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Survey and Implications of Paid Leave at Small Businesses with Fewer than Five Employees

Survey and Implications of Paid Leave at Small Businesses with Fewer than Five Employees

Year2023

Author Choi Hoon

Original

Abstract

Workers in small workplaces with fewer than five employees are characterized
by poor working conditions since the Labor Standards Act does not apply.
The Economically Active Population Survey indicates that only about 27%
of workers in businesses with fewer than five employees are eligible for paid
leave. Therefore, the primary purpose of this report is to seek policy measures
that encourage the granting of paid leave.
According to a survey on the status of paid leave at workplaces with fewer
than five employees in Gyeonggi province, workers cited "annual paid leave"
as the most preferred provision among the non-applied provisions of the Labor
Standards Act, while employers cited "annual paid leave" as the most
burdensome provision. Business owners regard financial support such as
subsidies as the most desirable policy measures to encourage paid leave. Given
that 85.2% of employers reported that they would provide workers with paid
leave when receiving a subsidy equivalent to 100% of workers’ wages, subsidies
less than 100% of workers’ wages are expected to be sufficient to attract
employers to participate in the annual leave support program.
Since the budget of the program and the size of businesses willing to
participate are expected to be significant, it is necessary to clearly set policy
beneficiaries that Gyeonggi province targets to protect in terms of the right
to rest.

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