From now on, business owners who withdraw from a joint employee welfare fund corporation must report the facts to the local employment and labor office within three weeks. A joint employee welfare fund corporation refers to a corporation in which companies in the same industry and the like come together to operate a welfare fund for their employees.
The Ministry of Employment and Labor (MOEL) said on the 18th that the Cabinet reviewed and approved a revision to the Enforcement Decree of the Framework Act on Employment Welfare that centers on these measures.
Under the existing Framework Act on Employment Welfare, a business owner who withdraws from a joint employee welfare fund corporation must either establish a separate in-house employee welfare fund using the property distributed from it or contribute the assets to an in-house fund. But because there was no procedure to verify this, the ministry could not promptly determine whether business owners were complying with the law.
With the revision taking effect, a business owner who withdraws midterm from a joint employee welfare fund corporation must report that fact to the local employment and labor office. The deadline is three weeks. A ministry official said, "The revised enforcement decree takes effect immediately upon promulgation," and noted, "It is expected to apply as early as late Aug."