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ENFORCEMENT DECREE OF THE MINIMUM WAGE ACT

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ENFORCEMENT DECREE OF THE MINIMUM WAGE ACT

Presidential Decree No. 12207, Jul. 1, 1987

Amended by Presidential Decree No. 12488, Jul. 7, 1988 Presidential Decree No. 12746, Jul. 4, 1989

Presidential Decree No. 14035, Dec. 29, 1993

Presidential Decree No. 16167, Mar. 3, 1999

Presidential Decree No. 16190, Mar. 17, 1999

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18911, Jun. 30, 2005

Presidential Decree No. 19029, Aug. 31, 2005

Presidential Decree No. 19513, Jun. 12, 2006

Presidential Decree No. 19771, Dec. 21, 2006

Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the Minimum Wage Act and matters necessary for the enforcement thereof.

Article 2 Deleted. Article 3 (Minimum Wage Rate for Probationary Workers) (1) For a person employed on probation pursuant to Article 5 (2) 1 of the Minimum Wage Act (hereinafter referred to as the "Act") and for whom less than three months have passed since the beginning of the probationary period, the hourly minimum wage rate shall be set in an amount obtained by reducing the hourly minimum wage rate prescribed in the latter part of Article 5 (1) of the Act by one tenth of that rate.

(2) For a person engaged in surveillance or intermittent work pursuant to Article 5 (2) 2 and for whom the employer has obtained the approval of the Minister of Labor, the hourly minimum wage rate shall be set in an amount obtained by reducing the hourly minimum wage rate prescribed in the latter part of Article 5 (1) by two tenths of that rate.

- 2 - Article 4 (Special Cases Concerning Determination of Minimum Wage on a Contract Basis, etc.) If it is difficult to calculate the number of hours worked because wages are usually determined on a contract basis or in other similar ways as prescribed in Article 5 (3) of the Act, or it is considered inappropriate to determine the minimum wage rate pursuant to Article 5 (1) of the Act, the minimum wage rate shall be determined based on the output or achievement of the worker concerned. Article 5 (Conversion of Wages for Application of Minimum Wage) If a unit period based on which a worker's wages are set is different from a unit period based on which the minimum wage applicable to the worker is set, the wages of the worker shall be converted into an hourly wage rate as prescribed by any of the following subparagraph: <Amended by Presidential Decree No. 19771, Dec. 21, 2006> 1. Wages determined on a daily basis shall be divided by the number of contractual working hours per day(by the average number of contractual working hours per day during a week period, if the number of contractual working hours varies each day); 2. Wages determined on a weekly basis shall be divided by the number of contractual working hours per week(by the average number of contractual working hours per day during a four-week period, if the number of contractual working hours varies each week); 3. Wages determined on a monthly basis shall be divided by the number of contractual working hours per month (by the average number of contractual working hours per month during a year period, if the number of contractual working hours varies each month); and 4. With respect to wages determined based on a certain period other than a hour, day, week or month, the hourly wage rate shall be calculated in accordance with subparagraphs 1 through 3. (2) With respect to wages determined under a output-based wage system or other contract systems, the hourly wage rate shall be calculated by dividing the total wages during a wage calculation period(referring to the period up to the wage closing date, if there is such a date; the same shall apply in this paragraph.) by the total number of working hours during the period. - 3 - (3) In case wages received by a worker are composed of two or more kinds of wages prescribed in paragraph (1) or (2), the hourly wage rate for the worker concerned shall be calculated by adding up each amount calculated in accordance with each of the corresponding provisions. (4) In case the number of contractual working hours during a unit period based on which wages of a worker are set is different from the number of contractual working hours during a period based on which the minimum wage applicable to the worker is set, the wages of the worker shall be converted into an hourly wage rate as prescribed by any of the subparagraphs of paragraph (1). Article 6 (Criteria for Permission for Exclusion from Application of Minimum Wage) The scope of those who can be excluded from the application of the minimum wage as the employer has obtained permission of the Minister of Labor as prescribed by each subparagraph of Article 7 of the Act is as follows : <Amended by Presidential Decree No. 16190, Mar. 17, 1999; No. 18911, Jun. 30, 2005; No. 19029, Aug. 31, 2005 ; and No. 19771, Dec. 21, 2006> 1. A person whose mental or physical handicap is obviously considered to directly and considerably hinder him/her from performing a job which the employer intends to have him/her carry out; 2. Deleted. <Presidential Decree No. 19029, Aug. 31, 2005> 3. Deleted. <Presidential Decree No. 19029, Aug. 31, 2005> 4. Deleted. <Presidential Decree No. 19771, Dec. 21, 2006> Article 7 (Request for Deliberation of Minimum Wage Council) Pursuant to Article 8 (1) of the Act, the Minister of Labor shall request the Minimum Wage Council(hereinafter referred to as the ßÖCouncilß×) to deliberate on the minimum wage by March 31 every year. <Amended by Presidential Decree No. 14035, Dec. 29, 1993 and No. 19029, Aug. 31, 2005> <Title of This Article Amended by Presidential Decree No. 19029, Aug. 31, 2005> Article 8 (Announcement of Minimum Wage Proposal) The Minister of Labor shall, upon receiving a minimum wage proposal from the Council pursuant to Article 8 (2) of the Act, announce without delay the minimum wage proposal by type of business and the scope of applicable businesses pursuant to Article 9 (1) of the Act: <Amended by Presidential Decree No. 19029, Aug. 31, 2005> - 4 - 1. Deleted <Presidential Decree No. 19029, Aug. 31, 2005> 2. Deleted <Presidential Decree No. 19029, Aug. 31, 2005> Article 9 (Objections to Minimum Wage Proposal) A person who intends to raise an objection to the minimum wage proposal as prescribed in Article 9 (2) of the Act shall submit a letter of complaint specifying matters described in any of the following subparagraps to the Minister of Labor: 1. Name, address, workplace and title of the person who files the complaint; 2. Main points of the minimum wage proposal for the industry for which the complaint is filed; and 3. Reasons to file the complaint and contents of the complaint Article 10 (Scope of Representatives of Workers or Employers Eligible to File Complaints) A representative of workers prescribed in Article 9 (2) of the Act refers to the representative of a confederation of trade unions or an industrial-level confederation of trade unions, and a representative of employers refers to the representative of a nationwide association of employers designated by the Minister of Labor. Article 11 (Obligation to Notify) (1) The contents of the minimum wage to be made known by an employer to workers in accordance with Article 11 of the Act are as follows; 1. Minimum wage of a worker subject to the application; 2. Wages not included in the calculation of the minimum wage pursuant to Article 6 (4) of the Act; 3. Scope of workers to be excluded from the application of the minimum wage for the business concerned pursuant to Article 7 of the Act; and 4. Day, month and year the minimum wage takes effect. (2) An employer shall inform workers of the contents of the minimum wage prescribed in paragraph (1) by the date prior to the date on which the minimum wage begins to be enforced as prescribed by Article 10 (2) of the Act. Article 12 (Entrustment, Appointment, etc. of Council Members) (1) The workers' members, employers' members and public interest members prescribed in Article 14 (1) of the Act shall be entrusted by the President upon the nomination of the Minister of Labor. - 5 - (2) The permanent members prescribed in Article 14 (2) of the Act shall be appointed by the President upon the nomination of the Minister of Labor. (3) The workers' members shall be nominated from among those recommended by a confederation of trade unions, and the employers' members shall be nominated from among those recommended by a nationwide association of employers designated by the Minister of Labor. (4) When a vacancy occurs, a successor shall be entrusted or appointed within 30 days from the date of the vacancy: Provided that a successor may not be entrusted or appointed, if the remaining term of his/her predecessor is less than one year. <Title of This Article Amended by Presidential Decree No. 19029, Aug. 31, 2005> Article 13 (Criteria for Entrustment of Public Interest Members) The public interest members shall be entrusted from among those falling under any of the following subparagraphs: <Amended by Presidential Decree No. 16190, Mar. 17, 1999; No. 19029, Aug. 31, 2005; and No. 19513, Jun. 12, 2006> 1. A person who was a public official of Grade III or higher or a public official in the Senior Civil Service and has a lot of knowledge and experience on labor issues; 2. A person who had or has been an associate professor or in a higher position in a university for five years or more in the fields of labor economics, industrial relations, labor laws, sociology, and social welfare and other fields related thereto; 3. A person who had worked or has been working for five years (five years in the case of a person with a doctorate degree in the fields prescribed in subparagraph 2) or more in a certified research institution in regard to labor issues; 4. Other persons recognized by the Minister of Labor as having knowledge and experience equivalent to those prescribed in subparagraphs 1 through 3; and 5. Deleted <Presidential Decree No. 19029, Aug. 31, 2005> Article 14 (Qualifications, etc. for Appointment as Permanent Members) The permanent members of the Council shall be appointed from among those falling under any of the following subparagraphs: <Amended by Presidential Decree No. 19029, Aug. 31, 2005 and No. 19513, Jun. 12, 2006> 1. A person who is a public official of Grade III or higher or - 6 - a public official in the Senior Civil Service and has an experience in labor administration; and 2. A person who had been an associate professor or in a higher position in a university for five years or more in the fields of labor economics, industrial relations, labor laws, sociology and social welfare and in other fields related thereto. Article 15 (Entrustment, etc. of Special Members) The special members prescribed in Article 16 of the Act shall be entrusted by the Minister of Labor from among public officials of Grade III or higher in a relevant administrative agency or public officials in the Senior Civil Service. <Amended by Presidential Decree No. 19513, Jun. 12, 2006> Article 16 (Reimbursement of Expenses) Workers, employers and other related persons who attend a meeting of the Council (including a technical committee under Article 19 (4) of the Act) pursuant to Article 18 of the Act shall be paid allowances and travel expenses within the limits of the budget. <Amended by Presidential Decree No. 19029, Aug. 31, 2005> Article 17 (Composition of Technical Committee) (1) The Technical Committee prescribed in Article 19 (1) of the Act shall be composed of those who are designated by the chairman of the Council among the Council members. <Amended by Presidential Decree No. 19029, Aug. 31, 2005> (2) If the technical committee referred to in paragraph (1) is difficult to organize with only the members of the Council or if it is needed for professional deliberation on the matters concerned, the chairman of the Council may entrust members of the technical committee from among those other than the Council members. In this case, with respect to the qualification for the members entrusted separately, Article 12(3) and Article 13 shall be applied mutatis mutandis. <Amended by Presidential Decree No. 19029, Aug. 31, 2005> Article 18 (Allowances, etc. of Members) Allowances and travel expenses necessary for the performance of duties shall be paid within the limits of the budget to the members other than the permanent members of the Council under Article 14 (1) of the Act and to the members of the technical committee under Article 19 (3) of the Act. In this case, allowances shall be paid based on the number of days attended - 7 - and travel expenses shall be paid in amounts commensurate with the position of the permanent members. <Amended by Presidential Decree No. 19029, Aug. 31, 2005 and No. 19513, Jun. 12, 2006> Article 19 (Survey on Condition) The Minister of Labor may have the Council survey the living expenses and wages of workers pursuant to Article 23 of the Act. <Amended by Presidential Decree No. 19029, Aug. 31, 2005> Article 20 (Labor Inspector s Conducting of Work) When a labor inspector conducts work related to the enforcement of the Act pursuant to Article 26 (1) of the Act, he/she shall be subject to direction and supervision of the head of a regional labor office. Article 21 (Identification Card) The identification card referred to in Article 26 (3) of the Act shall be the one prescribed in Article 7 of the Labor Inspector Regulations. <Amended by the Presidential Decree No. 16190, Mar. 17, 1999 and No. 19029, Aug. 31, 2005> Article 21-2 (Delegation of Authority) (1) The Minister of Labor shall delegate the authority described in any of the following subparagraphs to the head of a regional labor office in accordance with Article 26-2 of the Act: 1. To approve exclusion from the application of the minimum wage under Article 7 of the Act; 2. To request a report under Article 25 of the Act; and 3. To impose and collect a fine for negligence under Article 31 of the Act. <This Article Newly Inserted by the Presidential Decree No. 16190, Mar. 17, 1999> Article 22 (Procedures for Imposition and Collection of Fine for Negligence) (1) When a fine for negligence is imposed pursuant to Article 31 (1) of the Act, the act of violation concerned shall be first investigated and confirmed and then a written notice containing the facts of the violation and the amount of the fine for negligence shall be given to a person who is subject to the fine for negligence (2) The Minister of Labor shall, if he/she intends to impose a - 8 - fine for negligence under paragraph (1), set a period of 10 days or more and give the person subject to the fine for negligence an opportunity to make his/her statement verbally or in writing (including the form of electronic documents) during that period. If no statement is made during the set period, it shall be considered that he/she has no statement to make. <Amended by Presidential Decree No. 18312, Mar. 17, 2004> (3) The Minister of Labor shall take into account the motives and the results of the violation concerned in determining the amount of a fine for negligence and the criteria for the imposition is shown in the annexed Table. <Amended by Presidential Decree No. 19029, Aug. 31, 2005> (4) The procedures for the collection of a fine for negligence shall be prescribed by the Ordinance of the Ministry of Labor. <This Article Wholly Amended by the Presidential Decree No. 16190, Mar. 17, 1999> Addenda <Presidential Decree No. 19771, Dec. 21, 2006> (1) (Enforcement Date) This Decree shall enter into force on January 1, 2007. (2) (Valid Period of Minimum Wage for Workers Engaged in Surveillance or Intermittent Work) The revised provision of Article 3 (2) shall be valid until December 31, 2011. (3) (Special Cases of Application of Minimum Wage to Workers Engaged in Surveillance or Intermittent Work) Notwithstanding the revised provision of Article 3 (2), with regard to those engaged in surveillance or intermittent work and for whom the employer has obtained approved of the Minister of Labor, the hourly minimum wage rate reduced by 30/100 of the hourly minimum wage rate prescribed in the latter part of Article 5 (1) of the Act shall be applied until December 31, 2007.   <hr class="make-database"> AsianLII: <a href="/asianlii/copyright.html" class="make-database">Copyright Policy</a> | <a href="/asianlii/disclaimers.html" class="make-database">Disclaimers</a> | <a href="/asianlii/privacy.html" class="make-database">Privacy Policy</a> | <a href="/asianlii/feedback.html" class="make-database">Feedback</a> URL: http://www.asianlii.org/kr/legis/laws/edotmwa328 </body> </html>