‘8-Hour Additional Overtime System’ Emerges as New Flashpoint in Environment and Labor Committee... Ruling Party Demands “Sunset Extension” Consideration

Sunset Clause Extended by 2 Years, Labor Standards Act Amendment Pending
16 SME Groups Demand Sunset Clause Abolition

Ruling Party: "Economic Conditions Difficult, Bill Should Be Submitted for Discussion"
Opposition: "Speed Up Review to Pass Yellow Envelope Act Within the Year"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] As the 'additional extended working hours system,' which allows workers in small businesses with fewer than 30 employees to work up to 60 hours per week (52 regular hours + 8 additional hours), is scheduled to expire on December 31 this year, the ruling party, the People Power Party, has requested the Environment and Labor Committee to table a bill for at least a two-year extension.

With the sunset deadline just three weeks away, the ruling party's request for an extension of the additional extended working hours system has drawn attention to whether the opposition parties will accept it. The key issue is whether a consensus and deal can be reached between the ruling and opposition parties, with the Democratic Party and the Justice Party having unilaterally tabled the 'Yellow Envelope Act' (amendments to Articles 2 and 3 of the Trade Union Act) as a negotiation point.

Lee Young, Minister of SMEs and Startups, is speaking at the Emergency Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 4th. Photo by Hyunmin Kim kimhyun81@

At the Employment and Labor Law Subcommittee of the Environment and Labor Committee held on the 7th, Im E-ja, the ruling party's floor whip and member of the People Power Party, requested the tabling of a bill to extend the sunset clause of the '8-hour additional extended working hours system' (amendment to Article 53 of the Labor Standards Act). The 8-hour additional extended working hours system is a measure introduced in July last year for workplaces with fewer than 50 employees, allowing businesses with fewer than 30 employees to have an additional 8 hours of extended work per week to ease the burden of the 52-hour workweek system for a certain period.

Earlier, on the 5th, 16 small and medium enterprise organizations, including the Korea Federation of SMEs, held a meeting at the Korea Federation of SMEs in Yeouido, inviting Lee Young, Minister of SMEs and Startups, and demanded the abolition of the sunset clause for the 8-hour additional extended working hours system.

On the 30th, at the Employment and Labor Law Review Subcommittee of the Environment and Labor Committee held in the National Assembly, the opposition parties including the Democratic Party of Korea proposed the Yellow Envelope Act, and Im I-ja, a member of the People Power Party, is making a protest statement against this. Photo by Yoon Dong-ju doso7@

Rep. Im said, "Back in 2018, only workplaces with fewer than 30 employees were given a grace period because most of them were small businesses facing labor shortages," adding, "Now, with high interest rates, high inflation, and high exchange rates, the economic situation has worsened compared to then, so a revision before the sunset is necessary."

Rep. Kim Hyung-dong of the same party also said, "It would be better if the 8-hour extended work for workplaces with fewer than 30 employees was not needed, but since the bill extension was not approved, when a system gap occurs, the National Assembly must have alternatives for the jobs and workplaces of more than 6 million workers in the field." He mentioned, "Even if the Yellow Envelope Act is discussed, this bill should be discussed in parallel."

[Image source=Yonhap News]

Opposing views were also expressed. Rep. Lee Soo-jin of the Democratic Party said, "Looking at the Ministry of Employment and Labor's data, it seems like it was patched together," and added, "This system was introduced in 2018 with a three-year grace period, but the government did not prepare measures during that time, and now suddenly tabling it just because the administration changed is opposed."

In response, Kim Young-jin, chair of the Employment and Labor Law Subcommittee and member of the Democratic Party, said, "Today, the Yellow Envelope Act is scheduled to be discussed, and the amendment to the Labor Standards Act will be discussed after the floor whip agreement on how to proceed, after thoroughly hearing the opinions of workplaces, the Korea Federation of SMEs, the Federation of Korean Trade Unions, and the Korean Confederation of Trade Unions, and comprehensively reviewing the government's alternatives and measures."

Eunju Lee, Emergency Response Committee Chair of the Justice Party, is delivering a representative speech for non-negotiating groups at the National Assembly plenary session on the 27th. Photo by Dongju Yoon doso7@

Meanwhile, at the subcommittee meeting that day, controversy continued over the Yellow Envelope Act, which was unilaterally tabled by the opposition parties, including the Democratic Party and the Justice Party, while the People Power Party had walked out on the 30th of last month. Rep. Kim Hyung-dong said, "The amendment to the Trade Union Act was tabled in violation of the National Assembly Act, which is regrettable," and added, "It is urgent and appropriate to prioritize bills that have bipartisan agreement or are non-contentious."

In response, Lee Eun-joo, floor leader of the Justice Party, said, "It is fortunate that People Power Party members are here today. A broad social consensus has now been formed," and added, "I hope the bill review will be expedited for the revision of the Yellow Envelope Act within this year."