In 2018 there were major reforms to South Korean employment laws, including the Labour Standards Act. This resulted in many employers struggling to adjust employees' weekly working hours to comply with, for example, the new 52-hour limit. The legislative reforms and amendments proposed in 2018 will take effect in 2019. For example, a duty to prevent workplace harassment will be introduced, as will a uniform standard for termination notice exemptions.
South Korea recently overhauled its employment laws. Some of the most significant changes that may have an impact on business operations concern annual paid leave entitlements and fertility treatment leave, eligibility for childcare leave, protection for workplace sexual harassment victims, mandatory disability awareness training and the scope of the anti-discrimination statutes.
The Seoul High Court recently ruled that an employee's repeated personal use of his or her corporate card, in and of itself, may not always constitute sufficient just cause for termination. The court's ruling is an adverse precedent that may have an impact on many businesses as they consider whether to terminate an employee for personal use of corporate cards. However, this case is now pending before the Supreme Court.
In recognition of the hardship faced by emotional labour workers, there have been increasingly audible calls to improve their working environment, which has led to a view that employers must take proactive steps to protect the health and wellbeing of such employees. Although legislative changes have been insubstantial, the National Assembly of Korea recently passed legislative amendments to the Occupational Safety and Health Act which seek to protect emotional labour workers.
The National Assembly recently passed a legislative amendment designed to reform the Labour Standards Act. The new legislation is projected to have a significant impact on all industries and levels. According to a study by the Korea Economic Research Institute, the additional annual labour costs that companies will incur is likely to exceed W12 trillion ($11 billion) in total.