South Korea's Two-Year Fixed-Term Job Law Criticized as Failing to Ensure Security

Hankyoreh, in an opinion piece, critically examines South Korea's current labor laws regarding fixed-term employment, arguing that the existing framework, particularly the two-year limitation, is fundamentally flawed and exacerbates job insecurity. The piece frames President Lee Jae Myung's recent comments on the issue not as a solution, but as a recognition of a symptom of a deeper problem.

“

The current law limiting fixed-term employment to two years is criticized for increasing job insecurity, as employers often terminate contracts rather than convert them to permanent positions.

The article presents stark statistics: the number of fixed-term workers has ballooned to 5.34 million, constituting 23.8% of the total workforce, a significant increase from just a few years prior. This surge is attributed not to the two-year cap itself, but to the absence of restrictions on the *reasons* for employing fixed-term workers. This allows employers to use temporary contracts for stable, long-term positions, primarily to cut labor costs and simplify workforce management, effectively creating a 'revolving door' employment cycle.

“

The reason for the abnormal surge in fixed-term workers is not the two-year usage period limit, but the institutional deficiency of not limiting the usage reasons.

Hankyoreh highlights the numerous exceptions to the two-year rule, which render the law largely ineffective. These exceptions include provisions for workers over 55, professionals with advanced degrees or licenses, university staff, high-earning specialists, and even those in very small businesses or domestic work. This extensive list of loopholes, the article contends, has turned the law into a 'tattered piece of cloth,' failing to provide genuine job security.

“

The current law allows for the abuse of fixed-term employment without limiting the reasons for use, creating a structure where fixed-term workers can be excessively used simply to reduce labor costs or for personnel management convenience.

The publication advocates for a fundamental reform aligned with international standards, such as those set by the ILO and EU directives. The proposed solution involves implementing 'objective reasons' for using fixed-term contracts, limiting their use to genuinely temporary situations like covering for a leave of absence or seasonal work. Furthermore, it calls for stricter limits on contract renewals and the introduction of 'cooling-off periods' to prevent employers from immediately rehiring the same fixed-term workers. From Hankyoreh's perspective, this is not just about tweaking regulations but about tackling the dual labor market structure and establishing a principle of permanent employment for stable jobs.

“

The current fixed-term law stipulates a prohibition on exceeding two years of usage, but at the same time, it provides a vast number of exceptions, thereby nullifying the purpose of the law.