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ACT ON THE PROTECTION, ETC. OF FIXED-TERM AND PART-TIME EMPLOYEES

ACT ON THE PROTECTION, ETC. OF FIXED-TERM AND PART-TIME EMPLOYEES

Act No. 8074, Dec. 21, 2006

Amended by Act No. 8372, Apr. 11, 2007

CHAPTER 1

General Provisions

Article 1 (Purpose)

The purpose of this Act is to promote a sound development of the labor market by redressing undue discrimination against fixed-term and part-time employees and strengthening the protection of their working conditions.

Article 2 (Definition)

The terms used in this Act are defined as follows :

1. The term "fixed-term employee" refers to an employee who has signed a labor contract whose period is fixed (hereinafter referred to as "fixed-term labor contract").

2. The term "part-time employee" refers to a part-time employee as defined in Article 2 of the Labor Standards Act.

3. The term "discriminatory treatment" refers to unfavorable treatment in terms of wages and other working conditions etc. given without any justifiable reasons.

Article 3 (Scope of Application)

(1) This Act shall apply to all businesses or workplaces employing not less than five workers : Provided that this Act shall not apply to a business or workplace which employs only relatives living together and to a worker who is hired for domestic work.

(2) With respect to businesses or workplaces employing four workers or less, some of the provisions of this Act may apply to them as prescribed by the Presidential Decree. (3) With respect to State and local government agencies, this Act shall apply to them regardless of the number of workers - 2 -

they ordinarily employ.

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CHAPTER 2

Fixed-term Employees

Article 4 (Employment of Fixed-term Employees)

(1) An employer may hire a fixed-term employee for a period not exceeding two years (In the case of repeated fixed-term labor contracts, the sum of the periods of such contracts shall not exceed two years.). However, an employer may hire a fixed-term employee for a period in excess of two years where:

1. The period needed to complete a project or particular task is defined;

2. The fixed-term employee is needed to fill a vacancy arising from a worker's temporary suspension from duty or dispatch until the worker returns to work;

3. The period needed for a worker to complete schoolwork or vocational training is defined;

4. The fixed-term labor contract is made with the aged as defined in Article 2 Subparagraph 1 of the Aged Employment Promotion Act;

5. The job requires professional knowledge and skills or the job is offered as part of the government's welfare or unemployment measures as prescribed by the Presidential Decree; or

6. There is a rational reason equivalent to those described in subparagraphs 1 through 5 and prescribed by the

Presidential Decree.

(2) Notwithstanding the fact that those grounds enumerated in the proviso of paragraph (1) do not exist or cease to exist, if an employer hires a fixed-term employee for more than two years, the fixed-term employee shall be considered as a worker who has made a labor contract with no fixed term. Article 5 (Conversion into Workers Under a Contract without a Fixed Term)

If an employer intends to make a labor contract without a fixed term, he/she shall make efforts to preferentially hire fixed-term employees who are engaged in the same or similar kinds of jobs in the business or workplace concerned. - 4 -

CHAPTER 3

Part-time Employees

Article 6 (Restrictions on Overtime Work of Part-time Employees) (1) If an employer intends to have a part-time employee work in excess of the working hours prescribed in Article 2 of the Labor Standards Act, he/she shall obtain the consent of the employee in question. In this case, the overtime hours shall not exceed 12 hours a week.

(2) Any part-time employee can refuse to do overtime work if the employer orders the overtime work without obtaining the consent in accordance with paragraph (1).

Article 7 (Conversion into Regular Workers, etc.) (1) If an employer intends to hire a regular worker, he/she shall make efforts to preferentially hire part-time employees who are engaged in the same or similar kinds of jobs in the business or workplace concerned.

(2) If a worker applies to work part time on account of household duties, study or other reasons, the employer shall make efforts to convert the worker into a part-time employee. CHAPTER 4

Prohibition and Redress of Discriminatory Treatment Article 8 (Prohibition of Discriminatory Treatment) (1) An employer shall not give discriminatory treatment against fixed-term employees on the ground of their employment status compared with other workers engaged in the same or similar jobs under a labor contract without a fixed term in the business or workplace concerned.

(2) An employer shall not give discriminatory treatment against part-time workers on the ground of their employment status compared with full-time workers who are engaged in the same or similar kinds of jobs in the business or workplace concerned.

Article 9 (Application for Redress of Discriminatory Treatment) - 5 -

(1) If a fixed-term or part-time employee receives discriminatory treatment, he/she can apply for a redress to the Labor Relations Commission prescribed in Article 1 of the Labor Relations Commission Act (hereinafter referred to as "Labor Relations Commission"). However, this shall not apply if three months or more have passed since the day when the discriminatory treatment occurred (or since the last day of the treatment in the case of continuous discriminatory treatment). (2) If a fixed-term or part-time employee makes an application for a redress in accordance with paragraph (1), he/she must clearly state specific details of the discriminatory treatment.

(3) Necessary matters concerning procedures for and methods of the redress application prescribed in paragraphs (1) and (2) shall be determined by the National Labor Relations Commission under Article 2 (1) of the Labor Relations Commission Act. (hereinafter referred to as "National Labor Relations Commission")

(4) With regard to disputes relating to paragraphs (1) through (3) and Article 8, the burden of proof shall be placed on employers.

Article 10 (Investigation, Inquiry, etc.)

(1) Upon receiving a redress application under Article 9, the Labor Relations Commission shall conduct a necessary investigation and an inquiry into related parties without delay. (2) When the Labor Relations Commission conducts an inquiry pursuant to paragraph (1), it may have a witness present at the inquiry at the request of the parties concerned or by virtue of its authority and address necessary questions. (3) In conducting an inquiry pursuant to paragraphs (1) and (2), the Labor Relations Commission shall give sufficient opportunities for the parties to present evidence and cross-examine the witness.

(4) Necessary matters concerning methods of and procedures for the investigation and inquiry prescribed in paragraphs (1) through (3) shall be determined by the National Labor Relations Commission.

(5) The Labor Relations Commission may have experts as its members to conduct the professional surveys or research required in the work of redressing discrimination. In this case, necessary matters concerning the number, qualification requirements and remunerations of such experts shall be prescribed by the - 6 -

Presidential Decree.

Article 11 (Mediation and Arbitration)

(1) The Labor Relations Commission can commence mediation procedures at the request of both or either of the parties concerned or by virtue of its authority during an inquiry prescribed in Article 10. If the parties concerned file for arbitration under agreement to follow an arbitration decision taken by the Labor Relations Commission, the Commission may conduct arbitration.

(2) Medication or arbitration under paragraph (1) shall be filed for within 14 days of the date on which an application was made to redress discriminatory treatment pursuant to Article 9. However, if there is approval from the Labor Relations Commission, the mediation or arbitration can be filed for after the 14-day period.

(3) The Labor Relations Commission shall sufficiently hear opinions from the parties concerned when conducting mediation or arbitration.

(4) The Labor Relations Commission shall present a mediation proposal or render an arbitration decision within 60 days of commencing mediation procedures or receiving a request for arbitration, if there is no special reason.

(5) The Labor Relations Commission, if both of the parties concerned accept a mediation proposal, shall draw up a mediation statement and if a arbitration decision is made, shall draw up a written arbitration decision.

(6) A mediation statement shall be signed and sealed by the parties concerned and all members involved in the mediation and a written arbitration decision shall be signed and sealed by all members involved.

(7) A mediation or arbitration decision under paragraphs (5) and (6) shall be given the same effect as conciliation reached in the courts in accordance with the Civil Procedure Act. (8) Matters concerning mediation and arbitration methods, how to draw up a mediation statement or written arbitration decision, etc., shall be determined by the National Labor Relations Commission.

Article 12 (Redress Order, etc.)

(1) The Labor Relations Commission, if it judges that the treatment in question is discriminatory after ending an investigation and inquiry under Article 10, shall issue a redress order to the employer. If it judges that the treatment in questions is not discriminatory, it shall make a decision to dismiss the - 7 -

application for a redress.

(2) The judgment, redress order or dismissal decision prescribed in paragraph (1) shall be made in writing and their reasons shall be clearly specified and then be sent to the parties concerned. In the case of issuing a redress order, its specific contents and compliance deadline shall be written down. Article 13 (Contents of Mediation, Arbitration or Redress Order) The contents of mediation or arbitration under Article 11 or of a redress order under Article 12 may include suspending discriminatory actions, improving working conditions, such as wages, and making adequate monetary compensation. Article 14 (Confirmation of Redress Order, etc.)

(1) If a party is dissatisfied with a redress order or dismissal decision by the Regional Labor Relations Commission, the party may apply for review to the National Labor Relations Commission within 10 days of receiving the notice of the redress order or dismissal decision.

(2) If a party is dissatisfied with a review decision made by the National Labor Relations Commission pursuant to paragraph (1), the party may bring an administrative lawsuit against the decision within 15 days of receiving the notice of the review decision.

(3) If a request for review is not made within the period prescribed in paragraph (1) and an administrative lawsuit is not brought within the period prescribed in paragraph (2), the redress order, dismissal decision or review decision shall be confirmed as final.

Article 15 (Submission of Status Report on Compliance with Redress Order)

(1) The Minister of Labor can require employers to submit a status report on compliance with a confirmed redress order. (2) If an employer fails to comply with a confirmed redress order, the worker who applied for the redress may report the failure to the Minister of Labor.

CHAPTER 5

Supplementary Provisions

Article 16 (Prohibition of Unfavorable Treatment) - 8 -

An employer shall not dismiss or give other unfavorable treatments to a fixed-term or part-time employee on the ground that he/she has done an act described in any of the following subparagraphs:

1. Refusing to do overtime work ordered by the employer pursuant to Article 6 (2);

2. Applying to redress discriminatory treatment pursuant to Article 9, showing up or making a statement at the Labor Relations Commission pursuant to Article 10 or applying for a review or bringing an administrative lawsuit pursuant to Article 14;

3. Reporting a failure to comply with a redress order pursuant to Article 15 (2); or

4. Giving notification pursuant to Article 18. Article 17 (Written Statement of Working Conditions) When an employer makes a labor contract with a fixed-term or part-time employee, he/she shall clearly state in writing all the matters described in the following subparagraphs, provided that subparagraph 6 shall apply only to part-time workers.

1. Matters concerning the contract period;

2. Matters concerning working hours and rest hours;

3. Matters concerning components, calculation and payment methods of wages;

4. Matters concerning holidays and leave;

5. Matters concerning the place of work and jobs to do; and

6. Work days and working hours of each work day Article 18 (Notification to Inspection Agency)

If there is any violation of this Act or an order issued under this Act in a business or workplace, a worker may notify the Minister of Labor or a labor inspector of the violation. Article 19 (Delegation of Authority)

Part of the authority of the Minister of Labor under this Act may be delegated to the head of a regional labor office as prescribed by the Presidential Decree.

Article 20 (Efforts of the State, etc., for Employment Promotion) The State and local governments shall make efforts to preferentially take necessary measures, such as providing employment information, vocational guidance, job placement services, vocational skills development services, etc., to promote the employment of fixed-term and part-time employees. - 9 -

CHAPTER 6

Penal Provisions

Article 21 (Penal Provision)

A person who has given unfavorable treatment to a worker in violation of Article 16 shall be punished by imprisonment of up to two years or a fine not exceeding 10 million won. Article 22 (Penal Provision)

A person who has made a part-time employee do overtime work in violation of Article 6 (1) shall be punished by a fine not exceeding 10 million won.

Article 23 (Joint Penal Provisions)

If an agent, a servant or any other employee of an employer has committed any of the violations under Articles 21 and 22, the employer, in addition to the offender, shall be punished by a fine prescribed in the respective Articles. Article 24 (Fine for Negligence)

(1) A person who fails to comply with a final redress order confirmed under Article 14 without any justifiable reason shall be punished by a fine for negligence not exceeding 100 million won.

(2) A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding five million won:

1. A person who fails to comply with the demand of the Minister of Labor to submit a status report without any justifiable reason in violation of Article 15; or

2. A person who fails to clearly state in writing working conditions in violation of Article 17.

(3) A fine for negligence under paragraphs (1) and (2) shall be imposed and collected by the Minister of Labor as prescribed by the Presidential Decree.

(4) A person who is not satisfied with the imposition of a fine for negligence under paragraph (3) may file a complaint with the Minister of Labor within 30 days of receiving notice of the fine for negligence.

(5) When a person subject to a fine for negligence under paragraph (3) files a complaint pursuant to paragraph (4), the Minister of Labor shall notify the competent court of this - 10 -

without delay, and the competent court so notified shall try the case of the fine for negligence in accordance with the Non-contentious Case Litigation Procedure Act.

(6) If a complaint is not made and a fine for negligence is not paid within the period stipulated in paragraph (4), the fine for negligence shall be collected according to the process of recovery of national taxes in arrears.

Addenda

Article 1 (Date of Enforcement)

This Act shall enter into force on the date of its promulgation. Proviso omitted.

Articles 2 through 15 Omitted

Article 16 (Revision of Other Laws)

(1) through (8) Omitted.

(9) Part of the Act on the Protection, etc. of Fixed-term and Part-time Employees shall be revised as follows : "Article 21" in subparagraph 2 of Article 2 shall be changed to "Article 2". "Article 20" in the former part of Article 6 (1) shall be changed to "Article 2"

(10) through (24) Omitted

Article 17 Omitted