Hong-bae Park Proposes Bill to Abolish Comprehensive Wage System as a Step Toward a Four-Day Workweek

Proposing 3 Bills to Shorten Actual Working Hours
Main Contents Include Work-Family Balance and Expanded Leave

Park Hong-bae, a first-term proportional representative member of the Democratic Party of Korea, has introduced three bills under the 'Real Working Hours Reduction Package' aimed at effectively reducing actual working hours. The main points include abolishing the comprehensive wage system and allowing annual leave to be acquired on a six-month basis instead of a one-year basis.

At a press conference held at the National Assembly on the morning of the 13th, Park said, "As of 2023, South Korean workers record the longest working hours among OECD countries with 1,874 hours per year," adding, "Long working hours negatively affect workers' health, cause domestic economic stagnation, and make it difficult to balance work and family life." He continued, "Even if the bills proposed today are enacted, they will not immediately reduce working hours at all workplaces," but expressed confidence that "they will be the first step toward escaping the 'overwork society.'"

Park Hong-bae, a member of the Democratic Party of Korea, is speaking at the 'Actual Working Hours Reduction Package Bill Proposal Press Conference' held at the National Assembly on the 13th. [Photo by Park Hong-bae's Office]

On the same day, he submitted a bill to abolish the comprehensive wage system. The plan is to include a 'prohibition of comprehensive wage contracts' clause in the Labor Standards Act to ensure accurate calculation of working hours. The comprehensive wage system refers to a contract promising a fixed monthly amount as overtime pay when it is difficult to clearly calculate overtime wages. He said, "Due to the comprehensive wage system, extended, night, and holiday work by workers has become regular," adding, "The solution is to make shadow labor visible. Working hours should be recorded in the wage ledger."

In a phone interview with this publication, when asked how 'company directors' could be contracted, he said, "I have not considered directors, but I do not regard directors as subjects under the minimum standards of the Labor Standards Act," and added, "I hope the government considers potential side effects and prepares measures through enforcement ordinances or other means." He also predicted, "Employers will not face a sudden burden of labor costs, and workers will move toward a direction where income volatility is not significant."

Park Hong-bae, a member of the Democratic Party of Korea, is giving an interview to Asia Economy at the National Assembly on May 28. Photo by Kim Hyun-min kimhyun81@

He also announced plans to amend the Framework Act on Employment Policy to assign roles to related organizations so that policies to reduce working hours can be continuously discussed. On the day, he said, "We will establish a basis for the Employment Policy Deliberation Committee under the Ministry of Employment and Labor to discuss 'matters related to reducing long working hours and shortening working hours for work-family balance,'" adding, "It should serve as a framework for mid- to long-term and practical institutional improvements."

Finally, he introduced an amendment to the Labor Standards Act to expand and promote annual leave. Park explained, "The bill includes provisions to ease the eligibility for annual leave acquisition from one year to six months of work and to allow up to 30 days of paid leave per year." He added, "It also prohibits disadvantages caused by the use of annual leave." The bill he proposed includes a new clause stating, "Employers shall not treat workers disadvantageously for requesting or using annual leave."