The Environment and Labor Committee Passes Amendment to the Labor Standards Act to Promote Annual Leave Use for Workers with Less Than One Year of Service

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] A 'Annual Leave Usage Promotion System' that encourages employers to allow workers with less than one year of service to use monthly leave and notifies them in advance of the remaining monthly leave days is expected to be implemented.

On the 19th, the National Assembly's Environment and Labor Committee held a plenary session and approved a partial amendment bill to the Labor Standards Act (led by Kim Hak-yong, chairman of the Environment and Labor Committee) based on this content. The amendment bill will go through the Legislation and Judiciary Committee and is expected to be processed in the plenary session as early as this month.

Under the current Labor Standards Act, the annual leave usage promotion regulation does not apply to workers with less than one year of service, which results in workers preferring monetary compensation without guaranteed rest rights, and increases the employer's burden due to leave compensation. The amendment aims to improve this issue.

According to the current law, if the attendance rate after joining is 80% or higher, the leave for workers with less than one year of service accumulates as monthly leave, one day per month, up to a maximum of 11 days. The amendment requires companies to notify workers with less than one year of service of the remaining leave days three months before the expiration of the leave usage period and to promote the use of leave. Employers are not obligated to compensate for unused leave even if workers with less than one year of service have been encouraged to use it but did not.