Introduction To EPS - ILO

Introduction to EPSTable of ContentsIIIStatisticsOverview of EPS1. Objective2. History3. Background4. Main TraitsIIIImplementation of EPS1. Implementation Plan2. Foreign Worker Quotas3. Sending Countries4. Sojourn Support4-1. Four EPS Insurances5. Return Support6. Prevention of Undocumented WorkersIVProgress of EPS1. Future Plans1

Composition of foreigners as of Jun 2012: 1,462,694Total number of foreigners (1,462,694)Migrant workers (714,103)Professional(46,863)Non- professional (479,844)Foreign workers(194,829)UndocumentedSpouses, students, hnic Koreans with foreign nationality(285,015)Ⅱ. Overview of EPS1. Objective2. History3. Background4. Main Traits2

1. ObjectiveAddressing labor shortage faced by SMEs industriesPreventing irregularities and Enhancing transparencyHiring right workers for employers’ demandsProtecting foreign workers’human rights2. HistoryDec. 1993 : ITS was implemented (trainee status)Nov. 2002 : Ethnic Koreans Employment Management Systemwas implementedAug. 2004 : EPS was implemented (worker status)Jan. 2007 : ITS was incorporated into EPSMar. 2007 : Changed to Working Visit System(Special EPS)Jun. 2011 : 1st Place Prize of UN Public Service Awards3

3. BackgroundProblems of the Industrial Trainee System(ITS, 1993)Illegal use of TraineesIrregularities in the sending and receiving processViolation of Labor laws and rights* Legal status : Trainee workerHigh Increase in undocumented workersThe increase in undocumented migrant workers4

4. Main TraitsTransparency and Accountability* MOU between two Governments** private institutions cannot intervene in the selection processObjective Qualifications- Korean proficiency test, career and skillsBalancing Supply and Demand of the Labor MarketReceiving Process under EPS(E-9)1. Decision onmajor policyincludingsize of laborquota7. Receiving ofworkers(Employer Migrantworkers)2. Signing ofMOU(The MOEL Government ofsending country)4. Job referral &Issuance ofemploymentpermit3. Drawing upjob seekers’roster(Government ofsending country)6. Issuance ofCertificate forConfirmation ofVisa Issuance(Employer The MOEL)(The MOEL Employer)5. Signing oflabor contract(Employer Migrantworker)5

5. OutcomesEasing the labor shortage faced by SMEsAddressing discrimination / better protection of human rightsEnhancing transparency and fairness of the process· 송출비용 감소, 외국인근로자 61.6%가자국 인력선발과정의공정성 신뢰Outcomesof EPSClassificationAbsent withoutleave(%)Wageoverdue(%)ITSAverage sending Working hours Working environmentcost( )satisfaction(pt)satisfaction(pt)50 6036.8 3,5092.382.47 EP S3.391,0973.483.57Ⅲ. Implementation of EPS1. Implementation Plan2. Foreign Worker Quotas3. Sending Countries4. Sojourn Support4-1. Four EPS Insurances5. Return Support6. Prevention of Undocumented Workers6

1. Implementation PlanAnalysis of demands for foreign workersPre-hearing meetings by foreign workforce policyworking groupDeliberation and decision by foreign workforce policycommitteeProclamation of the implementation plan (by March 31each year)2. Foreign Worker Quotas As of june, 2012 Classification by Sojourn 4,00034,00048,00057,000Foreigner 00057,000Ethnic Korean ,200------EmploymentManagement System16,000--------Classification by tion26,0001,00010, 0018,90020,60031,0006,000100150150Agriculture 7507

3. Sending countriesMOU with 15 countries As of june, 2012 No.Sending CountriesNumber of workers(present)No.Sending CountriesNumber of Mongolia21,29910China8913Sri 4Myanmar6,1237Uzbekistan14,37115East Timor1,0258Pakistan2,6334. Sojourn SupportEmployment period : 3 2 yearsAnti-discrimination policiesProtection by labor related lawsSocial Insurances and 4 EPS Insurances* Health insurance ㆍ Industrial Accident compensation insurance(mandatory),Employment insurance(voluntary), National pension(mutual agreement)Regional council to protect human rights8

4-1. Four EPS InsurancesEmployerWorkerReturn Cost InsuranceDeparture Guarantee Insurance(for return flight ticket)(for Severance Pay)Migrant WorkersGuarantee InsuranceCasualty Insurance(for Overdue Wages)(for Injury or Death irrelevant to work)2-2. Organizations in charge of EPS55 Job centersunder the Ministry ofemployment and Labor24 HRD KoreasEmployers&Migrant workers7 Migrant Worker150 NGOsSupport Centers9

5. Return SupportNotifying workers when their sojourn period is to expireVocational Training and Business Startup CourseJob referral for Korean companies in workers’ home countries Establishing a network of returnees5. Prevention of undocumented 168,000171,659Skilled workersTotal number of undocumented workers (171,659)Unskilled workersTemporaryEPS(E-9)Working visitEmploymentsystemFirst nges1. Labor market distortions, 2. Human rights infringement, 3. Social costsMeasures1. Prevention : Education, Inspection, Return Support2. Discrimination & Punishment- Limits on employment period (Max. 3 years), Restriction on reentry permit10

Ⅳ. Progress of EPS1. Future Plans 1. Future plansPreparation for Multicultural society, Establishment of Unified foreign workforce policy system- unskilled workers, skilled workers, marriage migrants, overseas studentsStrengthening Transparency, Predictability and Accountability- Selection criteria : Korean language test(PBT CBT), Reinforcing skills test- Number of foreign workers : Early decision ㆍ announcement, Flexible management, Jobtrainingㆍreturn support program, benefits for law-abiding workersAdvancement of mutual development projects for Asian countries- Sending and receiving workforce advancement in workforce, economy and society: Strategicpartnership- Support center: foreign workers employers, trainingㆍcounselingㆍsupport service- Change of workplace: devise measures to stop unreasonable practices, strengthen penalties forunlawful practices11

Introduction to EPS II Overview of EPS 1. Objective 2. History 3. Background 4. Main Traits IV Progress of EPS III Implementation of EPS 1. Implementation Plan 2. Foreign Worker Quotas 3. Sending Countries 4. Sojourn Support 4-1. Four EPS Insurances 5. Return Support 6. Prevention of Undocume