Labour Standards Act, South Korea (Labor Contracts)

Labour Standards Act (Chapter 2) (Labor Contracts)

Since certain key terms of an employment contract (e.g. wages and working hours) must be given in writing to all employees at the start of employment, it is advisable for employment contracts to be in writing. Terms and conditions can be also implied into the contract based on a course of conduct over a period of time.

The contract does not have to be in Korean although this is highly recommended, especially for local employees. Employers of 10 or more employees must prepare Rules of Employment – basically an employee handbook covering matters such as the calculation of wages, hours of work and paid leave. These must be filed with the Ministry of Employment and Labour (“MOEL”), the relevant regulatory authority.

The Rules of Employment, as well as other company policies regarding the terms and conditions of employment – and even well-established workforce practices – are legally binding on the employer and override any inferior terms in an employment contract.