배움과 공유의 시간

01 Performance stock wage management

With the implementation of the Labor Contract Act strengthening the protection of layoffs and prolonged labor relations, wage management has become more important for securing personnel rights, meritocratic personnel and workforce metabolism. However, the Korean corporate wage system still has a rich Korean color, making it increasingly difficult to manage the workforce and the reality of employment in China. Korean companies are required to switch to a wage system that fits the local employment climate three to five years after the establishment of the corporation.

1. Single rescue wage system vs. Combined Structural Wage System

Wages once agreed in labor contracts cannot be changed unless agreed by workers. If the wage item is not split and the entire wage is agreed upon as a fixed salary, the company will not be able to exercise the right to adjust wages according to changes in employee's work attitude and performance. If wages are not linked to responsibilities and performance, and are operated under a seniority-type fixed wage system, the longer a company's history of advancement, the less willing it is to work.
The stagnant phenomenon of human metabolism will be unavoidable.
Many Korean companies use the simple Korean-style single-structure wage system even when they come to China. Although there is no burden of complex overwork and there is no friction between employees due to equal payment, the company can face difficult situations in which it cannot cut salaries and it needs to be fired even if employees show an unexpected position of work or need to be expelled.
Of course, low-wage businesses that have nothing to do with wages themselves being very low will have no choice, but continuing the fixed-wage system is not a desirable option in terms of employee management or labor costs.
The single-structure wage system has a fixed amount of wages, and once it is agreed to in the labor contract, the entity cannot unilaterally reduce wages, which in turn results in significant restrictions and restraints on the entity’s exercise of self-employment rights. In the case of the composite structural wage system, the variable portion can be flexibly adjusted according to the outcome of the high performance.

The single-structure wage system o-payment is fixed in the form of fixed amount, and the items are not split.
o Basic salary + allowance + overtime pay form
Combined structural wage system o wages are divided into two parts: fixed and variable.
o Basic salary + job pay (or job allowance) + higher pay + allowance + overtime pay form

The majority of Chinese companies adopt a combined structural wage system. In other words, the company only bears the risk equivalent of "fixed wages," while the remaining "varying wages" are passed on to employees. It goes without saying that it is a complex structural wage system that is advantageous to businesses.
The labor contract is carried out in such a way that only fixed wages (e.g., basic wages) with the nature of "living security pay" among employees' wages are clearly agreed upon, and the job pay and the variable portion are paid in accordance with the separate wage management system.

2. Basic Concepts of Multi-Structure Wage System

The percentage of employees employed for life is increasing day by day at companies with long history of advancement.
Some Korean companies are lax in management of non-fixed contracts, resulting in 90 percent of the dozens of office workers being employed for life. If the age of lifetime employment is not linked to the responsibilities and performance of the employees concerned, and the wages are operated under a fixed wage system of seniority based on the class system, the higher the percentage of employees employed for life, the greater the company's right to appoint personnel.
The event will be further constrained, and the personnel gridlock will be even worse.

(1) Dividing wages into three parts: guaranteed salary, job pay, and performance pay

When a non-fixed contract is concluded, the company must reform the wage structure to increase the proportion of job-level (job-pay) and performance-based pay, and in the case of employees with poor performance, the company needs to redesign to receive only guaranteed wages.
By changing the wage system into a complex structure, the wages of employees are divided into three modules: basic wages (guaranteed wages) and job wages (payments commensurate with positions in charge) and performance wages (payments subject to variable outcomes), minimizing the risk of unnecessary overpayment for employees with poor performance.
To do this, it is necessary to split the comprehensive "basic-level" items currently adopted by most Korean businesses into two. One is "basic level (guarantee level), the variable amount committed to the labour contract, and the equivalent amount of each job (occupation level) adjusted annually according to the in-house value and performance of the "occupation" that the employee is responsible for. In other words, the basic wage (guaranteed salary) must be paid as long as it is on a regular basis.
Igo, the level of duty is a "relatively fixed" salary paid, depending on the function (occupation) in charge.

Set a certain range for the job level

In this way, if you divide the job class into ranges of 5 to 15 grades for each position, each year the user will be able to measure the ability of the employee, the attitude of the job, and the level of compliance with this job requirement.
Depending on the outcome of the Korean review, it will be possible to raise wages and lower wages. In addition, depending on the performance (achieving) performed in the responsibilities, there is also a need to set up "performance" for variable payments.
Such a switch to the composite structural wage system not only allows the adjustment of variable salaries according to the outcome of the report, but also allows the portion of the job to be adjusted once a year depending on the employee's performance.

[Complex structuralization of wages (case) ]
One wage is divided into two parts: fixed wages and variable wages. Fixed wages are wages paid on a fixed basis, consisting of basic pay and job pay (or job allowance).
2 It is agreed that only fixed salaries are listed in the labor contract, and that other job and performance pay are carried out according to the company's wage system.
3 Job pay (or allowance) is automatically adjusted according to the change in the function in charge. The level of duty is determined based on the difficulty of the function in charge, relative value within the company, and importance.
4 Fluctuating wages are paid according to performance (performance) and are regularly paid separately by individuals in connection with performance evaluation, absenteeism and compliance with discipline.
(Explain)
If the wage system is structured as above, the basic wage portion will remain unchanged during the labor contract period.
However, other job-level and performance-based employees are resilient according to their individual skills and performance.
Adjustable. For example, if an employee's job supply is reduced, the job pay is reduced, and the performance is achieved.
In case of poor work performance, performance benefits are reduced by that amount, so the wage provisions of labor contracts are not included.
No change is required, performance-based personnel management is possible.

(2) Transforming the Korean-style position system into a job-grade system

In order to realize wage changes at the same time during job adjustment, it is necessary to switch from the Korean-style position system (employee-agent-chief-director, etc.) to the Chinese-style job pay system (depending on the level of job difficulty and the level of personal job proficiency). That way, the government can break away from the seniority-based system where wages are rigidly fixed according to rank regardless of the position in charge.
It will rebuild the organizational rating system around the concept of job-level, and create a system that will allow automatic changes in job-grade levels based on job- By setting the wage range (minimum-maximum) for each job and dividing it into several water supplies, the superior will be able to raise his or her job pay once a year and make substantial pay cuts for those who are in poor work.

(3) Installing variable wage items

The wage structure of most Chinese companies consists of two pillars: fixed wages (basic salary, job salary, position allowance, etc.) and variable wages (performance, bonus, sales incentive, etc.). In this case, the labor contract stipulates that only fixed wage items are promised, and variable wages are calculated and paid on a monthly or a certain cycle basis, based on the outcome of performance or performance, in accordance with the criteria specified in the separate company's wage management system.
In the case of variable wage, the adjustment payment is made according to the outcome of the employee's performance or performance.
As possible, they can be reduced legally within the range of variable wages. However, the price of an old fruit is high.
Unless carried out objectively and fairly, it is easy to cause employee complaints.
For this reason, Korean companies are paying 100 percent of the variable pay even after installing the variable pay item, resulting in a case where the variable pay is privateized and has no effect. therefore
In order to properly operate variable salaries, an overhaul of the over-the-counter system focusing on the quantitative and qualitative indicators of each job is required.

(4) Agreements on labor contracts to secure the right to adjust duties/wages

1 Changeable labor remuneration clause
In the labor contract, not only the amount of labor remuneration, but also the adjustment process of labor remuneration is agreed.
Adjustment of the amount of labor remuneration within the period of the labor contract (downward)
Allow adjustment (including adjustment).

04 Termination of Labor Contracts

Termination of labor contracts is much easier than termination. This is because the contract ends naturally when it expires. However, it is only available for the first fixed contract and at the end of the second fixed contract the user is no longer entitled to terminate the employment. Another problem is that, even when the contract expires, the contract expiration is automatically deferred until the situation expires if the employee is in a special situation, such as a medical device or three female planes.

1. Requirements for termination of labor contracts


Concept of termination of labor contract
The termination of a labor contract means that the labor relations formed between users and workers are automatically extinguished by the emergence of legal reasons. In other words, unlike the lifting of a labor contract, neither labor nor management is required to express their opinions, and if legal reasons are met, labor relations are extinguished.
ᄋ Termination of maturity: By fulfilling the contract by the expiration of the contractual term promised in a fixed-term labor contract and not renewing the contract at maturity, this means that the contract is terminated naturally (unapplicable for indefinite-term labor contracts).
ᄋ Court termination: if a worker retires, dies, or the company goes bankrupt or is liquidated;

In case the contract cannot be terminated at the time of the contract expiration;
In some cases, the management cannot unilaterally terminate the labor contract unless the negotiation is lifted even if the labor contract expires.
1 If a worker meets the requirements of a non-fixed contract
In case a contract for two consecutive fixed-term labor is signed, and the contract for ten consecutive years of continuous service is reached;
2 In case of special reasons for being restricted from dismissal
a If a special reason for legal protection exists, the termination of the contract shall be automatically postponed until the expiration date of the special reason. There is no need to sign a separate labor contract during the net period.
3 female employees (pregnancy, childbirth, breastfeeding period) and legal medical period due to illness
b Employees with less than five years of service until retirement (no termination of contract until retirement)

[Article 44 of the Labor Contracts Act]
1 In case of a disease or injury, it is allowed to remain in the hospital until the expiration of the legal medical period.
2 For pregnant female employees, the contract expiration is automatic until the infant is 1 year old.
3 If the company has 15 years of service and less than five years of legal retirement, the contract is not terminated until retirement.

Mandatory 30 days prior notice at the end of the contract term - only applicable to some localities
It is a provision that does not exist in the central labor law or contract law. However, some provinces (Daeryeon, Kang So-seong, etc.) were required to give prior notice 30 days by local law before the labor contract law took effect.
In addition, since the Labor Contract Act was not repealed even after its entry into force, companies based there are obliged to choose between giving prior notice 30 days before the expiration of the labor contract, or paying one month of advance notice, and ending the labor relationship early.
Nearly all companies are paying one month's advance notice and ending labor relations early, as normal work is not expected for a month until the expiration of the contract.

[working-level measures]

1 Areas where prior notice is mandatory (Bukgyeong, Gangsoseong, Daeryeon, etc.)
Special reasons such as a disease or pregnancy that limits termination of a contract may arise if the labor relationship continues to be maintained after prior notice 30 days. Therefore, it is recommended to pay an additional one-month notice in advance, sign a transfer agreement, and then take over and retire. Even if the company did not give prior notice for various reasons, the contract will end naturally and the company will have to pay as many days more for violating the prior notice.

[Requirement clause for early termination of contract]
If the labor contract matures on 30 September 2015, it is necessary to insert a clause in the turnover agreement, "For the convenience of sufficient time needed to find new jobs for the room (workers), Eulbang will raise its end of business as of 1 September 2015 and the company agrees to this."
(CAUTIONS)
If the above turnover agreement ends a month early, there is a possibility that the worker will seek illegal dismissal and economic compensation in the future, saying, "It is not the termination of the labor contract but the termination of the labor contract."

2 Areas without prior notification obligation
It is safe to notify you on the date of the expiration of the contract, but it is advisable to notify you by one or two weeks before the termination of the contract, receive a confirmation form, pay the remaining monthly salary and economic compensation, and complete the retirement procedure promptly. It is important to note that too early notice may create special reasons for limiting termination of the contract, such as the submission of a sick person, to delay the termination of the contract.

2. Risk related to termination of labor contract

(1) Termination of the net deferral of the contract

This means that the contract cannot be terminated due to the occurrence of a special reason just before the expiration of the labor contract, and after automatic postponement until the special reason is lost, the labor contract is terminated. However, it is possible to negotiate as much as possible if labor and management agree. The question is how much compensation will be offered as a condition of negotiation.
Especially, for female 3rd grade employees, employment is guaranteed for up to 1 year and 10 months from the time of conception.
Since we have the right to receive a living allowance for four months of maternity leave, we ask for substantial compensation
There is a possibility of doing it. In this case, the company enters into a long-term unpaid leave agreement (social insurance payment terms),
Select appropriate measures, such as lifting negotiations (pay preservation conditions during maternity leave) and job adjustment, to respond
I need it.

[Example] The contract cannot be terminated during the medical period due to illness
K worked for a parent company for three years and is due on Jan. 5, 2008. By the way, K had an accident while traveling to the suburbs on January 1, 2008, which resulted in a amputation of his right leg and three months of treatment. On January 5, 2008, the company notified K that it would not renew the labor contract at the time of the expiration of the contract, but K disagreed, saying that the company could terminate the contract only after the expiration of the medical term.
(Analysis)
In the case of a medical period within the prescribed period of the law, the company cannot terminate the labor contract even if the labor contract expires. Only after the medical device expires can the company terminate the labor contract on a non-executive basis.


(Question) Handling of 3rd term female employees with expired contracts
I would like to inquire about employees who are pregnant, delivered, and breastfeeding among the employees whose contracts have expired. There are departments whose jobs have been transferred to other countries, where several employees are pregnant, delivered and delivered. I know that because I don't have any more work, I don't want to sign any additional contracts at the expiration of the contract, but I can't because of the provisions of the Labor Contract Act. Do I have to make an additional contract at the expiration of the contract or can I not terminate the contract?
(answer)
At the expiration of the contract, but at the 3rd term (pregnancy, birth and breastfeeding) the labor contract is automatically re-enacted until the expiration of the legal protection period (until the infant is one year old). However, since there is nothing to do with your company in the real world, we should try to negotiate a settlement on the condition that you give compensation of economic compensation plus three months of maternity leave. 　

(2) Risk of termination of employment after the expiration of the contract

If the term of the contract has expired but is left unrenewed, a "factual labor relationship" is formed, and if this condition exceeds one month, a payment obligation of double wages is imposed on the user (there is no one month grace period in Beijing). In fact, in the event of labor relations forming, the company shall promptly conclude a written contract to prevent the accumulation of double-wage penalties.
After the expiration of the contract with the worker, ending the labor relations is regarded as a middle-of-the-road solution, and the economic compensation amount is calculated from January 2008 but not from January 2008. For those who entered the company before 2008, the amount of economic compensation will increase significantly.
In addition, if the company disposes of labor relations after the expiration of the contract, it may be deemed as an illegal release and may result in an economic indemnity payment risk. Therefore, it is necessary to choose between termination of employment or signing a renewal contract before the term of the contract expires

[Example] Risk of termination of employment after expiration of contract
J joined the parent company in 2000, the last labor contract was signed on May 1, 2007, and the maturity date was April 30, 2008. By the time the labor contract was due to expire soon, the company had announced that it would no longer renew the contract because it was in bad management and needed to cut jobs. Instead, since J had worked for a long time, he acknowledged his contribution to the company and gave him the opportunity to find a new job for two months without going to work, during which time he paid his wages normally. Two months later, the company gave J half-month economic compensation, and J applied for labor arbitration to calculate the economic compensation based on the total number of years of service after retirement.
(Explain)
Since J has in fact formed a labor relationship with the Company after the expiration of the labor contract, the termination of employment is considered to be a middle-of-the-road termination rather than a termination of the labor contract, so an economic compensation of 7.5 months shall be paid on the basis of the total service life. In this case, terminating employment at the expiration of the labor contract and giving a two-month wage on a per-unit basis would be a way to avoid unnecessary legal risks.


(3) Other precautions at the end of the contract expiration

1 Delivery of a notice to terminate a labor contract
If the company sends a notice of termination at the time of the expiration of the labor contract, but the company refuses to sign the contract, leaving it unattended will not be legally effective. Therefore, EMS should be sent to the place where the labor contract is contracted to be delivered to the place where it is sent, and the EMS delivery card with the name and the document title must be kept.
2 Check if unused date of annual leave exists
If an unused annual leave exists at the time of retirement, a compensation of 200 per cent shall be paid, so the employee who ends the employment shall be notified to use the unused annual leave by a fixed period prior to the notice of termination of employment.
3 Alternative vacation days for extra work (Tuesdays and Sundays.
200 per cent of overtime payment risks are avoided by arranging alternative leave prior to notice of termination of employment.

Transfer management

Transfer management is the last step in labor management.
This is a time when conflicts between labor and management are easily expressed to the extent that 90 percent of labor disputes take place in the turnover stage. In the event of a poor response at this stage, it is directly linked to a labor lawsuit, and the direction of the lawsuit can have a significant impact on the working position of other employees.

Many workers at retirement are ready to vent their grievances or even file labor charges or even file labor lawsuits to maximize their profits by taking advantage of the company's weaknesses, thinking they no longer need to be aware of the company's business. If the company's labor management is legal and is not in a loophole in its management, then it can only respond by law, but if it is not, it will be forced into a defensive position.

1. Legal risks of turnover

The frequent labor strife at the turnover stage is also closely linked to the issue of "economic compensation." As in Korea, the "economic compensation, economic compensation" system, in which payment standards vary depending on the form and legality of the transfer, is operated, not in a uniform "retirement benefit" format, regardless of the reason for retirement. For this reason, many workers with long service experience offer to cancel negotiations or force layoffs rather than resigning.

If the company fails to grasp labor laws properly and fails to overhaul the employment rules and turnover management system at ordinary times, the risk of frequent labor disputes at the turnover stage will be unavoidable.

(1) the termination and termination of labor contracts;

In China, "labor relations" are implemented by the conclusion of bilateral labor contracts, and the "labor relations" thus established are "disbanded" by the "release" and "termination" of the contracts. To tell you the reason for the termination of the labor contract,
Employee turnover is divided into two categories: termination of one labor contract and termination of two labor contracts.

Termination of labor contracts is the end of contract expiration, retirement, etc.

The lifting of labor contracts is again classified into three categories: the lifting of negotiations, the unilateral lifting of workers and the lifting of companies' unilateral lifting.

In terms of legal consequences alone, there is a similarity in that legal relations between labor and management, whether they terminate or terminate the contract, are extinguished at that point. However, the termination and termination of labor contracts differ significantly in terms of the establishment requirements, procedures and compensation for workers as follows:

1 The ‘release’ of labor contracts
The termination of a labor contract means a legal action in which a legal reason arises before the expiration of the contract, or, for reasons on the part of the company or the part of the workers, an interim termination of the labor relationship in the form of "agreement" or "unilateral notice". Workers are free to terminate the contract at any time if written notice is given 30 days in advance, but strict legal regulations are in place for the company to terminate the contract. It must comply with the "Reason for Court Release" stipulated in the Labor Contract Act, and the supporting "evidence" shall be presented, and if found to be illegal, it shall be liable to pay economic compensation equal to twice the economic compensation, or to continue to fulfill the contract.

2 ‘End of labor contract’
The termination of a labor contract means that the labor relations formed between users and workers are automatically extinguished by the emergence of legal reasons. Unlike the lifting of labor contracts, neither labor nor management is required to express their opinions, and once legal reasons are met, labor relations are extinguished.
ᄋ Termination of maturity: By fulfilling the contract by the expiration of the contractual term promised in a fixed-term labor contract and not renewing the contract at maturity, this means that the contract is terminated naturally (unapplicable for indefinite-term labor contracts).
ᄋ Court termination: the reason prescribed by law, i.e. the principal (worker) of the labour contract is retired from retirement or the principal (company) of the labour contract is extinguished (breakdown, liquidation, etc.);

(2) Legal regulations on the termination or termination of a contract;

The termination or termination of a labor contract shall be subject to strict regulations of the Labor Contract Act. The termination and termination of the contract shall be subject to different regulations. At the end of the contract, unless special reasons such as pregnancy or illness arise, labor contracts are terminated naturally at maturity, making it relatively easy to terminate employment.
However, in the case of "release," the grounds for its release must comply with either of the "reasons for the removal of the court" as specified in the Labor Contract Act. In the case of South Korea, the country's labor law "decisions" the layoff requirements and imposes a burden of proof on companies for their compliance, although layoffs should be consistent with comprehensive reasons, such as "objective and reasonable reasons in social concept."
For example, to dismiss a disciplinary action, one must first look for a provision of evidence in the company’s employment rules that conform to the legal grounds on which it is based, and secure evidence proving the reasons. If there is a flaw in the implementation of the legal procedures and the rationality of the criteria for the dismissal of workers for their non-compliance, they are likely to be declared illegal. Therefore, it is necessary for the company to devise and proceed various measures to minimize legal risks in advance on the basis of an accurate understanding of labor laws.