According to the results of the "Survey on Vacation Status of Korean Workers" conducted by the Ministry of Culture, Sports, and Tourism on July 16, 2017, the average number of days of annual paid leave granted to salaried workers was 15.1, and the number of days used was 7.9, indicating a usage rate of 52.3%. This is a low level compared to the average number of vacation days and usage rate of 20.6 days and 70%, respectively, among OECD countries. Under the current Labor Standards Act, "annual paid leave" refers to paid leave granted to long-term workers for the purpose of physical and mental rest, maintaining the reproduction of labor, and securing a cultural life.
According to the Labor Standards Act, annual paid leave is calculated based on each worker's "individual entry date." However, for businesses with a large number of workers, it is not easy to calculate annual paid leave on an individual basis based on each worker's entry date, and it is also not easy to use incentives to promote the use of annual paid leave. Furthermore, although the company's employment rules or collective agreement stipulate that annual paid leave is paid according to the Labor Standards Act, in reality, many companies manage annual paid leave uniformly based on the "fiscal year" for the convenience of labor management and then recalculate based on each individual's entry date when they retire. Depending on the method of granting annual paid leave, the number of days of annual paid leave may vary, and each company may have slightly different methods of granting annual paid leave, so workers should clearly understand and anticipate the number of days of annual paid leave available for use on their own.


■ Accrued Paid Vacation Days
Under Article 60 of the Labor Standards Act, accrued paid vacation days are granted based on the individual "date of employment" of each employee. ① Employers must provide 15 days of paid vacation to employees who have worked for more than 80% of the past year. ② Employers must provide 1 day of paid vacation for every month of perfect attendance to employees who have worked for less than a year or have worked for less than 80% of the past year. ③ Employers must provide additional paid vacation days every two years, up to a maximum of 25 days, to employees who have worked for over three years.
Accrued paid vacation days must generally be granted when the employee requests them, and the employer must pay the employee's usual or average wage, as specified in the employment regulations or collective agreement, for the duration of the vacation period. However, if granting the vacation at the requested time would cause significant business disruption, the employer may change the timing.
Additionally, when calculating accrued paid vacation days, ① period when employees are absent due to work-related injuries or illnesses, ② periods when pregnant women are on leave before and after childbirth or on miscarriage leave, and ③ periods of childcare leave are considered days worked. Accrued paid vacation days will be forfeited if not taken within one year. However, if the employee is unable to take vacation days due to the employer's fault, the days will not be forfeited.
If an employee retires, the employer must recalculate the retirement pay based on the average wage, which includes unused accrued paid vacation days, and the employee can claim payment for the difference. Employers must pay all wages, including retirement pay, within 14 days after the retirement date. If the employer fails to pay the wages or retirement pay due under Article 36 of the Labor Standards Act, the employer must pay a delay penalty equal to 20% per year for the number of days of delay from the day after the payment was due until the payment is made.

■ Method of Granting Annual Paid Leave
Administrative interpretation allows for the management of annual paid leave based on the fiscal year, and the specific management method is as follows: Labor Improvement Policy Division-5352 (2011.12.19.)

According to Labor Standards Act Article 60, the calculation base date for determining the attendance rate for granting annual paid leave is generally determined individually for each employee. However, for the convenience of labor management at the workplace, it is also possible to uniformly set the base date based on the fiscal year (January 1 to December 31) through collective agreements or employment regulations.
When calculating leave based on the fiscal year, to ensure that employees who have not been with the company for one year are not disadvantaged, paid leave should be granted in proportion to their length of service in the year following their hiring year. From the following year on annual paid leave can be granted based on the fiscal year. However, if the total number of vacation days at the time of retirement is less than the number of vacation days calculated based on the employee's date of hire, the shortfall must be settled as a paid leave allowance.
Annual paid leave is intended to provide tired employees with an opportunity to rest and recharge, and it is necessary to consider it as an investment in labor preservation rather than a cost. When deciding on the method of granting annual paid leave, several principles must be considered. Firstly, employees should clearly understand and be able to anticipate the number of days they can use for annual paid leave. Secondly, the company should be able to easily promote the use of vacation days by managing annual paid leave uniformly. Thirdly, settlement of annual paid leave at retirement should be easy for employees, and employees should not have to adjust their retirement date to receive annual paid leave.