배움과 공유의 시간

01 Labor dispute

Korean companies tend to be overly afraid of labor lawsuits. Thus, if there is a labor dispute with an employee, it can be a case of visiting Wuxi, or of trying to get a handle on the issue while in a hurry to reach a compromise with the employee himself.
In China, "labor litigation" is a matter of daily plurality. Instead of making a ruling, whether it is a labor arbitration or a court, the arbitrator or a judge always tries to adjust (reconciliation) to the right line between labor and management. Therefore, it is also necessary to take the initiative in encouraging employees to file labor lawsuits, rather than on sensitive issues that threaten the order of the workplace or affect other employees.

1. Labor arbitration

In the event of a labor dispute, the party shall not be allowed to file a suit directly with the court. First, the arbitration shall apply to the Labor Arbitration Commission for arbitration (the "principle" of the arbitration panel). In the event of objection to the arbitration decision made by the arbitration panel, the party may, as a rule, file a suit with the court.

Current trend of labor arbitration (corporate view)

1 Submission of arbitration application
Workers shall prepare and submit written work arbitration application form 1 and 2 to the Labor Arbitration Commission.
2 Repair and repair costs
The Labor Arbitration Commission shall determine whether repairs are carried out within five days of receipt of the arbitration application. In the event of determining non-repair, or within five days, the worker may file a suit with the court. Labor arbitration is free.
3 An application for arbitration of workers to a company from the arbitration committee
If the arbitration committee decides to repair the application, it shall send a notice of appeal, together with an application for arbitration, to the company within five days. The notice requires an enterprise to submit an answer to the arbitration committee within 10 days of receipt of the application for arbitration.

[Point]
Answers refer to replies and explanations submitted by the entity in relation to the worker's application for arbitration, and may specify the opinions and reasons of recognition or disapproval of claims claimed by the worker. However, an entity’s submission of an answer is not mandatory, and is not at any disadvantage. When an entity submits an answer, the arbitration board sends it to the worker within five days, so the entity does not have to submit the answer in advance to expose the company’s views to the workers in advance. Through lawyers, submit it at the time of the revision of the Labor Arbitration Act, or give an oral answer.

4 Notice of Revision
The Arbitration Commission shall notify the parties in writing of the date of the amendment and the location of the amendment five days before the amendment. The party may apply for postponement up to three days before the amendment, if there is a valid reason, and the arbitration committee shall make the final decision on the postponement.
Fifth Amendment hearing
During the hearing process of the Labor Arbitration Commission, both labor and management are allowed to argue with each other. The preparation work before the revision, the method of claiming the management position in case of revision, and the strategy of litigation are important keys to eliciting favorable arbitration decisions.
6 Arbitration decision (裁决)
Mediation decisions are divided into two types: one final arbitral decision, two non-substantial arbitration decision.
(a) Determination of eventual arbitration;
The ultimate arbitration decision is a system to protect the interests of workers on small agendas, as specified in the "Adjustment and Arbitration of Labor Disputes Act." Regarding the arbitration panel's final judgment, the staff may complain and file a complaint with the court, but the company shall not be allowed to file a complaint with the court in protest of the court.

[Iljizongguk system]
Before the Labor Dispute Arbitration Act was enacted in May 2008, there were many cases in which a company intentionally filed a complaint with the court to prolong the court hearing to the maximum extent possible under the 1裁2 (Labor Arbitration Act). In the process, workers were often forced to accept management`s proposal for coordination due to time and cost issues. This system is intended to prevent users from over-issuing lawsuits after arbitration decisions, in the case of small-scale or clear labor standards of labor,
It was stipulated that the issue should be terminated by the decision of the Arbitration Commission.
Labor remuneration, expenses for casual medical care, economic compensation or economic compensation and national labor
A clear standard, small labor not exceeding 12 months of the local minimum wage.
a matter of dispute

(b) Determination of non-subsidiary arbitration (裁决)
In the event of a general labor dispute that does not constitute a final arbitration decision, the arbitration committee shall make a non-final arbitration decision. In this case, the entity and its employees may file a suit with the court within 15 days of receipt of the arbitration decision, if either party does not comply with the arbitration decision. If a lawsuit is not filed within 15 days, the arbitration decision will go into effect and the litigant will face its arrest.

2. Labour litigation

1 Submit the indictment to the court.
Where no non-substantial arbitration decision has been made by the Labor Arbitration Commission, enterprises and employees may submit an indictment to the competent court either way.
2 Repair
The competent court shall conduct a formal review of the documents submitted and, if accepted as conforming to the repair conditions, issue a notice of legal cost payment to the plaintiff.
3 PREPARATION OF Suit costs (P
The plaintiff shall prepay the costs of the case (10元 in one case) within seven days of receipt of the notice. The final responsibility of the plaintiff and the defendant for the legal costs of this 10元 shall be determined by the outcome of the court ruling.
4 Appointment (former)
The court should book the plaintiff within seven days after receiving the plaintiff's indictment (Article 112 of the Civil Procedure Act), but in reality, it is common for the plaintiff to check the deposit of the plaintiff's charge and then to charge it. The date of the booking is very important because it is the date of reckoning.
5 Notice to the defendant
The court sends a notice of return with the indictment to the defendant within five days of the date of the charge. The defendant shall submit a reply within 15 days of the date of receipt (Article 113 of the Civil Procedure Act).
6 Send an answer sheet
The court shall send this letter to the plaintiff within five days of receipt of the reply from the defendant (Article 113 of the Civil Procedure Act).
7 Notice of Revision
Up to three days before the date of amendment, the court shall notify the parties of the revised notice and the time and location of the amendment (Article 115 of the Civil Procedure Act).
8 Words of a Single Decision
The first court must end the hearing on the agenda within six months of the date of the booking and make a ruling. For special reasons, it can be extended by six months with the approval of the respective court chief. If an extension is required, the higher court shall grant it (Article 135 of the Civil Procedure Act).
9 appeal
In the event that a party dissents from the first trial, it may appeal to the higher court within 15 days of the delivery of the first trial decision. Failure to appeal within 15 days will result in the 1st judgment being effectuated and the parties being arrested (Article 147 of the Civil Procedure Act). In the event of appeal, the appeal chief shall submit it to the court which made the first decision.
Notice of Appeal: 1The court which has made the decision shall send the subpoena of the Appeal within 5 days after receiving the Appeal and require the submission of the reply within 15 days from the date of receipt of the appeal (Article 150 of the Civil Procedure Act).
10 Second Judgement (final trial)'s)
The second court must end the hearing of the case within three months from the date of the second trial and make a ruling. If there is a special reason, it can be extended with the permission of the head of the court concerned (Article 150 of the Civil Procedure Act).

3. Responsible for proving labor disputes

In civil proceedings, the principle of "the principal (proven by the captain)" is established. In other words, in the case of claiming something, the captain must prove it by submitting evidence backing up his argument (Article 64 of the Civil Procedure Act).
Although labor disputes are basically in accordance with this principle, labor relations have the characteristics of human subjugation of "manage-defence" and, in light of the fact that many of the evidence is kept in the enterprise, the enterprise is obliged to submit these evidence (Article 6 of the Arbitration of Labor Dispute Act). For this reason, an entity needs to manage and take care not to lose documentation about its labor relationship from day to day. Failure to submit necessary documents through negligence may result in disadvantages in labor litigation.

(1) Applies burden of proof to workers (general burden of proof)

Not all evidence of workers should be proved by an enterprise by submitting counterargument evidence. Where a worker makes the following claims, the worker himself shall present evidence to prove it.
1 Where overtime is claimed to be unpaid, it shall be demonstrated that overtime is not paid.
2 Where a labor relationship with a company is claimed to have been established, evidence of the establishment of a labor relationship shall be submitted.
3 Where the received wages are claimed to be less than the agreed wages, the worker shall certify the agreed wages.
4 If a woman claims the right to special protection during the third term (fertile breastfeeding), she must submit evidence of misbirth, miscarriage, etc.
5 In the case of filing an application for arbitration with the Labor Arbitration Commission, not on corporate property, and filing a suit with the court, the worker must prove where the labor contract is to be carried out.
6 If a non-fixed labor contract is claimed, it shall be demonstrated that it conforms to the requirements for the conclusion of an indefinite labor contract.

(2) Applies burden of proof to enterprises (Special burden of proof - Conversion of burden of proof)

1 In the case of labor disputes concerning termination of employment, reduction of wages, and determination of the length of service, the enterprise shall submit evidence (Article 13 on the slight application of the highest People's Court labor dispute proposal). In other words, the entity must present data proving its legitimacy by demonstrating the reasons for firing the worker, the reason for the reduction in wages and the basis for calculating the number of years of service.
2 In the event of a dispute between an entity and a worker over whether it is a fantasy, the entity shall:
It shall be borne the burden of proof and shall prove that it is not a fantasy (article 19 of the Commercial Insurance Ordinance).
3 Since the wage payment statement, social insurance purchase and insurance premium payment records, and absenteeism and tardiness inspection records are kept by the company, the company is responsible for submitting these evidence (Article 2 of the Ministry of Labor and Social Security's Notice on Establishing Labor Relations)
These evidence is under the management of the entity and the employee cannot submit them. If the entity does not submit these evidence, it is assumed that the employee’s argument is established. For example, if an employee claims not to have received wages, it is assumed that the entity did not pay wages if it did not submit a wage statement.

Based on the above-mentioned agenda, let's look at the issue of proving and distributing overtime costs in case of labor litigation.
1 Workers claiming overtime pay submitted rudimentary evidence: Some of the original absenteeism and tardiness records signed by the department manager in the above agenda have been obtained and submitted by the worker, and this record lists weekend overtime work every week.
2 The Company presents evidence that overtime work does not exist: In the above issue, it has submitted a wage statement signed by the worker. However, due to the wide gap between the number of working days on the wage statement and the number of absenteeism and absenteeism and tardiness records submitted by the workers, the court did not acknowledge its veracity.
3 If the company fails to verify paragraph 2 and also fails to submit a valid absenteeism and tardiness record, the court shall acknowledge the claim of overtime work by the workers based on paragraph 1.

As soon as employee dissatisfaction builds up and opinions begin with the company, it should be considered that employee evidence collection begins. In particular, overtime costs are the most frequently filed item at the time of retirement, so the company needs to pay attention to the following points to ensure that unfavorable evidence does not leak:
o If overtime expenses are not accurately calculated and paid, the workbook should be written, e-mail, Weissin, or the work group should be posted to order extra work.
o the act of specifying Saturday's normal work schedule in the labour contract, or employment rules;
o Write overtime hours on the wage table and other wage items (e.g. overtime pay, etc.) instead of overtime expenses;
an act of payment
o After overtime is completed, the written evidence provided in other name (benefit, subsidy) other than the cost of overtime is not included in the report;
the act of leaving behind

3. Working-level measures for overtime management

(1) Establishing an approval system for overtime review and approval - Control of unbridled overtime work

Article 41 of the Labor Law of China states, "User may extend working hours after consultation with the public and workers, by the need for production management." In other words, overtime refers to the task that the user gives instructions and the staff accepts and proceeds. It is not acceptable for a worker to work overtime on his own, despite the absence of a company's demand.
If the company has a overtime review approval system, the employee must obtain the company's approval in advance if he or she is unable to complete the normal work duties during normal working hours, otherwise it cannot be recognized as overtime. In other words, it can be recognized as a overtime work only if the company has arranged the overtime work or if the employee has applied for approval from the company in advance.
The company should avoid unnecessary disputes caused by lack of an arrangement or uncertainty of the arrangement by clarifying the implementation of the overtime review and approval system, without going through the overtime review process, and by making it clear that the overtime work is not subject to payment for an hour.

[Example] Are overtime work recognized in the absenteeism and tardiness record table?
Mr.Wang remained alone in the office every day and worked hard even after work hours had passed. After two full years of service, Mr.Wang tendered his resignation for a former job and at the same time charged the company with two years of overtime expenses. The company was incomprehensible. Because he never asked Wang to work overtime, and he voluntarily stayed in the office after work. In addition, for two years Mr.Wang had never asked the company for overtime. Therefore, the company replied that overtime payment was not necessary.
(labor arbitration result)
Mr. Wang's absenteeism and tardiness records show that he spent more than eight hours each day at the company
but there's evidence that he worked at the company after work
I didn't been submitted. The company has a clear overtime screening and approval system, but applies for overtime work.
Instead, he stayed at the company to handle business. So, Mr. Wang's behavior is...
I reject the claim because it does not belong to overtime.

As shown in the above example, a simple absenteeism and tardiness record can only prove that the employee has been in the company for a company.
Only. However, if the company does not have a "work permit system," the company will be in a difficult position to prove that its employees did not work overtime by using other evidence in the event of a labor action.

[working-level measures]

1 The employment rules stipulate the overtime review and approval system.
The overtime work shall be carried out after obtaining approval from the supervisor in advance using the application for overtime work.
[Example] "The company does not advocate extra work for the employees. The extra work of the staff must be done by the company.
It shall be approved or arranged and shall be approved by the company or by an employee without the company.
Voluntary overtime is not recognized as overtime."

2 A work permit system shall be specified in the labor contract.
In addition to the employment rules, the labor contract stipulates the approval system for overtime work. There is a legal risk if there is no commitment to labor contracts individually concluded 1:1 and only to employment rules. This is because if the employment rules are invalidated (e.g., employee's signature on notice, non-acquisition, etc.) the legal effect is lost.

(2) Preferred arrangements for alternative vacations

Labor laws stipulate that if extra work is given on weekends off (Tuesday and Sunday), alternative leave should be granted first. The legislative purpose is to ensure workers' right to rest first. Therefore, if overtime is ordered on the day of rest, the user may arrange the alternative leave as a priority, and in the event of a failure of the replacement vacation, the obligation to pay the overtime fee is incurred.
Since weekend overtime costs are 200 percent, it is necessary to control overtime spending first by choosing an alternative vacation. In some cases, employees refuse to arrange alternative vacations for the company after weekend overtime and ask for 200 percent of overtime fees, but there is no legal basis. However, in the case of certified and technical workers, replacement leave is generally applied to office management and business positions, as they often refuse to work overtime on weekends unless they are paid 200%.
The expiration date of alternative vacation days for overtime work on weekends is in accordance with company regulations, but it is often required to be used within three months. The legal acceptance of alternative vacations is limited to weekend overtime, and not to weekdays or legal holidays. It is a violation of labor law to grant them alternative leave when they accumulate extra work without paying extra work after ordering them to work on a weekday work.

[ Opinion on a Little Problem Related to the Thorough Implementation of Labor Law ]
Article70 If a worker is required to work on a day off, the employee shall first be given an equal amount of time off.
If it is necessary and cannot be granted a substitute vacation, based on the provisions of Article 44 (2) of the Labor Act,
Workers should be paid a premium wage (200%) of overtime hours.

(3) Rational arrangement of overtime pay riders

Except for some areas (acidity), most areas, such as Gangso-seong, Guangdong, and Shanghai, are recognized by the law enforcement agencies when the number of overtime workers is agreed within reasonable limits. For example, if a wage item is divided into several categories, the basic wage is set at approximately 70 per cent of the total, and the remainder is paid by various allowances, subsidies, and variable performance benefits, and if the basic wage is promised on the labor contract as a period of overtime, the expenditure on overtime can be reduced as much. It is important to note that, if an arrangement is not made, there is a risk that the entire wage will be recognized as a non-regular overtime period.

(4) Setting the fixed residual cost

In the case of an employee who works overtime for a certain amount of time each day, such as the driver or the production supervision of a factory, or the company that is required to work on Saturday, the total remaining hours of the month shall be set in advance and paid as a fixed overtime rate. This means that extra work is paid in advance, and the regular wage is reduced by that much, thus lowering the number of overtime
On the other hand, if a fixed overtime fee corresponding to the remaining work time of 20 hours per month is paid, an additional supplement to the overtime fee is required if the actual overtime time exceeds 20 hours.

[Example] Saturday Anti-Japanese Service Anbashi, Set Fixed Residual Expenses
For employees with a basic salary of 2,000元, the hourly overtime rate is 2000/21/75/8 =11.5元. If you work extra four hours every Saturday, it will be four hours by five times by 20 hours by 11.5 by 2 = 460 hours.
Therefore, if the basic salary of 2,000元 + fixed overtime (five hours on Saturday) is paid 460 = = 2,460위 and the wage statement states the extra work cost on Saturday, it is deemed to have been calculated and paid in advance. Without doing this, for example, if the overtime pay is set at 300元, the employee may at any time request for a supplementary payment for the difference of 160元.
Meanwhile, for example, in anticipation of a four-hour shift on Saturday, the company would have to pay an additional 20 hours per month in advance in the form of fixed overtime, but if the business conditions had actually worked eight hours on Saturday, the company would have to pay the difference from the actual overtime.

(5) Using the special working hours system - Conditions for obtaining approval from the Bureau of Labor

In the case of drivers, out-of-the-box salesmen, and advanced management jobs, the irregular work system can free them from the obligation to pay overtime. Even if it is a temporary work system, some regions, including Shanghai, Shenzhen and Honam provinces, require 300 percent of overtime pay for overtime work on legal holidays, while others are not required to pay overtime fees, whether on weekends or on legal holidays.
The comprehensive calculation work time system calculates the total amount on a given period of time, and the obligation to pay overtime costs is 150 per cent for the time that is exceeded. Compared to the standard working hours system, there is no need to pay 200% overtime for weekend overtime work, and it is possible to save a significant amount of overtime money if operated in an off-season way by reducing working hours and increasing them during peak seasons.

(6) Arrangements for labor contracts for effective working hours

The hairdresser doesn't do haircuts all day long, and when there's no customer, she's in the office.
Rest. If no arrangement is made, there is a risk that overtime charges will be filed upon retirement, saying that the entire office hours were working hours. To prevent this, a store, a hair salon, etc.
If the work intensity is not high, the atmosphere is high, and the rest area is available during the waiting period.
At the time of joining the company, the contract states that "the effective working hours of the staff are * hours per day."

03 Residual work management

The most confusing aspect of Korean businesses doing business in China is overtime work. This is because it operates a legal system that is quite different from Korea. For example, senior management positions, such as general account, are also theoretically included in the payment of overtime expenses, and while the nationwide increase rate of overtime fees is the same, the setting method of calculating overtime expenses (based amount) varies from region to region. Thus, in China, how to agree on the criteria for overtime fees in labor contracts, how to establish a pre-submission system for overtime work in-house, and how to effectively control overtime work by department and occupation are becoming very important tasks.

1. Basic rules for overtime expenses

1 Regulations for overtime work
o calculation formula for overtime expenses: number of overtime pay calculators (base) × premium rate
o overtime hours: the overtime hours shall be within one hour per day and the extra hours for special reasons shall not exceed 36 hours per month.
o Restrictions: Female workers and breastfeeding workers over seven months of pregnancy are not permitted to arrange overtime and night labor.
o Subject: Unlike Korea, all employees, including senior management positions, are eligible for overtime payment. Management cannot replace overtime expenses by paying administrative allowances.

a two-day overtime rate
o Standard working hours: applied differently by weekdays, weekends, and legal holidays
o Comprehensive calculation work hour system: 150% premium rate applied uniformly, weekday or weekend
o Non-regular work hours: flexible work hours with no fixed commuting hours, no overtime fees

Standards for overtime payment in the working hours system
Weekdays overtime weekend overtime work extra work
150% of standard working hours, 200% and 300%
150% and 300% of total calculation work hours
Extra work expenses for irregular work days are not applied (but in some regions, such as Shanghai, Shenzhen, and Honam provinces, 300% overtime pay is required during legal holidays.

Pay-rate wage system by number of production
• Weekdays = unit price × 150% • weekend = unit price × 200% • legal holiday = unit price × 300%
[Example] Production of 12 pieces of clothing daily by the company’s agreed-upon labor standard with the workers
If the unit price is 3元 per point, per unit price for overtime work:
12 points after production completion, unit price of 4.5 per weekday, weekend special work 6근, legal holiday 9元

3 Number of overtime pay calculators (基数) - Variation by region

The overtime rate is unified across the country, but the overtime rate calculators have different rules for different provinces. There are no rules for keeping overtime pay-per-mission rules, such as "pay-as-you-go rules" and "work-contract ordinances" in each province.
Except for provinces where some "ordinary wages" such as Shandong Province are paid by non-regular workers, the number of overtime expenses can be agreed on in labor contracts. However, it is important to note that an arrangement must be made within reasonable limits to be legally valid.
In the case of an entity that is located in an area where the contract for overtime pay is available, wage items that are paid on a fixed monthly basis, such as basic salary and job allowance, are included in the non-regular period of overtime work, but performance benefits, allowances and subsidies that vary from month to month are excluded from the arrangement. If the arrangement is not made, it is necessary for the entity to carefully review local regulations and make arrangements for the number of overtime expenses in the labor contract, because there is a risk that the entire ordinary wage will be recognized as the number of overtime pay in the event of a labor action.

Rules for setting up overtime payers by region

a dragon in a jockeyed area for extra work.
1 Labor and management may agree on the scope of "normal working hours wages" such as "normal working hours wages" as overtime pay, and "normal working hours wages" such as Guangdong Province. The two sides can promise "normal working-hour wages" as basic wages, while other allowances, subsidies and performance-based pay do not belong to "normal working-hour wages."
Basic salary, job salary, and job/technical allowance, which are fixed monthly payments such as Beijing, are all required to be made as overtime pay for fixed wage items in February. However, performance bonuses, incentives, and overtime pay, which are paid on a monthly basis, can be excluded from the number of overtime expenses.
the cost of overtime in the previous month's wages.
As the deductible amount becomes the overtime rate, the promised Shandong province "Wage in the previous month" becomes the non-regular worker, the remaining amount minus the overtime cost from the previous month's wage table becomes the number of overtime pay. Therefore, the number of overtime pay varies from month to month.
4 o commensurate with position
extra work expenses
Arrangements can be made by flagging.
o In the absence of an agreement, 70 per cent of the monthly wage for normal attendance is set as the period of overtime expenses, o In the event of an agreement between labor and management on "normal wages," the term of overtime fees, is enforced according to the agreement;
o If there is no arrangement, "70%" of the total wage (excluding overtime expenses) received on normal business trips is set as the basis for overtime expenses (most injury-related companies do not make an arrangement, but follow this approach)
5 o Agreements can be made in labor contracts
o In the absence of an agreement, the wage is usually paid overtime
Kang So-sung, o In case of an agreement between labor and management, follow the agreement.
(3) o Calculation according to the wages of the workers in the previous 12 months, if there is no arrangement;
(explanation) Allow reasonable arrangements between enterprises and employees. Once the agreement goes into effect, it's binding on both

4 Example of calculating overtime costs
The overtime costs are calculated according to the employee's hourly wage. The hourly wage is calculated according to the number of days of monthly wage calculation.

Hourly = Monthly wage ÷ Monthly wage calculation days (21.75) ÷ 8 hours

[Case]
The monthly salary is 7,000 won, basic wage is 5,000 won, and the number of overtime pay is agreed as basic wage. Employees work nine hours of legal holidays on Oct. 1, five hours of holiday work on Oct. 17 and two hours of overtime on Oct. 20 (Monday)

Cost of overtime calculation method overtime
9 hours, 5000 hours, 21.75 days, 8 hours, 9 hours, 3 hours, and 775.86 hours on Oct. 1 (Lawful Public Holiday)
5 hours, 5 hours, 5000.7521.75 days, 8 hours, 5 hours, 200%, 287.35 on October 17th (Tuesday)
9 hours, 5000元÷21.75 days, 8 hours, 2 hours, 150% 86.21 hours, October 20th
Total 1,149.42元

2. Residual work cost effective and burden of proof

(1) Intermediating labor disputes

The "poetry" of labor arbitration has 1 general prescription and 2

1 General prescription
The "protest" of a labor action shall be for one year, and the party may know that his rights are violated, or
Of course, it is calculated from the date it is considered to be known. That is, when it comes to self-rights,
If a labor action is to be filed within one year of retirement and no labor action is filed within one year of retirement,
The opportunity to be relieved of the rights that have been infringed is forfeited.
2 Special prescription
What is related to labor remuneration (wage) is that workers are employed because of worries about losing their jobs.
Some people are reluctant to file lawsuits. In light of this, the Arbitration for Labor Disputes Act is called "labor conservatism."
As far as is concerned, it is exceptionally stipulated that one year’s "time-to-day" restriction is not imposed.
In other words, within one year of retirement, there is no need to pay for all periods of labor (including overtime expenses) while in office.
In response, in theory, a lawsuit can be filed retrospectively without limits.

[Management Arbitration Act for Labor Disputes]
Article27 The time limit of applying for a labor dispute is one year. The time limit for arbitration shall be calculated from the date on which the party is aware or rightly aware that the right has been infringed.
 Regulations for General Time Effect
In the event of a dispute arising from a delay in payment of labor remuneration during the life of the relationship, the application of arbitration by the worker shall not be limited to the effective period ("one year") of arbitration set out in paragraph 1 of this Article. However, if the labor relationship is terminated, the application shall be made within one year of the end of the labor relationship.
 Regulations for Special Time Effect

Retroactive claim period for overtime expenses
Labor remuneration belongs to a "special time limit" that is not limited to a one-year arbitration period for the duration of the labor relationship, so a worker may apply for labor arbitration for any remaining work during his or her previous tenure within one year after retirement. However, since the term of preservation of the user’s wage payment evidence is stipulated in the Regulations for Paid Payment, the user is liable to verify only within the two-year retention period, when a labor dispute arises due to the labor compensation issue.
In other words, if the worker completes the basic burden of proof for overtime work, the user shall be responsible for proving that the claim on the part of the worker is groundless in accordance with the wage payment evidence, absenteeism and overtime work approval table, etc.
However, if more than two years are exceeded, the user must prove by submitting evidence to prove his claim, such as a statement of wage payment, as the period of preservation has expired. Realistically, it is difficult for workers to prove by submitting evidence related to labor remuneration two years ago, so retrospective claims for overtime are generally accepted for two years.

[Terminal Payment Settlement Regulations (1994)]
Article6 The company must record in writing the amount, date and recipient's explanation and signature of the wages paid to the workers, and shall also preserve them for more than two years to prepare for the examination.

(2) Distribution of burden of proof in case of overtime expenses

After the Labor Contract Act went into effect, the Supreme People's Court issued the Judicial Analysis (3) in September 2010, putting a Bree Ike in the case for overtime fees, as companies faced management pressure due to reckless overtime claims by workers. He imposed the burden of proof on workers for the existence of extra work. If workers fail to submit basic evidence proving that they are working overtime, for example, absenteeism and tardiness records, shift records, notice of overtime work, journal of work and wage statements, the company denies it, it will end up losing workers.
The fear of the Supreme People's Court's Court Justice's interpretation (3) has put a brake on the worker's lawsuit for overtime fees, as the workers were held accountable for the existence of overtime work. However, workers’ burden of proof only requires "a rudimentary level."
If a worker completes the "initial burden of proof" by submitting some solid evidence of overtime work (such as a company seal or a report on overtime work, or a report on overtime that has been signed by the head of the department, etc.), then the obligation to prove to the company that maintains the records of workers' work is transferred.

02 Working hours system

There is a standard working and special working hours system in China, and the special working hours system is again classified as irregular working hours and comprehensive calculating work hours. The most common hiring in our company is the standard workweek system of eight hours a day and 40 hours a week.
The company analyzes its functions well, and in order to control labor costs, it is required to ensure that the jobs that meet the requirements are identified.
In the case of a general calculation work time system, which allows overtime surcharges of 150% even on weekends, or for special duties with no fixed working hours, it is required to control overtime pay by implementing the irregular work system with the permission of the Labor Office.

1. Types of working hours

(1) Standard working hours system

The standard working hours system refers to a work system that assigns a minimum of one day of work per week, eight hours per day, 40 hours per week. It is the most commonly used work system in China. "Standard shift" is understood to mean "Monday-Friday commuting," "eight hours a day" and "two-day weekend breaks" but all three of the following are considered standard working hours and are not recognized as overtime.
1 8 hours of daily work. Eight hours can be located at any time of the day or distributed over several hours.
At least one holiday every week. However, any time in a week is possible (i.e., not weekends)
3 40 hours of non-examination every week.

Precautions for weekend work

One weekday work hours are shortened and in the event of the implementation of the system every Saturday morning (e.g., seven hours a day for five weekdays, five hours a weekday, five hours a week), there is evidence that weekly work hours do not exceed 40 hours in case of weekend overtime claims.
[Action] Record working hours on absenteeism and receive employee's signature at the end of the month
Preservation of evidence is required even if you send them to work on a weekend and arrange a two-day break on a weekday.
Failure to do so could result in a weekend overtime claim dispute.
[Action] Work hours are promised on a labor contract or a holiday that is arranged on a weekly weekday for absenteeism and tardiness records is recorded and an employee's confirmation signature is received at the end of the month.

(2) Special working hours system

In the event that an enterprise cannot implement a standard working hour system (eight hours a day, forty hours a week) according to the characteristics of production or the specific nature of the work, there is a non-regular work system and a comprehensive calculation work hour system (Rules on the Standard for the Assessment of the Employment of the Comprehensive Calculated Working Hours by the Ministry of Labor) in 1994.

1 Non-regular work hours system

The irregular work system refers to a flexible work system in which no hours are set, as a condition of the permission of the Labor Office, if it is not possible to hire a standard time work system according to the special nature of the work type (job). Because there is no need to pay overtime for employees who apply the irregular work schedule, it is an advantageous working-hour system for businesses. However, it is only approved by the Department of Labor when the target is judged to be a job whose commuting time cannot be determined due to the high-level management positions, salesmen, transport jobs and business characteristics.
[Central code - subject to irregular work hours]
1 Depending on the advanced management position, outdoor staff, sales personnel, some on-call staff, and the details of the work, during standard working hours
Other employees who cannot manage according to their needs
2 Long-distance transport workers, taxis, railways, ports, warehouses, and special handling characteristics.
Jobs requiring mobility
3 Due to other production characteristics, special demands for work or the scope of the position, the implementation of the irregular work system is required.
suitable other workers
On the basis of the above central regulations, each local labour bureau establishes and implements separate administrative rules, creating and implementing more detailed standards, so companies applying for irregular work must first check with the local labour bureau.

[Example] Job suitable for the irregular work system as stipulated by the Department of Labor in the Congregational Shaman
1. Advanced management position (the number of employees who sign on the annual salary system of the company's managers and fit on the irregular work system)
2. A full-time driver of a high-level management position; a secretary
3. Out-of-the-box employees
4. Long-distance transportation personnel and escort personnel whose wages and labor are interlinked
5. The load carrying personnel of airports, railroads, ports, warehouses, etc. where wages and labour are interlinked
6. Safety expenses, non-production personnel
7. Other personnel suitable for the implementation of the irregular work system due to production characteristics, special demands for work or positions
(Related regulations) Notice on strengthening work hours management and completing special work hours audit rules

[Applying the irregular work system to senior management positions]
Article 217 of the Chinese Company Law stipulates that the scope of the senior management position is "the general manager, deputy manager, financial officer, secretary of the company's listed company, and the person designated in the articles of association." However, it is necessary to confirm that each region has different criteria for recognition of the high-level management position of the Bureau of Labor.
In the case of Beijing, based on company law, the high-ranking management position is limited to "general accountancy, deputy assistant manager, finance officer and president secretary of a listed company." Diarrhea, designating a department manager as a high-level management position in the company's articles of associationHowever, the application of irregular working hours is not allowed for department managers. In Shanghai, however, the application of the irregular working hours system is recognized if the ministry is designated as a high-level administrative position in the articles of association.

Advanced management can implement irregular work without the approval of the Labor Office
In Beijing, it is the only place in the country where high-level management positions require approval from the Bureau of Labor.
No, the company can directly implement the irregular work hours system for high-level management positions (in the case of Bukkyung).
Article 16 of the Enforcement Rules of the Company's Comprehensive Calculation Working Time System and Working Time System.
In this case, in order to avoid future overtime disputes, the entity shall apply the irregular work system to the advanced management position.
It is necessary to make a clear commitment to the labour contracts

2 Comprehensive calculation work time system

The comprehensive calculation working hours system only applies to workers engaged in special tasks such as transportation, aviation, travel and architecture, and industries subject to seasonal intersections between peak and off-season, and under natural conditions. For example, after two consecutive months of overtime and holiday work during peak seasons, overtime payment is not required unless the total amount of working hours in a given period, such as the month, quarter or year, exceeds the total amount of working hours in a standard working day. If overtime is exceeded, only 1.5 times overtime is paid for the excess time (if working hours are legal holidays, three times overtime is required). To operate the system, it must be approved by the competent Labour Office in advance.

[Central code - subject to comprehensive calculation work time system]
1 Workers who need continuous work due to the special nature of their work among industries such as transportation, rail, postal transfer, river transport, aviation and fisheries
2 Some workers in industries subject to seasonal and natural conditions, such as geological and resource exploration, construction, decontamination, embankment, travel, etc
3 Other workers suitable for the implementation of the comprehensive work hours system

Total amount of working hours per cycle
Basis for Calculating the Total Amount of Labor Hours
20.83 x 8 hours per month = 166.64 hours a month, 250 days of annual workdays 20 12 months = 20.83 days
Quarterly 62.5 x 8 hours = 500 hours of annual workdays 250 days ÷ Fourth quarter = 62.53 days
250 days a year x 8 hours = 2000 hours a year 365 days a year - 104 days total of weekends a year
- 11 days of legal holidays = 250 days

2. Legal requirements for the special working hours

The category of special work hours does not permit voluntary implementation of labor contracts between businesses and workers, and must obtain pre-examination approval procedures for the frequency, target tasks and number of employees before the irregular work system is implemented.
If carried out without permission from the labor sector, it is legally invalid. If a worker raises a labor dispute, there is a lease size that is considered a standard working day and pays back overtime. It should be noted that a certain validity period is set, such as one year, on the state-run labor permit. It is necessary to apply for a renewal from the Bureau of Labor before the expiration of the term of validity

When applying for a special work hour system, it is necessary to sign the consent of the staff.
When applying for a special work system, such as the irregular work system, the application table requires the "public opinion" to be stated, and some local governments require the workers to sign their consent, which makes it difficult to obtain the consent of workers who do not want the special work system, which is penalized for overtime expenses, if they do not sign an agreement in advance.
(Note) In Xiamen, Daryeon, etc., workers' consent is signed on the application form for the irregular work system.
stipulate to be
Therefore, it is necessary to conclude that the Labor Agreement shall apply the irregular work system (or the comprehensive calculation work time system) under the approval conditions of the Labor Bureau when the labor contract is first signed (or signed consent on separate land) to prevent cases in which employees subject to the special work system refuse to sign the agreement at a later.

[working-level measures]

In the event that the company switches to a special work-hour system (in case of irregular work or a comprehensive calculation work-hour system) after obtaining approval from the relevant labor bureau during the period of the labor contract, the special work-hour adjustment relationship shall be stipulated in the labor contract department in advance when the employees of the relevant duties are hired.
"In the event that the work demand requires adjustment to the irregular work system or the comprehensive labor time calculation system in relation to the demand of the Eulbang position through approval of the labor sector, the party shall base its announced adjustment disclosure and agree to execute the Eulbang as it is."

01 Absenteeism and tardiness management

The most basic way for a company to proceed with its management of workers is to require employees to commute on time. If there were no constraints on myopia assessment, employees would be less time-conscious, and if the time-concepts of the organization’s members were loosened, it would inevitably lead to a lack of discipline in the workplace, as well as reduced work efficiency throughout the organization, and waste of time resources.

1. Overview of Absenteeism and Absenteeism

Absenteeism and tardiness management refers to the task of checking, processing and analyzing the attendance status of employees, such as commuting, late attendance, absenteeism, vacation acquisition and overtime work. Absenteeism and tardiness records are the basis for calculating labor compensation and are used as important evidence that must be submitted in court in the event of a labor lawsuit.

(1) Absenteeism and tardiness management method

There are various methods of absenteeism and tardiness inspection as shown below. An entity may choose the appropriate method depending on its business characteristics, size of personnel and job characteristics.
　　 Comparison of typical absenteeism and tardiness methods
Advantages of Absenteeism and Absence of Absenteeism and Absence
Difficulty in falsifying the records of absenteeism and labor disputes, signature requires supervision of the personnel who specialize in evidence capability and is applied to the workplaces of the few employees who are busy with statistics.
Time Recorder High maintenance cost due to the use of time cards applicable to any type of business. Small business establishment with easy proxy check, non-credit card or frequent loss
ID Access Card S/W facilitates statistical aggregation. Large-scale access to or access to a credit card can be conveniently checked.
Frequent card failure and loss situations suitable for work places isolated from outside
Fingerprint recognition check: Difficult to operate false information, convenient check speed for statistical aggregation due to S/W, and possible recognition failure due to weather factors
Mobile phone S/W Checkout outside of work combined with the location measurement function of the smartphone, such as a dependent salesman.

Prevention of Absenteeism of Absenteeism and Absenteeism
The manipulation of absenteeism and tardiness checks is widespread in the labor scene. Time recorders and ID cards are easy to check by proxy, and in the case of fingerprint recognition absenteeism and tardiness, they make silicon fingerprints and make proxy checks to other employees to earn extra money.
To prevent and ensure evidence of such absenteeism and tardiness, the entity needs the following preventive measures.
1 Strict punitive measures against absenteeism are specified in the employment rules.
[Example] Check absenteeism and tardiness cards on behalf of others, or check absenteeism and tardiness cards with others
If consigned (one: written warning, two: contract cancellation)
2 CCTVs are installed around the muscle tone inspection machine to record employee absenteeism and tardiness check activities.

Preparation of monthly absenteeism and tardiness inspection table
Before monthly wages are paid, it is necessary to compile a comprehensive monthly absenteeism and tardiness inspection record of each department's staff, overtime and vacation conditions. The completed summary sheet shall be sent to each department to obtain the employee's signature and pay the wages based on it.
Recently, most companies have been conducting fingerprint or IC card-based absenteeism and tardiness checks. Nevertheless, the records of absenteeism and tardiness that the company submits out of the electronic muscle record system in the event of a labor action are not adopted in the case of a labor action unless the worker acknowledges them because of their operability.
Therefore, it is desirable for electronic absenteeism and tardiness management to produce monthly absenteeism and tardiness record data, prepare the monthly absenteeism and check employee’s signature, and calculate the monthly salary based on that. Evidence that such an employee's signature has been verified is recognized by the court.

(2) Precautions for absenteeism and tardiness management

1 Poor absenteeism and tardiness evaluation directly leads to litigation risk
The Absenteeism and tardiness management system is the basic management work of the company, and the company shall be responsible for proof of the employee's attendance at the company in the event of a labor lawsuit with the employee. For example, disputes such as unauthorized absences from work and unpaid annual leave are all directly or indirectly related to the confirmation of rush hours. In the event of a failure to perform a Absenteeism Assessment or a poor performance, the Company may not submit a valid Absenteeism Assessment record to the court, which will soon lead to the company's defeat.

2 Reasons for absenteeism and absence are required
It is always happening when employees are absent from work due to sick leave and vacation. However, without clarifying the type of absenteeism, there can be disputes over whether they are absent without leave, vacation or vacation. In particular, annual leave should be compensated for double wages when unused, so the company should clearly record the situation of annual leave in the Absenteeism and then obtain employee's signature confirmation every month.

3 Need to confirm worker's signature on monthly absenteeism and tardiness tally sheet
Absenteeism and tardiness aggregate is used as a very important piece of evidence in labor litigation. The most controversial issue in the case is whether the Absenteeism and tardiness tally sheet, which does not have the employee's signature verification, has proven effective. The Absenteeism and tardiness statement, printed through fingerprints and ID cards, is subject to manipulation, so it is difficult to be recognized in law unless signed by an employee and denied by an employee in court. Meanwhile, various written requests, overtime work certificates, and CCTV recording materials installed in front of the muscle check size can be used as supporting evidence in the event of a lawsuit, so keep them safe.

4 Unauthorized implementation of the Special Working Hours System by the Labor Bureau
In the case of positions that implement special work hours, such as irregular or comprehensive work hours, approval from the Labor Office is required. Without the ratification of the Bureau of Labor and by bilateral agreements alone, they could face huge overtime pay lawsuits.

5 Clear definitions of working hours and abnormal work conditions and regulations on punishment are required
The company's absenteeism and tardiness management system includes such matters as the working hours system, the definition of work hours, punishment clauses, work hours arrangement, and overtime application procedures, and legal risks exist if the regulations are ambiguous or not properly enforced.
For manufacturing companies, a clear provision should be made for "work-in-time breaks" to prevent collective demand for overtime costs. Also, the definitions of tardiness, early leave and absence without leave shall be defined and the handling (punishment) shall be specified accordingly.

6 Need to establish an approval system for overtime work
The entity should clarify the review approval process for overtime to prevent circumstances in which employees work overtime for personal reasons and require overtime fees. Only overtime work, which was applied in advance and approved by the supervisor, shall be subject to overtime, and any unauthorized overtime work shall be recognized as voluntary overtime, and the verification procedures for after overtime work, actual overtime hours and the circumstances of completion of the work shall be stipulated.
2. Handle abnormalities at work

(1) Handling of tardiness and early leave

The processing of tardiness and early retirement requires different responses depending on the nature of the industry or the size of the company. For businesses with a large workforce such as manufacturing and distribution businesses, it is desirable to operate a system that requires strict attendance at work, such as overtime pay, cuts overtime pay for those who leave work beyond a certain level, and reduces their corresponding wages by considering it as unauthorized.

[Example of Employment Rules] Definitions of Perception, Early Departure and Handling Regulations
(1) If an employee checks a fingerprinting machine within an hour (including) after the time of work, it shall be considered late.
(2) For reasons other than the need for work, it shall be regarded as an unauthorized leave of work if the employee leaves the place voluntarily before work hours.
(3) If a person exceeds one hour late or leaves work without leave, he or she shall be treated as a half-day without leave (per day.
A deduction of 0.5 times the basic wage), a lateness of more than 4 hours or more (a deduction of 1.5 times the basic wage per day) shall be treated as one day of unauthorised leave of absence (a deduction of 100% of the daily wage) and a deduction of 100% for overtime pay.
(4) If there is more than three accumulated periods of late or early leave each month, the allowance for overtime shall be deducted by 100%.

(2) Handling unauthorized absences from work

Unauthorized absence is an act that seriously destroys the order of work. If the employment rules stipulate that the contract is canceled in a row of zero days, dismissal is possible. However, truancy should satisfy three conditions at the same time, the approval of the 2nd boss of 1 labour and the absence of a valid reason for 3rd Of these, the most important is Section 3, and if there are justifiable reasons, such as accidents or unexpected diseases, the company's dismissal is not recognized as legitimate.
Unauthorized absenteeism does not mean just absence without leave. It is also a form of truism that refuses to adjust the company's legitimate duties, does not go to work in a new position, or does not follow the company's instructions and thus does not take up a designated position. Companies need to set clear rules on what circumstances in the employment rules "are considered to be absent without leave or without leave" and to specify corresponding measures in the employment rules.

[Example of Employment Rules] Defining and Handling Unauthorized Absences
(1) If the following cases apply, consider it an absence without leave and dispose of it without leave.
1 Those who do not pay a request or do not report to work without approval.
Do not apply for an extension of the vacation even though the vacation period has expired, or apply for an extension of the vacation.
a person who does not show up for work despite his unauthorised consent
2 sick leave, person who has rewritten or forged a request certificate;
3 The reason for the request or the person whose certificate does not match the facts
4 Those who do not attend business meetings or company arrangements held by the company without approval
5 Those who disobey the company's job-coordination arrangements due to job-deficiency, fail to take up a new position, or fail to participate in education arranged by the company as a cause of job default
6 Those who do not come to work without permission during the handover period
7 If a person refuses to work without good reason, he or she is considered absent without leave and is absent without leave.
Time is reckoned as the time you refused to work.
8 Adjustment of duties or assignment without obedience to the assignment and without objection in writing,
a person who does not come to the work post at a fixed time.
9 Those who exceed the threshold of being late (1 hour) or who leave school without leave
10 All kinds of absences without proper cause
(2) Handling unauthorized absences from work
1 For half-day without leave, 0.5 times the basic wage per day shall be deducted and 1.5 times the basic wage per day for one day without leave.
Two consecutive days of absence without leave (including) or five days of absence accumulated in the year shall be strictly violated and the labor contract terminated.

3. Working-level measures for sick leave management

Brokers selling fake sick books on the Internet are rampant, and many workers are using them to fake illnesses. There are many measures to prevent abuse of sick leave, but the most effective way of doing so is to reduce the amount of sick leave to the maximum.
The calculation formula for sick wages is not unified across the country and varies from region to region. The two factors that determine sick pay are the wage term 2 payment rate. Of these, how to do the "payment rate" is defined by local legislation in each region, which creates legal risks if a company violates it. However, how to set the "wage term" exists in a flexible way for the enterprise.

Most companies pay based on "basic pay," not ordinary wages. At this time, what turns into a labor dispute is not a short-term sick leave of days or weeks, but a long-term sick leave of more than a month. In this case, a labor dispute may arise with respect to the basis for payment of sick leave wages. Since the generous calculation of sick leave from the perspective of personalization management can lead to the abuse of sick leave due to the lack of Daewoo's regular business trip, the company needs to study ways to reduce the payment of sick leave as much as possible, and it is enough to make up for the difference even if a lawsuit arises from the difference in sick pay, so there is no need to be excessive legal correspondence.

[discussing the number of sick leave calculators in Shanghai court]
In late 2014, let's take a look at the debate on sick leave and overtime calculations in Shanghai City Court.
Discriminatory application standard for sick leave wages and overtime calculation machines
Number of hours paid for sick leave calculation and number of hours spent calculating overtime expenses
In case there is an agreement between labor and management (when the agreement between labor and management is concluded, etc.), the amount agreed upon by both parties shall be included in the same.
* The number of sick pay periods should be 70 percent or more of the normal work wage (the expected income of workers if they report to work normally) as agreed upon by both parties.
* If the agreed normal work wages of both parties are clearly unreasonable, calculate them as 70% of the net income.
In the absence of an agreement between labor and management, in the absence of an arrangement, in the absence of an arrangement, 70 percent of the normal working wage, or in the absence of an agreement, the actual wage standard for the workers is not clear.
(Note) Normal working wage: fixed monthly, excluding overtime or irregular bonuses
wages paid

As shown in the table above, the Shanghai District Court judges that there should be a clear distinction between the number of overtime pay calculations and the number of sick pay calculators that do not provide normal labor (the position that overtime pay should be applied more strictly than the number of sick pay periods).
If a labor-management agreement is made in advance and the amount is not lower than 70 percent of the total wage, the court shall not consider the labor dispute as a violation of the law. Even if there is no agreement, 70 percent of the actual normal wage is the number of sick leave wage calculators, which is not a violation in Shanghai. This is the judicial judgment standard in Shanghai, but other local-based companies may also be able to set up and operate sick wages at an appropriate level.
[Example] If the basic wage (or job pay, including key wage items such as job allowance) is about 70% of the normal monthly wage (excluding overtime expenses), the labor contract clearly states that "the term of the sick pay shall be paid."

Reasons for submitting employee false sick leave
If a worker avoids going to work due to various causes, or if there is a labor dispute with a company, the usual method is to submit a sick person. Reasons for submitting false or over-paved sick leave exist as follows:
ᄋ Suffering from the long-term disadvantages of personal request, personnel performance and year-end bonus, the medical institution submits the number of sick people instead
ᄋ Even though it is a small disease, it is over-paved as a major disease, so long-term rest from illness (especially in third-term women)
ᄋ In the event of a dispute with the company, a long-term sick person is paid to avoid going to work (sometimes aimed at obtaining economic compensation by inducing the company to lay off).
ᄋ Submit sick employees to receive notification of termination of labor contract and to receive medical equipment that cannot be fired for a certain period of time
ᄋ Payment of long-term sick leave and double-occupation with other jobs outside

[working-level measures]

If false sick leave is widespread in-house, it will lead to lax corporate regulations as well as lower productivity and higher labor costs. To prevent this, companies need to create and operate a standardized sick leave management system.

1 Limit of hospital issuing sick leave (most important)
The majority of Chinese companies are required to attach sick leave certificates issued by "the city’s second or current hospitals" or higher when submitting sick leave to employment rules, even those issued by third-grade hospitals. Otherwise, there is a possibility of easily issuing and submitting sick leave certificates through first-class hospitals or clinics in small, poorly managed neighborhoods.
In the case of large-scale factories with thousands of employees, a number of hospitals in the city are designated to submit sick leave certificates for examination. Depending on the size of the city, a designated hospital is also available for large cities. For smaller companies, it is necessary to clearly limit hospitals that issue sick leave certificates to second-class hospitals or medical insurance designated hospitals in cities where they are located.

Hospital Classification Criteria in China
ᄋ Class 1 Hospital (with less than 100 beds): In Korean terms, a health center, a clinic, and a small hospital
ᄋ Second-class hospitals (with a bed count of 101-500): Hospitals that perform comprehensive medical services
ᄋ Class 3 hospitals (501 beds or more): so-called general hospitals, university hospitals, etc.
** Class 3, 2 and 1 hospitals are again rated 3 according to the level in the same water supply.
Class 1 pack/sick/sick/sick/sick/sick

2 It is mandatory to attach relevant evidence to the application for sick leave (most important)
The application for sick leave [Sample 6-2] shall use a prescribed form containing the doctor’s name and telephone number, and shall be available for confirmation if necessary. In addition, for example, sick leave of two days or more is required to attach the medical leave certificate of one hospital to the application for sick leave of one day or more to prevent abuse of sick leave.
Medical registration card, medical record card, medical expenses receipt, etc.

Attachment of evidence shall not be approved for sick leave, but shall be deemed to be a personal request price and treated as unpaid If the company refuses to submit a written request for a sick leave, it shall be treated as an unauthorized leave of absence, send a letter of notice to work in writing, and if it fails to comply with the company's employment rules, the company shall take measures to cancel the contract.
In particular, it is mandatory to issue an official receipt, such as a pharmacy issued by a hospital, when an employee is on sick leave for more than a certain period of time (e.g., more than five days) in order to prevent the employee from repeatedly submitting sick leave or suddenly requiring long-term leave. Since the official receipt is printed on the printer, the company can go to the hospital on the basis of which both the person's name and time exist.

3 Strict procedures for screening of sick leave
Depending on the number of sick days, senior citizens, personnel managers, and even general accounting, the payments are made in stages.
The institution thoroughly checks if the requirement is met when submitting by long-term hospital staff, as it stipulates that the approval procedure is carried out. For example, approval of a department manager who has been on sick leave for three days, approval of personnel affairs for five days or more, and approval of general account for seven days or more.
It is desirable to divide sick leave into two types for the convenience of the entity’s labor management.
(a) within 30 days: short sick leave;
(b) Over 30 days: long sick leave
In case of long-term sick leave, the medical device is also required to be re-examined at the company-designated hospital, if necessary.
Upon written notice, the medical institution shall take measures to terminate the labor contract if the medical institution fails to return even after the expiration of the medical institution.

4 Specify the authority to review sick leave of the company
In China, the issuance of sick leave certificates issued by brokers is common. Therefore, if the company raises reasonable doubts on the sick leave certificate submitted by the employee, the employment rules shall state the right to require the employee to go to the company-designated hospital for a re-examination.
The main targets of the re-examination include the submission of sick leave several times on a weekly or two-week basis, the submission of excessively long-term sick leave (certificate of sick leave for more than one month) or the submission of suspicious sick leave at the time of labor dispute with the company.

5 The employment rules stipulate punishment for false patients
The employment rules stipulate the punishment rules for false diseases, and the corresponding regulations are based on them.
take punitive measures For example, the act of submitting false sick leave is a serious violation of the company's rule system and specifies that labor contracts can be lifted.

6 Rational reduction of sick pay
If medical care is good, income that is not much different from normal business trips is maintained, so it is more likely to happen, such as deliberately submitting a false hospital, making a small bottle into a large bottle, or taking long-term sick leave and holding a concurrent job elsewhere. Therefore, it is desirable to create a wage structure so that the longer the sick leave, the less wage income.

ᄋ By changing the single wage structure of "basic pay + allowance", the proportion of other items is reduced and the resulting variable bonus items are expanded (if there are no existing items, new items are newly created and part of the wage increase is allocated).
Decrease or cancel performance bonus if monthly sick leave exceeds a certain number of days
ᄋ In connection with the annual absenteeism and tardiness situation (the number of days for which the medical leave is extended), the year-end bonus shall be paid by reducing the proportion of the employee with a long period of sick leave to a certain percentage corresponding to the period of sick leave, rather than paying a fixed amount to all employees
ᄋ The employment rules state that if the sick leave period reaches a long period of time, the employee will not be subject to wage hikes. For example, for those who have accumulated more than one month per year, they are not eligible for regular wage increases.

2. Wage for sick leave

(1) Rules for calculation of sick wages

The sick leave consists of two parts: the sick leave wage term and the sick leave wage ratio. During the period of sick leave, the employee does not provide normal labor, so sick wages should be naturally lower than normal wage levels. Therefore, calculate the sick rate by discounting it twice as shown below.

Calculation formula: sick leave wage term (base) × sick leave wage ratio

1 Number of sick leave wage terms: the number of sick leave wage terms, for example, "basic salary," etc.
In the case of a calculation, the number of units (bases) becomes the agreed wage item, not the entire wage. therefore
Focusing on major fixed wage items, excluding allowances, subsidies, and performance benefits, on labor contracts
It is desirable to make an agreement on the number of sick pay periods.
2 The rate of sick pay varies somewhat from region to region, but most regions have a percentage depending on the number of years of service.
be set at a different level The sick leave period will be six months on the alert, and the payment ratio will be lowered.
[Wage for sick leave] = (Number of sick leave wage calculators (基数)2121.75) × rate of sick leave × days of sick leave

(2) Applying the combination of national unification and local rules;

The rules for the payment of sick wages exist throughout the country, and if there are no local rules, the national unification rules will be enforced nationwide.
Only unified rules apply, but if local rules are present, central and local rules are applied at the same time.

1 National Unification Rule - stipulate the minimum minimum wage limit for sick leave only
The minimum wage for sick leave is 80 percent of the minimum wage for the country. That is, sick leave is not an option.
It should be more than 80 percent of the minimum wage.

[A little bit of a question on the enforcement of Labor Law]
Article59 In cases where a worker is in the treatment period due to illness or non-work injury, in the case of a prescribed medical period, the entity shall pay sick leave wages or disease relief expenses in accordance with the relevant regulations, and the sick leave wage or disease relief cost may be lower than the local minimum wage standard, but cannot be lower than 80 per cent of the minimum wage standard.

2 Local rules - specifically stipulate how sick wages are calculated
Various local gender laws stipulating how to set up sick leave wage terms and the rate of sick leave wage rates in each province
As the entity operates (eg wage payment ordinance, etc.) and so on, the entity identifies the relevant rules of location.
need of
Among the local sick leave rules, Beijing is the most favorable to business. In the city of Beijing, one can make an agreement on the number of sick pay periods in labor contracts and execute them by lowering the minimum wage by up to 80 percent, regardless of the high wages of one's own.
The majority of provinces except Beijing have stipulated that sick wages should be paid by multiplying the rate of payment by the length of time and years of service. Therefore, in order to reduce the number of sick pay periods (bases) as much as possible, the government should study ways to curb the level of sick pay by dividing wages into basic pay, performance pay, and allowances, and making arrangements for the period of sick leave pay as basic pay.

(3) Three types of sick leave pay by region

1 Based on the employee's years of service and wages, a certain percentage is paid (injury, reduced intensity, etc.)

This method is based on the draft Tax Regulations for Labor Insurance Regulations (1953), which stipulates that a certain proportion of one’s wages should be paid according to the number of years of service, and the higher the number of years of service, the higher the rate of sick pay. It is important to note that although the large frameworks are similar, they create independent regulations that vary from region to region and apply the criteria differently.

[Case - Injury City]

Number of sick leave wage terms (one discount) 병 rate of sick leave wage (second discount)

(1) First discount rule: Number of days of sick leave wage
The number of sick leave wage calculators can be agreed on the labor contract. The basis for the arrangement of calculation instruments means the predictable income acquired from normal commuting (including one-time or temporary income) and should not be lower than the 70 per cent criterion. If the two parties do not agree on the number of sick leave wage calculators, the calculation period of sick leave wages shall be determined on the basis of the above-mentioned normal commuting wage 70% 70 per cent.
(2) Second discount rule: rate of sick leave wages
The proportion of sick pay depends on the length of the employee's sick leave and the length of his or her years of service. Generally, the longer the period of sick leave and the shorter the service life, the lower the rate of sick leave wage.
Rate of payment of sick leave in case of injury
Percentage of payment in comparison to the number of years of service calculation for the company per sick leave
Within six months...
Disease leave payment
(疾病休假工资) 60% less than 2 years
70 percent in less than two or four years.
Over four years, less than six years, 80 percent.
Over 6 years, less than 8 years, 90%.
100% over 8 years
Over 6 Months--
Disease relief payment
(疾病救济费) 40% less than 1 year
50% less than 3 years over 1 year
60% over 3 years

(3) Upper/lower limit of sick leave wage
ᄋ Upper limit on sick leave wages: Monthly average wage for the previous year in case of injury (15: 5939元)
ᄋ Minimum minimum wage for sick leave: 80% of the minimum wage in case of injury (after the principal burden social insurance, kitchen utilities deduction)

2 Based on employee wages, a certain percentage is paid (Sandongseong, Shenzhen, Seomseoseong, etc.)

A typical model of this approach requires that 70 percent of one’s wages be paid as "bottlenecks" if the period of sick leave is less than six months, and 60 percent of one’s wages as "disease relief" if it is more than six months. In addition to Shandong Province, Shenzhen City and Seomseo Castle are also applying this method. In order to lower the number of "main wages," it is necessary to make a monthly commitment to major fixed items such as "basic pay" in labor contracts and employment rules.
He pays 60% of his wages for sick leave.
Simcheon City Employee Payment Ordinance, December 2004
Seventy percent of the promised wages for labor contracts are paid as sick wages.
Island Business Payment Ordinance, Inc.

3 Payment in accordance with the agreement of labor contract (North Gyeongsang, Kang So-sung, etc.)

The representative model of this method is Beijing and Kang So-sung, which is stipulated to pay sick wages according to the agreement of the labor contract. In other words, it is allowed to make an agreement between labor and management on the labor contract and implement it based on the assumption that the lower limit of sick wages (80 per cent of the minimum wage) stipulated by the national law is complied with.

[Wage payment regulations in the relevant provinces]
Article21 In the period during which a worker is on sick leave due to illness or non-work injury, the user shall pay the sick leave allowance in a lump sum on the basis of the agreement of the labor contract or collective contract. The sick leave paid by the user should not be lower than 80 per cent of the minimum wage standard in this city.
Article27 During the medical period prescribed by the State, sick wages shall be paid according to the provisions of the company's salary distribution system, labor contracts, collective contracts or relevant regulations of the State, and shall not be lower than 80 per cent of the minimum wage of the company's location.

03 Care of sick leave

One of the most complicated and difficult areas of Chinese labor law is the issue of sick leave. In particular, problems such as long-term sick leave due to illness and injury, how to calculate the medical period, and how to pay sick leave wages during the period of sick leave have no clear criteria across China and are operated differently by provinces.
In China, the payment of sick leave wages is mandatory even during the period of sick leave, and it is not possible to lay off the medical plane during the period of employment protection, so there are frequent cases of abuse of sick leave such as false disease and fake illness. Therefore, companies need to take measures to prevent abuse of sick leave.

1. Concepts of medical devices

(1) Understanding medical devices

If an employee is absent from work for reasons unrelated to his or her work, the employee shall apply for sick leave to the company by attaching a doctor's certificate, and the company shall grant" sick leave" if the employee complies with the sick leave conditions. In case of a disease or injury that requires months of long-term care, the company cannot wait until it is fully recovered indefinitely, although an employee may need a period of employment guarantee to be treated with confidence. In order to reconcile these conflicting interests between labor and management, there is an unfamiliar rule for us called "medical period."
Medical devices are not "duration of care," but "enjoying legal rights to care" by employees.
Means the period. During this period, the company cannot unilaterally terminate the labor contract, and the period is
Even if the labor contract expires within the period, the contract expiration date is automatically deferred until the end of the medical period.
However, even during this period, the lifting of disciplinary action due to the negligence of workers (Article 39 of the Labor Contract Act) and
The lifting of the mutual agreement (article 36) is possible.

the difference between sick leave and medical equipment
"Sick leave" and "medical machine" have different personalities. "Sick leave" is the period during which a worker is suspended and treated with the approval of the company, with the approval of the company, the period varies according to the condition, and is a kind of physiological concept. On the other hand, the "medical machine" is a legal concept, and the medical period is a worker.
The period of employment is defined according to the years of service, and the period of employment is protected according to the regulations.

Criteria for setting up medical devices
When an employee ceases to work and receives treatment, he or she is granted medical equipment ranging from three to two to four months depending on the number of years of service (Article 3 of the Regulations for Medical Periods due to Corporate Work Disease or Non-Work Injury) in 1994.

(2) Criteria for setting up medical devices

The length of the medical period depends on the employee's service life. In accordance with the above provisions, common national medical period standards are applied, but in the case of Shanghai, it is important to note that independent medical period regulations are promulgated and independent calculation methods are employed.

1 Common medical device setup across the country

The national common "medical instrument" setup standard stipulates that not only one's own company but also another's service years are combined. 1 The "Tongsan Service Years," including the years of service of the company in which I worked in the past, and 2 The "Medical Machines" are calculated on two axes. Employees' past service years in the company are responsible for proof, and the company does not need to accept claims of years of service that have not been clearly identified by social insurance payment records.

National Commercial Medical Instruments Standards (Shanghai is subject to separate rules)
third-party
Calculation cycle of "Total Service Years" in this company for the legal period of medical care
Less than five years, three months and six months
More than five years, six months, 12 months.
10 years or less, 6 months and 12 months
not more than five years, not more than ten years, nine months, and fifteen months.
For more than 10 years, 15 years, 12 months, 18 months.
18 months and 24 months, 15 years or less.
More than 20 years, 24 months and 30 months.

calculation of medical instruments
If an employee is on sick leave and continues to receive treatment without going to work, the medical device is terminated at the expiration of the applicable medical deadline. However, if the employee is treated repeatedly and is on a regular basis, the medical device calculation is calculated as a cumulative number of sick leave within a given medical device’s computation cycle. In other words, if the legal medical period is three months, the medical instrument calculation cycle is given six months, during which the medical device expires at a time when the accumulated number of sick days reaches three months.

[Method of calculation of medical instruments]
1 Determining the legal medical period based on the number of years of service
2 Determining the "calculation cycle" based on the medical period
3 The accumulated number of sick days within the "calculation cycle" determined in paragraph 2 above confirms the maturity of the medical device.

After the calculation cycle has passed without exceeding the legal period, the acquired "medical instrument" is reset and, in the event of a disease or injury, a new "medical instrument" can be acquired. For example, if a medical care period of three months was granted as a six-month calculation cycle, and the medical care period used as a cumulative period is 2 months and 29 days, and the calculation cycle of the six-month period has elapsed, and the disease and injury occur again at any point since then, again, six-month calculation cycle and within that cycle.
The medical care period is given three months.

[Example] In case sick leave starts on March 1, 2008 and medical equipment is 3 months and calculation cycle is 6 months
ᄋ If you have applied for consecutive sick leave without going to work: medical flight expiry on June 1, 2008
ᄋ If sick leave and rush hours are repeated on a regular basis: The medical period expires on September 1, 2008 when the accumulated time of sick leave exceeds 90 days

extension of medical instruments
For employees with some special diseases (cancer, mental illness, and hemiplegia), it is possible to extend the medical deadline appropriately after 24 months of inactivity and ratification by the corporation and the local labor bureau. However, the company has the right not to approve the agreement, as it only stipulates "possible" on the condition of ratification by the Company and the Bureau of Labor, and is not legally enforced (in the event of "corporate occupational disease or non-commercial injury).
Notice on the Pipeline of the Medical Term Regulations, 劳部发[1995]236].

2 Method of setting the medical period in case of injury (only applicable to companies with materials in case of injury)

The city of Shanghai is employing its own "medical period" calculation method. In the case of Shanghai, it is considered unreasonable to calculate the combined service life of another company and only calculates medical instruments based on the number of years worked by this company (Rules on the Standards of Medical Devices in the event of a disease or non-commercial injury during the period of the performance of the labor contract, 15[2015]).

(3) Announcement of employee annual leave

Article 18 of the Regulations for Annual Leave clarifies that the Gregorian calendar, or 365 days, is managed as a calculator from January 1 to December 31 every year. Accordingly, the entity uniformly distributes all of its employees on an annual basis (January 1 to December 31), and the employee enters the entity during the year and leaves the entity on an annual basis commensurate with the remaining period (December 31) at the end of the year. While there are two ways to arrange annual leave, entities generally operate a mix of both:

1 The company uniformly complains. It is required to arrange unification of the two to five days in line with the time when the company's production activities such as Spring Festival are suspended, and to set a period of partial periods, such as the peak season, as the period for annual leave use period. The remaining period of use shall be approved by the department manager and used on annual leave according to personal circumstances.
2 Annual leave is granted according to personal application, without a unified In this case, we're going to have to have a staff member.
If the management of the annual use status is not strictly enforced, it is likely to face a demand for unpaid annual leave compensation at the end of the year.

Unification Announcement of Annual Holidays
A Korean factory in Qingdao used legal annual leave around the spring or summer season, or when the factory was free, by uniformly arranging several days off for all employees. However, an employee has demanded compensation for not using his annual leave when resigning. The company arranged the holiday for unification, but lost the labor case because there was no written evidence that it was arranged in the name of the annual leave.
In the event of a unified arrangement of the company, a written document can be created to indicate "No Day of Year Holiday," or "No Day of Year Holiday" on the wage statement, or an employee's signature verification can effectively prevent labor disputes.

3. Compensation without annual leave

Need to pay compensation if sorry for annual leave
Since it is the legal obligation of the company to arrange annual leave, the diarrhea employee did not apply for annual leave unless the employee submitted a written waiver.Even if it does, it should be arranged principally.
A 200 percent compensation obligation will be imposed on companies for unused annual leave. by regulation
It is 300 percent, but it includes a normal wage, which is actually 200 percent.
Meanwhile, the arrangement itself is legally invalid because the in-house rule, or the company’s claim, "because the employee has not applied, is considered automatic abandonment," is itself a violation of relevant laws.

[Basic amount of compensation for unearned annual leave]
In case of compensating for unearned annual leave, the standard of first-class calculation is not the wages of the month, but the unearned.
This is the monthly average monthly salary of 12 months, excluding overtime expenses before the annual leave compensation (performance, allowances, and other benefits).
All bonuses, etc.)

Managing the use of annual leave
The entity should manage its employees’ annual leave to be completed within the year. It is important to note that while unacquired annual leave may be carried forward to the following year with the consent of the principal, it is inevitable to compensate 200 per cent if the end of the year is not over, if the end of the year, reject the consent and demand compensation, or if you retire.
Therefore, employees with an unacquired number of days remaining must be sent a notice of employee annual leave by the end of the year or two using the Employee Annual leave Execution Plan [Sample6-3] to determine the status of their annual leave use before the end of the year, requiring completion, or withdrawal of use within the time designated by the company.

Precautions for additional compound annual leave payment
Some Korean companies follow the Korean-style system, giving them extra annual leave in addition to legal annual leave in terms of benefits. In this case, if the company manages a mix of legal and compound annual leave, a dispute over payment of compensation may arise later. The legal characteristics of both parties are completely different, and since legal annual leave is mandatory for the payment of compensation when unused, the company shall manage the legal and the benefits annual leave strictly separately.

[working-level measures]

1 Regulations permit the use of a compound annual leave after its use has been completed from the legal leave.
The vacation application form identifies whether it is a "court annual leave" or a "benefit annual leave."
Set up a separate column
2 Request confirmation and signature of cumulative continuous service life after confirming that evidence is submitted at the time of employment.
If you have any other work experience at the time of your employment, submit a social insurance payment certificate, etc
Obtain a confirmation signature on the document on your cumulative length of service.
3 Specifications for the effective clause of unused annual leave
Welfare annual leave is not legally required to pay compensation for non-use.
Set a clause in the employment rules that automatically becomes effective when not in use by the end of the year

In case annual leave is wasted early on retirement
When an employee retires, the employee shall not be entitled to a wage deduction for early use if the number of annual leave days available for the year is exhausted. For example, if an employee with a cumulative two-year service life retires after using up to five days of the annual leave of the year at the end of January, the entity cannot deduct that daily allowance for overuse of the employee’s annual leave. Therefore, it is necessary to set up and manage the usage by a certain period, such as half-yearly leave.

Response to unused annual leave upon retirement
In the event of termination or termination of a labor contract with an employee, the employee shall be required to ensure that unused annual leave remains. The calculation formula is as follows, cutting less than one day.

(Number of days remaining in Calendars × 365)휴 Number of days available for annual leave-number of days spent in the current year

[Example] If an employee with a two-year cumulative service life is terminated on March 31, the employee’s unused leave will be zero if the employee has already used one day of annual leave. (90 days ÷ 365 days) 5 5 days 1 days = 0.23 days * Cut according to decimal point law

[working-level measures]

1 Voluntary resignation person
In the event of voluntary resignation, the company notice is in principle 30 days before the resignation, and if the resignation is submitted, it will not be obtained.
at an appropriate time after the end of the annual leave.
take care of retirement
2 Termination of employment at the time of contract expiration
The employee who is due to terminate the contract shall either be required to use the annual leave by checking the number of unearned days in advance or by giving notice of the annual leave plan.
3 Dismissing the Negotiation
When negotiating, the end of labor relations is adjusted to the completion of unused annual leave use.
4 Discipline.
The company does not have an obligation to pay compensation for the annual leave because the disciplinary notice has made it impossible for the management to arrange annual leave due to the employee's negligence.

 HR's role (constructing organizational structures that can continue to innovate and designing organizational operational mechanisms)

1. Innovative Organizational Mechanism Design

According to experts, the innovation equation is ‘Innovation’ = ‘Smart People’ + ‘Creative Environment’ +
Is ‘Outlet for ice’.
To summarize Google’s product innovation activities in this innovation formula:

Under the 20% rule of Google, all new ideas in the company are proposed by members in the Bottom - up method and engineers are encouraged to spend 20% of their time on projects of their own choosing. And Google's organizational management style can speed up the productivity and speed of innovation by forming a team with a small number of people centered on a small Cross - function team to prevent free rides between team members and focus on what is essential.

In the case of Google, responsibility and authority for new product development are fully delegated to the project team and the operation of these project teams is entirely PM-oriented.The company is responsible for the P&L, delivery time and quality of the product by leading the major decision making of the entire process in which the new product ID is found and commercialized.

Through its own innovation governance, management policies, Google is creating a creative environment where innovation can continue, through the Google Product Council and Strategy Forum, deliberating ideas, assigning people, money to selected ideas, and managing the entire process of innovation such as periodic checks.

In addition to the 20% rule, 70 : 20 : 10 suggests that 70% of engineers' time use should be spent on core business, 20% on expanded projects, and 10% on fundamentally new business projects.

Through Google’s unique innovative organizational operation, it can create an atmosphere where 1) resources are made available to new businesses, products, 2) collaborative structures and processes are used to integrate the overall expertise of the organization in the process of commercializing creative ideas, 3) innovation must be incorporated into organizational strategies, and 4) creative ideas of ceaseless members can be voluntarily proposed.

For the success of innovation, innovation projects, product development should not be viewed or begged to secure the time and resources needed in the process of commercializing new business ideas, but should be coordinated across the boundaries of the organization without silo between each organization, have interest and responsibility for changes in the top management, and have assessment standards and methods for innovation. And based on a clear hierarchy, the idea of innovation cannot be unilaterally brought down from the top.

From this point of view, the IBC organizational aspects of the market are a constant source of disruptive innovation and products.
Organizational operating mechanism for discovery and commercialization should be designed, and the following two big things in design:
Has a task.

1 Building Governance for Innovation
2 Maintaining the PM-centered Project System
3 Finding new product ideas and securing a connection system for commercialization
(including establishment of business/product ID and item pipeline)

Building Governance for Innovation
In the case of leading companies seeking innovation, the company has a ‘innovation governance’ that enables the selected business, product ID, to be commercialized without interruption in the middle of the development and commercialization of new business opportunities.

It is far from easy to persevere with the long journey that the ideas of immature new businesses and products are adopted, loaded and led to commercialization, and to put in large organizational interests and resources. Easy to be crushed by existing short-term, centered organizational systems.

According to research by corporate management experts, companies that maintain their survival and financial performance in a complex, ambiguous and rapidly changing environment simultaneously manage the gradual improvement of products and non-continuous innovation of products within their businesses. It requires a different organizational approach between existing and new businesses.
Ask. Existing businesses in the growth industry require efficiency, control, and clear hierarchy, but flexibility, autonomy, and collaboration must be managed to develop new businesses. Successful companies manage these contradictory structures, procedures and cultures skillfully.

IBM, GE, Google, and others are managing innovation, making it a good fit for different business environments.
If you look at the organizational operation, first, you can separate the organization from the existing organization, like IBM and GE, and separate the new business organizations.
It runs on the road and Google operates in an integrated way within its existing organization.

IBM is the CEO of an EBO organization dedicated to innovation.
EBO Project Team to discover and commercialize a new project that can cost more than $1 billion within 4 years
I'm going to the Global Technology Outlook team at the same time to discover the future technologies that I need for my overconfidence business.
in motion

Google has a separate innovationGovernation, but it's basically a continuation of the Start - up organization.
The company has an easy-to-deploy organizational operation method for discovering new business and product items.
Enterprise-wide, through future investments, new business items are prioritized (Top 100List) + management.
Top's interest in new business, 70 : 20 : 10 rule, 20 percent rule, management policy and small project team
The company manages innovation everyday through the central organizational operation and evaluation/compensation system.

Second, we are building a clear innovation governance, through which we have separate funds to take the lead in finding, experimenting and commercializing the innovation idea.

In this regard, IBM's governance of innovation as a separate organization will be able to recognize how a well-trained competitive approach to business success in past mature markets can impede the evolution of new growth businesses and understand the mechanism of organizational operations for successful innovation in enterprises.

When he took office, Lugersner emphasized innovation to emerge from IBM’s business crisis and instructed each business to allocate and execute one growth project.
However, most projects are not pushed forward and are scaled down or suspended.After looking at the reasons, Mr. Lugusner found that it was an over-obsessed obsession with existing businesses. "It's hard to work for a new business at a time when we need to focus our budget and manpower on the existing project and the project itself is not reflected in the quarterly results," said the heads of the business division.

As a result, Lugusner concluded that new growth projects within IBM cannot evolve from the existing business operating system. At IBM, the barriers to innovation could be addressed as follows:

• Existing management system provides value for strategic business development and rewards at the center of short-term performance execution
a poor hand
• The company is currently interested in the market and existing Offers.
- Product development process focused on existing markets and customers
• Stable profit over high price and profit, emphasis on profit and loss improvement
- unrealistic expectations that the new project requires more than a break-even point within a year or two.
• ‘Factor based Financial analysis’ new business based on market insight
a hindrance to the business development of an idea
• Lack of diskipline in which the company selects, tests, punishes and terminates new growth projects
- crushing new business opportunities with existing management systems
• Business leadership that IBM designs and develops new business models
Lack of Skills, New Start - up Requires Patience, Lack of Continuity

Through these results, Lugusner said, "The growth industry (Hrizon1), which is currently the main focus of the business, is the mature business (Hrizon1).
Differentiate between Hrizon2 and new business (Hrizon3) and organizational operation and management methods by project.
became aware of In the end, Lugusner created a separate new business organization and EBO organization, separate from the existing business, to intensively foster Hrizon3 and integrated the Horizon2 growth project from exploration of promising items to full transfer to related business units.

IBM's Innovation Governance is characterized by the interest of CEOs in existing business units.
It operates in a way that leads to cooperation. In the EBO organization, the EBO Chief Executive is appointed
A new business executive is in charge of each growth project team after reporting the folding idea or implementation situation in person.
In addition, the chairman directly participates and not only new business executives, but also heads of business units and executives related to business units.
A monthly meeting attended by the participants to share the current status of the new project in the conference room and the existing project.
It is required to check the level of resources

And to have a Sponsorship for new business projects to senior executives in the business sector and business units.
I'm doing this, and I'm transferring one senior business executive to a project within the EBO.
is responsible for the success of the project and is supposed to provide organizational cooperation and support.
EBO Chief Executive is managed to prevent the elimination of business items that have no benefit to the project manager but have a negative impact on the profit or loss of the business unit in the short term but have a financial effect on the company in the long term.
(Of course, it is important to come up with an exit strategy that can ‘quick stop’ quickly when progress is judged to be insufficient or customer value creation is not feasible during the new project.)

In conclusion, companies in uncertain and rapidly changing industrial environments such as IBM and GE need separate organizational structures, governance and other business capabilities to manage innovation, so they need separate organizational operating systems, incentives and procedures in conjunction.