1. The Client's Situation
As an employee of the client applied for a reduction in working hours during the childcare period, the client needed to comprehensively review matters such as the method of calculating wages, the handling of allowances for Saturday on-duty work, whether annual paid leave accrues, and the requirements for ordering overtime work. In particular, in the case of Employee B, there was a possibility of Saturday work during the reduced-hours period, so a clear legal determination was needed regarding the calculation of working hours and the method of paying allowances.
2. Your Legal Team's Advice
Your Legal Team advised as follows. First, the wages of an employee on reduced hours must be calculated in proportion to the reduced working hours (based on 30 hours per week), adjusting to a level of approximately 75% of the existing wage. Second, considering the company's designation of weekly holidays, Saturday on-duty work constitutes overtime work rather than holiday work; however, in the case of an employee on reduced hours during the childcare period, overtime work cannot be ordered without the employee's explicit request, so 150% of the ordinary wage must be paid strictly on the premise of a written request form. Third, because the amendment of the law effective October 22, 2024 guarantees the number of annual leave days according to length of service (15 days or more) regardless of whether the employee is on reduced hours, we made clear that the number of annual leave days cannot be reduced on the ground of the reduction in working hours.
3. Outcome
The client was able to overhaul its system for managing employees' wages and working hours in conformity with the law, thereby preventing the risk of unnecessary labor disputes. In addition, by aligning the criteria for granting annual leave with the new statute to improve its operating method, and by establishing a procedure for the employee's explicit request in the case of overtime work, it achieved the effect of reducing practical risks.