Starting in October, businesses that do not pay workers for three months will be considered habitual wage delinquents. Additionally, the number of wage delinquencies by a business will be calculated based on the number of affected workers.
The Ministry of Employment and Labor noted that on the 1st, it reviewed and approved the revised enforcement decree of the Labor Standards Act, which contains these details.
The current enforcement decree revision is a follow-up action to the Labor Standards Act amended on Oct. 22 last year. The government strengthened economic sanctions, such as disadvantages in public sector bidding, against businesses that systematically delayed wages.
The Ministry of Employment and Labor stated that under the newly approved enforcement decree revision, the criteria for habitual wage delinquents have been further specified.
Previously, habitual wage delinquents were those who delayed wages by more than three months for one year, delayed wages more than five times, and whose total wage arrears exceeded 30 million won.
This enforcement decree revision includes provisions stating that three months' worth of wages will be calculated based on the average monthly wage over three months. It means that the average monthly amount will be estimated from the total annual wages received from the employer by the worker in the previous year and calculated for three months.
Additionally, the number of wage delinquencies by a business will be determined based on the number of workers who did not receive wages.
On the same day, the Cabinet also approved the revised enforcement decree of the Labor Welfare Basic Act. This is centered around allowing the executive defined by the union’s regulations to hold a general meeting when the employee stock ownership association cannot convene a meeting due to the absence of a representative.
Moreover, if an executive does not hold a general meeting, a member who has received consent from a majority of union members can convene the meeting. This revision will take effect on April 8.