The purpose of this Act is to improve workers' quality of life and contribute to the balanced development of the national economy by prescribing matters necessary in establishing labor welfare policies and carrying out welfare projects.
The meaning of terms used in this Act is as follows :
1.“Worker” refers to a person who works for a business or workplace for the purpose of earning wages regardless of types of occupation.
2.“Employer” refers to a business owner, a person responsible for management of a business or a person who works on behalf of a business owner with regard to matters relating to workers.
3.“Housing business operator” refers to a person who builds or purchases houses for the purpose of selling or renting them to workers.
4.“Employee stock ownership association” refers to an organization established by workers of a stock company in accordance with the conditions prescribed in this Act in order to acquire and manage shares of that stock company.
5.“Company stocks‘ refers to shares of a joint-stock company, which are acquired by workers, etc., of that joint-stock company through an employee stock ownership association established in the joint-stock company.
Article 3 (Basic Principles of Labor Welfare Policies)
(1)Labor welfare (excluding basic working conditions, such as wages, working hours, etc. ; hereinafter the same shall apply.) policies shall aim to expand opportunities for workers to participate in economic and social activities, to promote their will to work and to improve their quality of life.
(2)When labor welfare policies are established and implemented, consideration and support shall be given to ensure that workers are not subject to discrimination on the grounds of gender, age, physical conditions, employment status, religion, social status, etc.
(3)When support is provided to improve workers’ welfare pursuant to this Act, it shall be ensured that preferential treatment is given to workers in small enterprises, fixed-term workers (referring to fixed-term workers under subparagraph 1 of Article 2 of the Act on the Protection, etc., of Fixed-term and Part-time Employees), part-time workers (referring to part-time workers under Article 2 (1) 8 of the Labor Standards Act), dispatched workers (referring to dispatched workers under subparagraph 5 of Article 2 of the Act on the Protection, etc., of Dispatched Workers; hereinafter the same shall apply), workers employed by subcontractors (referring to subcontractors under subparagraph 5 of Article 2 of the Act on the Collection, etc., of Premiums for Employment Insurance and Industrial Accident Compensation Insurance), low-income workers and workers with a long tenure.
Article 4 (Responsibility of State or Local Governments)
If the State or a local governments establishes and implements labor welfare policies, it shall make efforts to promote workers’ welfare by providing budgetary, fund, tax and financial support according to the basic principles of labor welfare policies prescribed in Article 3.
Article 5 (Responsibility of Employers and Trade Unions)
(1)An employer (referring to a person who carry out business using workers) shall make efforts to promote the welfare of workers in the workplace concerned and cooperate on labor welfare policies.
(2)Trade unions and workers shall make efforts to improve productivity by increasing their will to work and cooperate on labor welfare policies.
Article 6 (Prohibition of Use for Other Purposes)
Any person who receives subsidies or loans for labor welfare, such as stabilizing workers' housing, securing their livelihoods and creating their wealth, etc., from the State or a local government shall use the money only for the intended projects.
(1)The State or a local government shall make active efforts to raise necessary funds for labor welfare projects under this Act.
(2)The funds raised pursuant to paragraph (1) may be contributed or loaned to the Labor Welfare Promotion Fund under Article 87.
Article 8 (Deliberation on Important Matters concerning Labor Welfare Promotion)
The following matters concerning labor welfare under this Act shall be deliberated on by the Employment Policy Council (hereinafter referred to as “the Employment Policy Council”) under Article 10 of the Framework Act on Employment Policy:
1.Basic plan on labor welfare promotion under Article 9 (1);
2.Matters concerning the raising of funds needed for labor welfare projects; and
3. Other matters concerning labor welfare policy brought forward by the chair of the Employment Policy Council.
Article 9 (Establishment, etc., of Basic Plan)
(1)The Minister of Employment and Labor shall establish a basic plan for labor welfare promotion (hereinafter referred to as “the basic plan”) every five years in consultation with the heads of relevant central administrative agencies.
(2)The basic plan shall include the matters described in any of the following subparagraphs:
1. Matters on workers’ housing stability;
2. Matters on workers’ livlihood stability;
3. Matters on workers’ wealth creation;
4. Matters on employee stock ownership plans;
5. Matters on the employee welfare fund system;
6. Matters on support for selective welfare systems;
7. Matters on the operation of the employee support program;
8.Matters on the establishment and operation of welfare facilities for workers:
9Matters on the raising of funds needed for workers welfare projects; and
10. Other matters considered by the Minister of Labor to be necessary for labor welfare promotion.
(3)If the Minister of Employment and Labor has established the basic plan, he/she shall announce it.
Article 10 (Provision of Materials and Use of Electronic Network)
(1)The Minister of Employment and Labor may request government agencies, such as the Ministry of Public Administration and Security, the Ministry of Health and Welfare, the Ministry of Land, Transport and Maritime Affairs, the National Tax Service, etc., local governments and relevant agencies and organizations to provide the materials, such as certificate of labor income, etc., prescribed by the Presidential Decree, and to allow him/her to use their electronic networks. In this case, the agency and organization requested to provide materials, etc., shall comply if there is no special reason.
(2) Any fees, charges or etc. shall not be imposed for materials provided to the Minister of Employment and Labor and using electronic networks under paragraph (1).
Article 11 (Consultation on Implementation of Labor Welfare Projects)
If a local government or a state-subsidized nonprofit corporation implements a labor welfare project, it shall consult with the Minister of Employment and Labor.
Article 12 (Financial Institutions Engaging in Loan Activities)
(1)The State or a local government may have a financial company, etc. (hereinafter referred to as “institutions engaging in loan activities”) described in any of the following subparagraphs engage in loan activities under this Act:
1.A bank established under Article 8 (1) of the Banking Act; and
2.Other financial company, etc. prescribed by the Presidential Decree.
(2)The Minister of Employment and Labor and the head of a local government may give priority to financial institutions which give preferential loans to workers, in engaging in loan activities, etc., under this Act.
The State or the head of a local government may provide tax incentives under the conditions prescribed in tax laws in order to promote workers’ welfare, including stabilizing workers’ housing, securing their livelihoods, creating their wealth, setting up and operating labor welfare facilities and labor welfare promotion funds, promoting employee stock ownership plans and employee welfare funds and so on.
Article 14 (Operation of Labor Welfare Information System)(1) The Minister of Employment and Labor may establish and operate a labor welfare information system in order to implement labor welfare policies effectively.
(2) The Minister of Employment and Labor many provide support for the operation of employee support programs and selective welfare systems through the labor welfare information system under paragraph (1).
CHAPTER Ⅱ Public Labor Welfare
SECTION 1 Workers’ Housing Stability
Article 15 (Operation of Workers Housing Supply System)
(1)In order to support the acquisition or rental of housing by workers, the State and a local government may operate a system of ensuring that a housing business operator sells or leases (hereinafter referred to as “supply”) houses preferentially to workers.
(2)The Minister of Land, Transport and Maritime Affairs shall include a plan to supply houses to workers (hereinafter referred to as “housing for workers”) pursuant to paragraph (1) in the comprehensive housing plan prescribed in Article 7 of the Housing Act.
(3)Types and sizes of housing for workers, workers to be supplied with housing, supply methods and other necessary matters shall be determined by the Minister of Land, Transport and Maritime Affairs in consultation with the Minister of Employment and Labor.
Article 16 (Lending of Workers' Housing Funds)
(1)In any of the following cases, the State may provide support through the National Housing Fund under Article 60 of the Housing Act to ensure that a housing business operator or a worker can get necessary funds (hereinafter referred to as “workers' housing funds”) :
1.Where a housing business operator builds or purchases housing for workers; and
2.Where a worker acquires housing for workers from a housing business operator.
(2)Necessary matters concerning those eligible for, and procedures for, getting workers' housing funds, and other supports shall be determined by the Minister of Land, Transport and Marine Affairs in consultation with the Minister of Employment and Labor.
Article 17 (Lending of Housing Purchase Funds, etc.)
(1)For workers’ housing stability, the State may provide support through the National Housing Fund under Article 60 of the Housing Act to ensure that a worker can get necessary funds (hereinafter referred to as “housing purchase funds, etc.”) if he/she purchases, newly constructs or rents a house.
(2)The State or a local government may have institutions engaging in loan activities lend housing purchase funds, etc., to workers at an interest rate lower than the market rate and pay the balance.
(3) Necessary matters concerning those eligible for, and procedures for, getting housing purchase funds, etc, and other supports shall be determined by the Minister of Land, Transport and Marine Affairs in consultation with the Minister of Employment and Labor.
Article 18 (Support for Moving, etc., by Workers)
The State may provide necessary support for the housing stability of workers who move or live far away from their families as a result of employment, a change of workplace, etc.
SECTION 2 Workers’ Livlihood Stability and Wealth Creation
Article 19 (Provision of Livlihood Stability Funds)
(1) The State shall provide necessary support, such as loans for the medical, wedding, funeral expenses, etc., of workers and their families, in order to support workers’ livlihood stability.
(2)Considering the economic situation, the time when workers need livlihood stability funds, and so on, the State may provide necessary support, such as loans for living expenses, etc., in order to stabilize the livelihoods of workers, etc., who do not receive their wages.
(3)Necessary matters concerning those eligible for and procedures for, support for medical, wedding, funeral, and living expenses, etc., under paragraphs (1) and (2) shall be prescribed by the Ordinance of the Ministry of Employment and Labor.
Article 20 (Support, etc., for School Expenses)
(1)The State may provide necessary support, such as scholarship or loans for school expenses, etc., in order to expand opportunities for workers and their children to receive education.
(2)Necessary matters concerning those eligible for, and procedures for, receiving scholarship and loans for school expenses shall be prescribed by the Ordinance of the Ministry of Employment and Labor.
Article 21 (Preferential Savings Account for Workers)
The State shall operate a savings system giving preferential treatment to workers in order to support workers' wealth creation.
SECTION 3 Support for Credit Guarantee for Workers
Article 22 (Credit Guarantee and Those Eligible Therefor)(1) If a debt is incurred by a worker with a lack of collateral (including the unemployed who have been registered as job seekers and accident victims under the Industrial Accident Compensation Insurance Act; hereinafter the same shall apply in this Chapter) as a result of borrowing livelihood stability funds, school expenses, etc., from a financial company, etc., the Korea Workers Compensation and Welfare Service (hereinafter referred to as the “Corporation”) under the Industrial Accident Compensation Insurance Act may guarantee the debt in accordance with a contract with that financial company, etc. In this case, types of loans and workers subject to such guarantee shall be prescribed by the Ordinance of the Ministry of Employment and Labor.
(2)The contract made between the Corporation and a financial company, etc., under paragraph (1) shall contain the following matters:
1.A statement saying that the debt referred to in paragraph (1) is guaranteed;
2.Types of loans and workers subject to the credit guarantee;
3.Guaranteed maximum amount per worker;
4.Reasons for, and period and method of, a claim for repayment of guaranteed debts;
5. Examination for, and extent of, subrogation and the share of losses borne by the financial company, etc.;
6. Matters concerning the operation of the credit guarantee system, of which the financial company, etc. should notify the Corporation ; and
7.Other matters necessary for a credit guarantee for workers.
(3)If the Corporation intends to sign or alter the contract prescribed in paragraph (1), it shall obtain approval from the Minister of Employment and Labor.
Article 23 (Guarantee Relationship)
(1)If the Corporation has decided to provide a credit guarantee for a worker, it shall notify the worker and the financial company, etc. from which the worker intends to get loans of the fact.
(2)A credit guarantee relationship is established at the time when the financial company, etc., given notification makes loans to the worker concerned pursuant to paragraph (1).
Article 24 (Fees for Guarantee)
The Corporation may collect guarantee fees from a worker whose credit is guaranteed pursuant to Article 22 at an annual interest rate not exceeding 1/100 on the guaranteed amount under the conditions prescribed by the Presidential Decree.
Article 25 (Obligation of Notification)
If a financial company, etc. given notification pursuant to Article 23 falls under any of the following subparagraphs, it shall notify the Corporation of the fact without delay:
1.Where the main creditor-debtor relationship has been established;
2.Where all or part of the main debt is extinguished;
3. Where the worker fails to repay the debt;
4.Where the worker loses the benefit of time; or
5.Where there occur other reasons which might influence the guaranteed debt.
Article 26 (Repayment etc., of Guaranteed Debt)
(1) A financial company, etc., which provides loan services pursuant to Article 22 (1) may make a claim against the Corporation for repayment of guaranteed debts under the same Article, if there occurs a reason to claim repayment of guaranteed debts.
(2)If a financial company, etc., claims repayment of guaranteed debts pursuant to paragraph (1), the Corporation shall make a subrogated payment in accordance with the terms of the contract under Article 22 (2).
(3)If the Corporation has repaid guaranteed debts pursuant to paragraph (2), it may directly exercise the right to indemnity or entrust the exercise of that right to a financial company, etc.
(4) The financial company, etc., entrusted with the exercise of the right to indemnity pursuant to paragraph (3) may take all judicial and non-judicial actions relating to the exercise of the right to indemnity on behalf of the Corporation.
If the Corporation has paid guaranteed debts, it may collect late interest on the paid amount from the worker concerned at an annual rate not exceeding 20/100 from the date of payment until when the worker reimburses the amount, under the conditions prescribed by the Presidential Decree. In this case, the late interest shall not exceed the paid amount.
SECTION 4 Support for Labor Welfare Facilities, etc.
Article 28 (Support for Establishment, etc. of Labor Welfare Facilities)
(1)The State and a local government shall make efforts to establish and operate labor welfare facilities (hereinafter referred to as “labor welfare facilities”).
(2)The Minister of Employment and Labor may set standards for the establishment of labor welfare facilities in consideration of the type of business and the number of workers in the workplace and recommend an employer to establish them.
(3)The State may provide necessary support, if an employer (including an employers’ association ; hereinafter the same shall apply in this Article), a trade union (including local chapters, branches, etc. ; hereinafter the same shall apply.), the Corporation or a nonprofit corporation sets up and operates labor welfare facilities.
(4)If a local government, an employer, a trade union, the Corporation or a nonprofit corporation establishes and operates labor welfare facilities, the State may support part of the costs within the limits of its budget.
Article 29 (Entrustment of Operation of Labor Welfare Facilities)
(1)The State or a local government may entrust the Corporation or a nonprofit organization to operate the labor welfare facilities established pursuant to Article 28 (1), if it is necessary for their efficient operation.
(2)If the State or a local government entrusts the operation of labor welfare facilities pursuant to paragraph (1), it may subsidize part of the costs of operation within the limits of its budget.
A person who establishes and operates labor welfare facilities may restrict some people from using the labor welfare facilities or charge different fees in consideration of the income levels, family relations, etc. of workers.
Article 31 (Support for Cost of Using Private Welfare Facilities)
(1)If a worker under Article 3 (3) uses a welfare facility operated by a private agency because he/she has difficulties in using the labor welfare facilities set up by the Sate or a local government under Article 28 (1), part of the costs may be provided.
(2)Necessary matters concerning those eligible for the support, procedures, etc., under paragraph (1) shall be prescribed by the Ordinance of the Ministry of Employment and Labor.
CHAPTER Ⅲ Corporate Labor Welfare
SECTION 1 Employee Stock Ownership Plan
Article 32 (Purpose of Employee Stock Ownership Plan)
The purpose of an employee stock ownership plan is to improve workers’ economic and social status and promote cooperation between labor and management by allowing workers to acquire and hold shares in a joint-stock company (hereinafter referred to as “company implementing an employee stock ownership plan”) where an employee stock ownership association has been set up, through the employee stock ownership association.
Article 33 (Establishment of Employee Stock Ownership Association)
(1)Workers of a joint-stock company, who intend to set up an employee stock ownership association, may organize a preparatory committee on the establishment of an employee stock ownership association with the consent of at least one fifth of all workers qualified to become a member of an employee stock ownership association under Article 34 and establish an employee stock ownership association under the conditions prescribed by the Presidential Decree. In this case, the preparatory committee on the establishment of an employee stock ownership association shall consult with the company in advance over the matters prescribed by the Ordinance of the Ministry of Employment and Labor, including matters concerning the company's support for the establishment of an employee stock ownership association.
(2)The provisions on incorporated associations in the Civil Act shall apply mutatis mutandis to the establishment and operation of an employee stock ownership association, except as provided for in this Act.
Article 34 (Membership, etc., of Employee Stock Ownership Association)
(1)A worker who is qualified to join as a member an employee stock ownership association set up in a company implementing an employee stock ownership plan is as follows :
1.Any worker of a company implementing an employee stock ownership plan;
2.Any worker of a joint-stock company (hereinafter referred to as “affiliated company”) controled by a company implementing an employee stock ownership plan by owning 50/100 or more of its total issued shares under the conditions prescribed by the Presidential Decree or any worker of a joint-stock company (hereinafter referred to as “contract company”) to which a company implementing an employee stock ownership plan awards a contract and whose sales to that company account for 50/100 or more of its total annual sales of the previous year, and who meets all of the following requirements :
A.In the case of an affiliated company or a contract company, the worker should obtain consent from a majority of all workers of the affiliated company or contract company;
B.The worker should obtain consent from the employee stock ownership association set up in the company implementing an employee stock ownership plan; and
C.If there is an employee stock ownership association set up in the affiliated company or contract company, such an association should be dissolved : Provided that this shall not apply in the case described in the proviso of Article 47 (1) 4.
(2)If a person falls under any of the following subparagraphs, he/she shall not become a member of an employee stock ownership association set up in a company implementing an employee stock ownership plan, and if a member of an employee stock ownership association falls under any of the following subparagraphs, he/she shall lose his/her membership : Provided that a worker falling under subparagraph 1 may maintain his/her membership of an employee stock ownership association, but only for the shares of the company implementing an employee stock ownership plan, which are allocated to him/her under Article 37, and employee stock options granted to him/her under Article 39:
1.A person appointed as officer at a general shareholders’ meeting of the company implementing an employee stock ownership plan, affiliated company and contract company;
2.A worker of the company implementing an employee stock ownership plan, affiliated company and contract company, who is a shareholder thereof : Provided that this shall not apply to the minority shareholders prescribed by the Presidential Decree;
3.A worker of the affiliated company or contract company in case an employee stock ownership association is set up in the company to which the worker belongs after he/she has joined the employee stock ownership association set up in the company implementing an employee stock ownership plan;
4.Other workers prescribed by the Presidential Decree, whose membership of an employee stock ownership association is hard to acknowledge given his/her length of service, the unique nature of his/her employment relationship, etc.
(3)A member of an employee stock ownership association may freely withdraw from the employee stock ownership association: Provided that an employee stock ownership association member who has withdrawn from an employee stock ownership association may be restricted from joining the association again for a period of up to two years, set by the association rules under Article 35 (2) 1.
(4) If any change is made to membership of an employee stock ownership association set up in a company implementing an employee stock ownership plan as the company to which the worker belongs falls under any of the following subparagraphs, the worker shall maintain his/her membership of the employee stock ownership association set up in the company implementing an employee stock ownership plan prior to that change only for the shares of the company implementing an employee stock ownership plan, which are allocated to him/her under Article 37, and employee stock options granted to him/her under Article 39:
1.Where the company is incorporated into, or excluded from, its affiliated company; or
2.Where the company is incorporated into, or excluded from, its contract company
Article 35 (Operation of Employee Stock Ownership Association)
(1)An employee stock ownership association shall be operated in a democratic way by reflecting the opinions of all members of the association.
(2)The matters described in any of the following subparagraphs shall be subject to resolution at a general meeting of employee stock ownership association members:
1.Matters regarding the establishment and revision of association rules;
2.Matters regarding the creation of an employee stock ownership association fund pursuant to Article 36;
3. Matters regarding the budget and settlement of accounts;
建设单位：海南惠企商务信息研究所有限公司
地址：海南省海口市美兰区新埠大道三号
版权所有：惠企研究所 备案号：琼ICP备17001760号-1
