Must know Labor Standards in Korea

1. Employment Contract 근로계약서

It refers to the conclusion of a contract between an employer and an employee. When concluding a contract, important matters such as wages, working hours, breaks, holidays, and vacations are agreed upon, and the contents of the employment contract must be exchanged in writing (between the parties).

2.  Scope of application of the Labor Standards Act

• It applies to all businesses or workplaces that employ five or more full-time workers.
• Only some provisions of the Labor Standards Act apply to businesses or workplaces that employ four or fewer workers on a regular basis.
• Wages are paid directly in cash and in full on a regular basis, at least once a month.
• You may receive additional wages if you work overtime, night work, or work on holidays.
• If you violate the Labor Standards Act, such as when you do not receive wages or severance pay, are assaulted by an employer or manager, are forced to work long hours or work against your will, etc., report to the Labor Improvement Guidance Department of the local employment and labor office with jurisdiction over your workplace. You can calm down.
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3. Non-payment of wages

☞ Wage non-payment means that the employer does not pay wages on the regular wage payment date. In this case, a complaint or report case can be filed with the local employment and labor office with jurisdiction over the workplace.

When a complaint case is filed with the local labor office, the facts are investigated against the worker and the employer.
Workers can process claims quickly if they prepare various materials (salary passbook, pay slip, employment contract, etc.) that can prove their claims.

☞ Processing order

1. Consultation and reporting cases (local labor office civil service office or website)
2. Request for attendance of parties (labor inspector)
3. fact finding
4. After investigating the facts, if the law is violated, payment of money or valuables is ordered to the business owner.
5. If the business owner does not comply, judicial action (prosecution) will be taken, and a 'Confirmation of Arrears Wages and Employer' will be issued for unpaid wages, and arrangements will be made for payment through the business owner's loan and advance payment to support the settlement of arrears.

4.  Dismissal해고

Under the Labor Standards Act, for an employer's dismissal to be valid, there must be a 'justifiable reason' and dismissal cannot be done without a 'justifiable reason'. Workers who are unfairly dismissed without justifiable cause can apply for unfair dismissal relief to the local labor committee under the jurisdiction of the workplace, and if the dismissal is determined to be unfair, they can be reinstated. An application for relief from unfair dismissal must be made within 3 months from the date of dismissal.

5. Working hours 노동시간

In workplaces with 5 or more employees to which the Labor Standards Act applies, standard working hours per week cannot exceed 40 hours, excluding break times, and working hours per day cannot exceed 8 hours, excluding break times.

6. Breaks 휴식시간

• Break time is 30 minutes for 4 hours of work, and 1 hour or more for 8 hours of work.
• Workers can use break times freely, and employers do not have to pay wages only for break times.

7. Overtime 연장근로, Night Shift 야간근로, Holidays 휴일근로

• Working beyond the legal working hours of 40 hours a week or 8 hours a day is called overtime work.
• Night work refers to working from 10 p.m. to 6 a.m. the next day.
• Holiday work refers to working on statutory holidays (weekend holidays, Labor Day, etc.) or agreed holidays (holidays determined by the company).
• In case of overtime or night work, workers are paid 1.5 times the normal wage.
• In the case of holiday work, holiday work of less than 8 hours a day is paid 1.5 times the normal wage, and holiday work of more than 8 hours a day is paid twice the normal wage (revised on March 20, 2018).
• If both parties agree, overtime work can be done up to 12 hours per week.

8. Work Shifting 교대근무

• Companies that must operate production facilities 24 hours a day may divide workers into two or three teams and have them work in shifts, which is called shift work.
• When working on a shift system, in some factories, workers alternate between the daytime team and the nighttime team at one-week intervals.
• In contrast, some factories have separate daytime and nighttime teams from the beginning.

● Minimum Wage System

There is a lower limit to wages set by law to ensure basic livelihood for workers, and this is called the minimum wage.

• It applies to all businesses or workplaces that use workers.
• he minimum wage in 2023 is 9,620 won per hour or 76,960 won per day (based on 8 hours of work).
• Under the Labor Standards Act, all workers are subject to the minimum wage.

☞ Wage Payment System 임금지급 체계

• Wage contracts include hourly, daily, monthly, and annual wages.
• In the manufacturing industry, there are many monthly wage systems, and in the construction industry, there are many daily wage systems. Workers who sign an hourly work contract are paid hourly only for the hours worked, and although they may be paid on a daily basis, they are usually paid on the same payday.
• It is necessary to check whether wages have been received properly, and it is a good idea to record working hours every day to provide evidence. If your company prints attendance cards, you don't have to do that.

●  Retirement benefit guarantee system 퇴직급여보장제도

If an employee continues to work for more than one year, he or she may receive severance pay.

• To receive severance pay, you must be an employee under the Labor Standards Act.
• If the working hours per week are less than 15 hours, the severance pay system does not apply.
• You can receive payment if you work at the same business for more than one year.

●  Wage Claim Guarantee System 임금채권보장제도

In cases where workers are not paid wages, retirement benefits, etc. due to reasons such as the bankruptcy of the employer, they receive the following guarantees from the government.

• Wages for the final three months: All wages accrued due to three months of work retroactively from the date of retirement or the actual end of the employment relationship.
• Final 3 months' worth of shutdown allowance: 3 months of shutdown allowance accrued retroactively from the date of retirement or the actual end of the employment relationship.
• Pay during the final 3 months of pre- and post-natal leave: Pay during the 3-month pre- and post-natal leave period retroactive to the date of retirement or the actual end of the employment relationship.
• Final 3 years of retirement benefits: 3 years of statutory retirement benefits retroactive to the date of retirement (average wage for 90 days)

※ In the case of employed workers, the amount of arrears and severance pay out of 3 months of wages (or leave allowance, wages during pre- and post-natal leave) retroactively from the last occurrence of arrears as of the date of filing a lawsuit or petition, etc. are not applicable.