[News Today] ‘Fair allowance’ for short-term workers

[LEAD]

Short-term contracts just one day shy of a full year have long been used to avoid paying severance. Now, the government says even in such cases, workers in the public sector will receive a form of severance pay. Here's what's changing.

[REPORT]

The Nakdong River Basin Environment Office hired three sanitary workers last year.

Their work period was from January 2nd to December 31st.

All three didn't receive any severance pay, because their work duration was one day short of a full year.

The office tried to repeat the same practice this year but faced strong criticism.

Kang Hoon-sik / Presidential Chief of Staff (Feb. 2)

This is clear wage theft. It's a shame that the gov't is copying the tricks of bad companies.

Currently, some 73,000 workers are contracted to work less than a year for the government and public agencies.

They account for half of all public sector non-regular workers and are legally not eligible for any severance pay.

The government will pay a 'fair allowance', effectively severance pay, starting next year.

When contracts expire, workers will receive a lump sum worth 8.5 to 10 percent of their base pay, with higher rates for shorter contracts.

Subsequently, they stand to receive between 380,000 won and KRW 2.48 million.

However, this benefit is limited to the public sector.

This is because applying it to the private sector would require revising all severance pay laws.

The measure only applies to contract workers directly hired by the public sector, excluding dispatched and privately outsourced workers, prompting criticism that it is insufficient.

Lee Young-hoon / Korean Confederation of Trade Unions

Many outsourced social welfare workers sign yearly contracts but are excluded from the measures. That's a major problem.

The government will also ban hiring contract workers for less than one year for regular public sector duties.