Unlike statutory holidays, contractual holidays must be stipulated in the rules of employment or collective agreement in order to be legally recognized as paid or unpaid holidays. Statutory holidays shall be granted on particular dates and if work is done on those days, the company shall pay an additional holiday work allowance. Statutory holidays consist of a weekly holiday (Article 55 of the LSA: An employer shall allow a worker on the average one or more paid holidays per week), Labor Day (Act Concerning Establishment of Labor Day: The day of May 1st shall be proclaimed as Labor Day and is a paid holiday as determined by the National Labor Relations Commission) and public holidays as confirmed by the government. However, contractual holidays are determined exclusively by the employer regarding particular dates and whether the holidays are paid or unpaid. If an employee works on a holiday stipulated as paid, the company shall pay an additional overtime allowance.

1. Types of Contractual Holidays

Corporate holidays refer to paid off-days, such as Company Foundation Day, Labor Union Day, etc., that the company has designated in the collective agreement and the rules of employment.

2. Relationship between Labor Law and Contractual Holidays

In cases where contractual holidays are settled as paid off-days, employees are exempted from providing labor. If they have to work on contractual holidays like paid public holidays, they are entitled to paid wages (100%), which are already included in monthly wages, and additional holiday work allowance (150%) (Article 56 (Extended, Night or Holiday Work) of the LSA).