Bilateral Arrangement of Temporary Labor Migration Lessons from Korea’s Employment Permit System POLICY MECHANISM Bilateral Labor Agreements Bilateral labor agreements (BLAs) play an important role in facilitating temporary labor mobility across borders, especially for low-skilled workers, and promote mutually beneficial economic gains for all involved—workers and employers as well as sending and receiving countries. In a nutshell, BLAs promote institutionalized management of temporary labor mobility by: Focusing on a predetermined Incorporating a predetermined number of temporary workers duration of employment, as opposed to refugees including both seasonal APPLIC (forced migration) and and non-seasonal ANT immigrants (voluntary guest worker JULY 15 but permanent programs. migration). Taking the form of Promoting mutually legally binding formal beneficial economic treaties or increasingly gains for sending/ more in the form of receiving countries, flexible memoranda of while addressing political understanding. concerns associated with foreign workers. July 2018 Bilateral Arrangement of Temporary Labor Migration Lessons from Korea’s Employment Permit System SUCCESS STORY Republic of Korea’s Employment Permit System The Employment Permit System (EPS)—implemented as a government-to- government bilateral labor agreement (BLA)— offers a temporary guest worker program hiring low-skilled workers from 16 developing countries through memoranda of understanding. EPS as a BLA: Promotes institutionalized management Creates a system that is economically of temporary labor mobility. beneficial to both sending and Mutually agreed quota (number of workers) by country receiving countries. with predetermined duration (3 years, renewable up to High-wage job opportunities for foreign workers and 4 years and 10 months) and sectors of employment. means to address labor shortages for employers. JULY 15 $ July 2018 EPS at a Glance: Operates with a politically Ensures transparency in the acceptable and efficient migration process. governance system. A single agency-led implementation process with Standardized migration process with detailed multiple stakeholders contributing to policy making information available via a government-led that is strongly backed by information technology recruitment system—Korean language test as a and existing labor market support systems. worker screening tool, transparent job application and matching, responsible employment, and timely return process. $ Lowers migrations costs by linking employers and workers without private Provides worker protection via labor regulations, social insurance, and social intermediaries. services. A significant reduction in migration costs paid by Same minimum wage and working conditions as workers (over US$3,700 ➔ US$1,000 per person Korean workers, universal national health insurance/ or reduction from seven months’ earnings to one occupational accident insurance, and job search/ month’s earnings in Korea). counseling services available. Supports small and medium Ensures workers’ enterprises in labor shortage. temporariness. Around 65 percent of EPS workers hired in small A temporary labor program that is not a legal route firms with less than 10 employees in manufacturing to permanent residency with policy measures in with an increased contribution to the agriculture, place to facilitate the timely return of workers to livestock, and fishery sectors in the past few years. their home countries. Despite successes, a few challenges remain to be addressed in meeting the needs of EPS workers and their employers. Bilateral Arrangement of Temporary Labor Migration Lessons from Korea’s Employment Permit System VISUAL GUIDE Republic of Korea’s Employment Permit System The Employment Permit System (EPS) allows Korean domestic employers—small and medium enterprises—to hire temporary foreign workers for low-skilled jobs. The EPS is implemented through a sophisticated and well-managed governance structure with full government support. EPS ENSURES: PHASE Pre-Decision & Pre-Job Matching Worker screening for good job ✔ matching quality ● Korean language test ● Medical checkups Comprehensive and transparent ✔ ● Job application information sharing EPS ENSURES:  ob matching reflecting both ✔J PHASE Job Matching & Pre-Departure sides’ preferences and addressing labor shortages ● Public employment service Low costs of migration without ✔ ● Visa and contract issuance paying recruitment fees ● Pre-departure 45-hour training  rientation providing key ✔O information about the destination to workers EPS ENSURES:  orkers’ awareness of ✔W their rights PHASE During Migration  ccess to labor regulations, ✔A ● Post-arrival 20-hour training social insurance, and ● Worker protection counseling services ● Worker support  hange of employers (up to ✔C three times) and public job intermediation EPS ENSURES: PHASE Post-Migration  ull support for the timely return ✔F ● Skills training for labor market reinsertion ● Linkage to returnee network O of workers  raining to workers to increase ✔T ● Return cost insurance fund payout* employment opportunities in their home countries * i.e., a lump-sum payout upon departure July 2018