A Current Labor Inspector from the Ministry of Employment Argues for "Abolition of Weekly Holiday Allowance" Through a Paper

"Responsibility for Worker Holidays, Minimum Wage System, etc."

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[Sejong=Asia Economy Reporter Moon Chaeseok] A current labor inspector who has been cracking down on labor law violations such as wage arrears publicly raised the need to abolish the weekly holiday allowance system.

According to the Korea Labor Institute on the 11th, Jeong Seok-eun, a labor inspector at the Cheonan branch of the Ministry of Employment and Labor, stated in a paper published in the recently released "Labor Policy Research" by the institute that he experienced a gap between the law and reality through labor inspections related to the weekly holiday allowance and said, "The weekly holiday allowance should be abolished." The weekly holiday allowance is based on the Labor Standards Act provision that requires employers to guarantee workers at least one paid holiday per week, and it refers to the wages workers receive on paid holidays. Paid holidays are granted to workers who have attended all scheduled working days during the week. When the Labor Standards Act was enacted in 1953, most workers had low wages and the minimum wage system had not yet been introduced, so the system was introduced based on the consideration that "workers need money to be able to rest."

The controversy surrounding the weekly holiday allowance flared up under the current government as the minimum wage was significantly raised. Small business owners, who faced increased labor costs, increasingly demanded the abolition of the weekly holiday allowance. Inspector Jeong pointed out that the weekly holiday allowance does not correspond to the essence of wages as it is not a direct reward for labor. He argued, "The weekly holiday (the paid holiday on which the weekly holiday allowance is paid) is a time exempt from the obligation to provide labor, and since no actual labor is provided, wages cannot be generated on the weekly holiday."

He explained that the weekly holiday allowance is more of a device to guarantee workers' livelihood rather than compensation for labor. Inspector Jeong emphasized, "The 'guarantee of holidays for workers with poor living conditions' considered when the Labor Standards Act was enacted should no longer be left to individual employers but should be taken over by the state through the minimum wage system and earned income tax credit."

The labor sector opposes abolishing the weekly holiday allowance because it could reduce workers' wages. Inspector Jeong focused on the reality that employers set wages as compensation for labor and then add the weekly holiday allowance on top, rather than determining the total wage amount first and fitting the weekly holiday allowance within it. He pointed out, "Looking at the actual situation where wages are determined regardless of the weekly holiday allowance, abolishing the weekly holiday allowance would not lead to wage reductions," adding, "Especially considering labor-management relations, it is unrealistic to assume that existing wage levels would be lowered unless there is a management crisis."

However, for hourly workers earning minimum wage-level pay, abolishing the weekly holiday allowance could directly lead to wage reductions. In response, Inspector Jeong argued, "If the weekly holiday allowance is abolished, the minimum wage determination should take this into account so that economically vulnerable workers can still enjoy holidays." This is a proposal to link the abolition of the weekly holiday allowance with an increase in the minimum wage.

Inspector Jeong also paid attention to the possibility that employers might split working hours to avoid the obligation to pay the weekly holiday allowance, thereby creating ultra-short-time workers. According to the Labor Standards Act, ultra-short-time workers who work less than 15 hours per week are not entitled to the weekly holiday allowance. He expressed concern, saying, "Ultra-short-time workers are also not covered by annual paid leave and severance pay under the Labor Standards Act," warning that the proliferation of ultra-short-time workers could worsen working conditions.