South Korea had employees work for longer hours in the previous years. The working hours per worker were 68 per week. According to Lee et al (n.d), the new Labor Law clarifies that working hours for any worker should not be more than 40 hours in a week. However, the maximum number of hours is 52, with the additional 12 hours to be agreed upon between the worker and the employee. The current Labor Standards Act does not provide a clear definition of a week but states that one day, in the seven days of a week, must be regarded as a holiday for workers (Umeda & Chang, 2018). Therefore, a week cannot exceed the maximum number of hours provided by the law. Additionally, the current act enables workers in private sectors to receive payment on public holidays. The current Act approves payment even on public days. Besides, the Act exempts only five public industries, in the health and transport sector, from the 52 maximum hours per week. The industries are directed to provide workers with 11 hours of rest between their daily shifts. Working hours for employees between the ages of 15 to 18 years is 35 hours, from 40 hours in the previous years. According to Umeda and Chang (2018), fifty percent is paid to employees who have worked less than 8 hours, and one hundred percent for those who have worked more than eight hours.
The current labor law in South Korea has enabled create many jobs, especially for the youths due to shared and reduced working hours. It has also led to short-term employment and irregular workers in the labor market (Grubb et al, 2007). This has helped many people to engage in several jobs, part-time jobs and has given them time to engage in other social activities. The favorable labor market conditions and lower employee wages in South Korea make it considerable for investors like the Chapman Auto Parts manufacturers. However, if short-term employment continues to grow, the company will be forced to lower their investments in the human capital of workers. Employing non-regular and short-time employees will also cost the planning and output of the company.
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References
Grubb, D. Lee, J. K & Tergeist, P. (2007 October, 5). Addressing Labor Market Duality in Korea. http://www.oecd.org/korea/39451179.pdf
Lee, S. McCann, D & Messenger, J. C. (n.d). Working Time around the World. First published 2007 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN. https://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_104895.pdf
Umeda, S. & Chang, J. (2018 May, 18 ). South Korea: Labor Standards Law Amended to Limit Workweek. South Korea. https://www.loc.gov/law/foreign-news/article/south-korea-labor-standards-law-amended-to-limit-workweek/
