배움과 공유의 시간

2. Personnel Management in the Age of Life Employment

In the eighth year of the Labor Contract Act, companies with long-standing history of advancements have already entered into a series of non-regular labor contracts with a considerable number of employees. The fixed contract allows the user to exercise his right to terminate the employment at maturity (no termination of employment at the expiration of the second fixed contract), so the worker also works with some tension, but once the non-fixed contract is signed, the situation changes.
Recently, there have been frequent cases in which some of the employees who are in poor condition have deliberately induced layoffs, aiming to double the economic compensation (economic It is important to be aware that the company's exercise of personnel rights will be constrained over the course of the day unless the company hurriedly reorganizes its in-house personnel and wage systems to adjust their jobs and salaries according to their ability and performance.

(1) Reforming the wage system

See Chapter 8, 01 Performance Shareholder Wage Management

(2) Reforming the high performance system

By establishing a high performance system based on KPI indexes by job, and linking the results with wages and bonuses, the government should improve the treatment of outstanding personnel and ensure that the natural selection of low performers is carried out.

(3) Improving the personnel management system

1 Establishment of job defect criteria
One-sided adjustment of a worker's unconsented duties is possible in the event of a job defect. In this case, downward adjustment can be made to the wage level corresponding to the adjusted function. To this end, the company's employment rules.
For example, it should be preceded by two consecutive failings with a high score of 60 points or a clear commitment to the requirements, such as the result of a serious
To some extent, the task of coordinating a one-way change in accordance with the requirements is:
Relevance should exist. For example, a management staff member may be assigned to a less relevant function, such as a production department.
In case of adjustment, the risk of losing due to unreasonable job adjustment in the event of a labor lawsuit is increased.
It exists.

[Regulations on Job Failure in the Employment Rules (Example)]
Article* Standards and methods of handling job defects
1. The Company shall, on the basis of one of the following principles, confirm whether it is suitable for this position.
1 Employees who fail in consecutive 2nd round of return (out of 100 points, no more than 60 points)
2 In case the body, knowledge, skills, occupational qualification and management level cannot be reached;
3 Circumstances that do not comply with other job requirements　　
2. If an employee is proved to be unfit for duty, the company shall educate or act on the employee.
Adjustment of positions (including rigidity, change of position, etc.) is carried out, and after adjustment of positions of employees, the number of wage pay is finalized in accordance with the principle of "responsible response wages." Employees are trained according to the company regulations, or they are required to report to work at a new post, and if they do not agree to participate in education or adjust their position, the company shall treat them with a standby order.

2 Regulations for demotion/reduction by disciplinary action
If the employment rules clearly stipulate specific reasons for disciplinary actions corresponding to demotion/reduction, and disciplinary procedures, it is possible to realize a reduction in wages through a drop-off.

[Regulations on salary reduction in accordance with the disciplinary action of the Employment Rules (Example)]
Article 6 Robust positions (compulsory)
1. Stiffness (strength) Situation: In the case of one of the following circumstances, the Company may take a firm's position (strength).
(1) In accordance with the Company's system, if punished, he shall have a firm position (level).
(2) Inadequate job performance (including cases where two consecutive reviews and a failure assessment have been received by the semi-annual review)

3 Strengthening the rules of reward and punishment of employment rules
Strengthening the rules on corporal punishment and violating discipline in preparation for possible layoff of non-f
Through strict management of Korea, it is necessary to arrest the actions of life-time employees and prevent malicious misconduct and induction.

4 Design of Unfixed Labor Agreement
No fixed labor contract shall be entered into in the form of a "dead contract" that is as difficult to change as a fixed contract. As the contract can last for decades, a special design is required to enable flexible adjustment of work contents, work locations and labor remuneration. In particular, precise designs such as arrangements for "duty-free" criteria and requirements for atmospheric issuance are needed.

3. The term of office

(1) Problems with non-fixed labor contracts and exercising the right to appoint personnel

[Questioning]
The renewal date of labor contracts for employees with more than 10 years of service is coming soon. Unless you insist on requiring a fixed-term labor contract, you must enter into an indefinite-term labor contract as a company under the Labor Contract Act. For the company’s flexible personnel management, even if the labor contract is "merciless," the "job post and wages" would be adjusted frequently depending on the management situation and the performance of the company, but what legal way could it be?

Under the current labor law, the company may exercise its right to coordinate its duties if it However, if there are employees in the company who can perform their duties more successfully, they are not allowed to adjust their duties at the discretion of the company without the consent of the staff in charge of the current job. The more employees sign non-fixed contracts, the more difficult it will be to coordinate the flexible and maneuverable transition of personnel.

[Problems in stiffening job/wage adjustments]
1 During the period of labor contract, an entity is required to adjust the work position/pay downwards in line with changes in the management situation and the ability of employees to perform their work, but the downward revision requires the consent of workers.
2 Upgrading positions/wages is possible, but if it is difficult to downgrade them leads to reduced work polarity and reduced labor efficiency.
3 If the achievement evaluation is not properly reflected in the position/wage, the deterioration of "early turnover of superior employees - the retention of defective employees" may be widespread.

(2) Separating labor contracts from position contracts

The duration of the labor contract is "merciless," but the length of the contract for the position in charge cannot be "merciless." On the basis of the signing of a non-fixed labor contract, the "occupation" part of the labor contract shall be separately separated and the position shall be adjusted upon the expiration of the tenure of the position every 1-2 years.
Set up a system.

The "Work Contents," a mandatory clause in the labor contract, includes a comprehensive function (e.g., administrative management, sales, production technology, etc.) and establishes a system for the conclusion of "occupation appointment consultation" according to the employee’s performance at a given interval (a year or two) apart from the labor contract. In such a case, the employees' duties are adjusted after consultation with the company every year or two, enabling the company to adjust its flexible duties/wages.
If an agreement is not reached with the employee on the adjustment of the position, the company can indirectly exert pressure on the employee to resign while minimizing the company's labor costs without filing a complaint by leaving the duty unpaid.
In the position appointment consultation document, authorized personnel or rear support personnel who have large workforce liquidity and perform simple repetitive tasks are required.
With the exception of this, it is desirable to have management positions of a certain rank or higher.

(3) Operation of Positioning Appointment System

1 Overview
Based on the employee's personal position and ability, the employee shall operate the contract period separately from the period of employment. An employee may change his or her position several times within the period of the labor contract, based on the appointment cycle established by the company The employment system is generally implemented for non-fixed labor contracts of a certain rank or higher, or long-term labor contracts.
2 Appointment period
It may be performed on a given water supply or higher position once a year or two, or selectively on some specific positions.
3 Method of implementation
Appointment is thoroughly carried out during the appointment period and, depending on the result, the appointment is rescheduled.
(a) if found to be unfit for duty: to switch to another position;
(b) is judged to be qualified for the job;
ᄋ If no other staff is more suitable for the position, it will continue to be visible
ᄋ If there is another employee who is more suitable for the position, the negotiation will lead to another new employee
a turnover to a position If a negotiation is not concluded, a standby issue shall be taken and basic wage shall be paid.

4 Special items
For employees who apply the position employment system, it is required to clearly sign labor contracts in advance.
Agreements shall be made. Upon the conclusion of a labor contract, the contract for employment of the position shall be entered into, in which the employee shall be entitled to the position.
The retention period is set at one year, and one year later, the company's demand for work and the achievement of the workers' position.
The position shall be readjusted according to the assessment results."
Make it an attached document. In addition, the position employment management system and the review process supporting the position employment system
establish and operate a system

[Example of an agreement on the employment system under a labor contract]
In accordance with the agreement between the two parties, the Party retains the right to establish a position appointment agreement based on the details of the Eulbang work, based on the labor contract term, demand for the Party, and actual circumstances of the Eulbang. The term of appointment is shorter than the term of the labor contract, and when the term of appointment expires, the appointment agreement shall be concluded by reviewing whether or not the Eulbang meets the requirements for the position. If the request is not complied with, the party shall have the right to conduct a job adjustment for Eulbang within the scope of the contents of the Eulbang's work and to conclude a separately adjusted job appointment agreement.

02 Personnel Management in the Age of Life Employment

Lifelong employees are not allowed to be fired at will, and unless they have special legal reasons, employment is mandatory until retirement, which inevitably results in a "iron rice bowl." It is easy to predict that job security reduces employees' sense of crisis, relieves work tension and falls into mannerism. To prevent this, the company needs to establish a system of performance and compensation, operate a job tenure system, and respond by reorganizing the personnel management system in a variety of ways.

1. Risk of lifetime employment

A non-fixed labor contract means a labor contract between a company and a worker whose end time has not been fixed. In the case of a non-fixed contractor, the labor contract must continue to be fulfilled except in the event of the emergence of a legal release and termination reason, and can be effectively referred to as "substantially employed." For example, if a male employee who graduated from school and joined at the age of 20 signs a non-fixed contract at the age of 30, he or she will sign a 30-year-old labor contract until the retirement age of 60.
The problem is that China's labor contract must promise labor conditions, such as work content, wages and working points, and the contract modification requires the consent of the staff, so the exercise of the company's personnel rights must be quite limited. To respond to the rapidly changing business environment and maintain competitiveness, companies constantly need to relocate and metabolize their workforce.
As more and more non-fixed contractors are signed in the company, the pressure on the company's management is bound to increase. The main burden of a company from lifetime employment is as follows:

Increased laid-off costs - reduced job elasticity
Unscheduled contracts have no deadline for termination of employment, leading to rigid employment. Although the court says it can be lifted if the reason is met, chances are not high that the cause of dismissal will occur. Of course, it is possible to negotiate a settlement, but in this case, the compensation burden that is higher than the legal standard is inevitable in order to reach a negotiated settlement, as it requires the consent of the staff.

Increased labor costs - increased labor costs due to long-term employment, decreased metabolism
For simple tasks, new employees with lower wages can be employed at the end of the contract to reduce labor costs. However, if employed for life, the level of work performance increases, but wage increases go faster, forcing companies to increase their labor costs day by day. In addition, ten years after entering the company, if you are promoted to a higher position and sign a non-fixed contract, your turnover rate will be drastically reduced. This could lead to a slowdown in the organization by reducing the promotion space for young employees.
Of course, if productivity increases and performance increases under long-term employment, it can be "win-win," but it is possible when the company's personnel system, such as the evaluation/compensation system, is well equipped.

A Direction of Lifelong Employment
As shown in the example below, non-fixed contractors usually serve more than 10 years of service. If the company makes a complaint without clear evidence and evidence, the worker can take a share of more than 20 months at a time, so the more likely it is for a company with a loose management system that intentionally commits the act of inducing dismissal.
First of all, the measures include strengthening the high performance system, expanding variable salaries, and establishing a job adjustment system.
It is necessary. In particular, the non-fixed contractor has a long service life, and the layoff course is very high, so it is necessary to control it by the job∙wage adjustment without firing. On the other hand, it is necessary to maintain motivation and work tension through discriminating personnel management based on performance.

[Example] Changes in Service Attitude after Unfixed Contracts
Since this year, our company has more than 10 years of employees and is signing a non-fixed contract. One of them doesn't go to work after 10 days off on the annual holiday, and asks for a raise even though production is only half the way. I don't think he's willing to work, and he's just waiting for the company to fire him, but he's telling me that if he keeps getting fired, he'll get twice as much financial compensation. I don't know what to do to stop it.

2. Control of non-fixed contracts

(1) Confirmation of duties suitable for fixed/unfixed contracts

In the case of advanced technical or managerial positions, it is safe to enter into a non-fixed contract because it is a core function of the company, but easily replaceable duties should be limited to fixed contracts only. Depending on the nature of its job, the entity classifies two types of fixed-contract/no-fixed-contract suitable jobs and, in the case of a job to be taken under a fixed-contract employment system, terminates the employment at the expiration of one fixed-contract contract for two to three years, irrespective of the employee’s ability or nature, replaces the employment with a new employees.

(2) Criteria for selecting employees eligible for non-fixed contracts

In reference to the example below, the types and criteria of non-fixed contractable employees suitable for the entity are set and applied, depending on the industry or characteristics of the entity.

(3) Establishing a fixed contract period rationally

When signing the first labor contract, the contract is set at a maximum of three years and the maximum six months of the legal trial period is secured. After identifying the ineligible persons for six months, and after the expiration of the first contract, the city shall conduct a strict evaluation of the employee's performance and performance, and carefully decide whether or not to renew the contract. If a renewal is concluded, for example, the second contract is set at 5-6 years, so the first contract is set to be less than 10 years (more than 10 years, another non-fixed contract requirement is met).

primary fixed contract
ᄋ Term of contract: 13 years
- A full three-year labor contract must be signed so that the trial period can be set up to six months.
ᄋ Inadequate persons during the six-month period of employment shall be removed
ᄋ When the first contract expires
- Comprehensive verification of whether an employee can sign a non-fixed contract one month before the contract is terminated.
- Ineligible employees are mercilessly required to terminate expired labor contracts (e.g. free termination of employment).
Last point)

2nd Fixed Agreement
ᄋ Term of contract: 5 years and 6 years
- Second contract is concluded for key employees who have passed the verification
ᄋ When the second contract expires
- If the employee is judged to be underperforming or unqualified during the second contract period, wage and promotion freeze should be achieved.
Based on data on inducement of voluntary retirement, or failure of performance, the payment of economic compensation is conditional.
inducement of negotiation release
- If the contract has already expired and the requirements for a non-fixed contract have been met, it is difficult to adjust labor conditions, such as wages, duties, and work places, or to renew them due to a significant change in objective circumstances, while pushing for the cancellation of negotiations between economic compensation and economic compensation.

(4) Induce the selection of fixed-term labor contracts

When a second garage contract is reached, the entity may enter into a third fixed contract if the employee agrees. The caveat here is that the staff themselves must have evidence that they have chosen a fixed contract. If a third fixed contract is entered into without written evidence, a labour action may be filed later that the non-fixed contract has not been entered into intentionally.

[ Armband (worker) offered me an offer]
As suggested by Eulbang, the two parties agree through negotiation to finalize the term of this Agreement in accordance with the Type I method below.
1. This contract is a fixed-term labor contract. The contract period is from _____月__to______________________________________________________________________________________________________________________________________

With the implementation of the labor contract law in 2008, China's labor law has shifted to a way that puts emphasis on protecting workers' rights and job security.
As workers' claims for various compensation for company misconduct became legally possible, labor lawsuits became frequent and the threshold for lifetime employment was lowered, which severely restricted the exercise of personnel rights. The time has come when it is difficult to operate a business properly in China unless the labor law is clearly understood and systematic personnel management is done.

1. The changing times of the labor law system

The Labor Act (1995) and the Labor Contracts Act (2008) are at the center of Chinese labor laws in line with the Korean Labor Standards Act. However, special attention needs to be paid to the fact that the labor law and the period in which the labor contract law were enacted are different. First, let’s look at the background of "labor law."
As the Tiananmen Square Civil War broke out in 1989, the reform-opening policy that had been pursued until then faces a major hurdle. The temporary suspension of reform and opening gained momentum again in the wake of the Namsun Ganghwa in Dengsopyeong in 1992, and the Kang Taek-min and Joo Yong-ki administrations, which were inaugurated just in time, began to pursue reform and openness policies in earnest.

Under the banner of the doctrine of Zen Buddhism advocated by Deng So-pyong, it was at that time that an extreme wave of economic commerce swept across China. The 1995 Labor Act is China's first basic labor law, which was enacted under this period. At the time of legislation, workers were not subject to protection from capitalists because the majority of workers were under the ironclad employment system of state-run companies. In addition, the need to support economic growth and absorb large amounts of rural workers rushing to cities existed, so such an era situation was reflected in the labor law as it was.

Age of Labor Law - Pro-business legislation focused on economic growth
The labor law applied the "principle of contract freedom" of labor-management equality to the fullest extent, as in civil relations, without considering the special nature of labor-management relations in unequal relations due to the inherent imbalance of power.

Based on this, companies were able to improve their employment elasticity and curb labor costs low by repeating their one-year labor contracts, and at that time, Chinese labor officials were mainly engaged in administrative work such as hiring and leaving. In other words, in the era of labor law, because the reaction to the "iron rice bowl" employment practices of the Mao Tse-dong era in the past allowed unlimited employment of short-term contracts based on the "principle of contract freedom," businesses had to concentrate only on production and operations, which in turn contributed greatly to China's growth into a "world factory."

Labor Contract Law - Pro-labor legislation focused on social stability
However, in the shadow of high economic growth, workers who have become socially weak have begun to complain as the gap between the rich and the poor has deepened day by day. The Hu Jintao-Wonjeobao government, which emerged in 2002, shifted the idea of state affairs from "economic growth" to "a harmonious society" and put forward a "pro-people policy" aimed at stabilizing social stability and governing power. In the labor sector, legislation was initiated to protect the weak from the strong capitalists, and the results were in the form of a series of pro-labor legislation, including the labor contract law.

By the way, the Labor Contracts Act, which took effect in January 2008, turned China's labor law environment into a labor-friendly one. Since the Labor Contract Act is a pro-labor law enacted by slanting to workers to correct the imbalance in power between labor and management, companies have been reduced from strong to weak, placed under restrictions in exercising personnel rights and greatly raised labor management risks.

Since then, eight years later, in 2016, workers have contributed to protecting their rights, but there have been moves to revise some rigid provisions in the future, as voices of concern have erupted from the government’s high-ranking and industrial circles that the flexibility of manpower employment and rising employment are causing corporate competitiveness and foreign companies to withdraw.


2. Labor contract law and personnel management

Labor Contract Act - Special Act on the "labor contract part" of the Labor Law
The Labor Contract Act was enacted as a special law, separating only the parts of labor contracts from the labor laws. Thus, the Labor Law, a comprehensive law that defines labor relations comprehensively, remains in effect after the Labor Contract Act took effect. However, due to the advent of the Labor Contract Act, the previous provisions of the Labor Contracts Act, which relate to labor contracts or contradicts the prestigious provisions of the Labor Contracts Act, are suspended.