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MOEL and private firms sign MOU to spread e-labor contracts

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Aug 4, 2017


The Ministry of Employment and Labor (MOEL) held the signing ceremony of the 'MOU to spread electronic labor contracts' at the Seoul Regional Employment and Labor Office on August 4th (Fri.) with the participation of firms employing many part-timers, a part-time job portal, etc. 


* (participating firms) Lotte GRS, Ediya, Heamaro Food, Nolbu, CJ CGV, Lotte Cinema, Mega Box, Alba Heaven


The event was held to present an excellent example of a company (CJ MD1) leading the way in introducing an 'e-labor contract system' that allows labor contracts to be draw up and issued conveniently via smartphones.


It was also aimed at seeking to spread the use of e-labor contracts by signing an MOU with firms which want to introduce e-labor contracts.


Written labor contracts are needed to protect the rights of both workers and employers because they can clarify key working conditions, such as wages and working hours.


Nevertheless, it is difficult for vulnerable workers, such as part-timers, to demand written labor contracts from their employers, and employers do not know how to draw up a written labor contract, either. For these and other reasons, the proportion of workers making a written labor contract stood at 61.4% in 2016, less than two-thirds of all workers.


Electronic labor contracts can be drawn up easily on smartphones and PCs and issued conveniently through electronic transmission after being signed electronically. They are also easy to keep and check.


E-labor contracts have many advantages. For example, if an online job site introduces an e-labor contract service, labor contracts can be automatically created based on recruitment details provided by employers and be signed electronically. So they would greatly help spread the use of labor contracts.


MOEL has been making efforts to spread e-labor contracts across workplaces. In August 2016 it came up with the 'guidelines for introduction of e-labor contracts' that firms intending to introduce e-labor contracts can consult. 


CJ MD1 (CEO Kim Soo-hyun), which was presented as an excellent example of a company that had introduced e-labor contracts during the event, is a company supporting CJ CheilJedang's food sales and marketing at its stores.


The company had found it greatly inconvenient to make labor contracts in writing because its workers' places of work and working hours change very often. Hence it introduced mobile-based e-labor contracts in 2016 and has since used only e-labor contracts when hiring part-time merchandisers.


Kim Soo-hyun, CEO of CJ MD1, said during his presentation, "After the introduction of an e-labor contract system, it has become much easier for the company to hire and manage employees, and employee satisfaction has increased immensely since they can check their working conditions at any time."


Meanwhile, on that day, seven firms* employing many part-timers announced their plan to introduce e-labor contracts this year and signed an MOU with MOEL to help spread e-labor contracts.


The seven firms will introduce and use e-labor contracts in the process of hiring employees and comply with the basic employment standards while MOEL and Alba Heaven will help them establish an e-labor contract system.


* Lotte GRS (Lotteria, Angel-in-us Coffee, Krispy Kreme Doughnut, Natuur, etc.), Ediya, Haemaro Food, Nolbu, CJ CGV, Lotte Cinema, Mega Box


In particular, apart from the MOU between the participating firms and MOEL, each firm's CEO, franchisees and employees entered into an agreement promising to use e-labor contracts and comply with the basic employment standards. 


Kim Byung-soo (aged 24), the workers' representative of Lotte GRS, a participating firm, said, "I hope e-labor contracts will spread quickly, so that the day will come soon when all part-timers will be guaranteed their rights."


Yi Sung-ki, the Vice Minister of Employment and Labor, stressed, "Drawing up and issuing a written labor contract whereby the parties concerned confirm and promise the most basic working conditions is the first step toward realizing a society where labor is respected."
He said, "MOEL will provide active support to ensure that e-labor contracts which can be drawn up easily on smartphones anytime and anywhere can spread more widely across workplaces.”

Last Modifide Date   :   Fri September 8, 2017
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