Let’s reduce the overtime from 12 hours to 10 hours

The Labor Standards Act, enacted in 1953, is often regarded by legal experts as outdated. This legislation was heavily influenced by Japan’s Labor Standards Act, albeit with minimal adaptation. Unlike Japan, Korea has faced criticism for failing to adequately incorporate and address the evolving dynamics within the labor market.

In 2006, Japan introduced the Labor Contract Act as a distinct legislation from the existing Labor Standards Act. Moreover, in 2018, Japan revised approximately 30 labor-related laws, emphasizing the ‘reform of working methods.’ These changes included reductions in working hours while allowing flexibility in overtime regulations. Additionally, Japan introduced a ‘highly professional system,’ drawing inspiration from the ‘White Collar Exemption’ of the U.S. Under both systems, high-earning professionals are not bound by working hour regulations.

Japan’s labor reform is appraised as a pivotal measure that reinvigorated the labor market. This reform rectified a historical blind spot within the Labor Standards Act, which predominantly catered to factory workers. Moreover, it established a legal framework that accommodates newly emerged occupations, including special employment and platform labor.

Critics highlight that Korea’s Labor Standards Act significantly lags behind contemporary labor practices, particularly evident in its provisions regarding overtime work. The Act permits a maximum of 52 working hours per week, comprising 40 standard hours and 12 hours designated for overtime. Notably, the 12-hour limit for overtime work has persisted unchanged for 70 years since the Act’s inception in 1953.

Following subsequent amendments, working hours were initially reduced to 44 hours in 1989 and further decreased to 40 hours in 2003. The introduction of a five-day workweek logically suggests eliminating the two hours of overtime allocated for Saturdays, thereby warranting a reduction in the overtime limit to 10 hours. However, despite this rationale, the overtime limit remains fixed at 12 hours. This particular duration is an outcome of a negotiated compromise between the labor community, advocating for reduced overall working hours, and the management community, aiming to mitigate significant reductions in working hours. Both sides acknowledge that the established 12-hour limit is regarded as abnormal.

In March, the government announced its intentions for working hours reform, sparking controversy, particularly concerning the proposed ‘69 hours per week’ limit. Subsequently, after conducting extensive surveys to gather public opinions, a revised direction for reorganization is set to be announced next Monday. However, there are early indications that the contentious ‘69-hour’ issue may resurface, especially among the generation MZ (Millennials + Generation Z). Additionally, unless there is a shift in the current dynamics between the ruling and opposition parties, reforming the existing 52-hour workweek system, regardless of the sophistication of the government’s proposed design, will prove to be a challenging endeavor.

Consequently, certain voices within the legal community advocate for aligning the overtime work limit to 10 hours in correspondence with implementing a five-day workweek. The proposition suggests reducing the overtime limit by two hours and permitting specific occupations to work extended hours, potentially facilitating a smoother transition in reforming working hours. Notably, Jeong Ji-won, a standing advisor at Yulchon Law Firm who was an active participant in labor reform during the Park Geun-hye administration, lends support to this approach. “By reducing overtime work by eight hours per month and 96 hours annually, we can foster greater acceptance among the public and the generation MZ,” Jeong said.

Within the National Assembly, there is a sentiment that “revising the labor law is more challenging than reaching an agreement between the ruling and opposition parties.” Consequently, there’s a growing impetus for both the government and the National Assembly to explore approaches that enhance public acceptance through innovative and unconventional ideas. I hope that the government’s direction to be presented next Monday will include new and radical measures such as ‘10 hours of overtime work.’