What Changes on November 27 — The Amendment at a Glance
Korea's Act on Equal Employment and Support for Work-Family Reconciliation (the Equal Employment Act) amendment takes effect on November 27, 2026, a little over a month from now. These are the points SMEs need to know.
Corporate representatives named explicitly: The law now states that a corporation's representative is prohibited from committing workplace sexual harassment.Fines extended to representatives and relatives: If a corporate representative, an employer, or a relative of theirs who is a supervisor or employee commits sexual harassment, they now face fines on the same basis as the employer. Under current law, an employer who harasses an employee can be fined up to KRW 10 million.More paid infertility treatment leave: The annual total stays at six days, but the paid portion doubles from two days to four. The pay cap rises from KRW 168,420 to KRW 336,840 (based on KRW 84,210 per day).Criminal penalties for retaliation: Dismissing or otherwise disadvantaging an employee because they took infertility treatment leave is punishable by up to three years in prison or a fine of up to KRW 30 million.The effective date is November 27, 2026. Details such as how "relative" is defined and how pay support is claimed should be checked against the promulgated text and the amended Enforcement Decree.
Why This Hits SMEs Hardest — The Blind Spot in Family-Run Companies
The reason for the amendment is clear. Until now, fines applied only to the employer, so harassment by an employer's relative in a supervisory role, such as a spouse or child, was hard to sanction.
In SMEs, and family businesses in particular, this gap carries real risk. Picture a company where the CEO's son runs production and the CEO's spouse is the managing director. The person a victim would report to, and whoever would investigate, are family of the alleged harasser. Victims often stay silent, and when they do report, the investigation struggles to look impartial.
Keep workplace harassment and sexual harassment separate. General workplace harassment falls under the Labor Standards Act (Articles 76-2 and 76-3), which already fines employers and their relatives up to KRW 10 million. This amendment brings the same structure to sexual harassment under the Equal Employment Act. If you reuse a harassment investigation manual as-is for sexual harassment cases, you may apply the wrong obligations and penalty provisions.
Checklist for Work Rules and Internal Policies
Define who is covered: State plainly that the ban covers the representative, executives, the employer, and relatives of the representative.Protect investigation independence: When the representative or a relative is the accused, require that an outside labor attorney or external committee member run the investigation. Offer two reporting channels: one internal and one external.Review victim protections: Revisit protective measures such as workplace transfers and paid leave, along with the ban on retaliating against people who report. Retaliation also carries up to three years in prison or a KRW 30 million fine.Plan the timeline backward: Workplaces with 10 or more regular employees must consult a majority of employees before changing work rules, and must get their consent if the change is unfavorable. With consultation and the filing with the regional labor office both taking time, you need to start drafting now to be ready by the effective date.Four Paid Days of Infertility Leave — Payroll and Attendance
According to press reports, the government will cover pay for the first four days at priority-support companies, while large companies pay it themselves. In practice, you will need to:
Set application and documentation rules: Create a leave request form and decide what proof is required, such as confirmation of treatment from a medical institution. Treatment records are sensitive data, so limit who can see them.Split attendance codes: Use separate codes for paid and unpaid infertility leave in your attendance system so payroll and government reimbursement claims come out right.Map the reimbursement process: Once the Enforcement Decree is final, write down how the company pays the four days first and then claims support through employment insurance.Brief evaluators: Counting leave use against someone in evaluations, promotions, or assignments may now be a criminal offense. Make sure everyone who evaluates staff knows this.Updating Prevention Training and Manager Education
Mandatory sexual harassment prevention training (at least once a year) should cover the amendment. Employers are legally required to attend too, so the CEO and executives should take the training themselves and keep records of completion.Training for managers: Give team leaders separate guidance on handling requests for infertility, maternity, and childcare leave, with real examples of the kind of treatment that is now prohibited.Labor Compliance Review with KITIM
KITIM helps companies review draft work rule amendments under the revised Equal Employment Act, design reporting and investigation systems for family businesses, including cases where the representative or a relative is the accused, and apply this year's second-half labor law changes in one pass. If you want your policies and training materials reviewed before November 27, contact the KITIM consulting team. We will assess where your current rules stand and work out a timeline with you.
