In order to protect workers' wages, employers cannot predetermine the penalty with workers, set off wages with advance payments, etc., and cannot make compulsory savings.
Prohibition of predetermination of penalties- An employer shall not enter into any contract in which a penalty or indemnity for possible damages caused by the breach of a labor contract is predetermined. (Article 20, 「Labor Standards Act」)
※ Employers who violate this shall be punished by a fine not exceeding 5 million won. (Subparagraph 1, Article 114, 「Labor Standards Act」)
Prohibition of set-off with advance payments- An employer shall not offset wages with an advance or other credits given in advance on the condition that an employee offers work. (Article 21,「Labor Standards Act」)
※ Employers who violate this shall be punished by a fine of not more than 5 million won. (Subparagraph 1, Article 114,「Labor Standards Act」).
Prohibition of compulsory savings- An employer shall not enter into any contract incidental to a labor contract, which provides for compulsory savings or savings deposits management. (Article 22(1),「Labor Standards Act」)
※ Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: (Subparagraph 1, Article 110, 「Labor Standards Act」)
- Where an employer manages savings deposits entrusted by an employee, the following shall be observed: (Article 22(2), 「Labor Standards Act」)
· The type, period, and financial institution of savings shall be determined by the worker, and savings shall be made in the worker's own name
· When a worker requests to view or return related data, such as a savings certificate, the employer shall comply immediately
