liminfoEmployment Law Reference
Free reference guide: Employment Law Reference
About Employment Law Reference
The Korean Employment Law Reference is a comprehensive, searchable guide to South Korea's labor law provisions under the Labor Standards Act (근로기준법), Equal Employment Act (남녀고용평등법), and related statutes. It covers working hours and the 52-hour weekly limit, overtime/night/holiday premium pay calculations, annual paid leave entitlements, severance pay formulas, minimum wage rates, unfair dismissal protections, maternity and parental leave, and special employment forms.
Designed for HR professionals, business owners, labor attorneys, foreign workers, and employees navigating Korean workplace regulations, this reference provides detailed calculation examples, penalty provisions, and practical guidance for workplaces with fewer than 5 employees. Each entry includes the relevant article numbers and real-world calculation scenarios.
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Key Features
- Working hours reference covering the 52-hour weekly limit, overtime caps, break time rules, and flexible work arrangements
- Wage calculation examples for overtime (50%), night (50%), and holiday premiums (50%/100%) with compounding scenarios
- Annual paid leave calculator showing entitlements from 15 days up to 25 days based on tenure, plus use-promotion rules
- Severance pay formula with average wage calculations and retirement pension types (DB, DC, IRP)
- Unfair dismissal protections including just cause requirements, written notice rules, and Labor Relations Commission remedies
- Maternity leave (90/120 days), parental leave (1 year), and the 3+3 parental leave system with benefit caps
- Minimum wage rates for 2024-2025 with inclusion/exclusion scope and probation reduction rules
- Special provisions for workplaces with fewer than 5 employees, fixed-term workers, and surveillance/intermittent workers
Frequently Asked Questions
What is the maximum working hours per week in South Korea?
Under the Labor Standards Act Article 50 and 53, the statutory working hours are 40 hours per week (8 hours per day) excluding breaks. Overtime is limited to 12 hours per week with mutual agreement, making the total maximum 52 hours per week. Workers under 18 are limited to 35 hours per week with up to 5 hours of overtime. Violation carries a penalty of up to 2 years imprisonment or KRW 20 million fine.
How is overtime pay calculated in Korea?
Under Article 56, overtime work requires a 50% premium on ordinary wages. Night work (22:00-06:00) adds another 50% premium. Holiday work gets 50% for the first 8 hours and 100% for hours beyond 8. These premiums compound: holiday night overtime work earns 200% of ordinary wages. Workplaces with fewer than 5 employees are exempt from premium pay requirements and only pay ordinary wages.
How many annual leave days do Korean workers get?
Under Article 60, workers with less than 1 year of service earn 1 day per month of perfect attendance (max 11 days). After 1 year with 80%+ attendance, workers get 15 days. From the 3rd year onward, 1 additional day is added every 2 years, up to a maximum of 25 days. Unused leave must be compensated at the ordinary daily wage rate. The use-promotion system can exempt employers from compensation if proper notice is given.
How is severance pay calculated in Korea?
Under the Retirement Benefits Security Act, employees with 1+ year of continuous service and averaging 15+ hours per week are entitled to severance pay. The formula is: Daily Average Wage x 30 days x Years of Service. Average wage is calculated as total wages paid in the 3 months before separation divided by the total calendar days. Payment must be made within 14 days of separation, with 20% annual interest on late payments.
What protections exist against unfair dismissal?
Article 23 prohibits dismissal without just cause. Disciplinary dismissal requires grounds listed in work rules. Managerial dismissal (Art. 24) requires all four conditions: urgent business necessity, efforts to avoid dismissal, fair selection criteria, and consultation with employee representatives 50 days prior. Written notice of dismissal grounds and timing is mandatory (Art. 27) or the dismissal is void. Workers can file with the Labor Relations Commission within 3 months.
What is the difference between ordinary wages and average wages?
Ordinary wages are wages agreed to be paid regularly, uniformly, and fixedly. They include base pay, position allowance, and qualification allowance, and are used for calculating overtime/night/holiday premiums and dismissal notice pay. Average wages are the total wages paid in 3 months before the triggering event divided by the calendar days, used for severance pay, shutdown allowance, and accident compensation.
What maternity and parental leave benefits are available?
Maternity leave provides 90 days (120 for multiples) with at least 45 days after birth. Benefits are capped at KRW 2.1 million/month from Employment Insurance. Parental leave offers up to 1 year per child (aged 8 or under) at 80% of ordinary wages (cap KRW 1.5M). The 3+3 system gives both parents 100% pay for the first 3 months (cap KRW 4.5M each) if both take leave for a child under 18 months.
Which labor laws apply to workplaces with fewer than 5 employees?
Employment contracts, wage payment principles, minimum wage, severance pay, weekly holiday/pay, maternity leave, industrial accident compensation, and 30-day dismissal notice all apply. However, overtime/night/holiday premium pay, annual paid leave, unfair dismissal remedy through the Labor Commission, managerial dismissal procedures, workplace harassment penalties, and the 52-hour weekly limit do NOT apply. Unfair dismissal can still be challenged via civil lawsuit.