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01Introduction to the Republic of Korea
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02Multicultural Families and Foreigner Support Services
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03Residence and Naturalization
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04Korean Culture and Life
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05Pregnancy and Childbirth
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06Education of Children
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07Health and Healthcare
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08Social Security System
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09Employment and Labor
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10References
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Chapter Introduction Video
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FAQ
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Status of family centers
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Current Status of Danuri Helpline
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Migrant Background Youth Support Foundation
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Current Status of Saeil Center (New Job Center for Women)
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Immigration Offices
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Major Tourist Destinations by Region
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Contact Numbers for Key Foreign Embassies and Consulates in Korea
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Guide to Personal Information Protection
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Danuri Call Center : 1577-1366
가족상담전화 : 1644-6621
21F, 173, Toegye-ro, Jung-gu, Seoul (Chungmuro 3-ga, Namsan Square Building)
Copyright ⓒ KOREA INSTITUTE FOR HEALTHY FAMILY. All Rights Reserved
Major Issues Related to Labor
- Home
- Employment and Labor
- Major Issues Related to Labor
Major Issues Related to Labor
01Labor standards related systems
(1)Employment Contracts
When entering an employment contract, the employer must specify to the worker the wages, prescribed working hours, holidays, annual paid leave, place of employment, delegated tasks, starting and ending times, break times, etc. In particular, a written document specifying wages, prescribed working hours, holidays, and annual paid leave must be issued to workers.
(2)Applicable Range of the Labor Standards Law
- Applicable to all companies or businesses that regularly employ five or more workers
- Partially applicable to businesses or companies that regularly employ four or fewer workers
- Refer to Appendix 1 of the Labor Standards Act Enforcement Decree
(3)Payment of wages
- The employer must pay the full amount of wages directly in cash on a regular basis at least once a month.
- Additional wages must be paid for overtime work, night work, or holiday work.
- Additionally, when wages are paid to workers, a wage statement containing the total earned wage and the amount of each wage component must be issued.
For a violation of the law, such as unpaid wages or severance pay owed, being assaulted by an employer or manager, working long hours or being forced to work against your will, you can file a report to the labor office with jurisdiction over your workplace. (Inquiries: Customer Service Center ☎1350)
(4)Layoffs
An employer cannot dismiss an employee without justifiable cause, and if the employer unfairly does so, the employee can file an application for unfair dismissal relief to the provincial labor relations committee within 3 months from the date of dismissal.
(5)Dismissal notice
If the period of the worker's continuous employment is less than 3 months, it is impossible to continue business due to natural disaster, public disorder or other unavoidable reasons, or the worker intentionally causes significant disruption to the business or causes property damage, except for cases prescribed by Ordinance of the Ministry of Employment & Labor, an employer must give at least 30 days advance notice to dismiss an employee, and if 30 days advance notice is not given, the employer must pay at least 30 days' worth of ordinary wages.
(6)Working Hours
- In workplaces with at least 5 employees to which the Labor Standards Act applies, working hours per week cannot exceed 40 hours, excluding break times, and work hours per day cannot exceed 8 hours, excluding break times.
(7)Breaks
- A thirty-minute break is given for every 4 hours of work, and a 1 hour break is given for every 8 hours of work.
- Employees are free to use their breaks as they wish, but will be unpaid during the break period.
(8)Overtime, Night Work, and Holiday Work
- Extended working hours is defined as working more than 40 hours per week, or 8 hours per day.
- Night work refers to work that takes place between 22:00 and 06:00.
- Holiday work refers to work that takes place on national and contractual holidays.
- Pay for overtime and night work is set at 1.5 times the regular wage.
- Holiday work within 8 hours is set at 1.5 times the regular wage, and holiday work exceeding 8 hours is set at 2 times the regular wage. (Law revised on March 20, 2018)
- Extended work hours are allowed up to 12 hours per week if both parties agree.
(9)Shifts
- Companies that require production facilities to be run 24 hours a day divide their employees into two or three teams to work in shifts.
- Some factories make arrangements whereby their employees rotate day and night shifts on a weekly basis.
- Others group their employees into shifts on a permanent basis.
(10)Employment rules
Businesses with at least 10 full-time workers must compile employment rules for workers to readily read them. This includes working hours and break times, matters related to work, and matters related to work safety and hygiene.
02Minimum Wage System
This is the minimum amount of money that the government requires employers to pay to employees.
- It applies to all businesses or workplaces that employ workers.
- As of 2024, the minimum wage is KRW 9,860 per hour or KRW 78,880 per day (based on 8 working hours per day).
- The minimum wage applies to all labor workers under the Labor Standards Law.
03Workers Retirement Benefit Guarantee System
Employees who have worked for one year or more can receive severance pay
- Only employees working in accordance with the Labor Standards Act will qualify for severance pay.
- If the prescribed working hours per week on average over four weeks are less than 15 hours, the severance pay system does not apply.
04Salary Compensation System
Employees who are unable to receive wages or retirement benefits due to the bankruptcy of the employer are guaranteed the following:
- Wages for the last 3 months: All wages for which the reason for payment is attributed to 3 months of work retroactively from the date of retirement or the effective end of labor employment.
- Leave allowance for the last 3 months: Leave allowance for 3 months retroactively from the date of retirement or the effective end of labor employment.
- Benefits during the last 3 months of maternity leave: Benefits during the 3-month maternity leave period retroactively from the date of retirement or the effective end of labor employment.
- Retirement benefits for the last three years of work: Legal retirement benefits for three years retroactive from the date of retirement (regular wages for 90 days)
- Not applicable to the payment of overdue wages and retirement benefits out of wages paid for the last 3 months of work (or non-duty allowance, wages during maternity leave by retroactivately applying the last day of overdue wages based on an objection date such as a lawsuit or petition in the case of an incumbent.
