{"id":2204223,"date":"2024-03-12T14:33:48","date_gmt":"2024-03-12T05:33:48","guid":{"rendered":"https:\/\/koreapro.org\/?p=2204223"},"modified":"2024-03-13T15:26:06","modified_gmt":"2024-03-13T06:26:06","slug":"wrongful-terminations-spike-as-south-korean-job-market-evolves","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/03\/wrongful-terminations-spike-as-south-korean-job-market-evolves\/","title":{"rendered":"Wrongful terminations spike as South Korean job market evolves"},"content":{"rendered":"

South Korea\u2019s job market is undergoing significant changes, with a rise in wrongful termination cases and a growing disparity between large corporations and small to mid-sized enterprises. These developments pose risks to employees and employers as they navigate shifting employment practices, legal compliance and social perception.<\/span><\/p>\n

According to <\/span>data<\/span><\/a> from the National Labor Relations Commission, wrongful terminations accounted for 26% of labor disputes during the first eight months of 2023, a significant increase from 15% in 2022. Experts attribute this spike to changing job market dynamics and a growing awareness of workers\u2019 rights, particularly among younger generations.<\/span><\/p>\n

\u201cKoreans are more actively embracing part-time or temporary positions and don\u2019t necessarily choose to stay at one job forever, meaning companies need to rethink how to treat these employees of different or changing job statuses,\u201d Jeon Hye-son, founder and CEO of Yeollin Labor Corporation, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Traditionally known for its rigid job markets, South Korea has experienced a drastic shift in recent years, especially after the COVID-19 pandemic.<\/span><\/p>\n

Organization for Economic Co-operation and Development (OECD) <\/span>figures<\/span><\/a> released last week revealed that 28% of South Korean employees now work temporary jobs, the highest among more than 30 OECD countries, surpassing the group\u2019s average and Japan, the previous leader.\u00a0<\/span><\/p>\n

Kim Tae-gi, head of the National Labor Relations Commission, noted in an interview with <\/span>The Chosun Ilbo<\/span><\/i> newspaper earlier this year that workers are becoming more passionate and articulate when defending their rights.<\/span><\/p>\n

\u201cQuietly but steadily, there has been a lot of change taking place, especially among the underprivileged,\u201d he said. \u201cWhat was considered normal and acceptable is no longer the case, and people choose to take issue if they feel their rights have been violated in any way.\u201d<\/span><\/p>\n

\"\"

Samsung’s office in Milan, Italy, June 13, 2021 | Image: Babak Habibi<\/a> via Unsplash<\/a><\/em><\/p><\/div>\n

DISPROPORTIONATE IMPACT<\/b><\/p>\n

The imbalance in the South Korean corporate landscape further exacerbates the risks associated with wrongful terminations and job insecurity. Large companies that employ 300 or more workers are generally considered to offer higher-quality jobs with greater stability, benefits and career opportunities. These firms are also subject to stricter regulations and more robust internal controls.<\/span><\/p>\n

However, as of 2023, only about <\/span>10%<\/span><\/a> of South Korean employees worked at these coveted large firms, while the remaining 88% worked for small or mid-sized enterprises with fewer than 300 employees. This disparity is significant because most wrongful terminations occur at these smaller firms.<\/span><\/p>\n

Article 23<\/span><\/a> of the law prohibits employers from taking punitive action, including termination, against employees without just cause and requires them to follow proper procedures when issuing termination notices.<\/span><\/p>\n

In a recent case, a former professional South Korean golfer sued the founder of the company he had worked for over a year, alleging wrongful termination and failure to make mandatory pension contributions.<\/span><\/p>\n

\u201cThe founder fired me via a text message telling me not to come to work beginning the following day as I had been terminated as of that day,\u201d the golfer, who declined to be named, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\u201cIt was the final straw. When I approached him in the past about following proper protocol in treating employees, the CEO told me he had bigger, more important things on his mind, such as making money,\u201d he added.<\/span><\/p>\n

Under South Korean <\/span>law<\/span><\/a>, companies must terminate employees in \u201cwritten form,\u201d and termination notices issued via email or text are only acceptable if the employee agrees to that method.<\/span><\/p>\n

While company leaders often claim to be uninformed about such management issues, the golfer found this difficult to accept, stating, \u201cYou can go to just about any kind of online search engine, and it will tell you exactly what to do and what not to.\u201d<\/span><\/p>\n

POTENTIAL SOLUTIONS<\/b><\/p>\n

The Korea Development Institute (KDI) has suggested a solution to address the job market disparity: ease regulations to create more jobs at conglomerates, thereby increasing the number of quality jobs available.<\/span><\/p>\n

\u201cThis can serve to mitigate other social problems, such as the record-low birthrates, as data shows employees at larger companies receive better child-care support,\u201d Ko Young-sun, the KDI professor who issued the report, told <\/span>South Korean media<\/span><\/a>.<\/span><\/p>\n

According to KDI, jobs at large corporations comprised about 14% of the total market in 2021, while some government agencies <\/span>report<\/span><\/a> a figure of 34% when including affiliates and branches. Regardless of the exact figure, South Korea lags behind its <\/span>OECD peers<\/span><\/a>, such as the U.S., Germany, France, the U.K. and Sweden, regarding the proportion of workers employed by large companies.<\/span><\/p>\n

The OECD considers firms with 250 or more employees to be large companies, compared to South Korea\u2019s threshold of 300 employees.<\/span><\/p>\n

South Koreans\u2019 preference for working for large companies is evident in a <\/span>survey<\/span><\/a> conducted by the Korea Chamber of Commerce in May 2023, which found that 64% of the 300 respondents desired to work for conglomerates.<\/span><\/p>\n

Another 44% wanted to work in mid-sized companies or the public sector, citing stable working conditions. In contrast, less than 20% of respondents said they wanted to work at smaller companies, with many stating they would instead take time off rather than work for small businesses.<\/span><\/p>\n

Tighter legislation may be one way to keep job hunters interested in smaller companies while also keeping these entities in check to curb unfair labor practices. Currently, more than 3 million businesses in South Korea have fewer than five full-time employees, but these organizations are <\/span>exempt<\/span><\/a> from many regulations in the Korea Labor Standards Act that apply to larger firms.<\/span><\/p>\n

A <\/span>survey<\/span><\/a> by Workplace Bullying 119, a non-profit organization that provides counseling services to workers who experience workplace bullying, found that under the current system, employers in these small firms can hire and fire employees at will, and employees cannot file complaints with the National Labor Relations Commission for unfair terminations.<\/span><\/p>\n

Moreover, paid leave is not mandatory in many of these firms, and women over 18 with children do not have access to maternity or parental leave.<\/span><\/p>\n

To address these issues, the government and the National Assembly are <\/span>discussing<\/span><\/a> expanding labor laws to the smallest firms, such as requiring paid leave, providing better protection for female employees and limiting overtime and holiday work.<\/span><\/p>\n

Another cost-effective solution is to provide regular training and education for corporate leadership.<\/span><\/p>\n

\u201cThe laws continue to change and evolve, and so must the leaders,\u201d said Jeon of Yeollin Labor Corporation.<\/span><\/p>\n

Jeon also highlighted the numerous learning opportunities offered by the private and public sectors to help small companies navigate labor laws and regulations. By leveraging these resources, corporate leaders can stay informed about their legal obligations and best practices, reducing the risk of wrongful terminations and other labor disputes.<\/span><\/p>\n

\"\"

An illustration of unemployed workers | Image: Korea Pro<\/em><\/p><\/div>\n

GROWING SOCIAL AWARENESS<\/b><\/p>\n

Despite the challenges workers face in the changing job market landscape, there is a silver lining: the growing social awareness of employment conditions and workplace management.<\/span><\/p>\n

\u201cIt\u2019s hard to understand the discrimination, why some jobs are considered important enough to warrant safety nets and support, while others are not,\u201d Yoon Min-seo, a 21-year-old who worked at a coffee shop for nearly six months without signing a labor contract, told <\/span>Korea Pro<\/span><\/i>.\u00a0<\/span><\/p>\n

Yoon added that such perceptions were demotivating and significantly influenced her decision to quit earlier than planned.<\/span><\/p>\n

\u201cIt was not meant to be a permanent job in the first place, but my passion for working with integrity was deeply undermined by how the employer and customers treated me,\u201d she added.<\/span><\/p>\n

As awareness levels rise, corporate review sites increasingly cite qualities such as leadership, workplace culture, benefits and promotion opportunities as key factors in evaluating companies.<\/span><\/p>\n

\u201cCulture and leadership should be considered equally important as wages and benefits,\u201d Yoon said.<\/span><\/p>\n

As more workers become aware of their rights and demand fair treatment, South Korean companies will likely come under more significant pressure to adopt equitable practices and prioritize employee well-being.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Business & Economy<\/span><\/a>Culture & Society<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

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