Labor Standards Act, Article 56 (Extended Work, Night Work and Holiday Work)
① Employers shall pay an additional 50 percent or more of the ordinary wages for extended work (work during the hours as extended pursuant to the provisions of Articles 53 and 59, and the proviso of Article 69).
② Notwithstanding paragraph (1), with regards to holiday work employers shall pay additionally according to the following subparagraphs:
1. Holiday work of 8 hours or less: 50 percent of the ordinary wage
2. Holiday work beyond 8 hours: one hundred percent of the ordinary wage
③ Employers shall pay an additional 50 percent of the ordinary wage for night work (work between 10 P.M. and 6 A.M.)
LSA, Article 109 (Penal Provisions) Employers shall be punished for violations of the above Article 56 (additional allowances) with imprisonment of not more than 3 years or a fine of not more than KRW 30 million.


1. Overtime work and additional allowances

Overtime work refers to working hours that exceed the standard working hours specified in the Labor Standards Act. Adult employees may extend working hours up to 12 hours per week through mutual agreement by the parties concerned (with no limit on daily working hours). Employers shall pay an additional 50% of ordinary wages for overtime work, night work, and off-day work. The additional pay shall be made for the employee's overtime work after calculating it into their ordinary wages. In cases where contractual working hours (e.g., 4 hours per day) in the collective agreement or rules of employment are less than the legal standard working hours, an additional allowance needs to be paid for extended working hours exceeding the contractual working hours regardless of whether they exceed the legal standard working hours. In this case, if the part-time employee worked for 8 hours, the employer should pay the basic pay for four hours and the overtime work allowance for 6 hours: for 4 hours extended work and additional 2 hours for overtime work, which will be 10 hours wage in total. ACT ON THE PROTECTION, ETC. OF FIXED-TERM AND PART-TIME WORKERS, Article 6 (Restrictions on Overtime Work of Part-Time Workers)
(1) If any employer intends to have a part-time worker provide their services in excess of the working hours prescribed in Article 2 of the Labor Standards Act, they shall obtain the consent of such worker. In such cases, the number of overtime hours shall not exceed 12 hours a week
(3) Employers shall pay 50/100 or more of the average wage for overtime work under paragraph (1) in addition to ordinary wages.


2. Night work and additional allowances

Night working hours range from 10 p.m. to 6 a.m. the following day. Employers shall pay an additional 50% of ordinary wages for night work. Regardless of working hours within the contractual working hours, pay for night work shall be paid separately as an additional allowance. In cases where overtime work, off-day work, and night work overlap, an additional allowance shall be paid for each. For employees to whom Article 63 of the Labor Standards Act (exceptions may apply) apply, an additional allowance will not be paid for overtime work and off-day work, but only for night work.

3. Holiday work and additional allowance

Employers shall pay an additional 50% of ordinary wages for holiday work. 150% of the ordinary wage shall be paid for up to 8 hours of holiday work, and 200% shall be paid for hours of holiday work over 8 hours. This means that when overtime work and holiday work overlap, the employer shall pay each additional allowance.

4. Limitations on Application: Employees at Workplaces Ordinarily Employing Fewer than Five People Jung, Bongsoo, “Limitations of on Application”, 「Labor Law」, Jungang, March 2013.


Some workers have limits to the protection offered. The representative example includes workers at workplaces ordinarily employing fewer than five people. The Labor Standards Act (LSA) stipulates that “The Labor Standards Act shall apply to all businesses or workplaces in which five or more workers are ordinarily employed.” (Article 11 of the LSA)
In relation to such limitations on application of the Labor Standards Act, some problems have recently emerged. While labor rights are not completely applicable to people employed by workplaces ordinarily employing fewer than five people, they are now finding themselves eligible for severance pay, which in the past was not the case. This new situation has been at the heart of more labor disputes for those workers looking out for their own labor rights.
In December 2012, employees at workplaces employing fewer than five people became eligible for severance pay. This has brought a lot of attention to those workers in inferior situations. Major articles of the LSA that are not applicable to such workers include, among others, 1) restrictions on dismissal, 2) suspension allowances, 3) restrictions on extended work, 4) extended work, night work and holiday work, and 5) annual paid leave. Due to their exclusion from these protections, such employees often work in inferior working environments.

(1) Major articles applicable to workplaces ordinarily employing fewer than five people
Topics related to major articles applicable to workplaces ordinarily employing fewer than five people include, among others, 1) written statement of the employment contract, 2) weekly holidays, 3) recesses, 4) accident compensation, 5) payment of money and valuables, 6) payment of wages, 7) restrictions on dismissal timing, 8) advance notice of dismissal, and 9) maternity leave.
Even though the restrictions on dismissal are not applicable, advance notice of dismissal is required, which means that an employer shall give at least thirty days’ advance notice to a worker the employer intends to dismiss. If notice is not given thirty days before the dismissal, ordinary wages of at least thirty days shall be paid to the worker. Most articles regarding wages to be paid for labor service are also applicable. That is, minimum wage applies, payment of wages shall be observed, and penal provisions for delayed payment of wages are applicable. Of particular note, severance pay became mandatory December 1, 2010 for the first time: for the two years until December 1, 2012, the employer shall pay 50% of full severance pay to resigning employees, and shall pay 100% for the period beginning January 2013. Regardless of the length of service, severance pay only starts accruing from December 1, 2010. Also, according to Industrial Accident Compensation Insurance requirements, accident compensation for occupational injury, including medical treatment, suspension compensation, handicap compensation, etc. are applicable in the same way as for regular employees.

(2) Major articles not applicable to workplaces ordinarily employing fewer than five people
As the following LSA provisions do not apply to workers at workplaces ordinarily employing fewer than five people, working conditions for such employees are quite inferior.

1) Restrictions on dismissal, etc., a) Employers can still dismiss or discipline workers without justifiable reason; b) Even though a worker is unfairly dismissed, the worker cannot apply to the Labor Relations Commission for remedy; c) An employer does not have to notify workers in writing of reasons for dismissal; d) As the restrictions on dismissal for managerial reasons do not apply to such workers, an employer can dismiss workers at any time if business conditions deteriorate; e) The two-year limitation on the use of temporary workers such as dispatch employees or short-term contract workers does not apply, and the employer can dismiss such workers at any time.
2) Allowances during suspension of business: When an employer suspends business operations, the workers cannot receive suspension allowances. Even though business operations are suspended for reasons attributable to the employer, the employer does not have to pay allowances to workers during such suspensions.
3) Restrictions on working hours: Workplaces ordinarily employing fewer than five people do not have to follow the 40 hours per week limitation or keep to a 5 day workweek. There are no restrictions on extending the work day beyond 8 hours, or even beyond 12 hours, nor does they have to pay additional allowances (50%) for overtime, night shift (22:00 pm to 06:00 am) or holiday work.
4) Annual paid leave: When a worker at a workplace employing at least five people has worked continuously for one year, 15 days of annual paid leave are granted, but workers at workplaces ordinarily employing fewer than five people are not guaranteed any paid, non-statutory holidays. A worker at such workplaces must get permission to take a day off, and the employer can deduct one day’s salary.