Public institutions to ban short-term contracts, introduce 'fairness allowance' for workers

In a significant move to address labor inequalities within the public sector, the South Korean government will implement new regulations next month to curb the practice of "split contracts" designed to circumvent severance pay obligations. Public institutions and local governments will be prohibited from hiring workers on fixed-term contracts of less than one year or employing individuals for fewer than 15 hours per week, a common tactic to avoid providing benefits like severance pay. This initiative aligns with President Lee Jae-myung's call for the government to serve as a model employer.

Furthermore, starting next year, a "fairness allowance" will be introduced for fixed-term employees who have worked for less than a year. This allowance, intended to compensate for employment instability, could amount to as much as 2.488 million won, depending on the length of service. The Ministry of Employment and Labor, along with other relevant ministries, developed these measures after a survey revealed that approximately half of the 146,000 fixed-term workers in the public sector were employed on contracts shorter than one year, often receiving lower wages and fewer benefits compared to their permanent counterparts.

The government is also reinforcing the principle of hiring permanent employees for tasks that are "constant and continuous." Any exceptions requiring short-term or part-time hires will be subject to a stringent "pre-screening system" to justify the necessity based on the nature of the work, contract duration, and staffing levels. The Ministry of Employment and Labor plans to regularly monitor this system and incorporate its performance into the evaluation of public institutions and local governments. The goal is to foster a more equitable and stable work environment in the public sector, with the hope that these improved practices will eventually influence the private sector.

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The public sector must take the lead in correcting unfair employment practices for non-regular workers and improving their treatment rationally to set an example. We will strive to ensure that the achievements of the public sector spread to the private sector and that workplace democracy is realized.