When hiring an employee, an employment contract must be prepared.
What is the employment contract?
- The term "labor contract" refers to a contract which is entered into in order that a worker offers work for which the employer pays its corresponding wages (Subparagraph 4 of Article 2(1) of the Labor Standards Act).
Details of the employment contract
- An employer shall state the following matters clearly (Article 17 and Article 93 of the Labor Standards Act and Article 8 of the Enforcement Decree of the Labor Standards Act).
· Wages
· Contractual work hours
· Holidays
· Annual paid leave
· Terms and conditions relating to the place of employment and the job assigned
· Matters set forth in the rules of employment written and notified pursuant to the Labor Standards Act (only applicable to employers who ordinarily employ 10 or more workers)
· Terms and conditions as prescribed by dormitory rules (only applicable to cases where workers are accommodated in a dormitory attached to the workplace)
※ The term "contractual work hours" refers to work hours on which workers and their employer made an agreement within the scope of work hours (Subparagraph 8 of Article 2(1) of the Labor Standards Act).
Q. Do I have to prepare an employment contract for part-time workers, too?
A. Yes. A part-time worker also falls within the scope of a worker, and thus an employment contract must be prepared. In order to protect the working conditions for workers and ensure their safety and guarantee compensation regarding accidents or risks that may occur during their working hours, employment contracts must be signed to prove the official employment relationship.
※ Please do not forget to include the wage and payment method, work hours, holidays, assigned jobs, etc. in the employment contract.
Sanctions for violations
- Any employer who fails to issue working terms and conditions in a written form shall be subject to a fine not exceeding KRW 5 million (Subparagraph 1 of Article 114 of the Labor Standards Act).
Please remember that working conditions for teenagers are under special protection.
Protection of working teenagers
- As all citizens have the right to work, teenagers who are minors are also entitled to work (Article 32(1) of the Constitution of the Republic of Korea).
- Special protection is accorded to minors as socially, economically, and physically weak (Article 32(5) of the Constitution of the Republic of Korea).
The minimum rights of the workers must be protected pursuant to the Labor Standards Act.
Guarantee of the minimum wage
- An employer shall pay employees that are covered by the minimum wage at least the minimum wage amount or more (Article 6(1) of the Minimum Wage Act).
- No employer may lower the previous wage level on the ground of the minimum wage (Article 6(2) of the Minimum Wage Act).
※ Any person who pays less than the minimum wage or lowers the previous wage level citing grounds of minimum wage shall be punished by imprisonment for not more than 3 years or be subject to a fine not exceeding KRW 20 million. In such cases, both the imprisonment and the fine may be imposed (Article 28(1) of the Minimum Wage Act).
- Where a labor contract between an employer and an employee covered by the minimum wage provides for a wage below the minimum wage amount, the relevant stipulation concerning the wage shall be null and void and the invalidated part shall be considered to stipulate that the same wage as the minimum wage amount shall be paid (Article 6(3) of the Minimum Wage Act).
Guarantee of recess hours
- An employer shall allow employees a recess of not less than 30 minutes in case of working for 4 hours, or a recess of not less than 1 hour in case of working for 8 hours during work hours (Article 54(1) of the Labor Standards Act).
- Recess hours may be freely used by employees (Article 54(2) of the Labor Standards Act).
- If the employer does not grant recess hours to the employee, the employer shall be punished by imprisonment for not more than 2 years or be subject to a fine of not more than KRW 20 million (Subparagraph 1 of Article 110 of the Labor Standards Act).
Guarantee of holidays after work
- An employer shall allow employees who have shown perfect attendance during contractual working days for 1 week and whose contractual work hours per week on an average of 4 weeks (in cases where their period of work is less than 4 weeks, the same period of work) amount to more than 15 hours at least 1 paid holiday per week on average (Article 18(3) and Article 55(1) of the Labor Standards Act, and Article 30 of the Enforcement Decree of the Labor Standards Act).
· However, employees whose contractual work hours per week on an average of 4 weeks (in cases where their period of work is less than 4 weeks, the same period of work) are less than 15 hours shall not be entitled to receive paid holidays (Article 18(3) of the Labor Standards Act).
- Any employer who fails to provide paid holidays to his/her employees who have shown perfect attendance during contractual working days for 1 week and whose contractual work hours per week on an average of 4 weeks amount to more than 15 hours at least shall be punished by imprisonment for not more than 2 years or be subject to a fine not exceeding KRW 20 million (Subparagraph 1 of Article 110 of the Labor Standards Act).