The purpose of this paper is to promote for small and medium enterprises (SME) by the improve the welfare of employees in SME. The business environment in which the SME find themselves remained bleak in general and that their economic turnaround would...
The purpose of this paper is to promote for small and medium enterprises (SME) by the improve the welfare of employees in SME. The business environment in which the SME find themselves remained bleak in general and that their economic turnaround would be harder than was the case for larger enterprises. Their difficulties were attributed to problems such as insufficiency in technology and modern management, lack of qualified and needed human resources. Therefore policies were developed by the legislations to help SME create better working conditions, shorten working hours. Also, policies were advanced to help SME with personnel training and development in order to acquire the type of human resources needed. Now in Korea private sector enterprises are under legal obligation to pay a retirement allowance to their employees(LSA §34). A lump sum retirement allowance is a major pillar of enterprise welfare measure retirement allowance are paid in proportion to the number of years of service at a specific company. Besides the working hours legislation is provided in the LSA, the 44-hours workweek set by the act was gradually shorten 40-hours since 2004.
In this paper I tried to argue on three issues. First, we need the system will be designed to help those SME which cannot maintain retirement pension systems on their own. Namely it is SME Retirement Allowance Mutual Relief System. Second, To reduce working hours, introduction of the five-day-week system by the labor-saving measures. Three it seems reasonable to suppose that a system will be designed to transfer of employee between large enterprises and SME. In this system a worker, though his status of large enterprise’s employee remains unchanged, is required to work in SME for a certain period for to encourage the modernization and business upgrading of SME.