earticle

영어

The recently published report by the World Economic Forum shows that the Republic of Korea has recorded very low scores in all the items of the “Labor Market Efficiency.” In light of the rigidity of dismissal of workers on “ground of business management” under the present Labor Standard Act and the unstableness of the labor market, notwithstanding the benefits of tax reductions or exemptions, etc., the present labor-management related provisions under the Free Economic Zone Act are not sufficient to solicit or induce foreign companies to make investment in the free economic zones.”This article seeks to consider relevant useful provisions of foreign countries' legal systems evaluated to flexibly have coped with the labor-management relations within their free economic zones, and review in depth appropriate methods to improve relevant provisions for domestic laws. In front of the global competitive system, such provisions should conform to not only domestic laws but also the fundamental right to work established by the International Labor Organization or relevant provisions of the effective Free Trade Agreements, and further the provisions should not have any problem or at least should not be cited to be problematic under the international norms. As for general laws, it should be undesirable or unfeasible to dramatically convert the principle of “employment at will” or “no regulation” into the provisions of the Labor Standard Act, considering the current domestic labor conditions. Also introducing the Singapore-typed system of the “Industrial Arbitration Court” is highly likely to run counter to the guarantees of fundamental rights of workers. As for special laws, it seems desirable to establish guidelines in detail under the Free Economic Zones regarding the “Early Retirement Program” or some other mechanisms frequently proposed to business people in practice. In addition, pursuant to the current relevant provisions of the Free Economic Zones Act, it is worth facilitating counselor programs for foreign-invested companies.