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ENFORCEMENT DECREE OF THE LABOR STANDARDS ACT

ENFORCEMENT DECREE OF THE LABOR STANDARDS ACT

Presidential Decree No. 15320, Mar. 27, 1997

Amended by Presidential Decree No. 15682, Feb. 24, 1997 Presidential Decree No. 16164, Mar. 3, 1999

Presidential Decree No. 17402, Oct. 31, 2001

Presidential Decree No. 18158, Dec. 11, 2003

Presidential Decree No. 18805, Apr. 27, 2005

Presidential Decree No. 18912, Jun. 30, 2005

Presidential Decree No. 19010, Aug. 19, 2005

Presidential Decree No. 19205, Dec. 28, 2005

Presidential Decree No. 19422, Mar. 29, 2006

Presidential Decree No. 19806, Dec. 29, 2006

Wholly Amended by Presidential Decree No. 20142, Jun. 29, 2007 Presidential Decree No. 20803, Jun. 5, 2008

Presidential Decree No. 20873, Jun. 25, 2008

Article 1 (Purpose)

The purpose of this Decree is to provide matters delegated by the Labor Standards Act and those necessary for the enforcement thereof.

Article 2 (Period and Wages Excluded from Calculation of Average Wages)

(1) In case where a period for the calculation of average wages prescribed in Article 2 (1) 6 of the Labor Standards Act (hereinafter referred to as the "Act") includes a period falling under any of the following subparagraphs, the period and wages paid for that period shall be deducted respectively from the base period for the calculation of average wages and the total amount of average wages:

1. A probationary period under subparagraph 5 of Article 35 of the Act;

2. A period of shutdown due to reasons attributable to an employer under Article 46 of the Act;

3. A period of maternity leave under Article 74 of the Act;

4. A period of suspension of work for medical treatment due to occupational injury or disease under Article 78 of the Act;

5. A period of child-care leave under Article 19 of the Act on Equal Employment and Support for Work-Family

Reconciliation;

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6. A period of strike under subparagraph 6 of Article 2 of the Trade Union and Labor Relations Adjustment Act;

7. A period of suspension of service or of non-work owing to the performance of duties under the Military Service Act, the Establishment of Homeland Reserve Forces Act, or the Framework Act on Civil Defense: Provided that this shall not apply in case wages are paid during that period; and

8. A period of suspension of work with the approval of an employer due to non-occupational injuries, disease or other reasons.

(2) Wages or allowances paid on a extraordinary basis and wages paid by means other than in currency shall not be included in the total amount of wages prescribed in Article 2 (1) 6 of the Act: Provided that this shall not apply to those prescribed by the Minister of Labor.

Article 3 (Average Wages of Daily Worker)

The amount of average wages for daily workers shall be the one set by the Minister of Labor according to industry and occupation.

Article 4 (Average Wages in Special Cases)

In case where it is impossible to calculate average wages in accordance to Article 2 (1) 6 of the Act, and Articles 2 and 3 of this Decree, the amount of average wages shall be the one determined by the Minister of Labor.

Article 5 (Adjustment of Average Wages)

(1) If the average amount (hereinafter referred to as the "average amount") of monthly ordinary wages per person paid to workers in the same kind of work in the business or workplace to which the worker concerned belongs is changed by 5 percent or more from the average amount paid in the month when the injury or disease occurs, the average wages to be applied in calculating compensation, etc., under Articles 79, 80 and 82 through 84 of the Act shall be the ones adjusted according to the increase or decrease rate and the adjusted average wages shall apply starting in the month following the month in which the cause for the change occurs : Provided that if average wages are adjusted twice or more, the calculation should be made on the basis of the average amount of the month when the cause for the immediately preceding change occurs.

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(2) In the case of adjusting average wages pursuant to paragraph (1), if the business or workplace at which the worker is employed is closed down, the calculation prescribed in paragraph (1) shall be made on the basis of the corresponding cases of any other business or workplace which has the same size and scale as that of the business or workplace at which the worker is employed at the time of the injury or disease occurring.

(3) In the case of adjusting average wages pursuant to paragraphs (1) and (2), if there is no worker engaged in the same kind of work as that of the worker concerned, the calculation shall be made on the basis of the corresponding cases of workers engaged in the similar kind of work to that of the worker concerned.

(4) The average wages to be applied in calculating retirement pay under Article 8 of the Employee Retirement Benefit Security Act, to be paid to a worker who suffers from an occupational injury or disease under Article 78 of the Act, shall be the ones adjusted in accordance with the provisions of paragraphs (1) through (3).

Article 6 (Ordinary Wages)

(1) For the purposes of the Act and this Decree, the term ßÖordinary wagesß×means hourly wages, daily wages, weekly wages, monthly wages, or contract wages which are determined to be paid periodically or in lump sum to a worker for his/her prescribed work or whole work.

(2) In case of calculating ordinary wages under paragraph (1) at hourly rates, the amount shall be calculated pursuant to the following subparagraphs:

1. In the case of wages determined on an hourly basis, the amount of the hourly wages;

2. In the case of wages determined on a daily basis, the amount calculated by dividing the daily wages by the number of contractual working hours per day;

3. In the case of wages determined on a weekly basis, the amount calculated by dividing the weekly wages by the number of hours (calculated by adding contractual working hours per week prescribed in Article 2 (1) 7 of the Act to paid hours beyond the contractual working hours) based on which weekly ordinary wages are

calculated ;

4. In the case of wages determined on a monthly basis, the - 4 -

amount calculated by dividing the monthly wages by the number of hours (one-twelfth of the number of hours calculated by multiplying the number of hours based on which weekly ordinary wages are calculated by the average number of weeks in the year) based on which monthly ordinary wages are calculated ;

5. In the case of wages determined on the basis of a certain period other than a day, week, or month, the amount calculated by reference to subparagraphs 2 through 4 ;

6. In the case of wages determined under a contract wage system, the amount calculated by dividing the total sum of wages under that contract wage system during the period for wage calculation by the total number of working hours during that period (referring to the period until the closing date of wages, if there is any closing date of wages); and

7. In case where wages received by a worker are composed of two or more kinds of wages prescribed in

subparagraphs 1 through 6, the sum of each amount calculated pursuant to subparagraphs 1 through 6. (3) In case of calculating ordinary wages under paragraph (1) at daily rates, the ordinary wages shall be calculated by multiplying the number of contractual working hours per day by hourly wage rates prescribed in paragraph (2). Article 7 (Scope of Application)

The provisions which are applicable to businesses or workplaces ordinarily employing four workers or less pursuant to Article 11 (2) of the Act are shown in Table 1. Article 7-2 (Method of Calculating Number of Workers Ordinarily Employed)

(1) "The number of workers ordinarily employed" in Article 11 (3) of the Act shall be calculated by dividing the annual number of workers employed over the one-month period (referring to the period since the establishment of the business in case it is less than one month since the establishment of the business; hereinafter referred to as "the period for calculation") before reasons (referring to reasons requiring judgment on whether to apply the Act or this Decree, such as payment of compensation for suspension of work, application of working hours, etc.; hereinafter in this Article the same shall apply) for the application of the Act to the business or workplace concerned arise by the total number of operating days during - 5 -

that period.

(2) Notwithstanding the provision of paragraph (1), the business or workplace shall be considered a business or workplace (hereinafter referred to as "business or workplace subject to the Act") employing not less than five workers (referring to ten workers in the case of judging whether to apply Article 93 of the Act; hereinafter referred to as "the standard for the application of the Act") or shall not be considered a business or workplace subject to the Act in accordance with the classification described in the following subparagraphs :

1. The business or workplace shall be considered a business or workplace subject to the Act, in case as a result of calculating the number of workers in the business or workplace concerned pursuant to paragraph (1), it is found that the business or workplace does not fall into the category of businesses or workplaces subject to the Act, but the number of workers, if calculated by each day of the period for calculation, is less than 1/2 short of the standard for the application of the Act; and

2. The business or workplace shall not be considered a business or workplace subject to the Act, in case as a result of calculating the number of workers in the business or workplace pursuant to paragraph (1), it is found that the business or workplace falls into the category of businesses or workplaces subject to the Act, but the number of workers, if calculated by each day of the period for calculation, is not less than 1/2 short of the standard for the application of the Act (3) In the case of judging whether to apply the provisions of Articles 60 through 62 of the Act (excluding a part of Article 60 (2) relating to annual paid leave), as a result of calculating the number of workers per month in the business or workplace concerned pursuant to paragraphs (1) and (2), it is found that the business or workplace continues to employ not less than five workers over the one-year period after reasons for the application of the Act arise, such business or workplace shall be considered a business or workplace subject to the Act. (4) The annual number of workers under paragraph (1) shall include all workers described in the following subparagraphs, excluding dispatched workers under subparagraph 5 of Article 2 of the Act on the Protection, etc., of Dispatched Workers :

1. All workers working in a business or workplace regardless of their employment status, such as ordinary workers, - 6 -

fixed-term workers under subparagraph 1 of Article 2 of the Act on the Protection, etc. of Fixed-term and Part-time Employees and part-time workers under subparagraph 8 of Article 2 of the Act, who are employed in the business or workplace;

2. In case there is any worker falling under subparagraph (1), along with a relative living together, in the business workplace concerned, the relative living together

Article 8 (Working Conditions to Be Specified)

"Other working conditions prescribed in the Presidential Decree" in the former part of Article 17 of the Act refer to matters described in the following subparagraphs:

1. Matters regarding place of employment and work to be performed;

2. Matters prescribed in subparagraphs 1 through 12 of Article 93 of the Act; and

3. Matters determined by dormitory rules, in case of having workers lodge in a dormitory attached to the workplace. Article 9 (Standards, etc., for Working Conditions for Part-time Workers)

(1) The criteria or other matters to be considered for the determination of working conditions for part-time workers under the provisions of Article 18 (2) of the Act are shown in Table 2.

(2) Deleted

(3) Deleted

Article 10 (Report of Plan for Dismissal for Managerial Reasons) (1) If an employer intends to dismiss the number of workers falling under any of the following subparagraphs during a period of one month pursuant to Article 24 (4) of the Act, he/she shall report to the Minister of Labor 30 days in advance of the first day of the dismissal :

1. A business or workplace which ordinarily employs 99 workers or fewer : 10 workers or more;

2. A business or workplace which ordinarily employs 100 workers or more but not more than 999 : 10 percent or more of workers ordinarily employed; and

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3. A business or workplace which ordinarily employs 1,000 workers or more ; 100 workers or more.

(2) The report as prescribed in paragraph (1) shall include the following matters:

1. Reasons for dismissal;

2. Number of workers to be dismissed;

3. Contents consulted with a representative of workers; and

4. Dismissal schedule. Article 11 (Deadline for Compliance with Remedy Order) The Labor Relations Commission (hereinafter referred to as the "Labor Relations Commission") under the Labor Relations Commission Act, when issuing a remedy order (hereinafter referred to as "remedy order") to an employer, shall set a deadline for the compliance. In this case, the deadline shall fall within thirty days of the issuance of the remedy order. Article 12 (Deadline for Payment of Enforcement levy, Submission of Opinions, etc.)

(1) The Labor Relations Commission, when imposing an enforcement levy pursuant to Article 33 (1) of the Act, shall set a deadline for the payment, which shall fall within 15 days of the notification of the imposition of an enforcement levy. (2) If it is difficult to pay an enforcement levy before the payment deadline prescribed in paragraph (1) due to natural disasters, armed conflicts or other unavoidable reasons, the Labor Relations Commission may set a deadline which is within 15 days from the date the reason disappears.

(3) When an employer is informed in writing of the intention to impose and collect an enforcement levy pursuant to Article 33 (2), a period of at least 10 days shall be set and the employer shall be given an opportunity to state his/her opinions verbally or in writing (including electronic documents) during that period. In this case, if no opinion is stated until the end of the set period, the employer shall be considered to have no opinion.

(4) The procedures for collecting enforcement levies shall be prescribed in the Ordinance of the Ministry of Labor. Article 13 (Criteria for Imposition of Enforcement levy) The criteria for the imposition of enforcement levies according to types and degrees of offenses are shown in Table

3. Article 14 (Suspension of Imposition of Enforcement levy) - 8 -

If there is a reason falling under any of the following subparagraphs, the Labor Relations Commission may impose an enforcement levy after the reason disappears, by virtue of its authority or at the request of the employer :

1. In case where the employer has made objective efforts to comply with the remedy order but it is obviously difficult for him/her to comply with it due to unknown whereabouts of the worker; and

2. In case where it is difficult to comply with the remedy order due to natural disasters, armed conflicts or other unavoidable reasons.

Article 15 (Return of Enforcement levy)

(1) If a remedy order by the Labor Relations Commission is canceled in accordance with a decision rendered by the National Labor Relations Commission after reexamination or a confirmed court ruling, the Labor Relations Commission shall immediately stop imposing and collecting the enforcement levy and return the enforcement levy already collected by virtue of its authority or at the request of the employer.

(2) When the Labor Relations Commission returns an enforcement levy pursuant to paragraph (1), the amount of enforcement levy multiplied by the interest rate prescribed by the Ordinance of the Ministry of Labor over a period from the date the enforcement levy were paid until the date of the return shall be returned in addition.

(3) The specific procedures for returning enforcement levies pursuant to paragraph (1) shall be prescribed by the Ordinance of the Ministry of Labor.

Article 16 (Definition of Probationary Worker)

For the purposes of subparagraph 5 of Article 35 of the Act, the term "probationary worker" means a worker for whom less than three months have passed since the start of his/her probationary period.

Article 17 (Late Payment Interest Rate on Unpaid Wages) "The interest rate prescribed by the Presidential Decree" in Article 37 (1) of the Act refers to an annual rate of 20 percent. Article 18 (Reasons for Exclusion from Application of Late Payment Interests)

"Other reasons prescribed in the Presidential Decree" in Article 37 (2) of the Act refer to cases falling under any of the following subparagraphs :

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1. Cases falling under any of the subparagraphs of Article 4 of the Enforcement Decree of the Wage Claim Guarantee Act ;

2. In cases where it is difficult to secure enough funds to pay wages and retirement pay due to the constraints of laws, such as the Debtor Recovery and Bankruptcy Act, the National Finance Act, the Local Government Act, etc.;

3. In cases where it is deemed appropriate for the courts or the Labor Relations Commission to deal with the issue of whether all or part of the wages and retirement pay whose payment is delayed exists or not; and

4. In cases where there are other reasons equivalent to those prescribed in paragraphs (1) through (3).

Article 19 (Request for Issuance of Certificate of Employment) A person eligible to request the issuance of a certificate of employment in accordance with the provisions of Article 39 (1) of the Act shall be a worker who has served consecutively for not less than thirty days, and such request shall be made within three years after his retirement.

Article 20 (Matters to Be Entered in Register of Workers) Matters described in the following subparagraphs shall be entered in a worker register as prescribed in Article 41 (1) of the Act, under the conditions prescribed by the Ordinance of the Ministry of Labor:

1. Name;

2. Sex;

3. Date of birth;

4. Address;

5. Personal history;

6. Type of work to be performed;

7. Date of employment or renewal of employment, a contractual period if any period determined, and other matters relating to employment;

8. Date of dismissal, retirement or death, and the reasons therefor; and

9. Other necessary matters. Article 21 (Exception to Requirement to Prepare Register of Workers) With respect to a daily worker who has been employed for a period of less than thirty days, a register of worker may not be prepared.

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Article 22 (Preservation of Documents, etc.)

(1) "Important documents regarding labor contracts prescribed by Presidential Decreeß×in Article 42 of the Act mean documents described in the following subparagraphs:

1. Labor contracts;

2. Wage ledgers;

3. Documents pertaining to the basis for the determination, payment method and calculation of wages;

4. Documents pertaining to employment, dismissal or retirement;

5. Documents pertaining to promotion or demotion;

6. Documents pertaining to leave of absence;

7. Documents pertaining to approval or authorization as prescribed in Article 53 (3), subparagraph 3 of Article 63 and the proviso of Article 70 (2) of the Act;

8. Documents of written agreements as prescribed in Articles 51 (2), 52, 58 (2) and (3), and 59 of the Act; and

9. Documents pertaining to the minor certification as prescribed in Article 66 of the Act.

(2) The preservation period as prescribed in Article 42 of the Act shall be calculated from the dates described in the following subparagraphs:

1. Date of death, retirement, or dismissal of a worker, in case of a register of workers;

2. Date of cessation of labor relations, in case of labor contracts;

3. Date of the last entry, in case of wage ledgers;

4. Date of dismissal or retirement of a worker, in case of documents pertaining to employment, dismissal, or retirement;

5. Date of receiving approval or authorization, in case of documents pertaining to the approval or authorization as prescribed in (1) 7 of this Article;

6. Date when an agreement is concluded in writing, in case of documents of such agreements as prescribed in (1) 8 of this Article;

7. Date of eighteenth birthday (the date of dismissal, retirement, or death, in case where dismissal, retirement, or death of any worker occurs before reaching the age of eighteen), in case of documents pertaining to the minor certification; and

8. Date of completion, in case of other documents. Article 23 (Exception to Wages Paid Once or More Per Month) ßÖExtraordinary wages, allowances, or any other similar payment or those wages provided for by the Presidential Decreeß× - 11 -

in the proviso of Article 43 (2) of the Act mean those described in the following subparagraphs:

1. Allowances for good attendance paid on the basis of an attendance record for a period exceeding one month;

2. Seniority allowances paid for consecutive service for a fixed period exceeding one month;

3. Bounties, proficiency allowances, or bonuses calculated for any reason existing for a period exceeding one month; and

4. Other various allowances not paid on a regular basis. Article 24 (Causes Attributable to Immediately Preceeding Contractor) The scope of causes attributable to an immediate preceding contractor as prescribed in Article 44 (2) of the Act is described in the following subparagraphs :

1. In case where he fails to pay contractual money, without justifiable reason, not later than its payment date as provided in the contract;

2. In case where he delays a supply of or fails to supply, raw materials, without justifiable reason, as provided in the contract; and

3. In case where he has not complied with the conditions and terms of the contract for work without justifiable reason, which, in turn, causes a subcontractor not to perform subcontracted work normally.

Article 25 (Payment of Wages Before Payment Date) ßÖOther cases of emergency provided for in the Presidential Decreeß×in Article 45 of the Act mean cases where a worker or a person who lives on the worker's income falls under any of the following subparagraphs:

1. In case of child birth, disease, or accidents;

2. In case of marriage or death; and

3. In case of staying home for a period of one week or more for any unavoidable reason.

Article 26 (Calculation of Allowances for Suspension of Business) In case where a worker has received part of wages during the suspension of business due to a cause attributable to the employer, the employer shall, pursuant to the provisions of the main text of Article 46 (1) of the Act, calculate the difference by subtracting the amount of wages paid from the average wages, and pay the worker allowances equivalent to seventy percent or more of that difference: Provided that in case - 12 -

where ordinary wages are paid as allowances for the suspension of business pursuant to the provisions of the proviso of Article 46 (1) of the Act, the amount calculated by subtracting the amount of wages paid during the suspension of business from the ordinary wages shall be paid.

Article 27 (Entries into Wage Ledger)

(1) An employer shall enter the matters stipulated in the following subparagraphs, for each individual worker, into the wage ledger as prescribed in Article 48 of the Act:

1. Name;

2. Resident registration number;

3. Date of employment;

4. Description of duties;

5. Matters on the basis of which wages and family allowances are calculated;

6. Number of working days;

7. Number of working hours;

8. Number of hours of overtime work, night work, or holiday work if there is any;

9. Amount by wage category, such as basic pay, allowances, or other wages (in case there are wages paid by means other than in currency, their name, quantity and

estimated total amount); and

10. Amount deducted pursuant to the proviso of Article 43 (1) of the Act, if there is such deduction.

(2) With respect to daily workers whose period of employment is less than thirty days, the matters as provided for in subparagraphs 2 and 5 of paragraph (1) may not be entered. (3) With respect to workers falling under any of the following subparagraphs, the matters as provided for in paragraph (1) 7 and 8 may not be entered:

1. A worker of a business or workplace, which ordinarily employs 4 workers or less as prescribed by Article 11 (2) of the Act; and

2. A worker who falls under any of the subparagraphs of Article 63 of the Act.

Article 28 (Matters Agreed on with Respect to System of Flexible Working Hours)

(1) ßÖOther matters prescribed by the Presidential Decreeß×in Article 51 (2) 4 of the Act mean the valid period of a written agreement.

(2) If deemed necessary for deciding on whether or not to - 13 -

devise measures to ensure the existing wage level as prescribed in Article 51 (4) of the Act, the Minister of Labor may order the employer to present the contents of such measures, or may directly check them.

Article 29 (Matters Agreed on with Respect to System of Selective Working Hours)

ßÖOther matters as prescribed by the Presidential Decreeß× under subparagraph 6 of Article 52 of the Act mean standard working hours (working hours per day based on which the employer and the workersßÓrepresentative agree to calculate paid leave, etc.).

Article 30 (Weekly Holiday)

The paid holiday prescribed in Article 55 of the Act shall be granted to a person with perfect attendance for contractual working days during a period of one week.

Article 31 (Work Permitted for Discretionary Employment) (1) "Work prescribed by the Presidential Decreeß×in the former part of Article 58 (3) of the Act means work falling under any of the following subparagraphs:

1. Research and development of new commodities or new technologies and research in the areas of social science and natural science;

2. Design and analysis for data processing system;

3. Gathering, compilation and editing of news in newspaper, broadcasting, or publication business;

4. Design or creation of clothing, interior decoration, industrial goods, advertisement, etc.;

5. Work of a producer or director in the business of producing broadcasting programs, motion pictures, etc.; and

6. Other work determined by the Minister of Labor. Article 32 (Working Hours and Recess Hours for Specially Recognized Activities, etc.)

"Businesses determined by the Presidential Decreeß×in subparagraph 4 of Article 59 of the Act mean social welfare businesses.

Article 33 (Payment Date of Leave Allowances)

The wages as prescribed in Article 60 (5) of the Act shall be paid on the pay day before or immediately after paid leave is granted.

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Article 34 (Worker Excepted from Application of Working Hours, etc.)

ßÖWork provided for in the Presidential Decreeß× in subparagraph 4 of Article 63 of the Act means managerial and supervisory work and work of handling secret affairs irrespective of types of work.

Article 35 (Issuance, etc. of Employment Permit)

(1) A person eligible to obtain an employment permit under Article 64 of the Act shall be aged thirteen years or older but not over fifteen years: Provided that even those under the age of thirteen may obtain an employment permit in case where they intend to participate in an art performance. (2) A person who intends to obtain an employment permit under paragraph (1) shall file an application therefor with the Minister of Labor under the conditions determined by the Ordinance of the Ministry of Labor.

(3) The application under paragraph (2) shall be jointly signed by the school principal (limited to those entitled to compulsory education and those attending a school), the person with parental authority or the guardian and the prospective employer.

Article 36 (Delivery of Employment Permit)

In case where the Minister of Labor grants an employment permit in response to an application made pursuant to Article 35 (2), he/she shall deliver the employment permit prescribed by the Ordinance of the Ministry of Labor, with type of work designated, to the applying worker and prospective employer. Article 37 (Types of Work Prohibited from Employment Permit) For types of work prescribed in Article 40, an employment permit shall not be issued.

Article 38 (Keeping and Return of Employment Permit) (1) If an employer employs a person under the age of fifteen and keeps the employment permit, he/she shall be deemed to keep the certificate proving family relationships and the written consent of the person with parental authority or the guardian as prescribed in Article 66 of the Act.

(2) An employer who ceases to employ a person under the - 15 -

age of fifteen and the person concerned shall return, without delay, the employment permit to the Minister of Labor. Article 39 (Reissuance of Employment Permit)

In case where an employment permit is destroyed or lost, the employer or the relevant worker under the age of fifteen shall apply, without delay, for the reissuance of a new employment permit under the conditions prescribed by the Ordinance of the Ministry of Labor.

Article 40 (Types of Work Prohibited for Pregnant Women, etc.) The types of work for which the employment of pregnant women, women aged eighteen or older but not pregnant and those under the age of eighteen is prohibited pursuant to Article 65 of the Act are shown in Table 4.

Article 41 (Calculation of Working Hours)

Working hours as prescribed in Article 69 of the Act and Article 46 of the Occupational Safety and Health Act mean actual working hours excluding recess hours.

Article 42 (Permitted Works inside Pits)

The work for which women and those under the age of eighteen may be placed temporarily inside a pit under Article 72 of the Act is described in the following subparagraphs :

1. Work for health, medical treatment and welfare;

2. Work for news reporting and gathering to make newspapers, publish and produce broadcasting programs;

3. Work of investigation for the purpose of academic research;

4. Work for management and supervision; and

5. Practical training work performed in the fields relating to subparagraphs 1 through 4.

Article 43 (Request, etc., for Miscarriage or Still Birth Leave) (1) If a worker who has a miscarriage or still birth after sixteen weeks of pregnancy asks for leave (hereinafter referred to as "miscarriage or still birth leave") pursuant to Article 74 (2) of the Act, she shall submit an application for miscarriage or still birth leave containing reasons for the request for leave, the date of miscarriage or still birth, the pregnancy period, along with the medical certificate issued by a medical organization, to the employer.

(2) If a worker requests miscarriage or still birth leave pursuant to paragraph (1), the employer shall grant miscarriage or still birth leave to the worker in accordance with the - 16 -

standards prescribed in the following subparagraphs :

1. Workers who have a miscarriage or still birth after a pregnancy period (hereinafter referred to as "pregnancy period") of 16 weeks or more but less than 21 weeks : thirty days from the date of miscarriage or still birth

2. A pregnancy period of 22 weeks or more but less than 27 weeks : sixty days from the date of miscarriage or still birth; and

3. A pregnancy period of 28 weeks or more : ninety days from the date of miscarriage or still birth.

Article 44 (Scope, etc. of Occupational Disease)

(1) The scope of occupational disease and medical treatment as prescribed in Article 78 (2) of the Act is shown in Table 5. (2) In case where a worker suffers an occupational disease, injury or death over the course of employment, the employer shall have him/her see a doctor without delay.

Article 45 Deleted

Article 46 (Payment Time of Compensation for Medical Treatment and Compensation for Suspension of Work)

Compensation for medical treatment and compensation for suspension of work shall be made at least once a month. Article 47 (Determination of Grade of Disability) (1) Grades of physical disability on the basis of which compensation for disability has to be paid pursuant to the provisions of Article 80 (3) of the Act are shown in Table 6.

(2) In case where any person has two or more physical disabilities as prescribed in Table 6, his grade of physical disability shall be the one corresponding to the more serious disability : Provided that in the case of the following subparagraphs, his grade of physical disability shall be the one adjusted according to the relevant subparagraph. In this case, if the adjusted grade is higher than Grade 1, it shall be Grade 1:

1. In case where he has two or more physical disabilities falling under Grade 5 or above: his grade of physical disability shall be raised by three grades from the grade corresponding to the more serious disability;

2. In case where he has two or more physical disabilities - 17 -

falling under Grade 8 or above, his grade of physical disability shall be raised by two grades from the grade corresponding to the more serious disability; and

3. In case where he has two or more physical disabilities falling under Grade 13 or above, his grade of physical disability shall be raised by one grade from the grade corresponding to the more serious disability.

(3) In cases of physical disabilities which do not fall under any of the provisions of Table 6, compensation therefor shall be made in reference to equivalent physical disabilities as prescribed in Table 6 according to degree of disability. (4) Deleted

Article 48 (Scope, etc., of Surviving Family)

(1) The scope of surviving family members as prescribed in Article 82 (2) of the Act is as follows. In this case, survivor's compensation shall be made in the order of priority prescribed in the following subparagraphs, and if surviving family members fall under the same subparagraph, the compensation shall be made in the order of priority as mentioned therein:

1. Spouses (including de facto spouses), children, parents, grandchildren and grandparents who were dependent at the time of the death of the worker;

2. Spouses, children, parents, grandchildren and grandparents who were not dependent at the time of the death of the worker;

3. Brothers and sisters who were dependent at the time of the death of the worker; and

4. Brothers and sisters who were not dependent at the time of the death of the worker.

(2) In determining the order of priority among surviving family members, adoptive parents shall take precedence over biological parents, the parents of adoptive parents over the parents of biological parents and the adoptive parents of parents over the biological parents of parents.

(3) Notwithstanding the provisions of paragraphs (1) and (2), in case where a dead worker has designated a particular member as his priority person among the surviving family members as provided for in paragraph (1) in his will or in a pre-arrangement with the employer, the designated member - 18 -

shall take precedence over the others.

Article 49 (Members of Same Priority)

In case where there are two or more members who have the same priority in receiving compensation for survivors, that compensation shall be divided by the number of the members and paid equally between them.

Article 50 (Death of Person Confirmed as Recipient of Compensation) In case of the death of a member confirmed as a recipient of compensation for survivors, that compensation shall be paid to other members who have the same priority as him/her, and if there is no such members, to members who have the next priority.

Article 51 (Time of Compensation)

(1) Disability compensation shall be paid without delay after a worker completely recovers from injuries or disease. (2) Compensation for survivors and funeral expenses shall be paid without delay after the death of a worker.

Article 52 (Date of Occurrence of Cause for Calculating Average Wages In Case of Payment of Accident Compensation) In case of paying accident compensation, the date on which the accident causing the death or injury takes place or the date on which it is confirmed by a diagnosis that the disease occurs shall be considered the date of the occurrence of the cause for calculating average wages.

Article 53 Deleted

Article 54 (Posting, etc., of Draft of Dormitory Rules) If an employer intends to obtain the consent of a person representing a majority of workers, and a majority of the workers accommodated in a dormitory are under the age of eighteen, he/she shall, pursuant to the provisions of Article 99 (2) of the Act, post or display a draft of dormitory rules at a conspicuous place in the dormitory at least seven days before obtaining consent thereto from them.

Article 55 (Separation of Male and Female in Dormitory) An employer shall not have male and female workers accommodated in the same room of a dormitory.

Article 56 (Location of Dormitory)

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If an employer intends to establish a dormitory, he shall not choose a place with strong noise and vibration.

Article 57 (Bedroom)

Workers of two or more teams whose working hours are different shall not be accommodated in the same bedroom. Article 58 (Standards for Establishment of Dormitory) The area of dormitory bedrooms shall be not less than 2.5 square meters per person, and the number of persons accommodated in one room shall be not more than fifteen persons. Article 59 (Delegation of Authority)

The Minister of Labor shall delegate his/her authority over matters described in the following subparagraphs to the head of a local labor office:

1. Requesting reporting or attendance under Article 13 of the Act;

2. Accepting a report of dismissal plans under Article 24 (4) of the Act;

3. Permitting or approving the extension of working hours under Article 53 (3) of the Act;

4. Ordering an employer to grant recess or days-off under Article 53 (4) of the Act;

5. Approving those engaged in surveillance or intermittent work under Article 63 (3);

6. Issuing or cancelling an employment permit under Article 64 of the Act;

7. Terminating an employment contract disadvantageous to minors under Article 67 (2) of the Act;

8. Approving the night and holiday work of pregnant women and those under the age of eighteen under

Article 70 (2);

9. Matters relating to the examination or arbitration of cases concerning objections raised to the recognition, etc. of an accident and diagnosis and tests for this purpose under Article 88 of the Act;

10. Accepting a report of rules of employment under Article 93 of the Act;

11. Ordering alteration to rules of employment under Article 96 (2) of the Act;

12. Issuing written instructions for medical tests or examinations under Article 102 (3) of the Act;

13. Accepting a notification of a violation of laws under - 20 -

Article 104 (1) of the Act;

14. Imposing and collecting a fine for negligence under Article 116 of the Act;

15. Accepting a report of special cases under Article 2 of the Addenda of the Labor Standards Act amended by Act no. 6974;

16. Ordering and checking measures to maintain wage levels under Article 28 (2);

17. Receiving an application for employment permit under Article 35 (2); and

18. Receiving a returned employment permit under Article 38 (2).

Article 60 (Imposition of Fine for Negligence)

(1) The criteria for the imposition of a fine for negligence under Article 116 (1) of the Act are shown in Table 7 : Provided that the Minister of Labor may reduce or raise the amount of a fine for negligence by up to half after taking into account the degree, frequency, motives, consequences, etc., of an offence, and when the amount is raised, it shall not exceed the maximum limit on the amount of a fine for negligence under Article 116 (1) of the Act.

Addenda Article 1 (Enforcement Date)

This Decree shall enter into force on July 1, 2008. Article 2 (Method of Calculating Number of Workers Ordinarily Employed for Construction Work Such As Construction Work Subject to Special Case Concerning Application of Working Hours)

(1) The number of workers ordinarily employed for construction work (hereinafter referred to as "construction work") under Article 5-2 of the Addenda of the Labor Standards Act wholly amended by Act No. 8372 refer to a number calculated according to the following formula. In this case, the "total construction contract amount" refers to the contract amount (including the market price of materials in case the person who issues the order supplies materials) for the construction work to complete the final object, "the labor cost ratio for the year concerned" refers to the labor cost ratio for - 21 -

construction work in general under Article 1 (1) 1 of the Enforcement Decree of the Act on the Collection, etc., of Premiums for Employment Insurance and Industrial Accident Compensation Insurance) and "the monthly average wage for the construction industry" refers to the wage calculated and announced by the Minister of Labor on the basis of the wages for the construction industry in the survey on wages and working hours at establishments prepared by the Minister of Labor among statistics designated under Article 3 of the Statistics Act.

Number of workers ordinarily employed = total construction contract amount X labor cost ratio for the year concerned Monthly average wage for the construction industry for the year concerned X number of operating months

(2) In calculating the total construction contract amount pursuant to the latter part of paragraph (1), if construction work is split into two or more parts, each contracted out to complete the final object, regardless of whether it is called entrustment or whatever else, it shall be calculated by adding up each contract amount.

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[Table 1]

Provisions Applicable to a business or workplace which ordinarily employs 4 workers or less (Relating to Article 7) Chapters Articles to apply

Chapter

General

Provisions

Articles 1 through 12, and 14 through 21

Chapter

Labor Contract

Articles 22, 24, 25, 26(1), 27 through 29, 30(2), 32 and 35 through 41

Chapter

Wages

Articles 42 through 44, and 46 through 48

Chapter

Working Hours

and Recess

Articles 53, 54 and 61

Chapter

Women and

Minors

Articles 62, 63 (1) and (3) (restricted to pregnant women and persons under the age of eighteen), 64 through 67, 68 (2) and (3), 69, 79 and 72 Presidential Decree No. 17402, Oct. 31, 2001>

Chapter

Safety and

Health

Article 76

Chapter

Accident

Compensation

Articles 81 through 95

Chapter çu

Labor Inspectors,

etc.

Articles 104 through 109

Chapter çg

Penal Provisions

Articles 110 through 116(restricted to the cases where the provisions applied for a business or workplace which ordinarily employs fewer than 4 workers are violated among the provisions of Chapters through , and )