Working Hours, Holiday, Leave

Chapter 4 Flexible Working Hours

Ⅲ. Selective Working Hour System

1. Purpose

The selective working hour system is a system that, by setting only the total working hours of the settlement period within one month, allows workers to select their own working time for days and for weeks within the standard working time range, and to freely determine the commute time of each day and each week. In other words, the system sets only the total working hours within one month and leaves the start and end times of working hours up to the workers. A selective working hour system therefore gives workers the choice of specific commute time, which enables them to increase work efficiency and improve their quality of life.
The selective working hour system introduced in Korea allows employees to decide for themselves the time of their arrival and departure from the office, or choose the daily working hours within the range of total working hours described by a specific period unit within one month. This system is useful in helping professionals or business managers improve work efficiency and providing housewives with work opportunities. Under this system, employees have convenience in commuting and the right to a more relaxing social life, while the employer benefits from higher productivity and a reduction in inefficient working hours.

2. Types of Selective Working Hour Systems

1) Fully selective working hour system
Under a fully selective working hour system, the employee decides on the commuting hours during the period of flexible working hours and the employer does not interfere with the allocation of employee working hours. That is, there is no mandatory range of working hours other than the selective working hours.

2) Partly selective working hour system
Under a partly selective working hour system, the employee is entrusted with the decision to begin and finish tasks, while receiving hourly supervision and concrete job directions from the employer during specified hours. However, during a different range of working hours, the employee decides when to begin and finish work and arranges the amount of working hours.
The mandatory range of working hours is called the “core time,” while the selective range is called the “flexible time.” Usually, the core time and flexible time are settled automatically through a written agreement between employer and employee. The employer makes the most of the core time, during which he/she can give necessary orders and manage meetings, directions, etc.

3. Introducing a Selective Working Hour System

(1) Introduction through the rules of employment

Employers shall stipulate that the start and end times of work are left to the worker's decision for a group of workers subject to selective working hours through the establishment or revision of employment rules.

(2) Written agreement with the employee representative


To introduce the selective working hour system, a written agreement with the labor union or worker representative representing the majority of the workers is required. The written agreement shall include (i) scope of workers subject to this system, (ii) adjustment period (within one month), and the total working hours within an adjustment period, (iii) starting and finishing time of working hours, if a mandatory work period is in force (core time), (iv) starting and finishing time of working hours which are allowed to be selected by workers (selective time), and (iv) standard working hours to form the basis for granting paid leave.



1) The scope of the covered workers: In general, it is easy to apply the system to managers, supervisors who do not have strict restrictions on commuting, etc., and professional, research, and office workers who place more emphasis on quality than the amount of work. However, this system can be introduced at any workplace.

The Labor Standards Act:
Article 52 (Selective Working Hour System)
Where an employer has reached a written agreement on each of the following subparagraphs with the workers’ representative regarding a worker who is entrusted with the decision as to when to begin and finish work in accordance with the rules of employment (including those equivalent to rules of employment), the employer may have workers work in excess of the working hours per week set by paragraph (1) of Article 50, or the working hours per day set by paragraph (2) of Article 50 on the condition that average working hours per week computed on the basis of adjustment period of not more than one month do not exceed the working hours prescribed in paragraph (1) of Article 50:

1. scope of workers subject to this paragraph (excluding workers between the age of 15 and 18);
2. adjustment period (a finite period not more than one month);
3. total working hours within an adjustment period;
4. starting and finishing time of working hours, if a mandatory work period is in force;
5. starting and finishing time of working hours which are allowed to be selected by workers; and
6. other matters as determined by Presidential Decree.
1.1.1.1.
1.1.1.2. Enforcement Decree to the Labor Standards Act
Article 29 (Agreed-upon Matters regarding Selective Work Hours System)
“Other matters as prescribed by Presidential Decree” under subparagraph 6 of Article 52 of the Act mean standard working hours (working hours per day based on which the employer and the workers’ representative agree to calculate paid leave, etc.).

2) Settlement period and total working hours: The period for which the worker chooses to provide the work by themselves can be set to up to one month, such as two weeks or four weeks. The total working hours are usually calculated as the total sum of the contractual working hours within the settlement period (such as 40 hours x 30 days / 7 days = 171.4 hours) prior to introduction of the system. If the total working hours are set, even if the working hours exceed the legal working hours per day or per week within the total working hours of the settlement period, they will not be considered extended working hours subject to overtime allowance.

3) Core working hours and selective working hours: Core working hours is the time when the worker must work, while selective working hours is the time when the worker can decide on their own whether to provide work.

4) Standard working hours: Standard working hours refers to the one day’s working hours set by labor and management, which becomes the basis for calculation of paid leave, etc. in the selective working hour system. When using paid leave, it is considered that the standard working hours of 1 day are used.

4. Using the Selective Working Hour System

If the above conditions are satisfied, the employer may extend weekly working hours to more than 40 and daily working hours beyond 8 to the extent that the average working hours per week during the period of flexible working hours within the given month do not exceed 40. In this case, additional allowance for extended work is not provided.

(1) General selective working hour system
Selective working hours are divided into mandatory working hours and selective working hours. The standard working hours, based on the calculation of paid leave, are from 09:00 to 18:00. For example, workers are given discretionary hours at 07:00-11:00 for coming to the office and 15:00-20:00 for leaving the office. The mandatory (core) working hours for all workers are 11:00-15:00.

(2) Jobs where it is difficult to check working hours and with significant waiting time (00 company, which specializes in renewable energy)

Employees were dissatisfied because they did not get paid overtime due to difficulty in verifying their work hours. Also, as for after-sales service, irregular overtime occurred frequently and there were many hours spent waiting. The company introduced a selective working hour system on a monthly basis for sales and after-service teams through written agreements with labor representatives after consultations between labor and management. As a result, it was possible to adjust working hours according to the work volume while reducing unnecessary waiting time and overtime, improving flexibility and efficiency in work. MOEL, “Flexible Working Hour System Guides”, Sept. 2019, p. 52.


(3) Jobs related to types of irregular work

Company 00, which is a refrigeration facility installation and management company, works according to project schedules requested by clients and their companies due to the nature of work. There has been a lot of overtime due to irregular work schedules (including nighttime and holiday work). The company introduced a selective working hour system, which allowed each worker to manage their arrival time to work and their departure time from work according to the circumstances of their client companies. This has minimized unnecessary overtime. As a result, workers were able to adjust their working hours according to their clients’ schedules, which made it possible to reduce overtime that had been due to irregular schedules. Ibid., pp. 53-54.


Selective Working Time Policy



Labor-Management Agreement on Selective Working Hour System



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

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