated against. If the employer fails to take the necessary measures against the victim or harasser of sexual harassment, or in case of any retaliation, the labor relations committee will also be authorized to issue a correction order and award up to three times the compensation.

Use of parental leave during pregnancy

According to the equal employment opportunity and work family balance Assistance Act, parents with children aged 8 or below and in the second grade of primary school or below are currently entitled to unpaid (government subsidized) parental leave for up to one year. From November 19, 2021, pregnant female employees with medical risk of abortion or stillbirth will be allowed to use part of the parental leave during pregnancy. The total parental leave for each eligible child, including that used during pregnancy, remains one year.

The use of parental leave during pregnancy complements the statutory maternity leave to which pregnant employees are already entitled. After taking parental leave during pregnancy, the remaining parental leave can be used normally after childbirth, or can be used separately in two different periods after childbirth.

Right to request adjustment of working hours

The Labor Standards Law, which will enter into force on November 19, 2021, stipulates that pregnant female employees have the right to change the start and end times while maintaining the specified working hours. Pregnant employees who are 12 weeks or less pregnant or 36 weeks or more pregnant have the right to reduce working hours. This will provide pregnant employees with additional rights to change their start and stop times at any time during pregnancy to better meet their needs. The employer can only refuse the request for certain reasons specified in the regulations, such as changing the working hours will seriously interfere with the normal operation of the business.