ENFORCEMENT DECREE OF THE EMPLOYMENT INSURANCE ACT
[Enforcement Date 17. Mar, 2004.] [Presidential Decree No.18312, 17. Mar, 2004., Amendment by Other Act]
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 (Application of Base Wages) (1) The term “where it falls under any cause prescribed by the Presidential Decree” in Article 2-2 (1) of the Act means a case which falls under any of the following subparagraphs:
1. Where the data related to wages do not exist or are obscure;
2. Where it is difficult to grasp the location of a business due to the moving, etc. of business or business place (hereinafter referred to as the “business”); and
3. Where an operator of a business who ordinarily employs four workers or less (referring to the number of workers calculated by applying mutatis mutandis the calculation method of the number of ordinarily employed workers under Article 69 (2) through (5)) reports to receive the application of the base wages to the relevant insurance year after hearing the opinions of his workers under the conditions as prescribed by the Ordinance of the Ministry of Labor.
(2) The base wages under Article 2-2 (2) of the Act shall apply according to the following classification:
1. To ordinary workers who are paid a monthly wage, the base wages shall apply by a unit of month; and
2. To workers who are employed for short time, workers who are paid wages by the hour (hereafter referred to as “hour wage workers” in this Article), and workers who are paid wages by the day (hereafter referred to as “day wage workers” in this Article), the base wages shall apply by a unit of hour by considering fixed working hours per week as actual working hour: Provided, That where it is not clear that the workers in question are hour wage workers or day wage workers or it is impossible to determine fixed working hours a week, the base wages shall apply by a unit of month.
(3) Though wages are confirmed or changed during the insurance year to which the base wages apply, the base wages shall apply until the end of the insurance year.
[This Article Newly Inserted by Presidential Decree No. 16095, Feb. 1, 1999]
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>
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 construction work, the total cost (where a person or a company giving the order for the construction work concerned supplies construction materials, the market prices of the construction materials shall be included) of which falls below the amount officially announced 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) is 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 pursuant to Article 10-2 (1) and (2) of the Act, the provisions of the 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>
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 (Agent) (1) The operator of a business may appoint an agent and let the agent perform the affairs of the operator of the business under the Act and this Decree.
(2) The business operator shall report to the Minister of Labor when he appoints or fires the agent.
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 THE INSURED AND THE INSURANCE RELATIONSHIP
Article 5 (Establishment/Termination Report of Insurance Relationship)
If the operator of the business has automatically joined the insurance under Article 9 (1) of the Act, he shall report this to the Minister of
Labor within fourteen days from the establishment date of the insurance relation (the first day of the insurance year concerned in the case of the business which is subject to the block application), and within fourteen days from the date of termination (the date on which the block application relationship is terminated in the case of the business which has been treated as a block) if the insurance relationship has been terminated due to the discontinuation/suspension of the business. <Amended by Presidential Decree No. 15367, May 8, 1997>
Article 6 (Optional Insurance Status) (1) When the operator of a business referred to in the proviso of Article 7 of the Act desires to join the insurance under Article 9 (2) of the Act, he may join all of the employment stabilization activities/vocational ability development activities and the unemployment benefits, or may join the unemployment benefits only. <Amended by Presidential Decree No. 15624, Feb. 12, 1998; Presidential Decree No. 15902, Oct. 1, 1998>
(2) Any business operator who has joined unemployment benefits pursuant to paragraph (1) may join employment stabilization activities and vocational ability development activities upon approval by the Minister of Labor. <Newly Inserted by Presidential Decree No. 15624, Feb. 12, 1998>
(3) Any business operator who has joined employment stabilization activities and vocational ability development activities pursuant to paragraph (1) or (2) may cancel the insurance contract of the insurance activities upon approval by the Minister of Labor. In this case, any insurance contract may be cancelled only where one year has elapsed from the date on which the insurance contract of the insurance activities has been concluded. <Newly Inserted by Presidential Decree No. 15624, Feb. 12, 1998>
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 (5) of the 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.
[This Article Newly Inserted by Presidential Decree No. 18165, Dec. 18, 2003]
Article 7-2 (Application for Approval for Recognition of Subcontractor as Business Operator)
Where an original contractor desires to obtain the approval referred to in the proviso of Article 9 (5) of the Act, he shall make an application for this to the Minister of Labor within 14 days from the date on which the ground is broken for a subcontracted work. <Amended by Presidential Decree No. 18165, Dec. 18, 2003>
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
Article 8 (Cancellation of Fictitious Joining in Employment Stabilization Activities, etc.)
Where any business operator who has joined fictitiously insurance activities pursuant to Article 10 (1) of the Act intends to cancel the insurance contract with respect to employment stabilization activities and vocational ability development activities, the provisions of Article 6 (3) shall apply mutatis mutandis.
[This Article Wholly Amended by Presidential Decree No. 15624, Feb. 12, 1998]
Article 9 (Report on Changes of Insurance Relationship) (1) Deleted. <by Presidential Decree No. 15624, Feb. 12, 1998>
(2) If there are changes in the following matters related to the insured business, the business operator shall report these to the Minister of Labor within fourteen days: for subparagraph 4, he shall report it within fourteen days from the first date of following insurance year: <Amended by Presidential Decree No. 15367, May 8, 1997; Presidential Decree No. 15587, Dec. 31, 1997; Presidential Decree No. 18165, Dec. 18, 2003>
1. Name of the business operator (name of the representative in the case of a corporation) and his resident registration number;
2. Name and place of the business;
3. Type of business;
3-2. The registration number of the business operator (including the registration number of the corporation in the case of a corporation);
4. The number of workers ordinarily employed (limited to cases where there are any changes whether any enterprise is subject to preferential support referred to in Article 15); and
5. Period of the business (restricted to construction work).
Article 9-2 (Requirements for Block Application of Business) (1) The term “requirements as determined by the Presidential Decree” referred to in Article 10-2 (1) 3 of the Act means the following requirements: <Amended by Presidential Decree No. 15581, Dec. 31, 1997; Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 18146, Nov. 29, 2003; Presidential Decree No. 18165, Dec. 18, 2003>
1. The business operator shall be a constructor provided for in the Framework Act on the Construction Industry, a housing construction business operator provided for in the Housing Act, a work contractor provided for in the Electricity Construction Business Act, a firefighting facility work contractor provided for in the Fire Services Act, an operator of the business of repairing cultural properties provided for in the Protection of Cultural Properties Act or a contractor of the work of information and communications provided for in the Information and Communications Work Business Act;
2. The total amount of the results of work for the insurance year two years prior to the insurance year concerned shall be not less than 3 billion won; and
3. One or more of the projects subject to employment insurance application as referred to in Article 7 of the Act shall be in force on the first day of the insurance year concerned.
(2) Any person who desires to obtain approval for a block application pursuant to Article 10-2 (2) of the Act shall apply to the Minister of
Labor not later than 7 days prior to the commencement of the insurance year concerned.
(3) Any person who desires to obtain the approval for termination of the block application relation pursuant to Article 10-2 (3) of the Act shall apply to the Minister of Labor not later than 7 days prior to the commencement of the following insurance year concerned.
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
Article 9-3 (Report on Commencement or Termination of Business Subject to Block Application)
Any business operator who is subject to block application pursuant to Article 10-2 (1) and (2) of the Act shall report on each business which he operates to the Minister of Labor within 14 days from the date on which the business is commenced or terminated: Provided, That he shall make such report by one day prior to the date of termination for a business which is terminated within 14 days for a report on commencement. <Amended by Presidential Decree No. 15829, Jul. 1, 1998>
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
Article 9-4 (Insurance Relation after Termination of Block Application Relation)
Where an individual business operator which is excluded from an application pursuant to Article 2 (1) 2, makes a report, within 14 days from the termination date of block application relation, on the continued application of the insurance relation to that business, which is one of several businesses that do not satisfy to the requirements for block application as referred to in Article 9-2 (1) and the block application relation of which is terminated, then the insurance relation shall be deemed to continue until the date of termination of the concerned business. <Amended by Presidential Decree No. 15902, Oct. 1, 1998; Presidential Decree No. 17301, Jul. 7, 2001>
[This Article Newly Inserted by Presidential Decree No. 15367, May 8, 1997]
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 document 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, such business operator or such subcontractor shall be deemed to make a report on the acquisition and loss of the status of the insured for them or to submit a written statement confirming the loss of their employment to the Minister of Labor. <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 9-3 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>
(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, when the name or the resident registration number of the insured has changed or been corrected, shall 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 any 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 6 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 3 months prior to the date on which the working hours are shortened to the working hours provided for in Article 49 of the same Act (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:
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, That the total amount of quarterly paid subsidy shall not exceed an amount obtained by the multiplication of the number equivalent to 10/100 of the number of the monthly average workers prior to the shortening of working hours by the amount that is published by the Minister of Labor.
(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 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 ad justment 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 subparagraph 6) 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>
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; and
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 measures under Article 17-2 (2) to a new business.
(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>
1. He shall, in establishing a plan for employment maintenance measures, hold consultation with a person representing the workers (where there exists a labor union organized by a majority of workers, referring to the representative of the relevant labor union, and where there exists no labor union organized by a majority of workers, referring to a person representing a majority of workers; hereinafter the same shall apply); 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, That he may report within three days (20 days in the event that the operator of a business that is located in an area declared as a special disaster area under Article 62-2 of the Countermeasures against Natural Disasters Act takes steps to keep his workers employed following such natural disaster) from the date of implementing or changing employment maintenance measures under unavoidable causes as determined by the Ordinance of the Ministry of Labor. <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 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, thereon, within eighteen months from the date of the report on the plan for employment maintenance measures.
[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 payments 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>
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 provision of Article 17 (1) 5, the amount shall be calculated taking into account labor expenses born by a business operator during the leave period concerned as prescribed by the Ordinance of the Ministry of Labor. Where workers are on the paid leave under the provisions of Article 17 (1) 5 and the amount of the employment maintenance support payment for their paid leave is smaller than the amount of the employment maintenance support payment for their unpaid leave, the employment maintenance support payment, which is made when the workers concerned are on the unpaid leave, shall be made;
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; and
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.
(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, be provided with the limit of one year from the date of the completion of relocating manpower (referring to the date on which it becomes eighteen months if relocating manpower is not completed within eighteen months), and where the insured employed by the relevant manpower relocation is dismissed by an employment adjustment, the employment maintenance support payment shall not be paid from the date of such dismissal: 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>
(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 employmentchange 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 employmentchange 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 (Reemployment Promotion Subsidies) (1) The Minister of Labor shall pay a reemployment promotion subsidy to a business operator (including other business operator who is related with the business of the above operator by merging with the above business operator or taking over the business of the above operator and is prescribed by the Ordinance of the Ministry of Labor; hereinafter the same shall apply) who reemploys persons under the conditions falling under any of the following subparagraphs and keeps his workers employed for 3 months before and 6 months after their reemployment: <Amended by Presidential Decree No. 16705, Feb. 9, 2000; Presidential Decree No. 17090, Dec. 30, 2000>
1. A business operator shall reemploy the persons as the insured (excluding short-term-contract workers and other workers prescribed by the Ordinance of the Ministry of Labor) within two years after they lose jobs in their work places under employment adjustment; and
2. Their unemployment period shall exceed six months after they apply for jobs at a vocational stabilization agency or other institutions as prescribed by the Ordinance of the Ministry of Labor.
(2) The amount of the reemployment promotion subsidy referred to in paragraph (1) shall be the amount which is calculated by multiplying the amount which the Minister of Labor publically announces annually based on the business size by the number of the reemployed.
(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 (hereinafter 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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