The maximum statutory penalty for employers who delay wage payments will be raised from up to three years in prison to up to five years in prison.
According to the Ministry of Employment and Labor (MOEL) on the 12th, the National Assembly plenary session passed three MOEL-related bills, including an amendment to the Labor Standards Act that contains these measures.
The maximum punishment for employers who delay wage payments will be increased from the current up to three years in prison or a fine of up to 30 million won to up to five years in prison or a fine of up to 50 million won.
The ministry said it expects to "heighten the alertness of employers who delay wage payments." The law will take effect six months from the date of promulgation.
The wage separation payment system will take effect on Jan. 1 next year. Under the system, when a contractor pays a subcontractor, the payment must be separated into workers' wages and business expenses.
The title "geunro-gamdokgwan" will be changed to "nodong-gamdokgwan," both meaning labor inspector. The title "geunro-gamdokgwan" has been used since 1953 and will be changed to "nodong-gamdokgwan" after 73 years.
Labor inspectors oversee and investigate issues such as delayed wage payments, unfair dismissals, and industrial accidents at worksites, but their duties and authorities have been scattered across individual laws. The enactment of this law provides unified rules for the execution of inspectors' duties.
In addition, to minimize blind spots in oversight, the enacted bill includes delegating part of the Minister's authority to supervise business sites to the heads of 17 metropolitan cities and provinces.
The law will take effect eight months from the date of promulgation.
The amendment to the Employment Insurance Act and the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance also cleared the threshold.
If a serious industrial accident occurs at business sites that have received reductions in industrial accident insurance premiums by being recognized for "accident prevention activities," such as risk assessment recognition and employer education, the previously reduced premiums can be recalculated and imposed.
Minister Kim Young-hoon of the ministry said, "We will make every preparation, including revising subordinate statutes, while continuing to communicate with the field so that the passed laws can take root quickly."