Business Community "Welcomes Amendment to Labor Standards Act... Starting Point for Labor Reform" (Comprehensive)

On the 6th, the business community collectively welcomed the government's legislative notice of the amendment to the Labor Standards Act related to flexible working hours. It is evaluated as the first step in labor reform by correcting outdated legal systems reflecting voices from the field.

The Korea Employers Federation stated, "We welcome the government's amendment, which includes flexibility in working hours and an expansion of labor-management choice," adding, "It is significant as a starting point for labor reform that improves the outdated legal system that has been holding back our economy."

Furthermore, the Federation dismissed labor's claims regarding infringement on workers' health rights due to this amendment as excessive concerns. They added, "For flexible working hours to be properly utilized in the field, it is necessary to prepare various health measures that labor and management can choose from."

The Federation of Korean Industries expected that this measure would improve work efficiency on industrial sites while enhancing corporate productivity. They positively evaluated, "With this reform, companies can respond flexibly according to industrial site demands, and an environment where workers can improve their quality of life can be created."

In particular, they noted that introducing a weekly 64-hour cap to complement the drawback of granting 11 consecutive hours of rest during extended work hours and the introduction of a working hours savings account system are desirable in terms of expanding autonomy in choosing working hours.

However, they expressed regret regarding the reduction of total working hours when extending the unit of overtime work to quarterly or semi-annual periods. The Federation of Korean Industries stated, "It is necessary to supplement this to preserve the purpose of flexible working hours," and added, "We hope that the voices from the industrial field will be sufficiently reflected during future legislative discussions."

The Korea Chamber of Commerce and Industry also welcomed the legislative notice of the amendment but argued that protective measures for workers should be chosen according to each company's situation. The Chamber said, "Measures such as the 11-hour consecutive rest period should be promoted so that labor and management can autonomously select various protective measures suitable for each company's circumstances rather than being mandated by the government." They added, "We hope that the amendment related to the reform of the working hours system, the first button of labor reform, will be promptly passed in the National Assembly."

Small and medium-sized enterprises (SMEs) and mid-sized companies, which have consistently advocated for the necessity of flexible working hours, also positively evaluated this reform direction. The Korea Federation of SMEs stated, "Although the 52-hour workweek system has been fully implemented for a year and a half, the SME field has been suffering from severe labor shortages and irregular overtime, with 42% of small manufacturing companies still struggling to comply with the system," adding, "At the end of last year, the additional 8-hour overtime for workplaces with fewer than 30 employees also expired, causing confusion in the SME field," expressing difficulties under the current law.

They continued, "Fortunately, with this government reform, the options for selecting the unit period for overtime work have expanded, enabling the utilization of working hours suited to industry characteristics and field conditions," and expressed expectations that "management difficulties such as meeting delivery deadlines and labor shortages will be significantly alleviated."

The mid-sized business community expected that this working hours reform would help revitalize industrial sites. The Korea Association of Mid-sized Enterprises said, "The decision to expand the management unit of overtime from the current one week to monthly, quarterly, semi-annual, and annual units will enable flexible responses when concentrated work is needed," adding, "Based on labor-management agreements, it will alleviate unnecessary labor-management conflicts and strengthen solidarity for economic development."

Furthermore, the mid-sized enterprises association emphasized autonomous resolution of workers' health rights issues at the labor-management level. They added, "Measures such as 11 consecutive hours of rest during overtime and compliance with the weekly 64-hour cap to complement this are desirable, but to enhance the effectiveness of the system, labor and management should be able to autonomously select various measures suitable for individual companies and workers' situations."