EMPLOYMENT INSURANCE ACT
[Enforcement Date 01. Jan, 2010.] [Act No.9792, 09. Oct, 2009., Amendment by Other Act]
Ministry of Employment and Labor (employment insurance plan and employment insurance system) , 044-202-7352 Ministry of Employment and Labor (Human Resources Development and the - employer and employee professional development training, support) , 044-202-7317 Ministry of Employment and Labor (women's employment policy and - Motherhood protection) , 044-202-7476 Ministry of Labor (unemployment employment support geupyeogwa - insured management) , 044-202-7378 Ministry of employment and Labor (employment Policy and general-employment promotion grants, job retention grants, etc.) , 044-202-7218 Ministry of employment and Labor (Employment Support Unemployment Benefit-Unemployment Benefit) , 044-202-7376
CHAPTER I General Provisions
Article 1 (Purpose)
The purpose of this Act is, through the enforcement of employment insurance, to seek to prevent unemployment, promote employment and develop and improve the vocational skills of workers, to strengthen the nation s vocational guidance and job placement capacity and to stabilize the livelihood of workers and promote their job-seeking activities by granting necessary benefits when they are out of work, thereby contributing to the economic and social development of the nation.
Article 2 (Definition)
Terms used in this Act are defined as follows:
1. The term "the insured" refers to workers who are insured or deemed to be insured pursuant to Articles 5 (1) and (2), 6 (1), and 8 (1) and (2) of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as "the Insurance Premium Collection Act")
2. The term "separation" means the termination of the employment relationship between the insured and the employer;
3. The term "unemployment" means the situation in which a person remains unemployed in spite of the fact that he/she has the will and ability to work; <Amended by Act No. 9315, Dec. 31, 2008>
4. The term "recognition of unemployment" means that the head of an Employment Security Office recognizes that an eligible recipient prescribed in Article 43 is actively engaging in finding jobs during unemployment;
5. The term "wages" means wages under the Labor Standards Act : Provided that, among money and valuable goods earned during a period of temporary suspension from service or other similar situations, those determined by the Minister of Labor shall be regarded as wages under this Act; and
6. The term "daily worker" refers to a person who is employed for less than one month.
Article 3 (Management of Insurance)
The Minister of Labor shall take charge of managing employment insurance (hereinafter referred to as "insurance").
Article 4 (Employment Insurance Activities)
(1) In order to achieve the purpose of Article 1, employment insurance activities (hereinafter referred to as "insurance activities":) shall be conducted in the areas of employment security, vocational skills development, unemployment benefits, child-care leave benefits, maternity leave benefits, etc.
(2) The insurance year for employment insurance activities shall be the same as the fiscal year of the Government.
Article 5 (Assistance from State Treasury)
(1) The State may bear a part of the expenses required annually for insurance activities through its general account.
(2) The State may bear the expenses required for the management and operation of insurance activities within the limits of its annual budget.
Article 6 (Premium)
(1) The premiums and other charges to be collected to finance the expenses required for insurance activities under this Act shall be subject to the conditions prescribed by the Insurance Premium Collection Act.
(2) The premiums for employment security programs, premiums for vocational skills development programs and premiums for unemployment benefits collected under Article 13 (1) 1 of the Insurance Premium Collection Act shall be appropriated for the expenses required for each of these programs : Provided that premiums for unemployment benefits may be appropriated for child-care leave benefits and maternity leave benefits.
Article 7 (Employment Insurance Committee)
(1) The Employment Insurance Committee (hereinafter referred to as "Committee") shall be set up in the Ministry of Labor in order to deliberate on major matters (limited to matters concerning insurance) concerning the enforcement of this Act and the Insurance Premium Collection Act.
(2) The Committee shall deliberate on the following matters:
1. Matters concerning the insurance system and the improvement of insurance activities;
2. Matters concerning the determination of insurance premiums under the Insurance Premium Collection Act;
3. Matters concerning the assessment of insurance activities under Article 11-2;
4. Matters concerning the establishment of the fund management plan and the results of fund management under Article 81; and
5. Other matters relating to the insurance system and insurance activities, which the chairperson deems necessary to be deliberated on by the Committee
(3) The Committee shall be composed of less than 20 members including a chairperson.
(4) The Committee shall be chaired by the Vice Minister of Labor and consist of an equal number of members appointed or commissioned by the Minister of Labor from among people described in each of the following subparagraphs:
1. Those representing workers;
2. Those representing employers;
3. Those representing the public interests; and
4. Those representing the government
(5) The Committee may has a expert committee in order to examine and coordinate in advance the matters to be deliberated on.
(6) The composition and operation of the Committee and the expert committee and other necessary matters shall be prescribed by the Presidential Decree.
<This Article Wholly Amended by Act No. 9315, Dec. 31, 2008>
Article 8 (Scope of Application)
This Act shall apply to all businesses or workplaces (hereinafter referred to as "businesses") that hire workers : Provided that it shall not apply to those businesses separately provided for in the Presidential Decree in consideration of their size, industrial characteristics, etc.
Article 9 (Establishment and Termination of Insurance Relationships)
The establishment and termination of insurance relationships under this Act shall be subject to the conditions prescribed by the Insurance Premium Collection Act.
Article 10 (Workers Excluded from Application)
This Act shall not apply to workers falling under any of the following subparagraphs : Provided that this shall not apply to employment security projects and vocational skills development projects for workers described in subparagraph 1 : <Amended by Act No. 8959, Mar. 21, 2008> <Enforcement Date Sept. 22, 2008>
1. Those aged 65 or older;
2. Those whose contractual working hours are less than those prescribed in the Presidential Decree;
3. Government officials under the State Public Officials Act and the Local Public Officials Act : Provided that public officials in special services and contract-based public officials may subscribe to employment insurance (limited to CHAPTER Ⅳ) of their own free will under the conditions prescribed by the Presidential Decree;
4. Those who are subject to the Private School Teachers Pension Act; and
5. Other persons prescribed in the Presidential Decree.
Article 11 (Surveys and Research relating to Insurance)
(1) The Minister of Labor may conduct surveys and research in order to study the labor market, occupations and vocational skills development and support insurance-related work.
(2) The Minister of Labor, if it is deemed necessary, may entrust part of the functions referred to in paragraph (1) to be carried out by a person prescribed in the Presidential Decree.
Article 11-2 (Assessment of Insurance Activities)
(1) The Minister of Labor shall assess insurance activities regularly and systematically.
(2) The Minister of Labor may refer the assessment under paragraph (1) to an organization prescribed by the Presidential Decree in order to secure the expertise of the assessment under paragraph (1).
(3) The Minister of Labor shall adjust insurance activities and establish the fund management plan under Article 81 in a way to reflect the results of the assessment under paragraphs (1) and (2).
<This Article Newly Inserted by Act No. 9315, Dec. 31, 2008>
Article 12 (International Exchange and Cooperation)
The Minister of Labor may carry out exchange and cooperation programs with international organizations and governments or agencies of other countries with regard to insurance activities.
CHAPTER Ⅱ Management of the Insured
Article 13 (Date of Aquisition of Qualification of the Insured)
The insured shall acquire the qualification of the insured on the date they are employed by a business subject to this Act : Provided that in the following cases, they shall be regarded as acquiring the qualification of the insured on the pertinent date :
1. The date this Act begins to apply, if the worker excluded from application under Article 10 becomes subject to this Act; and
2. The date of the establishment of the insurance relationship if the worker was employed before the establishment of the insurance relationship pursuant to Article 7 of the Insurance Premium Collection Act.
Article 14 (Date of Loss of Qualification of the Insured)
The insured lose the qualification of the insured on any of the following dates:
1. The date they are categorized as such if the insured are categorized as workers excluded from application under Article 10;
2. The date of the termination of the insurance relationship if the insurance relationship is terminated pursuant to Article 10 of the Insurance Premium Collection Act;
3. The day after the leaving date if the insured leave their jobs; and
4. The day after the death if the insured die.
Article 15 (Report, etc. on Qualification of the Insured)
(1) An employer shall report to the Minister of Labor about his/her workers' acquisition, loss, etc. of the qualification of the insured as prescribed in the Presidential Decree.
(2) If an original contractor has become an employer under Article 9 of the Insurance Premium Collection Act, the subcontractor described in the following subparagraphs shall make a report as prescribed in paragraph (1) with regard to workers engaged in the business but not employed by the original contractor. In this case, the original contractor shall submit information on the subcontractor to the Minister of Labor as prescribed by the Ordinance of the Ministry of Labor :
1. Constructor under subparagraph 5 of Article 2 of the Framework Act on the Construction Industry;
2. Housing builder under Article 9 of the Housing Act;
3. Constructor under subparagraph 3 of Article 2 of the Electricity Construction Business Act;
4. Constructor under subparagraph 4 of Article 2 of the Information and Communications Work Business Act;
5. Fire-fighting system constructor under Article 2 (1) 2 of the Fire-fighting Service Act; and
6. Businessman engaging in repairing cultural properties under Article 27 of the Act on the Protection of Cultural Properties.
(3) If an employer fails to report matters concerning qualification of the insured under paragraph (1), the worker concerned may report these matters as prescribed in the Presidential Decree.
(4) The Minister of Labor shall inform related persons, such as the insured person, original contractor, etc., of matters concerning the acquisition, loss, etc., of the qualification of the insured, reported pursuant to paragraphs (1) through (3), as prescribed by the Ordinance of the Ministry of Labor.
(5) The employer, original contractor or subcontractor under paragraph (1) or (2) may make the report prescribed in the same paragraph using electronic means prescribed by the Ordinance of the Ministry of Labor.
(6) The Minister of Labor may provide support, including necessary equipment, etc., to the employer, original contractor or subcontractor who intends to make a report using electronic means pursuant to paragraph (5), as prescribed by the Ordinance of the Ministry of Labor.
Article 16 (Confirmation of Separation)
(1) When reporting his/her worker's loss of qualification of the insured pursuant to Article 15 (1), an employer shall, if the loss of qualification of the insured is due to separation, prepare and submit documents(hereinafter referred to as the "confirmation documents on separation") proving such specific matters as the unit period of insurance, reasons for separation and wages, retirement pay, etc., paid before separation to the Minister of Labor : Provided that this shall not apply to those (excluding daily workers) who have lost the qualification of the insured but do not want to apply for the recognition of their eligibility for benefits pursuant to Article 43 (1).
(2) A person who has lost the qualification of the insured due to separation may request his/her employer to issue the confirmation documents on separation to apply for the recognition of his/her eligibility for unemployment benefits. In this case, the employer receiving the request shall issue the confirmation documents on separation.
Article 17 (Confirmation of Qualification of the Insured)
(1) The insured or those who were once insured may at any time request the Minister of Labor to confirm the acquisition or loss of their qualification as the insured.
(2) The Minister of Labor shall accept the request made pursuant to paragraph (1) or confirm, by virtue of his/her authority, the acquisition or loss of the qualification of the insured.
(3) The Minister of Labor shall inform the insured person, the employer, etc., of the results confirmed under paragraph (2), as prescribed in the Presidential Decree.
Article 18 (Restriction on Dual Acquisition of Qualification of the Insured)
If a worker is employed simultaneously by two or more businesses with which the insurance relationship has been established, he/she shall acquire the qualification of the insured as a worker of one of the businesses, as prescribed by the Ordinance of the Ministry of Labor.
CHAPTER Ⅲ Employment Security and Vocational Skills Development Projects
Article 19 (Implementation of Employment Security and Vocational Skills Development Projects)
(1) The Minister of Labor shall implement employment security and vocational skills development projects to prevent the unemployment of the insured, those once insured and other people willing to be employed (hereinafter referred to as "the insured, etc."), promote their employment, expand their employment opportunities, provide opportunities and support for them to develop and improve vocational skills, provide other supports for employment security and to help employers to secure workforce.
(2) When implementing employment security and vocational skills development projects pursuant to paragraph (1), the Minister of Labor shall give priority to enterprises which meet the criteria set forth by the Presidential Decree, such as the number of workers, measures taken for employment security and vocational skills development and outcomes thereof.
Article 20 (Support for Employment Creation)
The Minister of Labor may provide necessary support to employers who have expanded employment opportunities by improving employment environments, changing work arrangements, etc., as prescribed in the Presidential Decree.
Article 21 (Support for Employment Adjustment)
(1) If an employer for whom employment adjustment is unavoidable due to business downsizing, closure or transfer resulting from economic fluctuations or changes in industrial structure temporarily suspends workers from work, provides vocational skills development training necessary for their job transfer, reassigns workers or takes other measures to ensure their employment security, the Minister of Labor may provide necessary support to the employer as prescribed in the Presidential Decree.
(2) The Minister of Labor may provide necessary support for employers who take measures for the employment security of workers whose employment is insecure, such as by employing workers separated from jobs due to employment adjustment under paragraph (1), as prescribed in the Presidential Decree.
(3) The Minister of Labor may, in providing the support referred to in paragraph (1), give priority to employers who are engaged in industries or are located in regions prescribed in Article 32 of the Framework Act on Employment Policy.
<Amended by Act No. 9792, Oct. 9, 2009>
Article 22 (Promotion of Local Employment)
The Minister of Labor may provide necessary support to employers who move their businesses to, or begin or expand businesses in regions where employment opportunities are obviously insufficient or employment situations are rapidly deteriorating due to changes in industrial structure, etc., thereby contributing to the prevention of unemployment and promotion of reemployment and to employers who take necessary measures to expand local employment opportunities, as prescribed by the Presidential Decree.
Article 23 (Employment Promotion for the Aged, etc.)
In order to promote the employment of the aged and others (hereinafter referred to as "the aged, etc.") who have special difficulties in finding employment under the normal conditions of the labor market, the Minister of Labor may, under the conditions prescribed by the Presidential Decree, provide necessary support to employers who newly employ the aged, etc., or take measures necessary for their employment security or to the workers subject to the employment security measures taken by the employers.
Article 24 (Support for Employment Security for Construction Workers, etc.)
(1) The Minister of Labor may provide necessary support for an employer who carries out projects described in the following subparagraphs for construction workers, etc., in an unstable employment situation, according to the conditions prescribed in the Presidential Decree:
1. Projects to improve employment situations;
2. Employment security projects such as those to provide opportunities for continued employment; and
3. Other employment security projects prescribed in the Presidential Decree.
(2) The Minister of Labor may also provide support to an employers' association in connection with the projects listed in any of the subparagraphs of paragraph (1), in cases where it is difficult for an employer alone to carry out employment security projects and prescribed in the Presidential Decree.
Article 25 (Employment Security and Employment Promotion)
(1) The Minister of Labor may directly carry out projects described in the following subparagraphs or provide support or loans for necessary expenses to a person who carries out such projects for the employment security and employment promotion of the insured, etc. :
1. Support projects to improve employment, such as employment management diagnosis;
2. Support projects to promote business start-up by the insured, etc. ; and
3. Other projects for the employment security and employment promotion of the insured, etc., which are prescribed in the Presidential Decree.
(2) Necessary matters concerning the implementation of projects and the provision of support and loans to cover expenses under paragraph (1) shall be prescribed in the Presidential Decree.
Article 26 (Support for Employment Promotion Facilities)
The Minister of Labor may, under the conditions prescribed by the Presidential Decree, provide necessary support to a person who establishes and operates counseling facilities, child-care facilities and other employment promotion facilities prescribed in the Presidential Decree, in order to provide support for the employment security and employment promotion of the insured, etc., and the securing of workforce by employers.
Article 27 (Support for Vocational Skills Development Training Provided by Employers)
The Minister of Labor may provide support for the expenses of vocational training to an employer who carries out the vocational skills development training prescribed in the Presidential Decree to develop and improve the vocational skills of the insured, etc., under the conditions prescribed in the Presidential Decree.
Article 28 (Standards, etc. for Support for Expenses)
If the Minister of Labor provides support for expenses to an employer pursuant to Article 27, the amount of such support shall be the one obtained by multiplying the amount of insurance premiums for employment security and vocational skills development projects out of the estimated employment insurance premiums (insurance premiums paid for the previous year in the case of businesses subject to special cases of collection under Article 21 of the same Act) of the year concerned under Article 17 of the Insurance Premium Collection Act, by the ratio prescribed in the Presidential Decree, and the limit thereto shall be prescribed by the Presidential Decree.
Article 29 (Support for Vocational Skills Development for the Insured, etc.)
(1) If the insured, etc., receive vocational skills development training or make other efforts to develop or improve their vocational skills, the Minister of Labor may support the necessary expenses under the conditions prescribed in the Presidential Decree.
(2) The Minister of Labor, if it is deemed necessary, may conduct vocational skills development training to promote the employment of the insured, etc., under the conditions prescribed in the Presidential Decree.
(3) If a low-income insured person, etc., prescribed by the Presidential Decree receives vocational skills development training, the Minister of Labor may make loans for his/her living costs under the conditions prescribed by the Presidential Decree.
<Newly Inserted by Act No. 9315, Dec. 31, 2008>
Article 30 (Support, etc., for Vocational Skills Development Training Facilities)
If it is deemed necessary for the development and improvement of the vocational skills of the insured, etc., the Minister of Labor may, under the conditions prescribed by the Presidential Decree, loan the expenses necessary to install vocational skills development training facilities and to purchase the equipment thereof, and provide support for the expenses necessary to install other vocational skills development training facilities determined by the Minister of Labor and to purchase and operate the equipment thereof.
Article 31 (Promotion of Vocational Skills Development)
(1) The Minister of Labor may carry out activities described in the following subparagraphs to develop or improve the vocational skills of the insured, etc., or may provide support for necessary expenses to a person who carry out the activities :
1. Technical assistance and evaluation activities relating to vocational skills development projects;
2. Skill and technology promotion activities and qualification test activities; and
3. Other activities prescribed in the Presidential Decree.
(2) The Minister of Labor may, if it is deemed necessary for the development or improvement of vocational skills or smooth labor supply and demand, entrust others to provide vocational skills development training in the occupations determined by the Minister of Labor, under the conditions prescribed in the Presidential Decree.
Article 32 (Support for Vocational Skills Development of Construction Workers, etc.)
(1) The Minister of Labor may provide support for necessary expenses to an employer who implement projects prescribed in the Presidential Decree to develop or improve the vocational skills of workers in unstable employment situations such as construction workers, etc.
(2) The Minister of Labor may provide support to an employers' association in connection with the projects mentioned in paragraph (1) in cases where it is difficult for an employer alone to carry out the vocational skills development projects and where this is in accordance with the Presidential Decree.
Article 33 (Provision of Employment Information, Establishment of Foundation for Employment Support, etc.)
(1) The Minister of Labor may carry out activities for employers and the insured, etc., such as providing employment information on job offers, job seekers, training, etc., offering vocational guidance including vocational and training counseling, providing job placement services, building the foundation for employment security and vocational skills development and assigning professional manpower needed for this, under the conditions prescribed in the Presidential Decree.
(2) The Minister of Labor may, if it is deemed necessary, get the private job counselor prescribed in Article 4-4 of the Employment Security Act to perform part of the services under paragraph (1).
Article 34 (Support for Local Governments, etc.)
If a local government or a not-for-profit cooperation or organization prescribed in the Presidential Decree carries out projects for the employment security, employment promotion and vocational skills development of the insured, etc., in its region, the Minister of Labor may provide necessary support as prescribed in the Presidential Decree.
Article 35 (Restriction, etc., on Support due to Fraudulent Acts)
(1) If a person received or intends to receive support for employment security and vocational skills development projects under this Chapter in a false or other fraudulent manners, the Minister of Labor may restrict the support or order a return of the support received in a false or other fraudulent manners under the conditions prescribed in the Presidential Decree.
<Amended by Act No. 9315, Dec. 31, 2008>
(2) In the case of ordering a return pursuant to paragraph (1), the Minister of Labor may, in addition to what has already been provided, collect an amount up to five times the amount received in a false or other fraudulent manners, in accordance with the standards prescribed in the Ordinance of the Ministry of Labor. <Amended by Act No. 9315, Dec. 31, 2008>
(3) Notwithstanding paragraphs (1) and (2), Articles 16 (4) and (5) and 25 (3) and (4) of the Employee Skills Development Act shall apply mutatis mutandis to restrictions on, the return and additional collection of, support for a person who has received or intends to receive, such support for vocational skills development projects in a false or other fraudulent manners. <Newly Inserted by Act No. 9315, Dec. 31, 2008>
(4) If a person is in arrears with insurance premiums, the Minister of Labor may not provide support for employment security and vocational skills development projects as provided in the provisions of this Chapter, under the conditions prescribed by the Minister of Labor.
Article 36 (Performing Duties by Proxy)
The Minister of Labor may, if it is deemed necessary, entrust a part of his/her work under Articles 19, 27 through 31 to a person prescribed in the Presidential Decree.
CHAPTER Ⅳ Unemployment Benefits
SECTION 1 General Provisions
Article 37 (Types of Unemployment Benefits)
(1) Unemployment benefits are divided into job-seeking benefits and employment promotion allowances.
(2) Types of employment promotion allowances are described in the following subparagraphs :
1. Early reemployment allowances;
2. Vocational skills development allowances;
3. Wide-area job-seeking allowances; and
4. Moving allowance.
Article 38 (Protection of Right to Receive Benefits)
The right to receive unemployment benefits shall neither be transferable nor be offered as a security nor be subject to attachment.
Article 39 (Extension of Application Period of Unemployment Benefits)
When an insured person, who left his/her job before the age of 65, reaches the age of 65 without job, resulting from the job loss concerned, the provisions of this Chapter shall apply notwithstanding the provisions of subparagraph 1 of Article 10.
SECTION 2 Job-seeking Benefits
Article 40 (Eligibility Requirements for Job-Seeking Benefits)
(1) Job-seeking benefits shall be paid to the insured, in case where they have been separated from their post and meet all the requirements described in the following subparagraphs : Provided that the provisions of subparagraphs 5 and 6 shall apply only to those who were daily workers at the time of final separation.
1. The unit period of insurance under Article 41 in the 18 months (hereinafter referred to as "base period") prior to the date of separation shall add up to not less than 180 days ;
2. Despite their will and ability to work, the insured shall be out of employment (including cases where they operate business for the purpose of making profits. The same applies in this Chapter) ;
3. The reasons for separation shall not fall under any of the reasons for restricting eligibility for benefits pursuant to Article 58;
4. The insured shall actively make efforts to be reemployed;
5. Working days during the one month before applying for the recognition of eligibility for benefits pursuant to Article 43 shall be less than 10 days; and
6. If during the 180-day unit period of insurance in a base period prior to the date of final separation, the insured have ever been separated from their post at another business due to any of the reasons for restricting eligibility for benefits under Article 58, they shall have been employed as daily workers for at least 90 days during the unit period of insurance.
(2) In case an insured person could not get paid their wages for 30 days or more consecutively during the 18 month period prior to the date of separation due to diseases, injuries, and other reasons prescribed by the Presidential Decree, the base period(If the base period exceeds 3 years, it shall be three years) shall be the one which is calculated by adding the number of days during which wages were not paid due to the reasons concerned to 18 months.
Article 41 (Unit Period of Insurance)
(1) The unit period of insurance shall be obtained by adding up the total number of days based on which wage payment was made during an insured period.
(2) In calculating the unit period of insurance pursuant to paragraph (1), if job-seeking benefits have ever been received prior to the date of acquiring the qualification of the insured, the days before separation which are relating to the job-seeking benefits and on which wage payment is based shall not be included in the unit period of insurance.
<Amended by Act No. 9315, Dec. 31, 2008>
Article 42 (Report of Unemployment)
(1) A person who intends to be paid job-seeking benefits shall present himself at an Employment Security Office immediately after separation, and shall report unemployment.
(2) The report of unemployment referred to in paragraph (1) shall include an application for job and an application for the recognition of eligibility for benefits referred to in Article 43.
Article 43 (Recognition of Eligibility for Benefits)
(1) A person who intends to receive job-seeking benefits shall obtain a recognition from the head of an Employment Security Office that he/she meets eligibility requirements to receive job-seeking benefits (hereinafter referred to as the "eligibility for benefits") pursuant to subparagraphs 1 through 3, 5 and 6 of Article 40 (1).
(2) If the head of an Employment Security Office shall receive an application for the recognition of eligibility for benefits pursuant to paragraph (1), he/she shall decide whether or not to recognize eligibility for benefits and then notify the applicant of the results of the decision.