Labor Ministry to inspect 200 public-sector workplaces over '364-day contract' practices

The government is launching a sweeping inspection of unfair non-regular employment practices in the public sector, including so-called "364-day contracts" designed to avoid paying severance. The crackdown will cover 200 institutions — public agencies, local public enterprises, local governments and private entities holding outsourcing or service contracts with the public sector.

The Ministry of Employment and Labor said Tuesday it will conduct intensive inspections of 200 public-sector workplaces over the next two months to check compliance with non-regular workers' labor conditions. The move follows confirmed cases of employers repeatedly splitting employment contracts into periods of less than one year to evade severance pay obligations.

This is the second round of inspections, following a targeted probe of 30 local governments conducted from March 11 to April 30. That earlier inspection uncovered 113 violations of labor relations laws — including failure to pay severance to workers on repeated short-term contracts and unpaid allowances for fixed-term workers — all of which were corrected.

This round significantly expands the scope to cover the entire public sector. The 200 targets include 47 public institutions, 37 local public enterprises, 40 entities funded or invested in by local governments, 20 local governments, three subsidiaries, two central government ministries, one educational institution and 50 private organizations with public-sector outsourcing or service contracts.

Targets were selected primarily from institutions suspected of unfair employment practices based on tips from an online counseling center and media reports. Also included were institutions where a survey on public-sector employment and wages conducted in February and March found a high proportion of fixed-term workers employed for 11 months or more but less than one year.

'364-day contracts' to dodge severance pay — labor contracts and wage arrears also under scrutiny

The ministry said it will pay particular attention to so-called "split contracts" and 364-day contracts used to circumvent severance pay requirements.

Inspectors will also check whether guidelines on improving non-regular workers' treatment in the public sector and a pre-screening system for non-regular hiring — both introduced in May — are being properly implemented on the ground. The ministry will also conduct a broader review of compliance with labor laws covering employment contracts, unpaid wages and working hours.

Where violations are found, the ministry will take action under relevant regulations and direct institutions to make prompt corrections where improvements are needed.

The ministry will also step up preventive education for personnel and labor managers in the public sector. Labor law training sessions for local government civil servants and others will increase from seven to 13 times a year, and institutions where inspections reveal multiple areas requiring improvement will receive separate, tailored training.

"The public sector must lead the way in establishing fair employment practices as a model employer," Labor Minister Kim Young-hoon said. "The public sector must change before we can demand change from the private sector. Through this inspection, we will set the standard for workplaces where labor is respected and everyone can work happily — starting with the public sector."