EMPLOYMENT CONTRACT IN KOREA

Employment Contract – A Must Before Starting Work!

 

Why is it necessary?

An employment contract is essential as it clearly defines key working conditions, such as wages and working hours. It is crucial for protecting the rights of both employees and employers.

 

What happens if you don’t sign one?

If an employer does not sign an employment contract in writing and provide a copy, they may face a fine of up to KRW 5 million. In the case of temporary or part-time employees, failure to provide a written contract may result in an administrative fine of up to 5 million KRW.

 

How should it be written?

The employment contract should specify details such as wages, working hours, holidays, annual leave, and paid leave. You can refer to the standard employment contract provided by the Ministry of Employment and Labor for guidance, making it easier to draft.

 

 

Standard Employment Contract (provided by the Ministry of Employment and Labor)

 

__________ (hereinafter referred to as the “Employer”) and __________ (hereinafter referred to as the “Employee”) hereby enter into the following employment contract.

 

1. Employment Period: From ____ year ____ month ____ day to ____ year ____ month ____ day
※ If no fixed employment period, specify only the “Employment Start Date”

☞ Duration of employment as agreed upon by both parties

 

2. Work Location:

☞ Specify the location where the work will be performed

 

3. Job Description:

☞ Describe the nature of the work to be performed

 

4. Working Hours: From ____ hour ____ minute to ____ hour ____ minute (Break time: ____ hour ____ minute to ____ hour ____ minute)

☞ Specify the agreed working hours within the legal limit (8 hours per day, 40 hours per week), and include a break time of at least 30 minutes for 4 hours of work or 1 hour for 8 hours of work

 

5. Workdays/Days Off: Work every ____ day(s) per week (or specify daily), weekly rest day on ____ (day of the week)

☞ Specify which days of the week the employee will work and designate a paid weekly rest day based on full attendance during the working days of that week

 

6. Wages

☞ Specify the wage as an hourly, weekly, or monthly rate

• Bonus: Yes ( ) ________________ KRW, No ( )

☞ If applicable, specify the amount and details of any bonus

• Other Allowances (additional benefits): Yes ( ), No ( ) ________________ KRW, ________________ KRW ________________ KRW, ________________ KRW

☞ If applicable, specify any other allowances, such as family or certification allowances

• Payment Date: Every _______ day of each month (or weekly/daily, or previous day if a holiday)

☞ Specify the date wages will be paid

• Payment Method: Direct payment to the employee ( ), deposit to employee’s bank account ( )

☞ Specify if wages will be paid directly or via bank transfer as agreed upon by both parties

 

7. Annual Paid Leave

☞ ① Employees who have worked at least 80% of total working days in one year are granted 15 days; one additional day is granted every two years thereafter, up to 25 days. ② Employees with less than one year of service or those with less than 80% attendance receive one day of paid leave for each full month of attendance.

 

8. Social Insurance (Check applicable)
□ Employment Insurance □ Industrial Accident Compensation Insurance □ National Pension □ Health Insurance

☞ Specify which social insurance programs are applicable

9. Issuance of Employment Contract

☞ This informs that the employer must issue a copy of the contract to the employee when signing, as required by Article 17 of the Labor Standards Act

 

10. Duties of Faithful Compliance with Employment Contract and Work Rules

• The employer and employee must both comply with and faithfully fulfill the employment contract, work rules, and any collective agreements

11. Other

• Matters not specified in this contract shall follow the provisions of the Labor Standards Act

Year Month Day

 

(Employer)
Business Name: (Phone: )
Address:
Representative: (Signature)

 

(Employee)
Address:
Contact:
Name: (Signature)

 

 

If you have anything to discuss regarding employment contract in Korea, feel free to contact Eugene Sohn via contact below.

 

 

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