FRAMEWORK ACT ON LABOR WELFARE [See entire ACT]

CHAPTER Ⅰ General Provisions

Article 1 (Purpose)

The purpose of this Act is to improve workers’ quality of life and contribute to the balanced development of the national economy by prescribing matters necessary in establishing labor welfare policies and carrying out welfare projects.

Enforcement Ordinance

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Framework Act on Labor Welfare and matters necessary for the enforcement thereof.

Article 2 (Definition)

The terms used in this Act are defined as follows:

1. The term "employee" means a person who provides his or her labor to a business or at a place of business in return for wages, regardless of the type of occupation;

2. The term "employer" means a business owner, a person responsible for the management of a business, or any other person who acts on behalf of a business owner with respect to matters relating to an employee;

3. The term "housing business entity" means a person who builds or purchases houses for the purpose of selling or leasing them to employees;

4. The term "employee stock ownership association" means an organization established in full compliance with the requirements prescribed in this Act in order for employees employed by a joint stock company to acquire and manage shares in the joint stock company;

5. The term “employee shares” means shares in a joint stock company acquired by the employees of the joint stock company through an employee stock ownership association established in the joint stock company.

Article 3 (Basic Principles of Labor Welfare Policies)

(1) Employees’ welfare policies (excluding basic working conditions, such as wages and working hours; the same shall apply hereinafter) shall aim to expand employees’ opportunities to participate in economic and social activities, increase their willingness to work, and improve their quality of life.

(2) When formulating and implementing employees' welfare policies, consideration and assistance shall be given to prevent discrimination against an employee on any ground, such as gender, age, physical conditions, employment status, religion, and social standing.

(3) Assistance prescribed in this Act to promote the welfare of employees shall be given in a manner that ensures the preferential treatment of employees working for micro, small, and medium enterprises, fixed-term employees (referring to fixed-term employees defined under subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-Term and Part-Time Employees), part-time employees (referring to part-time employees defined under Article 2 (1) 9 of the Labor Standards Act), temporary agency workers (referring to temporary agency workers under subparagraph 5 of Article 2 of the Act on the Protection, etc. of Temporary Agency Workers; hereinafter the same shall apply), workers hired by a subcontractor (referring to a subcontractor under subparagraph 5 of Article 2 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance), low-income employees, and long-serving employees.

Article 4 (Responsibility of State or Local Governments)

If the State or a local governments establishes and implements labor welfare policies, it shall make efforts to promote workers’ welfare by providing budgetary, fund, tax and financial support according to the basic principles of labor welfare policies prescribed in Article 3.

Article 5 (Responsibility of Employers and labor unions)

(1) An employer (referring to a person who carry out business using workers) shall make efforts to promote the welfare of workers in the workplace concerned and cooperate on labor welfare policies.
(2) labor unions and workers shall make efforts to improve productivity by increasing their will to work and cooperate on labor welfare policies.

Article 6 (Prohibition of Use for Other Purposes)

Any person who receives subsidies or loans for labor welfare, such as stabilizing workers’ housing, securing their livelihoods and creating their wealth, etc., from the State or a local government shall use the money only for the intended projects.

Article 7 (Fund Raising)

(1) The State or a local government shall make active efforts to raise necessary funds for labor welfare projects under this Act.
(2) The funds raised pursuant to paragraph (1) may be contributed or loaned to the Labor Welfare Promotion Fund under Article 87.

Article 8 (Deliberation on Important Matters concerning Labor Welfare Promotion)

The following matters concerning labor welfare under this Act shall be deliberated on by the Employment Policy Council (hereinafter referred to as “the Employment Policy Council”) under Article 10 of the Framework Act on Employment Policy:
1. Basic plan on labor welfare promotion under Article 9 (1);
2. Matters concerning the raising of funds needed for labor welfare projects;and
3. Other matters concerning labor welfare policy brought forward by the chair of the Employment Policy Council.

Article 9 (Establishment, etc. of Basic Plan)

(1) The Minister of Employment and Labor shall establish a basic plan for labor welfare promotion (hereinafter referred to as “the basic plan”) every five years in consultation with the heads of relevant central administrative agencies.
(2) The basic plan shall include the matters described in any of the following subparagraphs:
1. Matters on workers’ housing stability;
2. Matters on workers’ livlihood stability;
3. Matters on workers’ wealth creation;
4. Matters on employee stock ownership plans;
5. Matters on the employee welfare fund system;
6. Matters on support for selective welfare systems;
7. Matters on the operation of the employee support program;
8. Matters on the establishment and operation of welfare facilities for workers:
9 Matters on the raising of funds needed for workers welfare projects;
10. Evaluation of the previous master plan ;
11. Other matters considered by the Minister of Labor to be necessary for labor welfare promotion.
(3) If the Minister of Employment and Labor has established the basic plan, he/she shall announce it.

Article 10 (Provision of Materials and Use of Electronic Network)

(1) The Minister of Employment and Labor may request the head of such government agencies, such as the Court, the Ministry of the Interior and Safety,, the Ministry of Health and Welfare, the Ministry of Land and Transport, the National Tax Service, etc., and local governments and relevant agencies and organizations to provide the materials and network access under the following subparagraphs, and to allow him/her to use their electronic networks in order to perform labor welfare projects under this Act, such as provision of livelihood stability funds pursuant to Article 19 and support for credit guarantee pursuant to Article 22. In this case, the head of government agencies and local governments, and relevant agencies and organizations shall comply if there are no reasonable grounds not to do so.
1. Certificate of Earned Income (for applicants of global income tax, for business income earners who completed year-end settlement, for other income earners);
2. Transcripts and abstracts of resident registration;
3. A register of family relations (family relations certificate, marriage certificate, birth certificate);
4. Certificates of local tax payment by tax item;
5. Transcripts of vehicle and construction machinery original register;
6. Transcripts of building and land register;and
7. Transcripts of corporation register.
(2) Any fees, charges or etc. shall not be imposed for materials provided to the Minister of Employment and Labor and using electronic networks under paragraph (1).
(3) When requesting the provision of materials pursuant to paragraph (1) and the use of relevant electronic networks, the Minister of Employment and Labor shall obtain consent of the related parties in advance.

Enforcement Ordinance

Article 2 Deleted.

Article 11 (Consultation on Implementation of Labor Welfare Projects)

If a local government or a state-subsidized nonprofit corporation implements a labor welfare project, it shall consult with the Minister of Employment and Labor.

Article 12 (Financial Institutions Engaging in Loan Activities)

(1) The State or a local government may have a financial company, etc. (hereinafter referred to as “institutions engaging in loan activities”) described in any of the following subparagraphs engage in loan activities under this Act:
1. A bank established under Article 8 (1) of the Banking Act;and
2. Other financial company, etc. prescribed by the Presidential Decree.
(2) The Minister of Employment and Labor and the head of a local government may give priority to financial institutions which give preferential loans to workers, in engaging in loan activities, etc., under this Act.

Enforcement Ordinance

Article 3 (Institutions Engaging in Loan Activities)

“Financial companies, etc. specified by Presidential Decree” in Article 12 (1) 2 of the Framework Act on Labor Welfare (hereinafter referred to as the “Act”) means the following financial companies:

1. NH Bank under the Agricultural Cooperatives Act;

2. Suhyup Bank under the Fisheries Cooperatives Act;

3. The Korea Development Bank under the Korea Development Bank Act;

4. The Industrial Bank of Korea under the Industrial Bank of Korea Act;

5. Community credit cooperatives and their federation established under the Community Credit Cooperatives Act;

6. Securities finance corporations under the Financial Investment Services and Capital Markets Act.

Enforcement Ordinance

Article 5 (Entrustment of Exercise of Right to Demand Reimbursement)

(1) The financial companies, etc. entrusted with the right to demand a reimbursement by the Korea Workers’ Compensation and Welfare Service (hereinafter referred to as the “Welfare Service”) under the Industrial Accident Compensation Insurance Act in accordance with Article 26 (3) of the Act shall be the institutions providing loan services under Article 12 of the Act and claims collection agencies under subparagraph 10-2 of Article 2 of the Credit Information Use and Protection Act.

(2) Other necessary matters, such as the entrustment fees to be paid when entrusting the right to demand a reimbursement in accordance with paragraph (1) shall be determined by the Welfare Service with the approval of the Minister of Employment and Labor.

Article 13 (Tax Incentives)

The State or the head of a local government may provide tax incentives under the conditions prescribed in tax laws in order to promote workers’ welfare, including stabilizing workers’ housing, securing their livelihoods, creating their wealth, setting up and operating labor welfare facilities and labor welfare promotion funds, promoting employee stock ownership plans and employee welfare funds and so on.

Article 14 (Operation of Labor Welfare Information System)

(1) The Minister of Employment and Labor may establish and operate a labor welfare information system in order to implement labor welfare policies effectively.
(2) The Minister of Employment and Labor many provide support for the operation of employee support programs and selective welfare systems through the labor welfare information system under paragraph (1).

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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