LABOR LAW GUIDE

Chapter 4 Working Hours, Recess, Off-Days and Leave

Section 2: Flexible Working Hours. Ⅳ. Deemed Working Hours System

Ⅳ. Deemed Working Hours System

1. Purpose

The deemed working hours system is a system for recognizing working hours when it is difficult for a worker to calculate all or part of his or her working time outside the workplace due to business or other reasons. In this case, in principle, the prescribed contractual working hours are considered to be worked. However, in cases where work in excess of the predetermined working hours is normally required for the performance of the work, the required time is generally regarded as working time. If labor and management have determined in advance the generally necessary working hours in writing, such working hours are regarded as performed. The deemed working hour system outside the workplace is sometimes referred to as an authorized labor system, and was established to make calculation of working hours more reasonable in consideration of the increasing number of working hours outside the workplace due to development of the service industry and automation. Areas where difficulties exist in calculating working hours include sales, AS service, business trips, taxi driving, reporters’ work, and working from home.

2. Introducing a Deemed Working Hours System

Labor Standards Act, Article 58: Special Cases for Calculation of Work Hours
① When it proves difficult to calculate the work hours of an employee because he/she performs his duty in whole or in part outside the workplace owing to business trips or other reasons, the hours shall be calculated as contractual working hours, provided that, in cases where it is ordinarily necessary for an employee to work in excess of contractual working hours to carry out said duty, it shall be deemed that the employee has worked for the hours ordinarily required to carry out that duty.
② Notwithstanding the proviso of paragraph ①, in cases where there exists a written agreement between the employer and the employee representative of the workplace concerned, the hours determined in the agreement shall be regarded as those ordinarily required to carry out the relevant duty


(1) Provision of work outside the workplace
Work outside the workplace shall be judged by comprehensive consideration of the place of work and the type of work performed. Working outside the workplace is a situation in which a worker deviates from the management of working hours at his or her own place of work. The form of work performance refers to the conduct of work without specific direction and supervision from the employer’s working time management organization.

(2) Difficulty in calculating working hours
It is difficult to calculate working hours, because the work start and finish time outside the workplace are discretionary for the workers concerned, and because the workers concerned work the length of working hours according to their working conditions. Therefore, if it is possible to calculate working hours when the specific direction and supervision of the employer directly affects the workers working outside, the deemed working hour system shall not apply to those workers.

(3) Introducing the system
If(1) and(2) above are met, the agreed-upon working hours shall be considered as working hours, regardless of actual working hours, as one of three: ① predetermined working hours, ② time normally required for the performance of work, or ③ agreed working hours between labor and management.

3. Using a Deemed Working Hours System

(1) Overseas business trips
When traveling overseas for business or returning home, flight time, immigration procedures, and travel time are likely to exceed actual working hours. In such cases, it is desirable to establish a written agreement with the worker representative. Generally, the company guarantees paid or alternative leave for the time required for the work through overseas business regulations. In this regard, the courts and the MOEL consider working time spent abroad as working hours.

(2) Work outside the workplace
If the working hours are difficult to calculate because the employee performs duty outside the workplace, disputes are likely to arise between employee and employer about calculation of wage. As a solution, the deemed working hour system has been introduced to recognize those outside working hours as fixed working hours.

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

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