Ⅰ. Purpose of the Labor Standards Act (LSA)

According to Article 32 of the Constitution, the standards for working conditions shall be determined by the LSA in ways so as to guarantee human dignity. This is the main goal of the LSA. Accordingly, the purpose of the LSA is to set standards for the conditions of employment in accordance with the Korean Constitution, thereby securing and improving the living standards of workers and developing a well-balanced economy.

Ⅱ. Characteristics of the LSA

The LSA not only stipulates regulations on public law that deal with labor management and opinion, but also specifies regulations on private law that requires compensation for damages resulting from an employer’s violation of the LSA which causes the worker to terminate his/her labor contract.

Ⅲ. Basic Principles of the LSA

1. Prohibition against lowering working conditions

The conditions of employment provided herein cannot be lowered, thus the parties of employment shall not depress working conditions under the pretext of complying with the LSA(Article 2 of the LSA).
The minimum wage system guarantees the minimum amount of hourly wage for employees. An employer can pay more than the minimum wage, but the part of an employment contract stipulating a wage which is less than the minimum wage shall be invalid, and any missing amount from the minimum wage must be paid additionally. For violations, the employer shall be punished by imprisonment for up to three years or a fine not exceeding KRW 20 million(Articles 6 and 28 of the Minimum Wage Act).

2. Labor and management’s equal decision power

The conditions of employment shall be determined through mutual agreement between employers and their workers on an equal footing(Article 4 of the LSA).
The Labor Standards Act requires written agreement from or consultation with the employee representative for matters such as changes in working hours, managerial dismissals, etc. “This employee representative refers to the labor union, where there is an organized labor union representing more than half the employees at a business or workplace; or this shall refer to a person who represents more than half the employees, where there is no such organized labor union.”(Article 24(3) of the LSA).

3. Thorough fulfillment of working conditions

Both employers and workers shall comply with the collective agreement, the rules of employment, and the terms of the labor contract, and both parties are obliged to do so in good faith(Article 5 of the LSA).
The Minister of Employment and Labor has the authority to order amendment to the rules of employment where they are deemed to conflict with laws or decrees or the collective agreement(Article 96 of the LSA). If a labor contract includes employment conditions which are below the standards stipulated in the rules of employment, such nonconformity shall be null and void. In this case, the invalidated provisions shall be governed by the standards provided for in the rules of employment(Article 97 of the LSA). A labor contract which establishes working conditions which do not meet the standards provided for in the Labor Standards Act shall be null and void to that extent. In this case, those conditions invalidated shall be governed by the standards provided in this Act(Article 15 of the LSA).