The government will conduct focused inspections on businesses that fail to pay wages for actual hours worked, citing comprehensive wage systems or fixed overtime pay. The inspections will target industries with a high number of anonymous reports, including manufacturing, information technology, and professional, scientific, and technical services.
Starting September 15, the Ministry of Employment and Labor will carry out a two-month initiative called 'Planned Supervision of Comprehensive Wage and Fixed Overtime Abuse.' This follows a previous inspection targeting businesses with a high employment of young workers conducted in the first half of the year. From February to April, the ministry inspected 101 workplaces and found 34 that did not pay overtime, holiday, or night work wages due to the misuse of comprehensive wage systems. The rate of unpaid wages among inspected businesses was 33.7%, or about one in three.
Reports of abuse have also increased. From January to August this year, the 'Comprehensive Wage and Fixed Overtime Abuse Anonymous Reporting Center' received 260 reports, up from 98 during the same period last year. The ministry attributes this rise to promotional efforts, including mobile advertising buses and outreach through online communities for workers, following the implementation of guidelines to prevent the misuse of comprehensive wage systems in April.
The anonymous reporting center has been operational since February 2023, allowing affected workers to report without fear of exposure. The ministry uses the reported incidents to inform its inspections.
During the upcoming inspections, the ministry will focus on whether businesses have failed to pay wages for actual overtime, night, and holiday work due to comprehensive wage or fixed overtime claims. It will also check if businesses are accurately recording and managing the hours worked, including overtime, night, and holiday hours.
The guidelines established by the ministry this year emphasize the obligation of employers to maintain transparent records of working hours. They specify that employers should not lump together base pay and various allowances or calculate and pay overtime, night, and holiday wages as a single amount. Even if there is an agreement between the parties, if the agreed amount is less than the legally calculated wages based on actual working hours, the employer must pay the difference.
If violations are confirmed, the ministry plans to take corrective action and legal measures as necessary. It will also provide support to improve wage systems and working hour management. This includes linking businesses to 'Workplace Innovation Consulting' through diagnostic assessments and subsidizing the costs of using a personnel and labor management platform that assists with commuting records and payroll calculations, with a maximum annual subsidy of 1.8 million won per business.
Kim Young-hoon, Minister of Employment and Labor, stated, "Wage agreements should not be undermined due to comprehensive wage contracts. We will continue to support and supervise to ensure that workers are fairly compensated for their work in the labor market."
* This article has been translated by AI.
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