Ⅶ. Exception: Managerial and Supervisory Positions

1. Concept

Managerial and supervisory positions refer to employees who have managerial or supervisory authority over other employees or deal with classified information and whose start/finish time at work is not strictly regulated because they are given discretion in their work. Article 63(Exclusions from Application) of the LSA regulates that the provisions regarding working hours, recess and holiday shall not apply to managerial and supervisory positions.

2. MOEL Guidelines and Judicial Ruling

“The provisions of Chapter 4 and Chapter 5 of the LSA as to working hours, recess, and holidays shall not apply to persons engaged in management and supervision”(Article 63(4ho) of the LSA and Article 34 of its Enforcement Decree). Here, “persons engaged in management and supervision” refers to those in managerial positions in the decision-making process of working conditions. This position shall be determined collectively in consideration of whether the person participates in deciding labor management or has authority for supervision and control in labor management regardless of his/her formal designation, whether the person’s working hours are strictly regulated(such as time to arrive at and leave the workplace), whether the person receives a special allowance due to the position, etc.
Administrative guidelines explain, for those in the position of “section manager” who are authorized to plan and implement general duties and detailed job assignments for their subordinates, and control their business trips, overtime, and vacations, even though the section manager did not receive a special allowance in accordance with that position, if the section manager has not been strictly regulated in time of arrival at and leaving the workplace, the section manager shall be considered as a person who is in line with the employer in determining working conditions and other forms of labor management.
The Supreme Court has ruled that working hours, recess and holidays stipulated by the Labor Standards Act do not apply to persons in managerial and supervisory positions who decides their subordinates’ working conditions, and do not have their times of arrival at and leaving the workplace strictly regulated, and have flexibility in their own working hours. Persons in these positions cannot receive additional allowances for overtime exceeding contractual working hours or holiday work according to the Labor Standards Act.