Amendment to the Labor Standards Act (“LSA”) was passed by the National Assembly on February 28, 2018.  We summarized below some of the major changes made to the LSA to keep you updated.

1. Reduced Maximum Working Hours 

A. Current

By considering a week as days excluding holidays, 68 hours are deemed as the maximum working hours per week (a+b+c).

a. weekly regular work hours: 40 hours
b. weekly overtime work hours: 12 hours
c. holiday work hours: 16 hours

B. Amendment

By clearly defining a week as the entire seven days including holidays, maximum working hours will be capped at 52 hours a week (a+b+c).

a. weekly regular work hours: 40 hours
b. weekly overtime work hours: 12 hours (including holiday work)

C. Enforcement Date

To minimize the impact on businesses, the amendment will be phased in over time as follows.

(Note 1)
Employers with less than 30 employees, additional overtime of up to eight hours a week is permitted temporarily from July 1, 2021 to December 31, 2022, upon agreement between the labor and the management.

D. Concerned Article : Article 2, Paragraph 1, Subparagraph 7

2. Overtime Pay for Working on Holidays

A. Current

There has long been some controversy on whether employees who performed work on holidays would be entitled to only the holiday premium of 50% of ordinary wages or entitled to both holiday and overtime premiums amounting to 100%.

B. Amendment

Under the amendment, employees who work on holidays will be paid premium of 50% of their ordinary wages up to eight hours a day and 100% for work over eight hours a day.

C. Enforcement Date

The above amendment will be effective from March 20, 2018.

D. Concerned Article : Article 56

3. Paid Public Holidays

A. Current

Public holidays observed by government offices have not been mandatory paid days off for private companies and only acknowledged as paid holidays when designated in the rules of employment or collective bargaining agreement, although practically, most private companies offered such paid holidays.

B. Amendment

Under the revised LSA, public holidays will be guaranteed as paid holidays in all workplaces, including private companies.  Upon agreement between the labor and the management, employers may arrange for their employees to take alternative days off in lieu of public holidays.

C. Enforcement Date

The above amendment will be phased in over time as follows.

D. Concerned Article : Article 55, Paragraph 2

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