The South Korean government is launching on-site inspections in industrial complexes where comprehensive wage practices are prevalent to eradicate unpaid labor. The first inspections will focus on businesses in the Guro and Gasan Digital Complexes.
According to the Ministry of Employment and Labor, the "Relay Inspections on the Abuse of Comprehensive Wage Practices" will take place from today until the end of the year. This initiative aims to implement the guidelines issued on April 9 to eliminate unpaid labor.
Comprehensive wage systems involve setting salaries in advance, regardless of actual working hours. However, there are growing concerns about the misuse of fixed overtime pay, which includes additional payments for overtime and night shifts.
The guidelines clarify that employers must distinguish between base salaries and various allowances in wage ledgers and pay stubs. It also stipulates that if the agreed fixed overtime amount is less than the actual hours worked, the employer must pay the difference, as failing to do so constitutes wage arrears.
Furthermore, the guidelines prohibit the introduction of flat-rate pay systems that do not differentiate between base pay and allowances, as well as systems that lump together overtime, night, and holiday work payments. Employers are encouraged to utilize special provisions for calculating working hours, such as deemed working hours and discretionary working hours, when determining work time is challenging.
Since the implementation of these guidelines, there have been 42 reports submitted to the anonymous reporting center for the abuse of comprehensive wage and fixed overtime practices by the end of last month, a significant increase from 13 reports during the same period last year. In response, the Ministry will activate a continuous monitoring system in areas suspected of comprehensive wage abuse.
Inspections will be conducted monthly in one region at a time, targeting businesses reported to the anonymous reporting center and those suspected of legal violations within the same industrial complex. The first inspections will focus on businesses in the Guro and Gasan Digital Complexes, where reports of coercive overtime disguised as voluntary work, incidents of working mothers fainting after working over 70 hours a week, and false records of commuting times have been received.
The Ministry will also promote the anonymous reporting center to facilitate easier reporting of comprehensive wage abuse cases. This includes operating mobile promotional buses in areas densely populated with companies using comprehensive wage systems and posting related banners on Blind, an anonymous community for workers.
Minister of Employment and Labor Kim Young-hoon stated, "We will thoroughly investigate all businesses reported anonymously to eradicate unpaid labor that undermines the value of work for young people and vulnerable groups. I urge workers who have suffered from unpaid labor to report anonymously without fear."
* This article has been translated by AI.
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