The government is taking steps to prevent the abuse of the comprehensive wage system by examining the management of working hours in small and venture businesses and gathering feedback from the field.
On September 7, the Ministry of Employment and Labor held a 'Daejeon Small and Venture Business Communication Meeting' at the Daedeok Venture Tower in Yuseong-gu, Daejeon, with representatives from the Inopolis Venture Association and local businesses in attendance.
This meeting was organized following a regional supervisory initiative last month targeting knowledge service companies in the Daejeon and Cheongju areas regarding the misuse of the comprehensive wage system. The ministry listened to the current status of the comprehensive wage system and fixed overtime operations in local small and venture businesses, as well as the challenges they face in recording and managing working hours.
Vice Minister Kwon Chang-jun explained the 'Guidelines for Preventing Abuse of the Comprehensive Wage System to Eradicate Unpaid Labor,' which took effect in April. He emphasized that fair compensation must be provided based on actual hours worked, regardless of whether a comprehensive wage agreement is in place.
The guidelines specify the employer's obligation to maintain transparent records and management of working hours. They also state that employers should not calculate or pay wages without distinguishing between base salary and various allowances, including overtime, night, and holiday work.
Notably, if a comprehensive wage agreement is in place but the agreed amount is less than the legal allowances calculated based on actual working hours, the employer must pay the difference.
The ministry noted that for positions such as research and administrative roles, where managing working hours uniformly is challenging, it is necessary to adopt reasonable methods tailored to the characteristics of the workplace. They also provided guidance on utilizing various systems, such as optional and flexible working hours, according to job characteristics.
Business representatives at the meeting shared their experiences regarding the background and challenges of implementing comprehensive wages and fixed overtime, as well as their opinions on recording and managing working hours, including commuting times.
Vice Minister Kwon stated, "Given that each workplace has different job characteristics, work patterns, workforce composition, and wage systems, the practical difficulties in managing working hours are likely to vary. The government will continue to communicate and support the establishment of a reasonable and effective working hours system that can be properly implemented in the field, while also preventing the abuse of the comprehensive wage system and carefully considering the challenges and suggestions from the field."
* This article has been translated by AI.
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