ENFORCEMENT DECREE OF THE EMPLOYMENT INSURANCE ACT
[Enforcement Date 01. Jan, 2005.] [Presidential Decree No.18572, 29. Oct, 2004., Partial Amendment]
Ministry of Employment and Labor (Employment Insurance Planning Division-Employment Insurance System) , 044-202-7352 Ministry of Employment and Labor (Employment Insurance Planning Division) , 044-202-7373 Ministry of Employment and Labor (Employment Policy Division-Employment Promotion Subsidy , Employment Maintenance Subsidy , etc.) , 044-202-7218 Ministry of Employment and Labor (Employment Support Unemployment Benefit-Unemployment Benefit) , 044-202-7376 Ministry of Employment and Labor (Human Resource Development Division-Training Support for Employer and Worker Vocational Competency Development) , 044-202-7317 Ministry of Employment and Labor (Female Employment Policy Division-Maternity Protection) , 044-202-7476 Ministry of Employment and Labor (Employment Support Unemployment Benefit Division-Insured Management) , 044-202-7378
Chapter Ⅰ GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Decree is to provide for matters delegated by the Employment Insurance Act (hereinafter referred to as the “Act”) and other matters necessary to implement the delegated matters.
Article 1-2 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 2 (Scope of Application) (1) The term “business prescribed by the Presidential Decree” in the proviso of Article 7 of the Act means the business falling under each of the following subparagraphs: <Amended by Presidential Decree No. 15624, Feb. 12, 1998; Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 16095, Feb. 1, 1999; Presidential Decree No. 16464, Jul. 1, 1999; Presidential Decree No. 17853, Dec. 30, 2002; Presidential Decree No. 18572, Oct. 29, 2004>
1.In the fields of agriculture, forestry, fishery and hunting, the business for which not more than four full-time workers are employed by any person who is not a corporation;
2.The total work cost provided for in Article 2 (1) 2 of the Enforcement Decree of the Act on the Employment Insurance and the Collection of Insurance Premiums, etc. for Industrial Accident Compensation Insurance (hereinafter referred to as the “total work cost”) falls short of the amount that is published every year by the Minister of Labor; and
3. The business of housekeeping services.
(2) Deleted. <by Presidential Decree No. 15902, Oct. 1, 1998>
(3) The scope of a business which falls under any of subparagraphs of paragraph (1) shall be based on the Korean Standard Industrial Classification Table which is announced by the Commissioner of the National Statistical Office under the Statistics Act, except for cases which are specially regulated by the Act and this Decree. <Amended by Presidential Decree No. 15902, Oct. 1, 1998>
(4) The whole cost of the construction referred to in paragraph (1) 2 shall be the total sum of the individual contract prices when the contract has been made, by dividing the same construction work into two or more parts (including the case where the ordering person performs part of the construction directly) for the completion of final constructed products, regardless of whether it is called a trust or other names: Provided, That this shall not apply in case where works of respective contracted parts are independently conducted in terms of time and place. <Amended by Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 16464, Jul. 1, 1999>
(5) In the case where the whole cost of the construction work is, originally, less than the amount announced by the Minister of Labor pursuant to paragraph (1) 2 but turns out to exceed that amount due to a change of design (including the case where a design is actually changed), or is treated as a block in accordance with Article 8 (1) and (2) of the Act on the Employment Insurance and the Collection of Insurance Premiums, etc. for Industrial Accident Compensation Insurance (hereinafter referred to as the “Insurance Premium Collection Act”) shall apply as a whole from that time. <Amended by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 16464, Jul. 1, 1999; Presidential Decree No. 18572, Oct. 29, 2004>
Article 2-2 Deleted. <by Presidential Decree No. 16095, Feb. 1, 1999>
Article 3 (Workers Excepted from Application) (1) The term “person whose fixed working hours fall short of the hours prescribed by the Presidential Decree” in subparagraph 2 of Article 8 of the Act means the person whose fixed working hours per month fall short of 60 hours (including any person whose fixed working hours per week fall short of 15 hours): Provided, That any person who continues to work for not less than 3 months from among persons who work for making their living and any daily employed worker provided for in subparagraph 5 of Article 2 of the Act shall be excluded. <Newly Inserted by Presidential Decree No. 18165, Dec. 18, 2003>
(2) The term “persons determined by the Presidential Decree” in subparagraph 7 of Article 8 of the Act shall be those falling under the following subparagraphs: <Amended by Presidential Decree No. 14935, Mar. 9, 1996; Presidential Decree No. 15829, Jul. 1, 1998; Presidential Decree No. 16705, Feb. 9, 2000; Presidential Decree No. 17853, Dec. 30, 2002; Presidential Decree No. 18165, Dec. 18, 2003; Presidential Decree No. 18296, Feb. 25, 2004>
1. Deleted; <by Presidential Decree No. 17853, Dec. 30, 2002>
2. Deleted; <by Presidential Decree No. 18296, Feb. 25, 2004>
3. Deleted; <by Presidential Decree No. 15902, Oct. 1, 1998>
4. Foreign workers: Provided, That the person falling under any of the following items shall be excluded:
(a) Person who holds the stay status of residence (D-7), corporate investment (D-8) and trade management (D-9) (excluding the case where the law of the domicile of any foreigner, which governs insurance premiums and benefits corresponding to those of the employment insurance under this Act, does not apply to nationals of the Republic of Korea) from among sojourn status of foreigners under Article 12 of the Enforcement Decree of the Immigration Control Act;
(b) Person who holds a stay status of non-professional employment (E-9) from among persons who hold the stay status that permits their job-seeking activities under Article 23 (1) of the Enforcement Decree of the Immigration Control Act;
(c) Person who is not the person holding a stay status of non-professional employment (E-9) (limited to any person who has applied for an insurance policy under the conditions as prescribed by the Ordinance of the Ministry of Labor) from among persons who hold the stay status that permits their job-seeking activities under Article 23 (1) of the Enforcement Decree of the Immigration Control Act;
(d) Person who falls under the provisions of Article 23 (2) 1 of the Enforcement Decree of the Immigration Control Act (limited to any person who applies for an insurance policy in accordance with the Ordinance of the Ministry of Labor);
(e) Person who falls under the provisions of Article 23 (2) 2 of the Enforcement Decree of the Immigration Control Act;
(f) Person who falls under the provisions of Article 23 (3) of the Enforcement Decree of the Immigration Control Act (limited to any person who applies for an insurance policy in accordance with the Ordinance of the Ministry of Labor); and
(g) Person who falls under the provisions of Article 23 (4) of the Enforcement Decree of the Immigration Control Act; and
5. Special post office personnel under the Special Post Offices Act.
Article 4 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 4-2 (Administration of Statistics of Employment Insurance, etc.) (1) The Minister of Labor shall systematically administer and operate the statistics of employment insurance (hereinafter referred to as the “statistics of employment insurance”) that are obtained in the course of surveying, researching and operating the employment insurance, which are performed in accordance with Article 8-2 of the Act.
(2) The Minister of Labor may keep personnel specializing in the statistics of employment insurance on his payroll in order to systematically administer and operate the statistics of employment insurance.
(3) Necessary matters concerning qualifications, services and remunerations for the personnel specializing in the statistics of employment insurance, etc. shall be prescribed by the Minister of Labor.
[This Article Newly Inserted by Presidential Decree No. 18296, Feb. 25, 2004]
Article 4-3 (Execution of Affairs by Proxy) (1) Pursuant to Article 8-2 (2) of the Act, the Minister of Labor may have research institutions specializing in the employment insurance established under Article 8 of the Act on the Establishment , Operation and Fosterage of Government-Invested Research Institutions execute, by proxy, research and study projects to support studies on the labor market and activities related to employment insurance (hereinafter referred to as the “insurance”). <Amended by Presidential Decree No. 16093, Jan. 29, 1999; Presidential Decree No. 18296, Feb. 25, 2004>
(2) Where the Minister of Labor has a proxy or agent executing activities pursuant to paragraph (1), he may support the expenses required for the necessary research, study, management and operation, etc., from the insurance fund.
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
Chapter Ⅱ MANAGEMENT OF THE INSURED
Article 5 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 6 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 7 (Submission of Material concerning Subcontractor by Original Contractor)
Any original contractor who becomes a business operator in accordance with the main sentence of Article 9 of the Insurance Premium Collection Act shall submit material concerning any subcontractor who is required to make a report on his status of the insured in accordance with Article 13 (2) of the Act to the Minister of Labor within 14 days from the date on which a subcontract is concluded. <Amended by Presidential Decree No. 18572, Oct. 29, 2004>
[This Article Newly Inserted by Presidential Decree No. 18165, Dec. 18, 2003]
Article 7-2 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 8 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 9 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 9-2 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 9-3 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 9-4 Deleted. <by Presidential Decree No. 18572, Oct. 29, 2004>
Article 10 (Report on Acquisition or Loss of Status of Insured, etc.)(1) Any business operator or any subcontractor shall, when he intends to report matters concerning the acquisition and loss of the status of the insured involving workers employed for the relevant business to the Minister of Labor in accordance with Article 13 of the Act or to submit a document certifying the unit term of the insured, the grounds of the loss of their employment and details of wages paid and severance pays granted, etc. prior to their loss of employment (hereinafter referred to as the “document confirming the loss of employment”) to the Minister of Labor in accordance with Article 13-2 of the Act, report such matters and submit such documents by the 15th day of the month following the month belonging to the date on which the grounds of the loss of their employment accrue (if the workers ask the business operator or the subcontractor to report such matters and submit the document prior to the date, he shall comply with the request without delay). In this case, if the business operator or the subcontractor makes a report on the confirmation of details of the labor that contains the number of working days and wages, etc. for daily employed workers provided for in subparagraph 5 of Article 2 of the Act, who are employed in the relevant month, to the Minister of Labor by the 15th day of the month following the date on which the grounds of the loss of their employment accrue , <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
(2) The operator of a business who makes a report on the commencement or termination of business pursuant to Article 11 (3) of the Insurance Premium Collection Act shall make a report on the acquisition or loss of the status of the insured to the Minister of Labor within the report deadline as referred to in paragraph (1). <Newly Inserted by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 15829, Jul. 1, 1998; Presidential Decree No. 18165, Dec. 18, 2003; Presidential Decree No. 18572, Oct. 29, 2004>
(3) Deleted. <by Presidential Decree No. 18165, Dec. 18, 2003>
(4) The Minister of Labor who receives the confirmation document on separation in accordance with Article 13-2 (1) of the Act shall confirm the insured unit period, causes for separation, and wage payment specifications, etc. <Newly Inserted by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 18165, Dec. 18, 2003>
(5) Where the Minister of Labor confirms the contents entered in the confirmation document on separation under paragraph (4), he may demand that the separated person submit a doctor's medical certificate or other document which can prove the causes, if there exists any fact that the separated person concerned has not received wages for not less than 30 days successively within 18 months before the date of the separation due to the causes referred to in Article 31 (2) of the Act.
<Newly Inserted by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 18165, Dec. 18, 2003>
(6) Deleted. <by Presidential Decree No. 18165, Dec. 18, 2003>
Article 10-2 (Report on Status of Insured Involving Workers)
In the event that any worker makes a report on matters concerning the acquisition and loss of his status of the insured, etc. in accordance with Article 13 (3) of the Act, he shall submit a document certifying employment relation, including his labor contract, etc.
[This Article Newly Inserted by Presidential Decree No. 18165, Dec. 18, 2003]
Article 11 (Transference Report of Insured) (1) When the business operator transfers the insured from a business of the concerned business operator to another business, he shall report it to the Minister of Labor within 14 days from the transference date. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
(2) Deleted. <by Presidential Decree No. 14935, Mar. 9, 1996>
Article 12 (Report on Changes of Name, etc., of Insured)
The business operator shall, when the name or the resident registration number of the insured has changed or been corrected, report to the Minister of Labor within 14 days from the change or correction date. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
Article 13 (Request and Notification of Confirmation) (1) When the insured or the person who was insured desires to request confirmation of the acquisition or loss of his status of the insured as provided by Article 14 (1) of the Act, he may make this request to the Minister of Labor. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
(2) The Minister of Labor shall notify any person who has acquired or lost his status of the insured or any business operator or any subcontractor who is employing or has employed him of the result of confirming the acquisition and loss of his status of the insured in accordance with Article 14 (2) of the Act: Provided, That in the event that the Minister of Labor confirms the number of working days and wages, etc. with respect to any daily-employed worker after receiving a report on the confirmation of details of labor provided for in the latter part of Article 10 (1), he may notify the daily-employed worker, the business operator or the subcontractor of matters concerning details of his labor in lieu of the notification concerning the aquisition or loss of his status of the insured. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
(3) Any notification to any person who has acquired his status of the insured from among the notifications referred to in paragraph (2) may be made through the relevant business operator or the relevant subcontractor. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
(4) Deleted. <by Presidential Decree No. 18165, Dec. 18, 2003>
Article 14 Deleted. <by Presidential Decree No. 15367, May 8, 1997>
Chapter Ⅲ EMPLOYMENT STABILIZATION ACTIVITIES
Article 15 (Scope of Preferentially Supported Enterprise) (1) The scope of enterprises which shall be given first consideration when implementing such activities as employment stabilization and vocational ability development (hereinafter referred to as the “preferentially supported enterprise”) under Articles 15 (2 ) and 21 (2) of the Act shall be those which continuously employ the number of persons by industry falling under any one of the following subparagraphs:
1. Mining: not more than 300 persons;
2. Manufacturing industry: not more than 500 persons;
3. Construction: not more than 300 persons;
4. Transportation, warehouse and communication industry: not more than 300 persons; and
5.Other industries besides those listed in subparagraphs 1 through 4: not more than 100 persons.
(2) Any enterprise that does not fall under each subparagraph of paragraph (1) and meets the standards provided for in paragraphs (1) and (3) of Article 2 of the Framework Act on Small and Medium Enterprises shall be deemed an enterprise entitled to the preferential support, notwithstanding the provisions of paragraph (1). <Amended by Presidential Decree No. 18296, Feb. 25, 2004>
(3) Notwithstanding the provisions of paragraphs (1) and (2), where any enterprise is served the notice that it is a subsidiary of an enterprise group whose gross amount of assets is in excess of 5 trillion won from among such enterprise groups subject to the limitations on the mutual investment as designated under Article 14 (1) of the Monopoly Regulation and Fair Trade Act, it shall not be deemed to be a preferentially supported enterprise starting from the insurance year next the insurance year to which the date on which it has received the notice belongs. <Amended by Presidential Decree No. 15829, Jul. 1, 1998; Presidential Decree No. 17853, Dec. 30, 2002>
(4) In order to determine whether the enterprise is subject to a preferentially supported enterprise under paragraph (1) of this Article, the following standards shall be observed: <Amended by Presidential Decree No. 15829, Jul. 1, 1998; Presidential Decree No. 18146, Nov. 29, 2003>
1.The number of workers who are employed ordinarily shall be calculated by dividing the total number of the present workers on the last day of every month of the previous year of all the businesses operated by the business operator (daily workers are excluded in the construction industry), by the operating months of the previous year: Provided, That for a business which manages collective housing referred to in the Housing Act, the number of ordinarily employed workers shall be calculated by each business; and
2.The industrial classification standard referred to in any of the subparagraphs of paragraph (1) shall be applied on the basis of the major classifications of the Korea Standard Industrial Classification Table published by the Commissioner of the National Statistical Office under the Statistics Act: Provided , That where any business operator manages the businesses of two or more industries it shall be on the basis of the industry whose number of ordinarily employed workers is larger, and where the number of ordinarily employed workers are the same, the standard shall be applied on the basis of the total amount of wages and sales.
(5) Notwithstanding paragraph (4), with regard to the business operator whose insurance relationship was formed during the insurance year, the question of whether his business is a preferentially supported enterprise shall be determined on the basis of the starting date of the insurance relationship .
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
Article 15-2 (Subsidy for Shortening Working Hours by Small and Medium Enterprises)(1) In the event that any operator of the business falling under the enterprise entitled to the preferential support in accordance with Article 15 (1) of the Act (excluding any business or business operator of workplace that each falls under subparagraph 1 of Article 1 of the Addenda of the Labor Standards Act amended by Act No. 6974) is subject to the application of the amended provisions in accordance with the provisions of Article 2 of the Addenda of the Labor Standards Act amended by Act No.6974 six months prior to the enforcement date of Article 1 of the Addenda of the amended Act and the number of monthly average workers of the relevant business (excluding any worker prescribed by the Ordinance of the Ministry of Labor from among workers who are newly employed after the working hours are shortened in accordance with the amended provisions of Article 49 of the same Act; hereinafter referred to as the “number of monthly average workers after the application”) is in excess of the number of monthly average workers three months immediately prior to the month to which the date on which the working hours are shortened to the working hours provided for in Article 49 of the same Act belongs (hereinafter referred to as the “number of monthly average workers prior to the shortening of working hours”),the Minister of Labor shall pay a subsidy to small and medium enterprises in support of shortening their working hours: Provided, That in the case falling under each of the following subparagraphs, such subsidy shall not be paid: <Amended by Presidential Decree No. 18555, Oct. 1, 2004>
1.Where the business is not subject to the application of the provisions governing the working hours, which are provided for in Article 49 of the Labor Standards Act; and
2. Where the business commences after January 1, 2004.
(2) In calculating the number of workers referred to in paragraph (1), any daily-employed worker and any person who falls under subparagraph 1 of Article 8 of the Act and Article 3 (1) of this Decree shall be excluded from such calculation.
(3) The amount of the subsidy paid to support small and medium enterprises in shortening their working hours shall be an amount obtained by the multiplication of the number resulting from an excess of the number of monthly average workers after the application over the number of monthly average workers prior to the shortening of working hours under paragraph (1) by the amount that is published every year by the Minister of Labor taking into account wage hike rates and circumstances surrounding the labor market, etc. and such subsidy shall be paid for a period that lasts on or by the date preceeding the date of the enforcement provided for in the provisions of Article 1 of the Addenda of the Labor Standards Act amended by Act No. 6974: Provided,
(4) Necessary matters concerning the application for the subsidy and the payment of the subsidy to small and medium enterprises in support of shortening their working hours shall be prescribed by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 18296, Feb. 25, 2004]
Article 15-3 (Subsidy for Switching to Swing-Shift System)(1) In the event that any business operator who gets his workers to work shifts by organizing them into groups in accordance with Article 15 (1) of the Act increases the number of the groups in order to switch their work shifts to a swing- shift system (hereinafter referred to as the “swing-shift system”) (limited to the case of increasing the number of work shifts to not more than 4 and hereinafter referred to the “switch to the swing-shift system”) and the monthly average number of his workers working for the relevant business every quarter after the switch to the swing-shift system (excluding any worker prescribed by the Ordinance of the Ministry of Labor from among newly employed workers after the switch to the swing-shift system and hereinafter referred to as the “monthly average number of workers after the switch”) is in excess of themonthly average number of workers for 3 months immediately preceding the month belonging to the date on which he switches to the swing-shift system (hereinafter referred to as the “monthly average number of workers before the switch”), the Minister of Labor shall pay the relevant business operator the subsidy for switching to the swing-shift system.
(2) In the calculation of the number of workers under paragraph (1), any daily employed worker and anyone who falls under subparagraph 1 of Article 8 of the Act and Article 3 (1) of this Decree shall be excluded from such calculation.
(3) The amount of the subsidy for switching to the swing-shift system shall be an amount obtained by the multiplication of the number resulting from an excess of the monthly average number of workers after the switch over the monthly average number of workers before the switch by the amount that the Minister of Labor publishes every year taking into account wage hike rates and circumstances facing the labor market, etc. and the amount of such subsidy shall be paid by the date on which one year passes after the switch: Provided, That the total amount of the quarterly paid subsidy shall not exceed an amount obtained by the multiplication of the number equivalent to a third of the monthly average number of workers prior to the switch by the amount that the Minister of Labor publishes.
(4) Necessary matters concerning the application for and the payment of the subsidy for switching to the swing-shift shall be prescribed by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 18555, Oct. 1, 2004]
Article 15-4 (Financial Support for Improving Employment Environment by Small and Medium Enterprises)(1) In the event that any business operator who runs a small and medium enterprise, the business type of which is provided for in Article 3 of the Special Act on the Support of Manpower of Small and Medium Enterprises (limited to small and medium enterprises provided for in Article 2 (1) of the Framework Act on Small and Medium Enterprises; hereinafter the same shall apply), installs facilities and equipment necessary to improve the employment environment in order to expand employment opportunities, thereby increasing the number of his workers, in accordance with Article 15 (1) of the Act and Article 21 (1) of the Special Act on the Support of Manpower of Small and Medium Enterprises, the Minister of Labor may financially support part of costs and wages required within limits of budget.
(2) Necessary matters concerning the scope of recognizing facilities and equipment subject to the financial support referred to in paragraph (1), requirements for the financial support, the amount of the financial support, the application for the financial support and the amount of the financial support shall be prescribed and published by the Minister of Labor.
[This Article Newly Inserted by Presidential Decree No. 18555, Oct. 1, 2004]
Article 15-5 (Subsidy for Employing Professional Manpower by Small and Medium Enterprises)(1) In the event that any business operator who runs a small and medium enterprise, the business type of which is provided for in Article 3 of the Special Act on the Support of Manpower of Small and Medium Enterprises, newly employs professional manpower that is prescribed and published by the Minister of Labor (hereinafter referred to as the “professional manpower”) in order to sharpen his corporate competitiveness and keeps such professional manpower employed for the period of 3 months before its employment to 6 months after its employment without laying off such manpower on the grounds of employment adjustment in accordance with Article 15 (1) of the Act and Article 21 (1) of the Special Act on the Support of Manpower of Small and Medium Enterprises,the Minister of Labor shall pay him the subsidy for employing the professional manpower by small and medium enterprises.
(2) The amount of the subsidy for employing the professional manpower by small and medium enterprises shall be an amount obtained by the multiplication of the number of the newly employed professional manpower by the amount that the Minister of Labor sets every year taking into account wage hike rates and circumstance facing the labor market and such subsidy shall be paid for 12 months (the employment period if the employment period of the newly employed professional manpower is not more than 12 months): Provided, That in the event that the number of newly employed professional manpower exceeds 3 persons, no subsidy shall be paid for anyone who exceeds the number of 3 persons.
(3) Necessary matters concerning the application for and the payment of the subsidy for employing the professional manpower by small and medium enterprises shall be prescribed by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 18555, Oct. 1, 2004]
Article 15-6 (Subsidy for Developing and Running New Business Type by Small and Medium Enterprises)(1) In the event that any business operator who runs a small and medium enterprise, the business type of which is provided for in Article 3 of the Special Act on the Support of Manpower of Small and Medium Enterprises,develops and runs a new business type (hereinafter referred to as the “development and running of new business type”) under the conditions as prescribed by the Ordinance of the Ministry of Labor in accordance with Article 15 (1) of the Act and Article 21 (1) of the Special Act on the Support of Manpower of Small and Medium Enterprises and the monthly average number of workers of the relevant business every quarter (excluding any worker prescribed by the Ordinance of the Ministry of Labor from among newly employed workers after the development and running of the new business type and hereinafter referred to as the “monthly average number of workers after the development and running of the new business type”) after the development and running of the new business type exceeds the monthly average number of workers for 3 months immediately preceedingthe month belonging to the date on which he develops and runs the new business type (hereinafter referred to as the “monthly average number of workers after the development and running of the new business type”), the Minister of Labor shall pay him the subsidy for developing and running the new business type by small and medium enterprises.
(2) In the calculation of the number of workers referred to in paragraph (1), any daily employed worker and anyone who falls under subparagraph 1 of Article 8 of the Act and Article 3 (1) of this Decree shall be excluded from such calculation.
(3) Any business operator who intends to be paid the subsidy for developing and running the new business type by small and medium enterprise shall make a program for developing and running such new business type (hereinafter referred to as the “program for developing and running the new business type”) after going through prior consultations with the representative of workers (referring to the representative of a labor union if such labor union is organized with the consent of a majority of workers or the representative of a majority of workers if such labor union is nonexistent; hereinafter the same shall apply) and operate the new business type according to such program. In this case,
(4) In implementing the program for developing and running the new business type referred to in paragraph (3), the relevant business operator shall complete the development and running of the new business type within one year from the date on which he makes a report thereon and then make a report to the Minister of Labor on the implementation of the program for developing and running the new business type.
(5) The amount of the subsidy for developing and running the new business type by the small and medium enterprises shall be an amount obtained by the multiplication of the number of workers resulting from an excess of the monthly average number of workers after developing and running the new business type over the monthly average number of workers before developing and running the new business type (limited to not more than 30 persons) before developing and running the new business type by the amount that the Minister of Labor publishes every year taking into account wage hike rates and circumstances facing the labor market and the amount of such subsidy shall be paid by the date on which one year passes from the date on which the development and running of the new business type are completed.
(6) Necessary matters concerning the application for and the payment of the subsidy for developing and running the new business type by small and medium enterprises shall be prescribed by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 18555, Oct. 1, 2004]
Article 16 (Support Contents, etc. of Employment Adjustment) (1) For a business operator who takes measures for employment stabilization for workers pursuant to Article 16 (1) and (2) of the Act, support payments or subsidies shall be granted. <Amended by Presidential Decree No. 15587, Dec. 31, 1997; Presidential Decree No. 15829, Jul. 1, 1998>
(2) Any business operator who is eligible for preferential support pursuant to Article 16 (3) of the Act shall be the business operator meeting the conditions of any one of the following subparagraphs: <Amended by Presidential Decree No. 15587, Dec. 31, 1997>
1.The business operator who operates a business which is included in the businesses designated as the ones in need of employment adjustment support, etc. (hereinafter referred to as “designated business”) under Article 18 (1) 1 of the Enforcement Decree of the Framework Act on Employment Policy;
2.The business operator who carries out manufacturing/repairing, etc. business, under a contract with the designated business from the business operator under the provisions of subparagraph 1 and who is the operator of a business of which more than half of the amount of sales is related to the designated business; and
3. The operator of a business which is located in a designated site in need of support for employment adjustment (hereinafter referred to as “designated site”) under the provisions of Article 18 (1) 2 or 3 of the Enforcement Decree of the Framework Act on Employment
Policy.
(3) In the event that business operators who fall under each subparagraph of paragraph (2) take steps to keep their workers employed, support their workers in employment change and reemploy them, notwithstanding the provisions of Articles 17 through 19-2, the Minister of
Labor may prescribe otherwise requirements for support and levels of support after going through deliberation of the Employment Policy Council. <Newly Inserted by Presidential Decree No. 17853, Dec. 30, 2002>
[This Article Wholly Amended by Presidential Decree No. 15367, May 8, 1997]
Article 17 (Those to be Granted Employment Maintenance Support Payment)(1) Where the operator of a business in which an adjustment of employment has been unavoidable under Article 16 (1) of the Act does not dismiss the insured by the employment adjustment during the relevant period of employment maintenance (excluding the case of subparagraphs 6 and 7) by taking the following measures (hereinafter referred to as “employment maintenance measures”) against those insured employed in the business (excluding any daily-employed person, any person who is notified in advance of his lay-off in accordance with Article 32 of the Labor Standards Act and any person who is expected to quit his job on the business operator's recommendation on the grounds of managerial reasons; hereafter the same shall apply in this Chapter),the Minister of Labor shall grant support payment (hereinafter referred to as “employment maintenance support payment”) to the business operator: <Amended by Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 16095, Feb. 1, 1999; Presidential Decree No. 17090, Dec. 30, 2000; Presidential Decree No. 18296, Feb. 25, 2004; Presidential Decree No. 18555, Oct. 1, 2004>
1.Where he suspends business in which the ratio of the number of total holidays of any insured who was suspended from business over the number of total fixed working days of the insured in the business based on one month as a unit (hereinafter referred to as the “unit periods”) exceeds 1/15, and pays shutdown allowance for the period of suspension of business operations. In this case, the methods for calculating unit periods and the method, etc. for calculating the number of total holidays for a suspension of some of fixed working hours shall be determined by the Ordinance of the Ministry of Labor;
2. Deleted; <Presidential Decree No. 18296, Feb. 25, 2004>
3.Where he carries out training for employment maintenance on such terms and conditions as the Ordinance of the Ministry of Labor may determine;
4. Deleted; <by Presidential Decree No. 17090, Dec. 30, 2000>
5.Where he grants paid or unpaid leave for not less than one month;
6.Where he installs or furnishes facilities or equipment necessary to convert his business falling under the category of subclassification on the Korea Standard Industrial Classification Table publicly notified by the Commissioner of the National Statistical Office into a new type of business falling under another category of sub -classification, and relocates not less than sixty percent of the insured at the time of reporting the plans for employment maintenance mea sures under Article 17-2 (2) to a new business; and
7.The switch to the swing-shift system.
(2) Notwithstanding the provisions of paragraph (1), where the total number of the extended working days and holiday working days in the concerned business during the period for which the employment maintenance measures are being implemented under paragraph (1) 1 exceeds the number of the days determined by the Ordinance of the Ministry of Labor, the employment maintenance support payment shall not be paid during the period of the implementation of the concerned employment maintenance measures. <Newly Inserted by Presidential Decree No. 16095, Feb. 1, 1999; Presidential Decree No. 18296, Feb. 25, 2004>
(3) Necessary matters concerning the method of calculation of the extended working days and holiday working days under paragraph (2) shall be prescribed by the Ordinance of the Ministry of Labor. <Newly Inserted by Presidential Decree No. 16095, Feb. 1, 1999>
[This Article Wholly Amended by Presidential Decree No. 15829, Jul. 1, 1998]
Article 17-2 (Establishment and Implementation of Plan for Employment Maintenance Measures) (1) Any business operator who intends to receive employment maintenance support payment shall establish a plan for employment maintenance measures meeting the following requirements and implement on schedule under the conditions as prescribed by the Ordinance of the Ministry of Labor: <Amended by Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 17301, Jul. 7, 2001; Presidential Decree No. 18555, Oct. 1, 2004>
1.He shall, in establishing a plan for employment maintenance measures, hold consultation with the representative of workers; and
2.He shall get all documents in which a status of its progress in the implementation of a plan for employment maintenance measures and a status on the payment of shutdown or layoff allowance and wages are entered.
(2) Any person who intends to establish a plan for employment maintenance measures referred to in paragraph (1) shall report, in advance, to the Minister of Labor. The same shall apply in cases where he intends to change the scheduled date of employment maintenance measures, those subject to employment maintenance measures, the wages to be paid during the period of employment maintenance measures, etc. from among the contents of plans for employment maintenance measures: Provided, <Amended by Presidential Decree No. 17090, Dec. 30, 2000; Presidential Decree No. 17853, Dec. 30, 2002>
(3) Any business operator who falls under the provisions of Article 17 (1) 6 or 7 shall, in implementing a plan for employment maintenance measures referred to in paragraph (1), report to the Minister of Labor after completing relocation of manpower or the switch to the swing-shift system, thereon, within eighteen months from the date of the report on the plan for employment maintenance measures. <Amended by Presidential Decree No. 18555, Oct. 1, 2004>
[This Article Wholly Amended by Presidential Decree No. 15829, Jul. 1, 1998]
Article 17-3 (Amount and Scope of Employment Maintenance Support Payment) (1) The amount of employment maintenance support payment shall be the amount falling under each of the following subparagraphs: <Amended by Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 16464, Jul. 1, 1999; Presidential Decree No. 17090, Dec. 30, 2000; Presidential Decree No. 18555, Oct. 1, 2004>
1.In the case falling under the provisions of Article 17 (1) 1, 5 and 6, the amount equivalent to two thirds [In the case of corporations not subject to the preferential support under the provisions of Article 15 (hereinafter referred to as the “large-scale corporations”), one half] of the aggregation of business suspension and leave allowances and wages paid by a business operator to the insured during the employment maintenance period concerned. Where the insured are on the unpaid leave under the provisions of Article 17 (1) 5, the amount shall be calculated taking into account labor expenses borne by a business operator during the leave period concerned as prescribed by the Ordinance of the Ministry of Labor.
2. Deleted; <by Presidential Decree No. 18296, Feb. 25, 2004>
3.In the case falling under Article 17 (1) 3, the total amount of an amount equivalent to 3/4 (2/3 for a large scale enterprise) of the wages paid by a business operator to any person subject to training who is an insured for the training period and an amount calculated by multiplying training costs meeting the standards as notified by the Minister of Labor by the ratio as notified by the Minister of Labor;
4.Where a business operator conducts the additional training under Article 17 (1) 3 during the unpaid leave under Article 17 (1) 5, the amount obtained by adding an amount calculated by multiplying training costs meeting the standards as notified by the Minister of Labor by the ratio as notified by the Minister of Labor, to training allowances as determined by the Ordinance of the Ministry of Labor; and
5.In the case falling under the provisions of Article 17 (1) 7, an amount equivalent to 20/100 (15/100 in the case of any conglomerate) of the wage amount paid to the insured eligible for the swing-shift system following the switch to the swing-shift system: Provided, That in the event that the swing-shift system is switched from 3 groups to 4 groups, an amount equivalent to 15/100 (10/100 in the case of any conglomerate) of the wage amount paid to the insured eligible for the swing-shift system.
(2) The employment maintenance support payment under paragraph (1) shall, where employment maintenance measures are taken under Article 17 (1) 1, 3 and 5, be provided for the respective employment maintenance measures only until the total number of days of the implementation of the measures (the day on which two employment maintenance measures or more are implemented simultaneously shall be considered as one day) amounts to 180 days during the period of relevant insurance year, and shall, where employment maintenance measures are taken under Article 17 ( 1) 6 and 7,be provided with the limit of one year from the date of the completion of relocating manpower or the switch to the swing-shift system (referring to the date on which it becomes eighteen months if relocating manpower or the switch to the swing-shift system is not completed within eighteen months), and where the insured who are assigned to a new business are laid off on the grounds of employment adjustment or the insured are laid off on the grounds of employment adjustment after the date on which the swing-shift system is implemented according to the employment maintenance program: Provided, That the Minister of Labor may, in case where deemed necessary for the employment stabilization as the employment situations grew worse due to a rapid increase of unemployment, take the employment maintenance measures under Article 17 (1 ) 1, 3 and 5;and when the person in receipt of the employment maintenance support payment within the limit of 180 days takes an additional measure of employment maintenance under Article 17 (1) 3 during the period determined and publicly notified by the Minister of Labor, he may grant the employment maintenance support payment until the relevant employment maintenance measures come up to 90 days. <Amended by Presidential Decree No. 16095, Feb. 1, 1999; Presidential Decree No. 16464, Jul. 1, 1999; Presidential Decree No. 16705, Feb. 9, 2000; Presidential Decree No. 17090, Dec. 30, 2000; Presidential Decree No. 18296, Feb. 25, 2004; Presidential Decree No. 18555, Oct. 1, 2004>
(3) Deleted. <by Presidential Decree No. 16095, Feb. 1, 1999>
(4) Deleted. <by Presidential Decree No. 16705, Feb. 9, 2000>
(5) Deleted. <by Presidential Decree No. 17090, Dec. 30, 2000>
(6) For a business operator who is granted employment maintenance support payments under paragraph (1) 4, the employment maintenance support payments under the latter part of paragraph (1) 1 shall not be granted during the period of the employment maintenance support payment concerned . In this case, the business operator who is granted the employment maintenance support payments shall pay his workers in training the amount equivalent to training allowances from among such employment maintenance support payments. <Newly Inserted by Presidential Decree No. 15902, Oct. 1, 1998>
(7) The amount of employment maintenance support payments paid under paragraph (1) shall not exceed the amount set forth and publicly notified by the Minister of Labor for each worker subject to the employment maintenance measure. <Newly Inserted by Presidential Decree No. 17090, Dec. 30, 2000>
[This Article Wholly Amended by Presidential Decree No. 15829, Jul. 1, 1998]
Article 17-4 Deleted. <by Presidential Decree No. 17853, Dec. 30, 2002>
Article 17-5 Deleted. <by Presidential Decree No. 15829, Jul. 1, 1998>
Article 18 (Employment-Change Promotion Subsidies) (1) Where a business operator facing with unavoidable employment adjustment under Article 16 (1) of the Act equips independently or jointly himself with the facilities as prescribed by the Ordinance of the Ministry of Labor for the direct labor consultation, etc. in order to support a rapid reemployment with the persons falling under any of the following subparagraphs, or provides the services as stipulated by the Ordinance of the Ministry of Labor such as job consultation, etc. (hereinafter referred to as the “services to support employment change”) by entrusting the outside agency equipped with the said facilities, the Minister of Labor shall grant the employment-change promotion subsidies to the business operator: <Amended by Presidential Decree No. 17853, Dec. 30, 2002; Presidential Decree No. 18296, Feb. 25, 2004>
1.The insured who is expected to quit his job on the grounds of the trimming of work force, his retirement or the expiration of his labor contract term; and
2.The person who was insured and quits his job from the relevant business on the grounds of the trimming of work force, his retirement or the expiration of his labor contract term.
(2) Any business operator who intends to obtain the payment of employment-change promotion subsidies shall formulate the plan for employment-change support service after going through sincere consultations with the representative of workers. In this case, if the operators of businesses jointly render the employment-change support service, a representative business operator who is selected from among business operators through sincere consultations with the representative of workers employed by each business operator (hereinafter referred to as the “representative business operator”) shall draw up the plan for employment change support service. <Amended by Presidential Decree No. 17853, Dec. 30, 2002; Presidential Decree No. 18296, Feb. 25, 2004>
(3) Any business operator or the representative business operator who intends to draw up the plan for employment-change support service under paragraph (2) shall submit the said plan to the Minister of Labor under the conditions as prescribed by the Ordinance of the Ministry of Labor, and obtain approval therefor. The same shall also apply to any alterations in the said plan. <Amended by Presidential Decree No. 17853, Dec. 30, 2002>
(4) The Minister of Labor shall, upon receiving the plan for employment-change support service from business operators or the representative business operator under paragraph (3), examine whether the relevant business operator corresponds to a person subject to the payment of employment- change promotion subsidies under paragraphs (1) and (2), and notify whether approval for the relevant plan is granted. <Amended by Presidential Decree No. 17853, Dec. 30, 2002>
(5) The amount of employment-change promotion subsidies under paragraph (1) shall be an amount equivalent to two thirds [1/2 in case that large-scale enterprises or several business operators jointly provide support service for employment change (limited to a case where the ratio of the insured or the formerly insured of large-scale enterprises from among the persons who have been given the support service for employment change is in excess of 1/2)] of the expense spent for the provision of support service for employment change by a business operator: Provided, That the detailed support items of employment-change promotion subsidies and the upper limit of supports shall be set forth and publicly notified by the Minister of Labor. <Amended by Presidential Decree No. 17853, Dec. 30, 2002; Presidential Decree No. 18296, Feb. 25, 2004>
(6) Payment of employment-change support subsidies under paragraphs (1) through (5) shall be made in a monthly unit and be up to the limit of 12 months.
(7) Matters necessary for the application for and payment of employment-change promotion subsidies shall be determined by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 17301, Jul. 7, 2001]
Article 18-2 Deleted. <by Presidential Decree No. 15829, Jul. 1, 1998>
Article 19 Deleted. <by Presidential Decree No. 17090, Dec. 30, 2000>
Article 19-2 (Subsidy for Promotion of Reemployment)(1) In the event that any business operator (including any business operator who merges with the relevant business operator or takes over the business of the relevant business operator, is related with the relevant business and is prescribed by the Ordinance of the Ministry of Labor ; hereafter in this Article the same shall apply) reemploys anyone falling under any of the following subparagraphs as one of the insured (excluding any worker with a short employment contract and any other worker who is prescribed by the Ordinance of the Ministry of Labor) within the period ranging from 6 months to 2 years (within 5 years in the case of subparagraph 2) after he is out of work and does not lay off the reemployed worker on the grounds of employment adjustment for the period ranging from 3 months before his reemployment to 6 months after his reemployment,the Minister of Labor shall pay the relevant business operator the subsidy for the promotion of reemployment: <Amended by Presidential Decree No. 18555, Oct. 1, 2004>
1. One who is laid off on the grounds of employment adjustment; and
2.Any female worker who is out of work on the grounds of pregnancy, childbirth or infant care.
(2) The amount of the reemployment promotion subsidy referred to in paragraph (1) shall be an amount obtained by multiplying the number of the reemployed workers by the amount that the Minister of Labor publishes every year according to the business scale, and the amount of such reemployment promotion subsidy shall be paid for 6 months (for the employment period in case where the employment period for the relevant worker is not more than 6 months). <Amended by Presidential Decree No. 18555, Oct. 1, 2004>
(3) In paying the reemployment promotion subsidy, the reemployment promotion subsidy shall not be paid to any business operators re-employing persons who have continued to be subject to the reemployment promotion subsidy in their work places for the last two years.
(4) Matters necessary to apply for and pay the reemployment promotion subsidy shall be prescribed by the Ordinance of the Ministry of Labor.
[This Article Newly Inserted by Presidential Decree No. 16464, Jul. 1, 1999]
Article 20 (Local Employment Promotion Support Payments) (1) The Minister of Labor, under Article 17 of the Act, shall pay local employment promotion support payments to the business operator who relocates, newly establishes or expands his business under the following conditions of relocating to the designated site or establishment or expanding at the designated site: <Amended by Presidential Decree No. 14935, Mar. 9, 1996; Presidential Decree No. 15587, Dec. 31, 1997; Presidential Decree No. 17853, Dec. 30, 2002>
1. The business shall be relocated, newly established or expanded within the period for the employment adjustment support (herein after referred to as the “designated period”) that is published in accordance with Article 18 (2) of the Enforcement Decree of the Framework Act on Employment Policy;
2.The local employment plan regarding the relocation, establishment or expansion, and employment of workers of the business thereby, shall be established, reported to the Minister of labor and enforced in accordance with the plan;
3. Operation of the business which is relocated, newly established or expanded shall commence within one year and six months from the day the local employment plan is submitted;
4.Employment of job seekers as the insured at the relocated, newly established or expanded business shall be offered to job seekers who have lived for more than three months in the designated area or other designated areas on the date of commencement of operation of the relocated , newly established or expanded business (hereinafter referred to as the “beginning date”);
5. The business shall be one which may contribute to the sound development of the local economy of the concerned designated area; and
6.Enforcement shall be made with the documents which record the situation of enforcement of the local employment plan and payment situation of the insured workers.
(2) The business operator who desires to receive local employment promotion support payments at the time of commencement of operation as prescribed in paragraph (1) 3 shall report this to the Minister of Labor.
(3) The amount of local employment promotion support payments shall be equivalent to one half (one third in the case of a large-scale enterprise) of the amount paid to the insured workers under paragraph (1) 4. <Amended by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 15587, Dec. 31, 1997>
(4) The local employment promotion support payments shall be paid for one year from the day the operation begins, but it is paid only until the designated period expires.
(5) If the number of insured workers as prescribed in paragraph (1) 4 exceeds two hundred during one designated period, local employment promotion support payments shall be paid for two hundred workers and thirty percent of workers in excess. <Amended by Presidential Decree No. 14935, Mar. 9, 1996; Presidential Decree No. 15367, May 8, 1997>
(6) Necessary details related to application for and payment of local employment promotion support payments shall be determined by the Ordinance of the Ministry of Labor.
Article 21 Deleted. <by Presidential Decree No. 15367, May 8, 1997>
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