'Work-Life Balance' Innovative Companies Exempt from Labor Inspections for 3 Years

Ministry of Employment Holds 'Work Innovation Participating Companies Kick-off Ceremony'

[Sejong=Asia Economy Reporter Moon Chaeseok] A policy that exempts small and medium-sized enterprises (SMEs) and mid-sized companies that have improved their work systems to enhance their 'work-life balance' (WLB) from labor inspections for three years will be fully implemented. This policy is being promoted to create synergy with the 52-hour workweek system, which will be expanded to companies with fewer than 50 employees starting next month.

The Ministry of Employment and Labor announced on the 28th at 2:30 PM that it held the 2021 Work Innovation Incentive Program launch ceremony at Ferrum Tower in Jung-gu, Seoul. The incentive program allows SMEs and mid-sized companies to voluntarily create and implement work innovation plans; if selected as excellent companies, they are exempted from regular labor inspections for three years and receive preferential treatment in government support projects. Currently, 55 companies are participating in the first round, and an additional 45 companies will be recruited early next month. Companies submit improvement plans in areas such as reducing overtime, introducing flexible work hours, and improving work methods and culture, and their implementation performance is evaluated over three months to award 'SS, S, A' grades to outstanding companies.

As an excellent example, BH, a printed circuit board company, reduced overtime by 20% by utilizing a prior approval system for overtime work. They are operating focused work hours and promoting the use of annual leave to raise the vacation usage rate to over 90%. The White Communication, an artificial intelligence (AI) software development company, is striving to reduce overtime hours by 30% through a prior approval system for overtime. They have set a goal of 20% utilization of flexible work systems such as selective working hours and telecommuting and are actively promoting these initiatives.

Kim Young-jung, Director of Employment Policy at the Ministry of Employment and Labor, said, "Improving the long working hours culture and achieving work-life balance is a path that companies must take to survive and workers must take to enjoy a higher quality of life." He added, "It is very meaningful that companies voluntarily shorten working hours, expand flexible work, and improve work methods through work innovation." He emphasized, "The government will also spare no effort in policy support while carefully addressing field difficulties to spread the culture of reduced working hours and work-life balance."