ACT ON EMPLOYMENT SECURITY SUPPORT FOLLOWING INDUSTRIAL TRANSFORMATION

Article 1(Purpose) #

The purpose of the Act is to minimize employment insecurity stemming from industrial transformation and contribute to sustainable and inclusive economic growth by proactively supporting workers' job security, job mobility, and labor transitions in response to job risks such as stagnation and unemployment in existing industries that arise from changes in industrial structure, including the transition to a carbon neutral society and digital transformation.

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. The term "carbon neutrality" means carbon neutrality defined in subparagraph 3 of Article 2 of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis;

2. The term "digital transformation" means a series of processes whereby industrial data and intelligent information technology defined in subparagraph 4 of Article 2 of the Framework Act on Intelligent Informatization are applied to industries, enhancing the efficiency of industrial activities and creating new added value;

3. The term "industrial transformation" means the process whereby an existing industry experiences a decline or disappearance and transitions to another industry or type of business due to direct or indirect influence of factors such as the shift towards a carbon neutral society and digital transformation;

4. The term "labor transition" means the process of conversion of occupations or duties from one industry or type of business to another, or within the same industry or type of business following industrial transformation;

5. The term "employment security support" means support projects under the subparagraphs of Article 11 (1) as policies implemented to respond to industrial transformation and labor transition, to bolster employment security, and to facilitate job mobility for workers;

6. The term "worker" means any person who is employed by an employer or who intends to seek employment.

Article 3(Basic Principles) #

(1) Employment security support shall be advanced with a focus on proactively identifying and protecting workers, enterprises, regions, etc. that may face direct or indirect harm due to industrial transformation and on minimizing employment insecurity and damage to vulnerable social groups.

(2) Employment security support shall be coordinated with environmental policies, industrial policies, employment policies of industries and regions, and policies for supporting enterprise restructuring so as to ensure the effective implementation of support measures.

(3) Employment security support shall be promoted through social dialogue involving workers and labor unions, business owners and business owners' associations, and the Government.

(4) Workers and labor unions, business owners and business owners’ associations, and the Government shall engage in sincere social dialogue concerning employment security support.

(5) The Government shall make every effort to incorporate the outcomes of social dialogue into relevant policies and to faithfully implement them.

(6) Administrative plans and policies formulated by the State and local governments in accordance with other statutes or regulations in relation to employment and labor policies for addressing industrial transformation shall align with the principles referred to in paragraphs (1) through (5).

Article 4(Responsibilities of the State and Local Governments) #

(1) The State shall minimize employment insecurity resulting from industrial transformation, establish necessary systems and conditions for employment security, and seek to devise supportive policy measures, including creation of a master plan for employment security support following industrial transformation under Article 7.

(2) Local governments shall actively cooperate with the State's policy measures under paragraph (1), and shall ensure the alignment of regional industry fostering and transformation policies with the State's support policies.

(3) In formulating policies for fostering and transforming industries concerning carbon neutrality, digital transformation, etc., the State and local governments shall formulate and implement policies necessary to ensure the employment security of workers, enterprises, and regions that may be directly or indirectly affected in the process of policy implementation.

Article 5(Responsibilities of Workers and Business Owners) #

(1) Workers shall endeavor to develop occupational skills to undertake, among other things, new jobs or duties resulting from industrial transformation.

(2) Where business restructuring or other acts become unavoidable due to industrial transformation, business owners shall prioritize retaining workers, by providing vocational skills development training necessary for transition of duties within the enterprise and other relevant support, and shall endeavor to facilitate prompt re-employment of workers by, among other things, providing necessary support for those who unavoidably face employment adjustment to assist them with changing their jobs.

(3) Workers and business owners, and labor unions, and business owners' associations shall cooperate in seeking and implementing measures for transition of duties and re-employment to ensure employment security of workers in response to industrial transformation.

(4) Workers and business owners, and labor unions and business owners' associations shall make necessary efforts, such as actively engaging in and cooperating with the policies of the State and local governments under Article 4.

Article 6(Relationship to Other Statutes) #

Where other statutes related to employment security support following industrial transformation are enacted or amended, such actions shall be conducted in accordance with this Act.

Article 7(Formulation of Master Plans for Employment Security Support following Industrial Transformation) #

(1) The Minister of Employment and Labor shall formulate a master plan for employment security support following industrial transformation (hereinafter referred to as "master plan") every five years in consultation with the heads of relevant central administrative agencies to ensure employment security support following industrial transformation.

(2) The master plan shall include the following:

1. Preliminary employment impact assessment under Article 8;

2. Preferential support for industries, types of business, regions, etc., expected to require significant employment security support following industrial transformation;

3. Vocational skills development to facilitate labor transition for, and support for re-employment of, workers in industries, types of business, regions, etc. anticipated to experience a decline in demand for human resources;

4. Support for those who make efforts to retain workers and facilitate their transition to new occupations and re-employment, even in cases where employment adjustment is unavoidable;

5. Support for enterprises fostering employment retention and job creation in response to industrial transformation;

6. Support for retaining and generating employment in areas directly or indirectly affected by industrial transformation;

7. Promotion of social dialogue among labor unions, business owners' associations, and the Government in relation to employment security support following industrial transformation;

8. Other matters necessary for employment security support following industrial transformation.

(3) The formulation or amendment of a master plan shall be subject to deliberation by the Employment Policy Deliberative Council under Article 10 of the Framework Act on Employment Policy (hereinafter referred to as the "Employment Policy Deliberative Council").

(4) Matters necessary for procedures for formulating master plans and other necessary matters shall be prescribed by Presidential Decree.

Article 8(Preliminary Employment Impact Assessment) #

(1) The Minister of Employment and Labor shall conduct a survey and assessment (hereinafter referred to as "preliminary employment impact assessment") every five years to identify the impact of industrial transformation on employment in advance: Provided, That if deemed necessary by the Minister of Employment and Labor, such survey and assessment may be conducted whenever necessary.

(2) The preliminary employment impact assessment shall include the following:

1. Projection of demand for human resources by industry, region, occupation, and duty, and the monitoring of changes in this demand;

2. Analysis of duties, etc. expected to experience a decrease in demand for human resources, identification of duties, etc. that can be transitioned, and analysis of required capacities for relevant duties;

3. Analysis of expected scale of damage, etc. by industry and region, expected to witness a decrease in demand for human resources due to industrial transformation;

4. Other matters determined by the Minister of Employment and Labor.

(3) The Minister of Employment and Labor may request the heads of relevant central administrative agencies, the heads of local governments, and the heads of relevant institutions or organizations to provide data necessary for the preliminary employment impact assessment. In such cases, the heads of the relevant central administrative agencies, etc., upon receiving such request, shall cooperate unless there is a compelling reason not to do so.

(4) The Minister of Employment and Labor may entrust research institutes funded by the State or local governments (including those re-funded by the State or local government-funded institutions) or private research institutes with relevant tasks to efficiently implement the matters prescribed in paragraphs (1) through (3).

(5) The Minister of Employment and Labor may provide subsidies to institutions entrusted pursuant to paragraph (4) to cover expenses incurred in performing the entrusted duties within the budget.

(6) Matters necessary for the details, methods, etc. of the preliminary employment impact assessment shall be prescribed by Presidential Decree.

Article 9(Formulation of Employment Security Support Measures) #

(1) The Minister of Employment and Labor shall incorporate the findings of the preliminary employment impact assessment into policies.

(2) After conducting a preliminary employment impact assessment, the Minister of Employment and Labor shall formulate support measures for employment security, etc. tailored to specific industries and types of business identified as requiring urgent support due to rapid industrial transformation and other factors, as determined following deliberation by the Employment Policy Deliberative Council.

(3) The Minister of Employment and Labor shall make efforts to develop and disseminate programs aimed at assisting workers with their labor transition.

Article 10(Identifying and Consulting with Enterprises in Need of Employment Security Support following Industrial Transformation) #

(1) The Minister of Employment and Labor shall make efforts to proactively identify companies in need of employment security support following industrial transformation.

(2) The Minister of Employment and Labor may diagnose the current status, prospect, etc. of demand for human resources of enterprises identified pursuant to paragraph (1) and provide comprehensive consulting services on employment security of the workers as well as support for the transition of their duties, based on the results of such diagnosis.

Article 11(Employment Security Support following Industrial Transformation) #

(1) The Government may provide the following support to workers, business owners, labor unions, business owners' associations, etc. in need of employment security due to industrial transformation:

1. Provision of vocational skills development training to facilitate the transition of workers' duties, job changes, etc.;

2. Implementation of measures to ensure employment security, such as retention of workers;

3. Assistance for job changes and re-employment of workers;

4. Livelihood stabilization for those unemployed due to employment adjustment;

5. Hiring of those unemployed due to employment adjustment;

6. Enhancement of employment conditions through employment management diagnosis for employment security for workers and other related activities;

7. Improvement of labor-management relations and promotion of shared growth;

8. Support for workers' enterprise establishment;

9. Other matters deemed necessary to ensure employment security following industrial transformation.

(2) The Minister of Employment and Labor shall actively provide employment support services, such as job placement services, to workers, through employment security offices defined in subparagraph 1 of Article 2-2 of the Employment Security Act, targeting enterprises undergoing, or expected to undergo, significant turnover or unemployment due to industrial transformation.

(3) Matters necessary for the support under paragraph (1) shall be prescribed by Presidential Decree.

Article 12(Support for Local Governments to Proactively Address Employment Crisis) #

Where a local government intends to provide employment security support to proactively respond to industrial transformation, the Minister of Employment and Labor may subsidize such efforts within the budget.

Article 13(Establishment of Employment Security Support System following Industrial Transformation) #

(1) The Minister of Employment and Labor shall establish a system to comprehensively support industries, types of business, regions, business owners, workers, etc. in need of employment security support following industrial transformation.

(2) Comprehensive support under paragraph (1) shall include the following:

1. Conducting surveys to ascertain demand for support projects for employment security, etc. required by business owners, etc. who have undergone, or are scheduled to undergo, business restructuring following industrial transformation;

2. Providing consultation on support measures for employment security, etc. to each enterprise following enterprise diagnosis;

3. Assisting in the alignment of, and application for, projects related to employment security support following industrial transformation;

4. Offering support for counseling and education, and ensuring the psychological stability of workers concerning labor transition following industrial transformation;

5. Promoting awareness of projects related to employment security support following industrial transformation;

6. Other matters prescribed by Ordinance of the Ministry of Employment and Labor.

(3) The Minister of Employment and Labor may establish or designate an institution dedicated to managing business affairs regarding the support under paragraph (2) to ensure employment security and smooth labor transition for workers.

(4) The Minister of Employment and Labor may request the head of a relevant central administrative agency, the head of a local government, or the head of a public institution under Article 4 of the Act on the Management of Public Institutions to provide relevant data for the smooth operation of the institution dedicated to the affairs under paragraph (3). In such cases, the head of the institution, upon receiving such request, shall cooperate unless there is a compelling reason not to do so.

(5) The Minister of Employment and Labor may provide subsidies to the institution dedicated to the affairs under paragraph (3) to cover expenses incurred in conducting such affairs within the budget.

(6) Matters necessary for the establishment, designation, etc. of an institution dedicated to the affairs under paragraph (3) shall be prescribed by Presidential Decree.

Article 14(Financial Resources) #

(1) The State or local governments shall actively seek to raise the necessary funds for employment security support following industrial transformation under this Act.

(2) Employment security support following industrial transformation under this Act may be funded through the following financial resources:

1. General accounting;

2. The Employment Insurance Fund under the Employment Insurance Act;

3. The Climate Response Fund under the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis;

4. Special Accounts for Balanced Regional Development under the Special Act on Local Autonomy, Decentralization, and Balanced Regional Development;

5. Other financial resources determined by the Minister of Employment and Labor to be necessary for employment security support following industrial transformation.

Article 15(Reporting and Inspections) #

(1) Where necessary for employment security support, the Minister of Employment and Labor may order an institution entrusted with the preliminary employment impact assessment under Article 8 and an institution dedicated to the affairs under Article 13 to file a report or submit data, and may take necessary measures, such as requiring public officials under his or her jurisdiction to enter the premises of the relevant institutions or inspect documents.

(2) A public official entering or conducting an inspection under paragraph (1) shall carry identification verifying his or her authority and present it to relevant persons.

Article 16(Cooperation among Relevant Institutions) #

(1) Where the head of a central administrative agency or a local government establishes or modifies a project related to employment security support following industrial transformation, he or she shall consult with the Minister of Employment and Labor regarding plans for establishing or modifying the relevant project, budget, operating guidelines, etc.

(2) To enhance the effectiveness of employment security support, the Minister of Employment and Labor may present relevant opinions on the establishment and modification plans, budget, operating guidelines, etc. under paragraph (1) to the heads of relevant central administrative agencies or local governments and request their cooperation.

(3) Upon receiving the request for cooperation under paragraph (2), the head of a central administrative agency or a local government shall comply with such request unless there is a compelling reason not to do so.

(4) Other matters necessary for cooperation among relevant institutions shall be prescribed by Presidential Decree.

Article 17(Delegation of Authority) #

The Minister of Employment and Labor may delegate part of his or her authority under this Act to the head of a regional employment and labor office or the head of a local government, as prescribed by Presidential Decree.