Starting from July, companies will be eligible to receive the full amount of support funds for employees taking parental leave or reducing working hours for childcare, even if the employee resigns immediately after. Previously, if an employee voluntarily resigned, companies could only receive 50% of the support funds.
On the 18th, the Ministry of Employment and Labor announced a 40-day legislative notice of partial amendments to the subordinate regulations of the Employment Insurance Act. The government plans to apply the new system by revising the enforcement decree starting in July.
With this amendment, even if an employee voluntarily resigns after using parental leave or reducing working hours for childcare, the company will receive the full amount of the support funds. Currently, 50% is paid during the period the employee uses parental leave or reduced working hours, and the remaining 50% is paid in a lump sum if the employer retains the employee for more than six months after using such leave.
This amendment allows companies to receive the remaining 50% of the support funds even if the employee voluntarily resigns within six months due to reasons not attributable to the employer, such as dismissal or recommended resignation.
The government also modified the application of the early reemployment allowance for military alternative service personnel. The early reemployment allowance is a system where 50% of the unemployment benefits (job-seeking benefits) for the remaining period is paid if a recipient finds a job before the benefit period expires.
Previously, industrial skills personnel and other military alternative service personnel could receive this allowance despite being obligated to serve (work) during the relevant period by the Military Service Act. However, considering the purpose of the system, from now on, those who change companies while undergoing alternative service can no longer receive the early reemployment allowance.
On the other hand, the procedure for receiving the early reemployment allowance will be simplified. In cases where a job-seeking benefits recipient starts a business and continues to operate it for more than 12 months, they can receive the allowance by simply submitting taxable proof, such as monthly sales figures.
Lee Jeong-han, head of the Employment Policy Office at the Ministry of Employment and Labor, stated, “This amendment focuses on improving discomfort and irrationality reported from the field.” He added that rationalizing and simplifying the requirements and procedures for the employment stability incentive during parental leave and early reemployment allowances would significantly enhance the convenience for small business owners and recipients.
The draft amendment for legislative notice can be checked on the Ministry of Employment and Labor’s website or the Korean e-Gazette. Anyone can submit opinions via mail or email.