Employment Law in South Korea

Employment in South Korea

South Korea has approximately 40-50 legislative tools that make up labour/employment law in the country, such as:

1. The Labour Standards Act (LSA)
2. The Framework Act on Employment Policy
3. The Employment Security Act (ESA)
4. Act on Equal Employment
5. Industrial Accident Compensation Insurance Act
6. Labour Adjustment Act (LAA)

Key Regulations Under South Korean Labour Laws

Working Hours

• Standard Working Hours: A maximum of 40 hours a week.
• Overtime: Limited to 12 hours per week.
  • This applies to workplaces with more than five employees.

Probation Period

• There is no specific legislation on probation periods in South Korea.
• The probation period can be extended, but it can be legally extended only with the prior consent of the employee.
  • *Market practice: 3 months

Wages

• Minimum Wage: The minimum wage is adjusted annually to ensure fair compensation for employees.
• Pay Cycle: Wages must be paid at least once a month on a fixed payday.

Employment Contracts

• If the Labor Standards Act is properly specified, there is no problem with writing the Employment Contract in English.

Employee Rights

• Protection Against Discrimination: Ensures equal employment opportunities regardless of gender, religion, or ethnicity.
• Right to Form and Join Trade Unions: Safeguards workers’ interests through collective bargaining.

Employer Contributions

Employers in South Korea are mandated to make contributions towards various social security schemes, including:

• National Pension: 4.5% of the employee’s national pension base amount.
• National Health Insurance: 3.545% of the employee’s national health insurance base amount.
  • (Long term care Insurance): 12.95% (0.9182%/7.09%) of the National Health Insurance)
• Employment Insurance: 0.9% to 1.75% of the employee’s employment insurance base amount.
• Workers’ Compensation Insurance: Varies based on industry risk. (This insurance is only imposed on employer, not employees).

Best Practices for Employers

• Stay Informed: Regularly update knowledge on legal changes and compliance requirements.
• Implement HR Systems: Ensure that HR practices align with legal standards.
• Promote a Culture of Respect: Foster a positive work environment that adheres to fair practices and equity.

Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of South Korea employment laws and regulations, please visit the official governmental websites.

Updated on: 16th January 2025