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The 3 most important factors that impact labor-related issues are (1) socioeconomic changes, (2) amendments to the law, and (3) new court holdings. |
The most notable socioeconomic changes in recent times are Korea’s aging population (especially with regard to its labor market) and the widespread return to office following the close of the COVID-19 pandemic. As seen in recent Supreme Court decisions, employment issues concerning employees past the age of retirement and part-time laborers appear to be on the rise. Moreover, workplace harassment cases have also increased following the return to office, and the trend is expected to continue into the foreseeable future. |
As for legal changes, the most notable one is the so-called “Yellow Envelope Bill” that was recently passed by the National Assembly. Although the bill was vetoed by President Yoon in early December, collective bargaining and labor disputes will likely generate a fierce debate in the coming months. Moreover, inquiries relating to Serious Accidents Punishment Act (“SAPA”) are expected to increase. In particular, many companies with 5 to 49 employees will be required to implement a comprehensive health and safety management system beginning on January 27, 2024 under SAPA.
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Lastly, courts in Korea are currently hearing cases relating to whether bonuses constitute ordinary wages, and whether performance-based incentives constitute average wages. Depending on the outcome of these cases, wage disputes may see an increase in 2024. |