2. _________ _____ _____ _________ _____ _____ _______ __ ____ _______ __ ____ Employment Permit System (EPS) Ministry of Labor Republic of Korea

3. Overview of the EPS II 1. Background and Current Status 2. Objective 3. Accomplishments 4. Classification Statistics on Migrant Workers I Receiving Process of Migrant Workers 1.Overview 2.Labor Quota and Job Seekers’ Roster 3.Labor Contract 4.Entry of Workers III Employment and Sojourn Management 1. Overview 2. Organizations in Charge 3. Prevention of Undocumented Workers 4. Return Support IV Vision V Table of Contents

5. Total number of foreigners residing in Korea as of Dec. 2009 : 1,168,477 ㆍ Number of migrant workers : 690,000 (professional · non-professional· undocumented workers) ㆍ Non-professional workers : 158,000 under the EPS for foreign workers, 303,000 under the EPS for ethnic Koreans with foreign nationality Total number of foreigners (1,168,477) Migrant workers (690,611) Undocumented (177,955) Undocumented (177,955) Short-term employed (15,917) Short-term employed (15,917) Professional (35,536) Professional (35,536) Spouses, students, etc. (477,866) Spouses, students, etc. (477,866) Foreign workers (158,198) Foreign workers (158,198) Ethnic Koreans with foreign nationality (303,005) Ethnic Koreans with foreign nationality (303,005) Non- professional (461,203) Foreign workers are mainly employed in manufacturing sector (88.5%). Wage (as of 2009) : around 1,140,000 won {minimum wage(904,000 won/month) + overtime pay} Ethnic Koreans with foreign nationality are employed in service sector (restaurants, domestic service, etc., 57.6%) and construction sector (36.4%)

6. 1. Background and Current Status 2. Objective 3. Accomplishments 4. Classification

7. 1. Background and Current Status of the EPS  Sending countries : MOU was signed with the fifteen countries* * Vietnam, the Philippines, Thailand, Indonesia, Mongolia, Sri Lanka, Uzbekistan, Pakistan, Nepal, Cambodia, Bangladesh, Kyrgyzstan, Myanmar, China, Timor-Leste  Total number of migrant workers received under the EPS (E-9 visa) from 2004 to 2009 : 235,836 * Manufacturing : 213,824, Construction : 8,488, Agriculture & Livestock : 10,266, Fishing : 3,015, Service : 243 Current Status  Dec. 1993 : Industrial Trainee System (ITS) was implemented (Trainee status). Issues surfaced : 1.Labor market distortion 2.Violation of migrant workers’ human rights 3. Irregularities in the sending process  August. 2004 : Employment Permit System for unskilled workers was implemented. * Jan.1, 2007 : ITS was abolished and unified into the EPS. Background

8. 2. Objective of the EPS EPS is designed to allow employers who failed to employ Korean national workers to legally hire an appropriate number of foreign workers (unskilled workers). Preventing irregularities in the sending process and enhancing transparency in the receiving process Protecting employment opportunity for national workers Addressing labor shortage faced by SMEs and 3D jobs Protecting employment opportunity for national workers

9. 3. Accomplishments Contributed to easing the labor shortage faced by SMEs · Unskilled labor shortage rate: 5.5%(2004) → 4.6%(2005) → 2.9%(2006) → 3.2%(2007) 1,0979.03.3 EPS ↓↓↓↓ 3,50936.850~60 ITS Average sending cost($)Overdue wage(%)Absent without leave(%) Classification Accomplishments Evaluation on the EPS on its 3 rd year, Korea University of Technology and Education, 2007 (Raw data on the EPS, Survey) Contributed to addressing discrimination against migrant workers and strengthening protection of migrant workers’ human rights Contributed to enhancing transparency and fairness of sending and receiving process · Sending cost has been cut and 61.6% of migrant workers said they trust fairness of selection process in their country.

10. 4. Classification of the EPS EPS is divided into the “EPS for foreign workers” and the “EPS for ethnic Koreans with foreign nationality.” For general foreign workers Visa type : E-9, Non-professional employment Sending countries : 15 sending countries including Vietnam, the Philippines, Thailand, Indonesia, Sri Lanka, etc. Permitted sectors : manufacturing, construction, agriculture & livestock, fishing, and service (tourist hotel, collection and sale of recyclable materials, refrigeration and freezing warehouse) Receiving process: job referral by public agency- signing of contract - entry EPS for foreign workers For ethnic Koreans with foreign nationality Visa type: H-2, Working visit Sending countries : Central Asian countries including China, Russia, Mongolia, etc. Permitted sectors : manufacturing, construction, agriculture&livestock, fishing, and service(lodging, restaurants, caregiver, public bath, activities of households as employers, non-store retail) Receiving process: entry with working visit visa – employment (autonomous job search is allowed) EPS for ethnic Koreans with Foreign Nationality

11. 1. Overview 2. Labor Quota and Job Seekers' Roster 3. Labor Contract 4. Entry of Workers

12. 1. Overview of Receiving Process 2. Signing of MOU (Ministry of Labor of Korea ⇔ Government of sending country) 5. Signing of labor contract (Employer ⇔ Migrant worker) 3. Drawing up job seekers’ roster (Government of sending country ⇔ Ministry of Labor of Korea) 4. Job referral and Issuance of employment permit (Ministry of Labor of Korea ⇔ Employer) 6. Issuance of Certificate for Confirmation of Visa Issuance (CCVI) (Employer ⇔ Ministry of Justice of Korea) 7. Receiving of workers (Employer ⇔ Migrant workers) 1.Decision on major policy including size of labor quota Note : Receiving process of the EPS for ethnic Koreans with foreign nationality (H-2 visa type) 1. Differentiated receiving process from the EPS for foreign workers (E-9) taking into account the distinctive characteristics of ethnic Koreans with foreign nationality. 2. Ethnic Koreans with foreign nationality who entered with H2 visa can be employed if they apply for employment after completing employment training. (Autonomous job seeking activities are allowed) 3. Employers who made efforts to hire national workers for 3 to 7 days but failed are allowed to employ ethnic Koreans with foreign nationality after receiving special work permit.

13. 2. Labor Quota and Job Seekers’ Roster (1) Decision on major policy including labor quota Foreign Workforce Policy Committee conducts deliberation and makes decision on major issues concerning the employment of migrant workers* * Type and size of permitted sectors, sending countries etc. (2) Signing of the MOU on Sending Workers to Korea (Ministry of Labor of Korea ↔ Government of Sending Country) MOU is renewed on regular basis(2 years) based on the assessment of the implementation of the MOU (3) Drawing up job seekers’ roster (Government of Sending Country ↔ Ministry of Labor of Korea ) Sending agency (public agency) prepares job seekers’ roster for those who passed the Korean Language Test and medical check-up and had passport issued * If necessary, skill test may be conducted

14. 3. Signing of Labor Contract (5) Signing of Labor Contract (Employer ↔ Worker) Employer is required to use Standard Labor Contract when signs a labor contract * Working conditions including wage, working hours, holidays, main job duties and contract period have to be stipulated. (4) Referral of Job seekers and Issuing of employment permit (Ministry of Labor of Korea ↔ Employer) Employer applies for an employment permit at job center Job center refers several job seekers to the employer When the employer selects the worker to employ, job center issues an employment permit to the employer

15. 4. Entry of Migrant Workers (6) Issuance of CCVI (Employer ↔ Ministry of Justice of Korea) Employer submits required documents including employment permit and standard labor contract to the Ministry of Justice of Korea Ministry of Justice of Korea issues the CCVI (7) Entry of Workers (Employer ↔ Migrant worker) Migrant worker has a visa(E-9) issued at the diplomatic mission and enters Korea Migrant workers are required to take both employment trainings before departure and upon arrival (Education on the Korean culture and labor related laws) Employer sends the CCVI to the worker

16. 1. Overview 2. Organizations in charge 3. Prevention of undocumented workers 4. Return support

17. 1. Overview of Employment and Sojourn Management ` Changing of workplace is prohibited in principle (Exception: In case legitimate reasons are recognized, workers can change workplace for up to three times) - To change workplace, workers are required to obtain permission within 3 months (application for changing of workplace has to be submitted within one month) * In case workers are affected by industrial accident, disease, pregnancy, childbirth etc., those days are not included in counting the prescribed period. Employment period is limited to 3 years to prevent permanent settlement - If the employer submits an application, the worker can be reemployed for no more than two years - Labor contract can be signed for up to the period of sojourn (less than 3 years) - Migrant workers are not allowed to bring family/ Workers are not allowed to pursue activities that are not the purpose of his/her sojourn (ex: working as a singer, being enrolled at school etc.) (1) Sojourn management Legitimate reasons for changing of workplace 1. In case the employer cancels a labor contract for justifiable reasons or refuses to renew the contract 2. In case the worker cannot continue to work in the current workplace due to business suspension, closure, and other reasons not attributable to the worker 3. In case the employment permit is canceled or restriction is imposed on the employment of foreign workers to the employer 4. In case the worker cannot continue to work in his current workplace due to injury but is able to work at another workplace

18. Labor related laws including Labor Standard Act, Minimum Wage Act, and Act on Industrial Safety and Health are equally applied to migrant workers as the Korean national workers. Social Insurances including health insurance and Industrial Accident Compensation Insurance are applied to migrant workers * However, there can be different treatment based on productivity and work experience Discrimination against migrant workers is prohibited Monitoring and guidance on the workplace where migrant workers are employed (conducted by the Ministry of Labor) (2) Employment Management * For employers : Departure Guarantee Insurance(severance pay), Guarantee Insurance(overdue wage) * For workers : Return Cost Insurance(return flight ticket), Casualty Insurance (accident and death irrelevant to work) EPS Insurances are managed considering migrant workers’ circumstances 1. Overview of Employment and Sojourn Management

19. 2. Organizations in Charge Job Center under the Ministry of Labor: receiving applications, providing counseling service and guidance etc. HRD Korea: conducting monitoring on the workplace and other support after workers’ entry Migrant Worker Support Center: running call center(counseling service in the native language of migrant workers, receiving complaints, holding cultural events, providing education on the Korean language and culture (8 centers are established across the nation where migrant workers are concentrated) Job centers under the Ministry of Labor(55) HRD Korea (24) Migrant Worker Support Center(8) NGOs (150) Employers & Migrant workers Employers & Migrant workers NGOs: Medical service, cultural events, and other supports

20. As of Oct. 2009, undocumented workers amounted to 181,331 (15.6% of total number of foreigners of 1,164,166 ) ` Challenges posed by undocumented workers Disruption in implementing the foreign workforce policy Increase in the social cost (childbirth ㆍ medical service ㆍ housing etc.) Violation of human rights of undocumented workers Encouraging disregard for law 3. Prevention of Undocumented Workers Statistics

21. Government-wide measures - Strengthening cooperation and information sharing on undocumented workers among relevant Ministries Preventing the occurrence of undocumented workers - Strengthening immigration management in the areas of visa issuance and immigration inspection - Reflecting the rate of undocumented workers when setting the ceiling for job seekers’ roster - Limiting number of workers to be sent and postponing the KLT if excessive unofficial sending cost arises - Implementing programs to encourage voluntary departure (Job referral in home country, training on business start up etc.) Strengthening crackdown and stepping up punishment Measures against undocumented workers - Conducting crackdown on regular basis and stepping up punishment for employers who hire undocumented workers 3. Prevention of Undocumented Workers

22. 4. Return Support Notice to workers whose sojourn period is to expire - Informing workers whose sojourn period expires of their return date in advance Trainings on skills and business startup - Providing trainings to workers to return on the skills and business startup (based on demand survey to be conducted in cooperation with the embassy) Job referral to the Korean companies in workers home countries - Offering job referral service to the Korean companies in workers home country (www.returnjob.or.kr) - Hosting the a Job Day where employers and job seekers are gathered together in the sending country Establishing a network of returnees - Maintaining solidarity with returnees by creating a network of returnees through Embassies.

23. . Vision Government to Government " Strengthening friendly relations between Korea and the sending country” " Strengthening friendly relations between Korea and the sending country” Economic Development of Korea The government of Korea The government of sending country Close cooperation Economic Development of Sending country