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“Pay for every hour of overtime”… ‘Lumping’ under the comprehensive wage system banned starting the 9th
Source: Women's Generation (perp.)
Source:
https://n.news.naver.com/article/009/0005663233?sid=101
https://n.news.naver.com/article/009/0005663233?sid=101
“Pay for every hour of overtime”… ‘Lumping’ under the comprehensive wage system banned starting the 9th
Ministry of Employment and Labor issues guidelines to eradicate ‘free labor’; basic pay and various allowances must be separated. Recording and management of working hours made mandatory. KEF expresses regret, stating it “violates the tripartite agreement.” Concerns over potential confusion and disputes at business sites. Government provides guidance to prevent abuse of the comprehensive wage system
n.news.naver.com
On the 8th, the Ministry of Employment and Labor announced the “Guidelines for Preventing the Abuse of the Comprehensive Wage System to Eradicate Free Labor” to prevent such cases.
The guidelines take effect on the 9th. A comprehensive wage system is a method of calculating wages where the pay is determined in advance regardless of actual working hours, and basic pay and various allowances are paid together without distinction.
In environments where it is difficult to strictly measure actual working hours—such as jobs with frequent business trips or field work, or remote work where the start and end of the workday are unclear—the comprehensive wage system was introduced to reduce administrative complexity and provide convenience to both employers and employees.
First, the government has fundamentally banned the “fixed-sum system,” which does not distinguish between basic pay and allowances, and the “fixed-allowance system,” which calculates and pays allowances collectively without distinguishing between overtime, night, or holiday work allowances.
In particular, regarding the “fixed OT (overtime) agreement” widely used in the field, the guidelines specify that even if there is an agreement to pay fixed amounts for overtime, night, and holiday work allowances, the difference must be paid if the legal allowances calculated based on actual working hours are higher. This effectively puts a stop to the practice of companies paying only the agreed amount and ignoring additional allowances.
Accordingly, the Ministry of Employment and Labor believes that the recording and management of working hours must be a prerequisite for the system's effectiveness. The government stated that labor inspectors must verify whether employers have properly prepared wage ledgers and pay stubs. For cases where calculating time is difficult due to field work or business trips, they advised utilizing existing special systems such as the “deemed working hours system for work outside the workplace” or the “discretionary working hours system.”
I wonder how this is actually being implemented... It's been about a month since it started, but there's been no mention of overtime pay at my company... Just letting you guys know that this is being implemented.
Source: https://cafe.daum.net/subdued20club/ReHf/5640674