LABOR STANDARDS ACT [See entire ACT]

CHAPTER Ⅱ Labor Contract

Article 15 (Labor Contracts in Violation of This Act)

(1) A labor contract which has established terms and conditions of employment not in compliance with the standards prescribed by this Act shall be null and void to that extent.

(2) Those parts made null and void in accordance with paragraph (1) shall be governed by the standards prescribed by this Act.

Article 16 (Term of Contract)

The term of a labor contract shall not exceed one year, except in case where there is no fixed term or where there is an otherwise fixed term as necessary for the completion of a certain project.

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Article 17 (Clear Statement of Terms and Conditions of Employment)

(1) An employer shall state the following matters clearly. The same shall also apply to any alteration of the following matters after entering into a labor contract:

1. Wages;

2. Contractual work hours;

3. Holidays under Article 55;

4. Annual paid leaves under Article 60;

5. Other terms and conditions of employment prescribed by Presidential Decree.

(2) An employer shall deliver the written statement(including "electronic document" stipulated in subparagraphs 1 of Article 2 of FRAMEWORK ACT ON ELECTRONIC DOCUMENTS AND TRANSACTIONS) specifying constituent items, calculation methods and payment methods of wages with respect to the wages under paragraph (1) 1 and the matters prescribed in subparagraphs 2 through 4 to employees: Provided, That where the matters under the main sentence is modified due to reasons prescribed by Presidential Decree, such as changes, etc. of collective agreements or rules of employment, such matters shall be delivered to the relevant employees at their request.

Enforcement Ordinance

Article 8 (Terms and Conditions of Employment to Be Specified)

"Other terms and conditions of employment prescribed by Presidential Decree" in Article 17 (1) 5 of the Act means the following terms and conditions:

1. Matters relating to the place of work and the work to be engaged in;

2. Matters prescribed in subparagraphs 1 through 12 of Article 93 of the Act;

3. Matters provided by the dormitory rules, if employees are required to lodge at a dormitory connected to the workplace.

Enforcement Ordinance

Article 8-2 (Delivery of Documents Requested by Employees)

"Where altered due to reasons prescribed by Presidential Decree, such as changes, etc. of collective agreements or rules of employment" under the proviso to Article 17 (2) of the Act means any of the following cases:

1. Where altered by written agreement with the labor representative pursuant to Articles 51(2), 51-2(1), proviso of 51-2(2), proviso of 51-2(5), 52(1), proviso of 52(2)1, 53(3), proviso of 55(2), 57, 58(2) and (3), 59(1) or 62 of the Act;

2. Where altered by employment rules under Article 93 of the Act;

3. Where altered by collective agreements under Article 31 (1) of the Trade Union and Labor Relations Adjustment Act;

4. Where altered by statutes.

[This Article Newly Inserted by Presidential Decree No. 23155, Sep. 22, 2011]

Article 18 (Terms and Conditions of Employment of Part-Time Employees)

(1) The terms and conditions of employment of part-time employees shall be determined on the basis of relative ratio computed in comparison to those work hours of full-time employees engaged in the same kind of work at the pertinent workplace.

(2) Criteria and other necessary matters to be considered for the determination of terms and conditions of employment under paragraph (1) shall be prescribed by Presidential Decree.

(3) Articles 55 and 60 shall not apply to employees whose contractual work hours per week on an average of four weeks (in cases where their working periods are less than four weeks, such period of working) are less than 15 hours.

Enforcement Ordinance

Article 9 (Standards, etc. of Terms and Conditions of Employment for Part-time Employees)

(1) The standard terms and conditions applicable in determining the terms and conditions of employment for part-time employees under Article 18 (2) of the Act and other necessary matters therefor shall be as specified in attached Table 2.

(2) and (3) Deleted.

Article 19 (Breach of Terms and Conditions of Employment)

(1) When any of the terms and conditions of employment as expressly set forth pursuant to Article 17 is not observed, the employee concerned shall be entitled to claim damages on the ground of the breach of the terms and conditions of employment and may terminate the labor contract forthwith.

(2) When an employee intends to claim damages in accordance with paragraph (1), he/she may file a claim with the Labor Relations Commission, and, if the labor contract has been terminated, the employer concerned shall provide travel expenses for returning home to the employee who changes his/her residence for the purpose of taking up a new job.

Article 20 (Prohibition against Predetermination of Penalty for Breach of Contracts)

An employer shall not enter into any contract in which a penalty or indemnity for possible damages caused by the breach of a labor contract is predetermined.

Article 21 (Prohibition of Offsetting Wages with Advances)

An employer shall not offset wages with an advance or other credits given in advance on the condition that an employee offers work.

Article 22 (Prohibition of Compulsory Savings)

(1) An employer shall not enter into any contract incidental to a labor contract, which provides for compulsory savings or savings deposits management.

(2) Where an employer manages savings deposits entrusted by an employee, the following shall be observed:

1. Types and periods of deposits, and financial institutions shall be determined by the employee, and the deposit shall be made under the employee's name;

2. The employer shall immediately comply with the employee's request for the inspection or return of the certificate of deposit or other related documents.

Article 23 (Restriction on Dismissal, etc.)

(1) An employer shall not, without justifiable cause, dismiss, lay off, suspend, or transfer an employee, reduce his/her wages, or take other punitive measures (hereinafter referred to as "unfair dismissal, etc.") against him/her.

(2) An employer shall not dismiss an employee during a period of suspension of work for medical treatment of an occupational injury or disease and within 30 days immediately thereafter, and any woman before and after childbirth shall not be dismissed during a period of suspension of work as prescribed by this Act and for 30 days immediately thereafter: Provided, That this shall not apply where the employer has paid a lump sum compensation as provided for under Article 84 or where the employer may not continue to conduct his/her business.

Article 24 (Restrictions on Dismissal for Managerial Reasons)

(1) Where an employer intends to dismiss an employee for managerial reasons, there must be an urgent managerial necessity. In this case, it shall be deemed that there is an urgent managerial necessity for the transfer, merger, or acquisition of the business in order to prevent managerial deterioration.

(2) In case of paragraph (1), an employer shall make every effort to avoid dismissal and shall establish and follow reasonable and fair criteria for the selection of those persons subject to dismissal. In this case, there shall be no discrimination on the basis of gender.

(3) Where there is an organized labor union that represents more than half of the employees at the business or workplace, the employer shall inform at least 50 days before the intended date of dismissal and consult in good faith with the labor union (where there is no such organized labor union, this shall refer to a person who represents more than half of the employees; hereinafter referred to as "labor representative") regarding the methods for avoiding dismissals, the criteria for dismissal, etc. under paragraph (2).

(4) When an employer intends to dismiss personnel under paragraph (1) above the fixed limit prescribed by Presidential Decree, he/she shall report to the Minister of Employment and Labor as determined by Presidential Decree.

(5) When an employer dismisses employees in accordance with the conditions prescribed in paragraphs (1) through (3), it shall be deemed a dismissal with proper cause under Article 23 (1).

Enforcement Ordinance

Article 10 (Reporting on Layoff Plan on Grounds of Business Management)

(1) An employer who intends to lay off employees in number in accordance with Article 24 (4) of the Act, shall submit a report thereon to the Minister of Employment and Labor at least 30 days before the date on which the intended layoff begins:

1. The business or workplace with a regular workforce of not more than 99 employees: 10 persons or more;

2. The business or workplace with a regular workforce of at least 100 employees, but no more than 999 employees: Ten percent or more of the number of the regular workforce;

3. The business or workplace with a regular workforce of at least 1,000 employees: 100 persons or more.

(2) The reporting under paragraph (1) shall contain the following matters:

1. Grounds for layoff;

2. Planned number of employees for layoff;

3. Details of agreement with the representative of employees;

4. Timetable for layoff.

Article 25 (Preferential Reemployment, etc.)

(1) When an employer who has dismissed an employee under the provisions of Article 24 intends to hire, within three years of the date of the dismissal, any employee who will perform the same duty as the dismissed employee did at the time of such dismissal, he/she shall preferentially rehire the employee dismissed under Article 24, if the employee so desires.

(2) The Government shall take necessary measures for the dismissed employees under the provisions of Article 24, such as stabilization of livelihood, reemployment, and vocational training, on a priority basis.

Article 26 (Advance Notice of Dismissal)

When an employer intends to dismiss an employee (including dismissal for management reasons), he/she shall give the employee a notice of dismissal at least 30 days in advance of such dismissal, and, if the employer fails to give such advance notice, he/she shall pay such employee a 30 days' ordinary wage at the least: Provided, That where any of the following is applicable, this shall not apply:

1. Where the period during which the employee has worked continuously is less than three months;
2. Where continuation of the business is impossible due to natural disasters, incidents or other unavoidable circumstances;
3. Where the employee has intentionally caused serious damage to the business or property loss, which falls under the reasons prescribed by Ordinance of the Ministry of Employment and Labor.

Article 27 (Written Notice of Grounds, etc. for Dismissal)

(1) When an employer intends to dismiss an employee, he/she shall notify the employee in writing of grounds and timing for the dismissal.

(2) The dismissal of an employee shall become effective only upon a written notice pursuant to paragraph (1).

(3) Where an employer has given an employee an advance notice of dismissal under Article 26 in writing, stating grounds and timing for dismissal, the employer shall be deemed to have given notification under paragraph (1).

Article 28 (Request for Remedy from Unfair Dismissal, etc.)

(1) When an employee is subjected by the employer to any unfair dismissal, etc., he/she may request a remedy therefor from a labor relations commission.

(2) A request for remedy under paragraph (1) shall be made within three months from the date of the unfair dismissal, etc.

Article 29 (Investigation, etc.)

(1) The Labor Relations Commission shall, upon receipt of a request for remedy pursuant to Article 28, immediately conduct necessary investigation and examine the parties concerned.

(2) In making an examination pursuant to paragraph (1), the labor relations commission may, upon a request by the party concerned or ex officio, have a witness present himself/herself to make necessary inquiries.

(3) The Labor Relations Commission shall, in making an examination pursuant to paragraph (1), give the parties concerned sufficient opportunity to produce evidence and to cross-examine the witness.

(4) The detailed procedures for the investigation and examination by the Labor Relations Commission under paragraph (1) shall be as prescribed by the Central Labor Relations Commission under the Labor Relations Commission Act (hereinafter referred to as the "Central Labor Relations Commission").

Article 30 (Order, etc. for Remedy)

(1) If a dismissal, etc. is judged to be unfair in consequence of the examination under Article 29, the Labor Relations Commission shall issue to the employer an order for remedy, and, if the dismissal, etc. is judged not to be unfair, make a decision to reject the request for remedy.

(2) The judgment, order for remedy and decision of rejection under paragraph (1) shall be notified in writing to the employer and employee, respectively.

(3) In issuing an order for remedy (only referring to an order for remedy following dismissal) under paragraph (1), if an employee does not desire to be reinstated in his/her former office, the Labor Relations Commission may, instead of issuing an order to reinstate him/her in his/her former office, order the employer to pay such employee the amount of money or other valuables equivalent to or higher than the amount of wages which he/she would have been paid if he/she had offered work during the period of dismissal.

(4) The Labor Relations Commission shall issue a remedy order or a make a decision to rejection under cases 1) even when a worker is unable to return to his or her original position (referring to reinstatement in cases other than dismissal) due to the expiration of the labor contract period, the arrival of the retirement age, etc. In this case, if the Labor Relations Commission determines that unfair dismissal, etc. is established, the employer shall provide the employee with money and valuables equivalent to the amount of wages that the employee would have received if he had provided work during the period of dismissal (referring to money and valuables equivalent to reinstatement in cases other than dismissal). may be ordered to pay.

Enforcement Ordinance

Article 11 (Time Limit for Performance of Order for Remedy)

The Labor Relations Commission established under the Labor Relations Commission Act (hereinafter referred to as the "Labor Relations Commission") shall, whenever it issues an order for remedy to an employer pursuant to Article 30 (1) of the Act (hereinafter referred to as "order for remedy"), prescribe the time limit for performance. In this case, the time limit shall not exceed 30 days from the date on which the employer receives written notice of an order for remedy under Article 30 (2) of the Act.

Article 31 (Confirmation of Order, etc. for Remedy)

(1) An employer or employee who is dissatisfied with an order for remedy or a decision of rejection made by a local Labor Relations Commission under the Labor Relations Commission Act may apply for reexamination to the Central Labor Relations Commission within ten days from the date when he/she has received a written notice of such order or decision.

(2) With respect to a decision made by the Central Labor Relations Commission's reexamination under paragraph (1), the employer or employee may institute a lawsuit pursuant to the Administrative Litigation Act within 15 days from the date when he/she is served with the written decision made by reexamination.

(3) If neither application for reexamination nor administrative litigation is filed within the period referred to in paragraph (1) or (2), the order for remedy, the decision of rejection, or the decision made by reexamination shall become final and conclusive.

Article 32 (Effect of Order for Remedy, etc.)

The effect of the order for remedy, decision of rejection or decision made by reexamination of the Labor Relations Commission shall not be suspended even if an application for reexamination or administrative litigation is filed with or against the Central Labor Relations Commission pursuant to Article 31.

Article 33 (Charges for Compelling Performance)

(1) The Labor Relations Commission shall impose charge for compelling performance of not exceeding 30 million won on an employer who fails to comply with an order for remedy (including the decision made by reexamination in which an order for remedy is contained; hereafter in this Article, the same shall apply) within the specified deadline for executing the order after such order is issued.

(2) The Labor Relations Commission shall give the employer a prior notice in writing to the effect that the charge for compelling performance will be imposed and collected, by not later than 30 days before it is imposed pursuant to paragraph (1).

(3) The imposition of charge for compelling performance pursuant to paragraph (1) shall be made in writing specifying the amount of the charge for compelling performance, grounds for imposition, payment deadline, receiving institutions, methods of raising an objection, agency to which an objection may be raised, etc.

(4) The kinds of violation subject to the imposition of the charge for compelling performance under paragraph (1), amounts of imposition by the degree of violation, procedures for return of the charge for compelling performance imposed and collected, and other necessary matters shall be prescribed by Presidential Decree.

(5) The Labor Relations Commission may impose and collect the charge for compelling performance provided for in paragraph (1) repeatedly within the limit of two times per year from the date when it issues the first order for remedy, until the order for remedy is complied with by the person subject to the order for remedy. In this case, the charge for compelling performance shall not be imposed and collected for more than two years.

(6) The Labor Relations Commission shall not impose an additional charge for compelling performance if the order for remedy is complied with, but shall collect the charge for compelling performance already imposed before the order for remedy is complied with.

(7) If the person liable to pay the charge for compelling performance fails to pay it by the due date for payment, the Labor Relations Commission may urge him/her to pay it within a fixed period, and, if the charge for compelling performance provided for in paragraph (1) is not paid within the fixed period, collect it in the same manner as delinquent national taxes are collected.

(8) When the employer subject to the order for remedy fails to comply with it by the deadline for execution thereof, the employee concerned may inform the Labor Relations Commission thereof within 15 days after such deadline has expired.

Enforcement Ordinance

Article 12 (Deadline for Payment of Charges for Compelling Performance and Presentation of Opinion, etc.)

(1) The Labor Relations Commission shall, when it imposes the charge for compelling performance pursuant to Article 33 (1) of the Act, prescribe the time limit for the payment, which shall not exceed 15 days from the date of receiving a notice of imposition of the charge for compelling performance.

(2) If it is difficult to pay the charge for compelling performance within the payment deadline under paragraph (1) due to a natural disaster or any other unavoidable cause or event, the Labor Relations Commission may require the payment of charge within 15 days from the date such a cause or event ceases to exist.

(3) When a prior notice of the intent to impose and collect the charge for compelling performance is given in writing to an employer pursuant to Article 33 (2) of the Act, the notice shall contain the information that the employer has an opportunity to make a statement on his/her side, orally or in writing (including an electronic document), within a fixed period of at least ten days. In this case, if he/she fails to make a statement by the given deadline, it shall be deemed that the employer has no objection.

(4) The procedures for collecting the charge for compelling performance shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Enforcement Ordinance

Article 13 (Guidelines for Imposition of Charges for Compelling Performance)

The guidelines for imposition of the charge for compelling performance according to the type and degree of an offense under Article 33 (4) of the Act shall be as provided for in attached Table 3.

Enforcement Ordinance

Article 14 (Suspension of Imposition of Charges for Compelling Performance)

The Labor Relations Commission may, if there is either of the following causes or events, impose the charge for compelling performance, ex officio or at the employer's request, after the cause or event terminates:

1. The employer has objectively made efforts to perform the order for remedy, but it is evidently difficult for the employer to perform the order for remedy because of the employee's unknown whereabout, etc.;

2. If it is difficult to perform the order for remedy owing to a natural disaster or any other unavoidable cause or event.

Enforcement Ordinance

Article 15 (Refund of Charges for Compelling Performance)

(1) If the order for remedy is reversed by a decision on a review by the Central Labor Relations Commission or a final and conclusive judgment by a court, the Labor Relations Commission shall, ex officio or at the employer's request, stop imposing or collecting the charge for compelling performance and refund the charge already collected.

(2) The Labor Relations Commission shall, when it refunds the charge for compelling performance pursuant to paragraph (1), add to the refunded charges an amount calculated by multiplying the charge by the interest rate prescribed by Ordinance of the Ministry of Employment and Labor for the period from the date of payment of the charge to the date of refund.

(3) Detailed procedures for refunding the charge for compelling performance pursuant to paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.

Article 34 (Retirement Allowance System)

The retirement allowance system under which an employer pays retiring employees retirement allowances shall comply with the Act on the Guarantee of Employees' Retirement Benefits.

Article 35 (Exceptions for Advance Notice of Dismissal)

Deleted.

[This Article was deleted by Act No. 16270 promulgated on January 15, 2019, following the decision of unconstitutionality made by the Constitutional Court on December 23, 2015]

Enforcement Ordinance

Article 16 (Definition of a Probationary Worker)

Deleted.

Article 36 (Settlement of Payments)

Settlement of Payments)When an employee dies or retires, the employer shall pay the wages, compensations, and other money or valuables within 14 days after the cause for such payment occurred: Provided, That the period may, under special circumstances, be extended by mutual agreement between the parties concerned.

Article 37 (Interest for Delayed Payment of Wages)

(1) When an employer fails to pay the whole or a part of the wages and the allowances (referring to only lump-sum allowances) provided for in subparagraph 5 of Article 2 of the Act on the Guarantee of Employees' Retirement Benefits which he/she is liable to pay under Article 36 within 14 days after the cause for such payment occurred, he/she shall pay interest accrued for the delayed days from the following day to the day of the payment in accordance with the interest rate prescribed by Presidential Decree by taking account of the economic situations such as overdue interest rates etc. applied by the banks established under the Banking Act within the limit of 40/100 per year.

(2) The provisions of paragraph (1) shall not apply where an employer delays the payment of wages for natural disasters, calamities, or other reasons prescribed by Presidential Decree, for the period in which the said reasons exist.

Enforcement Ordinance

Article 17 (Late Payment Interest for Overdue Wage)

"Interest rate prescribed by Presidential Decree" in Article 37 (1) of the Act means twenty percent per annum.

Enforcement Ordinance

Article 18 (Grounds for Exclusion from Application of Late Payment Interest)

"Other reasons prescribed by Presidential Decree" in Article 37 (2) of the Act means any of the following causes and events:

1. A case falling under any of the subparagraphs of Article 7 (1) of the Wage Claim Guarantee Act;

2. Where it is impracticable to secure the funds for payment of wages and retirement benefits due to statutory restraints under the Debtor Rehabilitation and Bankruptcy Act, the National Finance Act, the Local Autonomy Act, etc.;

3. Where it is deemed appropriate to bring a case to a court or the Labor Relations Commission for a trial on the existence of all or part of any wage or retirement benefit for which the payment has been delayed;

4. Where there exists any other cause or event similar to those under subparagraphs 1 through 3.

Article 38 (Preferential Payment for Claims for Wages)

(1) Wages, accident compensations, and other claims arising from labor relations shall be paid in preference to taxes, public charges, or other claims except for claims secured by pledges, mortgages, or the security rights under the Act on Security over Movable Property, Claims, Etc. on the whole property of the employer concerned: Provided, That this shall not apply to taxes and public charges which take precedence over the said pledges, mortgages, or the security rights under the Act on Security over Movable Property, Claims, Etc.

(2) Notwithstanding paragraph (1), any of the following claims shall be paid in preference to any claims secured by pledges, mortgages, or the security rights under the Act on Security over Movable Property, Claims, Etc. on the whole property of the employer, taxes, public charges, and other claims:

1. The wages of the last three months;

2. Accident compensations.

Article 39 (Certificate of Employment)

(1) Whenever an employer is requested by an employee to issue a certificate specifying the term of employment, kind of work performed, positions taken, wages received, and other necessary information, he/she shall immediately prepare and deliver a certificate based on facts, even after the retirement of the employee.

(2) The certificate referred to in paragraph (1) shall contain nothing other than what has been requested by the employee.

Enforcement Ordinance

Article 19 (Request for Issuance of Certificate of Employment)

The persons eligible for requesting the issuance of the certificate of employment in accordance with Article 39 (1) of the Act shall be the employees who have been employed for 30 days or longer continuously, but such a request shall be made within three years after retirement.

Article 40 (Prohibition of Interference with Employment)

No person shall prepare and use secret signs or lists, or have communications, for the purpose of interfering with the employment of an employee.

Article 41 (Register of Employees)

(1) An employer shall prepare a register of employees by workplace, containing each employee's name, birth date, personal history, and other items as prescribed by Presidential Decree. Provided for the daily hire employees stipulated in President Decree are exceptions.

(2) When there is any change in the items stated on the register of employees pursuant to paragraph (1), correction shall be made without delay.

Enforcement Ordinance

Article 20 (Entries in Register of Employees)

The register of employees under Article 41 (1) of the Act shall contain each of the following matters as prescribed by Ordinance of the Ministry of Employment and Labor:

1. Name;

2. Gender;

3. Date of birth;

4. Address;

5. Personal history;

6. Type of task engaged in;

7. Date, month, year of employment or renewal thereof, employment period, if agreed upon, and other matters related to employment;

8. Date, month, year of dismissal, retirement, or death, and the reason thereof;

9. Other necessary matters.

Enforcement Ordinance

Article 21 (Exception to Drawing up Register of Employees)

With respect to daily hire employees who have been employed for less than 30 days, the register of employees may not be formulated.

Article 42 (Preservation of Documents in Relation to Contract)

An employer shall, for three years, preserve a register of employees and other important documents related to labor contracts as prescribed by Presidential Decree.

Enforcement Ordinance

Article 22 (Documents, etc. for Preservation)

(1) The term "important documents related to an employment contract as prescribed by Presidential Decree" in Article 42 of the Act means the following documents:

1. Employment contracts;

2. Wage ledgers;

3. Documents pertaining to the basis for the determination, payment method, and calculation of wages;

4. Documents pertaining to employment, dismissal, or retirement;

5. Documents pertaining to promotion or demotion;

6. Documents pertaining to leaves of absence;

7. Deleted;

8. Documents related to written agreements under Articles 51 (2), 52, 58 (2) and (3), and 59 of the Act;

9. Documents pertaining to certification of a minor under Article 66 of the Act.

(2) The preservation period of important documents on employment contracts under Article 42 of the Act shall be counted from any of the following dates:

1. For the register of employees, the date of dismissal, retirement, or death of an employee;

2. For employment contracts, the date of termination of employment ;

3. For wage ledgers, the date of the last entry;

4. For documents on employment, dismissal, or retirement, the date of dismissal or retirement of an employee;

5. Deleted;

6. For documents related to a written agreement under paragraph (1) 8, the date of an agreement concluded in writing;

7. For documents pertaining to certification of a minor, the date on which the minor attains the age of 18 (if the minor is dismissed, retires, or dies before the age of 18, the date of dismissal, retirement, or death);

8. Date of completion for other documents.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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