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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Economy & Trade

South Korea to ban short-term public sector jobs, introduce 'fairness allowance'

From Hankyoreh · (5m ago) Korean Positive tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • The South Korean government plans to ban fixed-term employment contracts of less than one year in public institutions and introduce a 'fairness allowance' for short-term workers.
  • This new allowance, ranging from 380,000 to 2.48 million won based on contract length, aims to compensate for employment instability and encourage longer contracts.
  • The measures also include prohibiting contracts under 15 hours per week and strengthening disclosure requirements for non-regular workers in the public sector.

The South Korean government's new measures to improve the treatment of non-regular workers in the public sector mark a significant step towards addressing long-standing issues of employment instability and wage disparity. The proposed ban on fixed-term contracts shorter than one year, coupled with the introduction of a 'fairness allowance,' signals a clear intention to reduce precarious employment and provide greater security for those in non-regular positions.

The introduction of the fairness allowance alone could lead to the message that it is possible to hire temporary workers if you just pay more money, so caution is needed.

โ€” Jeong Young-hoonA professor at Pukyong National University, commenting on the potential unintended consequences of the fairness allowance.

The 'fairness allowance' itself is a novel concept, designed to provide a form of severance pay even for those on short-term contracts. The tiered structure, offering higher compensation for shorter durations, directly acknowledges the greater employment insecurity faced by workers with limited contracts. This approach, building on a similar initiative previously implemented by former Gyeonggi Governor Lee Jae-myung, aims to incentivize longer-term employment and offer tangible support to those navigating the gig economy within the public sector.

Furthermore, the government's commitment to prohibiting contracts of less than 15 hours per week and strengthening disclosure rules for non-regular workers demonstrates a comprehensive strategy. By tackling both the duration and the overall prevalence of non-regular employment, these policies seek to create a more equitable and stable working environment. The focus on the public sector serves as a crucial starting point, potentially setting a precedent for broader changes across the economy.

It only remains abstract regarding the 'active promotion of employment stability' for conversion to regular positions.

โ€” The Korean Public Service and Transport Workers' Union (KPTU)A statement from the union criticizing the policy for lacking concrete plans for converting non-regular workers to regular positions.

From our perspective at Hankyoreh, these policies are a welcome development, reflecting a growing recognition of the need for greater worker protection. While the implementation details and long-term impact remain to be seen, the government's proactive stance on reducing non-regular employment and mitigating wage gaps is commendable. The introduction of the 'fairness allowance,' in particular, offers a unique solution to the challenges of short-term contracts, a problem that resonates deeply within our society's ongoing debate about labor rights and economic justice. This initiative, if successful, could offer valuable lessons for both the public and private sectors in ensuring fair treatment for all workers.

The fairness allowance is paid within the budget of each central ministry, local government, and public institution, and since the intention is to reduce fixed-term employment, there will be no major difficulties in budget preparation and execution.

โ€” A Ministry of Employment and Labor officialThis quote addresses concerns about the budget required to implement the new fairness allowance policy.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.