The purpose of this Act is to contribute to improving workers' quality of life and the balanced development of the national economy by providing for matters necessary to establish workers' welfare policies and implement welfare programs.
The terms used in this Act shall be defined as follows:
1. The term "worker" means a person who provides his/her labor to a business or a place of business in return for wages, regardless of the types of occupation;
2. The term "employer" means a business owner, a person responsible for the management of a business, or any other person who acts for a business owner with respect to matters relating to a worker;
3. The term "housing business entity" means a person who builds or purchases houses for the purpose of selling or leasing them to workers;
4. The term "employee stock ownership association" means an organization established in full compliance with the requirements prescribed by this Act in order for workers employed by a stock company to acquire and manage shares of stock of the stock company;
5. The term "employee shares" means shares of stock of a stock company that workers employed by the stock company acquire through an employee stock ownership association established in the stock company.
Article 3 (Basic Principles of Workers' Welfare Policies)(1) Workers' welfare policies (excluding basic working conditions, such as wages and working hours; the same shall apply hereinafter) shall aim to expand workers' opportunities to participate in economic and social activities, motivate their willingness to work, and improve their quality of life.
(2) When formulating and implementing workers' welfare policies, consideration and assistance shall be given to prevent discrimination against a worker on such ground as gender, age, physical conditions, employment status, religion, and social standing.
(3) Assistance under this Act to promote the welfare of workers shall be given in a manner that ensures the preferential treatment of workers working for micro, small, and medium enterprises, fixed-term workers (referring to fixed-term workers defined under subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-Term and Part-Time Workers), part-time workers (referring to part-time workers defined under Article 2 (1) 8 of the Labor Standards Act), temporary agency workers (referring to temporary agency workers defined under subparagraph 5 of Article 2 of the Act on the Protection, etc. of Temporary Agency Workers; the same shall apply hereinafter), workers hired by a subcontractor (referring to a subcontractor defined under subparagraph 5 of Article 2 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance), low-income workers, and long-serving employees.
Article 4 (Responsibility of State and Local Governments)
The State and a local government shall endeavor to increase workers' welfare by providing them with budget, fund, tax, and financial support in accordance with the basic principles of workers' welfare policies under Article 3, when formulating and implementing workers' welfare policies.
Article 5 (Responsibility of Employers and Labor Unions)(1) Each employer (referring to a person who engages in a business with workers employed by him/her; the same shall apply hereinafter) shall endeavor to improve the welfare of workers employed for his/her place of business and shall cooperate with the workers' welfare policies.
(2) Labor unions and workers shall endeavor to improve productivity by increasing their will to work and cooperate with the workers' welfare policies.
Article 6 (Prohibition of Use for Other Purposes)
Any person who receives subsidies or loans under this Act for the welfare of workers, such as workers' residential stability, stabilization of livelihood, and property formation, shall use such subsidies or loans only for the purposes originally intended.
Article 7 (Raising of Funds, etc.)(1) The State and a local government shall pro-actively endeavor to raise the funds needed for workers' welfare programs under this Act.
(2) Funds raised pursuant to paragraph (1) may be contributed or loaned to the Workers' Welfare Promotion Fund under Article 87.
Article 8 (Deliberation on Important Matters regarding Improvement in Workers' Welfare)
The following matters regarding workers' welfare under this Act shall be subject to deliberation by the Employment Policy Council under Article 10 of the Framework Act on Employment Policy (hereinafter referred to as the "Employment Policy Council"):
1. Master plan for the improvement in workers' welfare under Article 9 (1);
2. Matters regarding raising the funds needed for workers' welfare programs;
3. Other matters referred to by the chairperson of the Employment Policy Council in regard to workers' welfare policies.
Article 9 (Formulation of Master Plan)(1) The Minister of Employment and Labor shall formulate the master plan for the improvement in workers' welfare (hereinafter referred to as the "master plan") every five years in consultation with the heads of related central administrative agencies.
(2) The master plan shall include the following:
1. Residential stability of workers;
2. Stabilization of livelihood of workers;
3. Workers' property formation;
4. Employee stock ownership system;
5. Intra-company labor welfare fund program;
6. Support for selective welfare systems;
7. Operation of employee assistance programs;
8. Establishment and operation of welfare facilities for workers;
9. Raising of funds for workers' welfare programs;
10. Other matters deemed necessary by the Minister of Employment and Labor for the improvement in workers' welfare.
(3) When formulating the master plan, the Minister of Employment and Labor shall make public announcement thereof.
Article 10 (Provision of Data and Access to Electronic Computer Networks)(1) The Minister of Employment and Labor may request State agencies, such as the Ministry of Security and Public Administration, the Ministry of Health and Welfare, the Ministry of Land, Infrastructure and Transport, and the National Tax Service, local governments, and relevant institutions and organizations to provide materials specified by Presidential Decree, such as the certificate of earned income, and may request for access to related computer networks, as necessary for implementing workers' welfare programs under this Act. In such cases, the agencies, institutions, or organizations shall, upon receipt of such request, comply therewith, except under extenuating circumstances. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The use of materials provided to the Minister of Employment and Labor and access to computer networks under paragraph (1) shall be exempted from fees, use charges, etc.
Article 11 (Consultation on Implementation of Workers' Welfare Programs)
Local governments and the State-subsidized non-profit corporations shall consult with the Minister of Employment and Labor when implementing workers' welfare programs.
Article 12 (Financial Institutions Engaging in Loans)(1) The State and a local government may authorize the following financial companies, etc. (hereinafter referred to as "institutions engaging in loans") to provide loan services under this Act:
1. Banks established pursuant to Article 8 (1) of the Banking Act;
2. Other financial companies specified by Presidential Decree.
(2) The Minister of Employment and Labor or the head of a local government may give priority such as engaging in loans pursuant to this Act to the financial institutions which give a preferential treatment to workers.
The State and a local government may provide tax incentives, as prescribed by taxation-related Acts, in a bid to improve workers' welfare by ensuring their residence security, living security, property formation, the establishment and operation of workers' welfare facilities and the Labor Welfare Promotion Fund, and the invigoration of the employee stock ownership system and intra-company workers' welfare promotion fund systems under this Act.
Article 14 (Operation of Integrated Workers' Welfare Information System)(1) The Minister of Employment and Labor may establish and operate an integrated workers' welfare information system in order to effectively implement workers' welfare policies.
(2) The Minister of Employment and Labor may support the operation of employment assistance programs and selective welfare programs via the integrated workers' welfare information system under paragraph (1).
CHAPTER II PUBLIC SERVICES FOR WORKERS' WELFARE
SECTION 1 Residential Stability of Workers
Article 15 (Operation of System for Housing Supply for Workers)(1) The State and a local government may operate a system of having a housing business entity sell or lease (hereinafter referred to as "supply") housing in priority to workers, in order to support acquisition or rental of housing by workers.
(2) The Minister of Land, Infrastructure and Transport shall include the supply plan of the housing to be provided to workers under paragraph (1) (hereinafter referred to as "workers housing") in the comprehensive plan for housing construction under Article 7 of the Housing Act. <Amended by Act No. 11690, Mar. 23, 2013>
(3) Types and sizes of housing for workers, workers to be supplied with housing, supply method and other necessary matters shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
Article 16 (Loans for Housing for Workers)(1) Under either of the following circumstances, the State may provide loans for the money needed by a housing business entity or workers (hereinafter referred to as "worker's housing fund") out of the National Housing Fund under Article 60 of the Housing Act:
1. Where a housing business entity constructs or purchases housing for workers;
2. Where workers acquire housing for workers from a housing business entity.
(2) The target workers of and procedures for the loans for the workers housing money, and other matters necessary for the support shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
Article 17 (Loans for Housing Purchase Money)(1) The State may provide loans for the money (hereinafter referred to as "housing purchase money") needed by workers to purchase (including new construction) or rent housing out of the National Housing Fund under Article 60 of the Housing Act to ensure the residential stability of workers.
(2) The State and a local government may have institutions engaging in loans provide loans for the housing purchase money to workers at an interest rate lower than market interest rate and may pay the interest balance.
(3) The target workers of and procedures for the loans for the housing purchase money, and other matters necessary for the support shall be determined by the Minister of Land, Infrastructure and Transport in consultation with the Minister of Employment and Labor. <Amended by Act No. 11690, Mar. 23, 2013>
Article 18 (Support for Residence Change by Workers, etc.)
The State may provide necessary support for residence security of the workers who change their residence or live far away from their families because of employment or change of work place.
SECTION 2 Workers' Living Security and Property Formation
Article 19 (Support for Living Security)(1) The State shall provide necessary support such as loans for medical, wedding and funeral expenses of workers and their families in order to support workers' living security.
(2) The State may provide necessary support such as loans for living expenses in order to stabilize the living of the workers who did not receive their wages, taking into consideration the economic situation and the time when workers need living security expenses, etc.
(3) Necessary matters regarding the target workers of and procedures for the support for medical, wedding, funeral, and living expenses under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
Article 20 (Support for School Expenses, etc.)(1) In order to expand opportunities of education for workers and their children, the State may provide necessary support such as scholarship or loans for school expenses.
(2) Necessary matters regarding the target workers of and procedures for the provision of scholarship and support for school expenses under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
Article 21 (Preferential Savings Account for Workers)
The State shall operate a savings account giving preferential treatment to workers in order to support workers' property formation.
SECTION 3 Credit Guarantee for Workers
Article 22 (Credit Guarantee and Its Target Workers)(1) For monetary liability owed by a worker who cannot afford to offer collaterals (including the unemployed who applied for job-seeking service and the workers suffering from accidents as prescribed in the Industrial Accident Compensation Insurance Act; hereafter the same shall apply in this Chapter) after receiving loans for the living security and school expenses from a financial company, the Korea Workers' Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act (hereinafter referred to as the "Service") may guarantee payment of the monetary liability according to an agreement with the relevant financial company. In such cases, target loans and workers eligible for the guarantee shall be prescribed by Ordinance of the Ministry of Employment and Labor.
(2) The agreement between the Service and a financial company under paragraph (1) shall include the following:
1. Contents that guarantee the payment of liability pursuant to paragraph (1);
2. Target loans and workers eligible for the credit guarantee;
3. Ceiling amount for the credit guarantee support per worker;
4. Reasons for request for the payment of guaranteed liability and the time and the method;
5. Deliberation on and scope of the subrogated payment and the ratio in which the Service and the financial company share the amount of loss;
6. Matters to be notified to the Service by the financial company in relation to operation of the credit guarantee program;
7. Other matters necessary for the credit guarantee for workers.
(3) When the Service intends to sign the agreement under paragraph (1) or modify the details thereof, it shall obtain approval therefor from the Minister of Employment and Labor.
Article 23 (Guarantee Relations)(1) Where the Service has decided to provide a credit guarantee for a worker pursuant to Article 22, it shall give notice thereof to the relevant worker and the financial company from which the worker intends to receive loans.
(2) Credit guarantee relations are established from the time when the financial company to whom the notice under paragraph (1) has been given offers loans to the relevant worker.
Article 24 (Fee for Guarantee)
The Service may collect the fee from the worker whose credit is guaranteed pursuant to Article 22 for the guarantee within the limit not exceeding annually 1/100 of the amount guaranteed as prescribed by Presidential Decree.
Article 25 (Obligation of Notification)
In any of the following circumstances, the financial company to which notice has been given pursuant to Article 23 shall give immediate notice thereof to the Service;
1. When main liability relations have been established;
2. When the whole or part of main liability ceases to exist;
3. When the worker does not pay his/her liability;
4. When the worker loses the benefit of the scheduled payment method due to failure to meet his/her scheduled payment;
5. When there occur other reasons which are feared to influence the guaranteed liability.
Article 26 (Fulfillment, etc. of the Guaranteed Liability)(1) The financial institution which engages in loans pursuant to Article 22 (1) may request the Service to pay the guaranteed liability, in cases there occur reasons to request the payment of the guaranteed liability prescribed in the details of the agreement under the same Article.
(2) The Service shall, upon receipt of a request by a financial company to pay the guaranteed liability pursuant to paragraph (1), make a subrogated payment in accordance with the agreement details under Article 22 (2).
(3) When the Service pays the guaranteed liability pursuant to paragraph (2), it may exercise a right to indemnity and the said right to indemnity may be delegated to financial company, etc.
(4) The financial company to which the right to indemnity is delegated pursuant to paragraph (3) may take all the judicial and non-judicial actions relating to enforcement of the right to indemnity on behalf of the Service.
Where the Service pays the guaranteed liability, it may collect the amount of loss not exceeding annually 20/100 of the amount paid from the relevant worker as determined by Presidential Decree, for the period starting from the date of payment until when the worker reimburses the amount. The amount of loss in such cases shall not exceed the amount of subrogated payment.
SECTION 4 Support for Workers' Welfare Facilities, etc.
Article 28 (Support for Establishment, etc. of Workers' Welfare Facilities)(1) The State and a local government shall endeavor to establish and operate welfare facilities for workers (hereinafter referred to as "workers' welfare facilities").
(2) The Minister of Employment and Labor may set the standards for establishment of workers' welfare facilities, taking into consideration the type of business, the number of workers in the workplace, etc., and recommend the relevant employer to establish the facilities.
(3) The State may provide necessary supports, when a business owner (including an association of business owners; the same shall apply hereafter in this Article), a labor union (including affiliated offices and branches; the same shall apply hereinafter), the Service, or non-profit corporation builds or acquires workers' welfare facilities.
(4) The State may provide support for part of the expenses within budgetary limits to a local government, a business owner, a labor union, the Service, or a non-profit corporation which establishes and operates workers' welfare facilities.
Article 29 (Entrustment of Operation of Workers' Welfare Facilities)(1) If the State or a local government deems it necessary to efficiently operate the workers' welfare facilities established pursuant to Article 28 (1), it may entrust the Service or a non-profit organization with the operation of such facilities.
(2) When the State or a local government entrusts the operation of workers' welfare facilities pursuant to paragraph (1), it may partially subsidize the expenses for the operation within budgetary limits.
A person who establishes and operates workers' welfare facilities may place some restrictions on the user of workers' welfare facilities or charge use fees on an unequal basis in consideration of workers' income level, family relationship, etc.
Article 31 (Subsidization for Expenses Incurred in Using Private Welfare Facilities)(1) Where the worker prescribed in Article 3 (3) uses privately operated welfare facilities because he/she has difficulties in using the workers' welfare facilities established by the State and a local government as prescribed in Article 28 (1), the State may provide support for part of the cost.
(2) The target workers and procedures for the support under paragraph (1), and other necessary matters shall be prescribed by Ordinance of the Ministry of Employment and Labor.
CHAPTER III WORKERS' WELFARE AT WORKPLACE
SECTION 1 Employee Stock Ownership Program
Article 32 (Purpose of Employee Stock Ownership Program)
The purpose of the employee stock ownership program is to improve workers' economic and social status and promote cooperation between labor and management by encouraging workers to acquire and own shares of stock of a stock company in which an employee stock ownership association has been established (hereinafter referred to as "company implementing the employee stock ownership program") through the employee stock ownership association.
Article 33 (Establishment of Employee Stock Ownership Association)(1) When workers employed by a stock company intend to establish an employee stock ownership association, such workers shall form an preparatory committee for the establishment of the employee stock ownership association with consent of at least one-fifth of all workers qualified for membership of the employee stock ownership association under Article 34 and establish the employee stock ownership association, as prescribed by Presidential Decree. In such cases, the preparatory committee for the establishment of the employee stock ownership association shall consult in advance with the relevant company on the matters specified by Ordinance of the Ministry of Employment and Labor, including matters regarding the company's support for the establishment of the employee stock ownership association.
(2) Except as otherwise provided for in this Act, provisions regarding incorporated associations in the Civil Act shall apply mutatis mutandis to the establishment and operation of employee stock ownership associations.
Article 34 (Qualification for Membership of Employee Stock Ownership Association, etc.)(1) In order to be qualified for membership of the employee stock ownership association of a company implementing the employee stock ownership program, a worker shall meet either of the following prerequisites:
1. A worker employed by a company implementing the employee stock ownership program;
2. A worker employed by a stock company over which a company implementing the employee stock ownership program has control by holding at least 50/100 of the total number of outstanding shares of stock (hereinafter referred to as "controlled company") or a worker employed by a stock company whose sales from transactions with a company implementing the employee stock ownership program under an agreement amount to at least 50/100 of annual gross sales for the immediately preceding year (hereinafter referred to as "contracted company"), who shall meet all the following requirements, as prescribed by Presidential Decree:
(a) If a worker is employed by a controlled or contracted company, he/she shall obtain consent of a majority of all workers employed by the company;
(b) A worker shall obtain consent of the employee stock ownership association of the company implementing the employee stock ownership program;
(c) If the controlled or contracted company has its own employee stock ownership association, the employee stock ownership association shall be dissolved: Provided, That the foregoing shall not apply to cases specified in the proviso to Article 47 (1) 4.
(2) A worker who falls under any of the following circumstances shall not be qualified for a member of the employee stock ownership association of a company implementing the employee stock ownership program, and a member of an employee stock ownership association shall be disqualified for the membership of the employee stock ownership association of the company implementing the employee stock ownership program, when the worker falls under any of the following subparagraphs: Provided, That a worker specified in subparagraph 1 may retain qualification as a member of an employee stock ownership association only with respect to the shares of stock of the company implementing the employee stock ownership program that have been allotted to him/her pursuant to Article 37 and the employee stock options that have been granted to him/her pursuant to Article 39:
1. A person appointed as an executive at a general meeting of shareholders of the company implementing the employee stock ownership program or the controlled or contracted company;
2. A shareholder employed as a worker by the company implementing the employee stock ownership program or the controlled or contracted company: Provided, That minority shareholders specified by Presidential Decree shall be excluded herefrom;
3. A worker employed by the controlled or contracted company, where an employee stock ownership association is established in the controlled or contracted company after the worker joined the employee stock ownership association of the company implementing the employee stock ownership program as a member;
4. A worker specified by Presidential Decree as a worker in whose case it is impracticable to be qualified for the membership of an employee stock ownership association in the light of the term of service, characteristics of the labor relationship involved, etc.
(3) A member of an employee stock ownership association may freely opt out from the employee stock ownership association: Provided, That a member who opts out from an employee stock ownership association may be banned from re-joining the association for a period prescribed by the bylaws established pursuant to Article 35 (2) 1, which shall not exceed two years.
(4) If a change occurs to the qualification of a member of the employee stock ownership association of a company implementing the employee stock ownership program because the company to which the worker belongs falls under either of the following circumstances, the member shall retain qualification as a member of the employee stock ownership association only with respect to the shares of stock of the company implementing the employee stock ownership program, which have been allotted to him/her pursuant to Article 37, and the employee stock options, which have been granted to him/her pursuant to Article 39:
1. Where the company is included in, or excluded from, controlled companies;
2. Where the company is included in, or excluded from, contracted companies.
Article 35 (Operation of Employee Stock Ownership Associations, etc.)(1) An employee stock ownership association shall be operated in a democratic way by reflecting the opinions of all association members.
(2) The following matters shall be determined by the resolution of the general meeting of employee stock ownership association members:
1. Enactment and modification of the association bylaws;
2. Establishment of employee stock ownership association fund under Article 36;
3. Budget and settlement of accounts;
4. Election of executives, including a representative of employee stock ownership association;
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