“Extension of retirement age to 65 and ban on inclusive wage system, preemptive response measures must be prepared”

Daeryun Law Firm, HR seminar for foreign invested companies
Attorney Bang In-tae introduces major issues and response tasks, focusing on banning retirement age extension and comprehensive wage system
Daeryun “We will further strengthen human resources and labor advice for companies”

Daeryun Law Firm announced on the 17th that it held a working-level discussion on trends in labor law revisions at the ‘HR ROUND TABLE’ seminar held for human resources managers of foreign companies together with the Korea Foreign Companies Human Resources Managers Association (KOFA HR).

This seminar, hosted by KOFA HR and held at Daeryun Law Firm's Yeouido main office on the 12th, was attended by many executives and workers in charge of human resources from global companies.

Attorney Daeryun Bang In-tae (41st class of the Judicial Research and Training Institute) appeared as a seminar speaker. Attorney Bang is a labor lawyer registered with the Korean Bar Association and is a practical expert who has provided advice and litigation on the overall personnel and labor issues, including labor contracts, wage systems, working hours, collective bargaining, and dismissal and disciplinary action, for various companies at home and abroad.

In this day's lecture, lawyer Bang In-tae explained major issues and companies' response tasks, focusing on the 'extension of retirement age to 65' and 'ban on comprehensive wage system', which are currently in the process of being enacted.

In the first session, Attorney Bang first looked at the background on the discussion on extending the retirement age, such as the labor shortage due to aging and low birth rate and the income gap caused by raising the national pension starting age, analyzed related bills currently proposed to the National Assembly, and then introduced expected scenarios when the bill is passed in the future. Next, as a way to prepare for the extension of the retirement age, we discussed ways to reform the system, including an evaluation system centered on competency and performance, and redesign of personnel management and career paths.

In the second session, the main contents of the Labor Standards Act amendment regarding the ban on the comprehensive wage system were explained, and the impact on companies if comprehensive wage contracts were banned was discussed. Next, in preparation for the ban on comprehensive wage contracts, it was emphasized that companies need to make preemptive preparations by suggesting specific measures such as inspecting the working hour management system, improving work efficiency, and reorganizing wage regulations.

In the Q&A session that followed the lecture, personnel practitioners from foreign companies asked questions about the retirement age system and standards for determining working hours that they encountered in the field, and lawyer Bang In-tae provided customized field advice based on actual cases.

Daeryun Law Firm's CEO Kim Kuk-il said, “We plan to further strengthen our human resources and labor advice for domestic and foreign companies through this seminar,” and added, “As the pace of legal change is accelerating, we plan to continue to provide opportunities for corporate human resources managers to share realistic solutions.”

Meanwhile, Daeryun Law Firm operates a corporate legal group that specializes in labor contract review, employment structure reform, collective agreement, and labor dispute response for global companies and foreign companies aiming to enter the domestic market, and is actively continuing field-based advisory projects in cooperation with professional organizations.

[Law Leader Reporter Son Dong-wook twson@lawleader.co.kr]

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