Reasons for Proposal
Even though the current Act stipulates that employers should establish a retirement benefits scheme to pay retirement benefits to workers, employers have no obligation to establish the scheme for workers whose continuous service period is less than one year and whose average weekly working hours over a four-week period is less than 15 hours.
Since this results in most low-income workers with shorter working contract periods or shorter working hours not receiving retirement benefits, there are opinions that improvement of the scheme is necessary for a stable life after their retirement.
Therefore, this amendment aims to require employers to mandatorily establish a retirement benefits scheme for workers whose continuous service period is more than one month regardless of their prescribed working hours (Article 4 (1) and Article 12-2 newly inserted).
Major Provisions
Aim to require employers to mandatorily establish a retirement benefits scheme for workers whose continuous service period is more than one month regardless of their prescribed working hours (Article 4 (1) and Article 12-2 newly inserted).
