Ⅴ. Discretionary Work System

1. Concept

The discretionary work system is a system that requires the delegation of work method to worker discretion in light of the nature of the work.
Workers have a lot of discretion in the way they work according to technological advances, information-orientation of work, increasing economic share of the services industry, increasing share of knowledge labor, etc., and so their remuneration depends on the quality of work rather than the amount of working hours.
Professional work that requires creativity, such as research and development, information processing system analysis, design, news article composition, and editorial work, is not appropriately regulated by the amount of working hours like general workers. But it is desirable for both labor and management to leave their working hours to the discretion of such professional workers rather than to directly control them.

2. Introducing a Discretionary Work System

Labor Standards Act: Article 58 (Special Cases for Calculation of Work Hours)
③ For tasks designated by Presidential Decree as those tasks which need, in light of their characteristics, worker discretion with regard to the ways to perform them, the worker shall be deemed to have worked such working hours as determined by a written agreement between the employer and the workers’ representative. Such written agreement shall contain each of the items described in the following subparagraphs:
1. provisions as to work to be provided;
2. provisions in which the employer will not give directions to the worker regarding how to perform the work, and how to allocate working hours; and
3. provisions in which computation of working hours shall be determined by the written agreement concerned.

Enforcement Decree Article 31 (Jobs Eligible for Discretionary Work System)
“Work prescribed by Presidential Decree” in the former part of Article 58 (3) of the Act means work falling under any of the following subparagraphs:
1. Research and development of new products or technologies, and research in the areas of the humanities or social or natural sciences;
2. Design or analysis for data processing systems;
3. Gathering, compiling and editing of news for a newspaper, broadcasting or publication business;
4. Design or creation of clothing, interior decoration, industrial goods, advertisement, etc.;
5. Work as a producer or director in the business of producing broadcasting programs, motion pictures, etc.; and
6. Other jobs as determined by the Minister of Employment and Labor.


(1) Work considered discretionary

Work that may be targeted as discretionary is limited to the work prescribed in Article 31 of the Enforcement Decree to the Labor Standards Act. In view of the nature of the work, it must be given to worker discretion. Workers shall not be given specific instructions on how to perform the work, but this shall be left to their full discretion, while the employer can direct the basic content of the work. However, the employer shall not give specific instructions regarding the distribution of working hours to workers.
1) Research and development of new products or technologies, and research in the areas of the humanities or social or natural sciences
2) Design or analysis for data processing systems
3) Gathering, compiling and editing of news for a newspaper, broadcasting or publication business
4) Design or creation of clothing, interior decoration, industrial goods, advertisement, etc.
5) Work as a producer or director in the business of producing broadcasting programs, motion pictures, etc. and
6) Consultation, advice, appraisal or agency with the delegation or commission of others in the affairs of accounting, legal cases, tax payment, legal affairs, labor management, patents, appraisal, etc.

(2) There must be written agreement on statutory matters
To introduce a discretionary work system, the employer must specify the tasks concerned, and other necessary items through a written agreement with the employee representative. The statutory matters that must be included in the written agreement include: ① provisions as to tasks to be provided; ② provisions in which the employer would not give directions to the worker regarding method of performance, and how to allocate working hours; and ③ provisions in which the computation of working hours shall be determined by the written agreement concerned.

3. Using a Discretionary Working Hour System

In order for the company to adopt and use discretionary work hours in certain occupations, departments, and duties within the organization, ① it must fall under one or more of the six discretionary work tasks mentioned above, ② discretionary rights in work performance shall be allocated and ③ a written agreement with the worker representative shall pre-exist the discretionary work hours.