'Fairness Allowance' for Short-Term Contract Workers to Debut Next Year

Starting next year, the government will offer a 'Fairness Allowance' to non-regular workers in the public sector employed for less than one year. This allowance will be paid as a lump sum upon contract expiration for fixed-term workers serving less than a year, a policy previously introduced by Governor Lee Jae-myung for Gyeonggi Province in 2021.

Approximately 73,000 short-term contract workers in the public sector are hired for under one year. The government plans to set a benchmark amount of 2.545 million won, equivalent to 118% of the 2026 minimum wage, and apply compensation rates of 8.5-10% based on the length of employment.

Labor unions criticize the introduction of the Fairness Allowance as a 'ploy' that lacks measures for conversion to permanent positions. The government, meanwhile, stated it will enhance the pre-screening system for hiring non-regular workers to prevent abuse. It aims to encourage institutions to make efforts toward permanent job conversion for non-regular workers repeatedly hired on short-term contracts for regular and continuous tasks.

The Ministry of Employment and Labor will strengthen the 'Non-Regular Worker Hiring Pre-screening System' to prevent indiscriminate hiring of temporary staff. Previously, reviews were primarily conducted by internal committee members, leading to a 94.6% approval rate. Going forward, external members will be included, and hiring reasons will be rigorously scrutinized. The operation of the pre-screening system will be reflected in public institutions' management evaluations. The ministry is also guiding 52 institutions that have not yet finalized conversion decisions according to the 2017 permanent job conversion guidelines to expedite the process.

The spread of the Fairness Allowance could extend to the private sector. As of August last year, there were 8.568 million non-regular workers in the private sector, about 58 times more than in the public sector. The government intends to first implement the policy in the public sector, verify its effectiveness, and then continue discussions to encourage private sector participation. Lee Byung-hoon, Professor Emeritus of Sociology at Chung-Ang University, commented that since the policy's effects are not fully verified, it is realistic to first implement it proactively in the public sector, closely monitor its effects on employment stability and vulnerable group protection, and then consider legislative steps.