Korea
Capital: Seoul
Currency: - KRW
Overview of South Korean Labor Law and Employment Policies
Employment Law Overview
- Key Legislation:
- Labor Standards Act
- Industrial Safety and Health Act
- Trade Union Act
- Minimum Wage Act
- Employment Insurance Act
- Legal Characteristics:
- Aims to protect employee rights and welfare
- Sets standards for working hours, wages, leave, severance pay, etc.
- Encourages labor-management cooperation and collective bargaining
Employment Contract Requirements
- Contract Types:
- Indefinite contracts
- Fixed-term contracts (maximum two years)
- Contract Terms:
- Must include job description, compensation, working hours, leave, etc.
- Must be written in Korean or English
- Language and Currency:
- Contracts must be in Korean or English
- Wages must be paid in South Korean Won (KRW)
Working Hours Regulations
- Standard Working Hours: 40 hours per week, 8 hours per day
- Rest Days and Breaks:
- At least one rest day per week
- 30-minute unpaid break for every 4 hours worked
- 1-hour unpaid break for every 8 hours worked
Leave Policies
- Annual Leave:
- Full-time employees are entitled to 15 days of paid annual leave after one year of service
- One additional day of leave is granted for every two years of service, up to a maximum of 25 days
- Public Holidays: 15 days
- Special Leave:
- Sick leave: Not mandatory for employers to provide, but may be offered
- Maternity leave: 90 days (120 days for twins or multiples)
- Paternity leave: 10 days
- Childcare leave: Eligible parents may take up to one year of full-time or part-time childcare leave
Employee Severance and Contract Termination
- Notice Period: 30 days
- Severance Pay: 30 days' wages for each year of service
- Unfair Dismissal Protection:
- Employers must have a valid reason or urgent management need to dismiss an employee
- Employees are entitled to written notice of dismissal and reasons for dismissal
Tax Laws
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Personal Income Tax:
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Salary Range (KRW million) Tax Rate 0 - 12 6% 12 - 46 15% 46 - 88 24% 88 - 150 35% 150 - 300 38% 300 - 500 40% 500 - 1000 42% Greater than 1000 45%
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Social Insurance Contributions:
- National Pension: 4.5%
- Health Insurance: 3.54%
- Employment Insurance: 1.15%
- Long-Term Care Insurance: 0.45%
- Workers' Compensation Insurance: 0.76%
- Resident Tax: 0.5%
Health Insurance
- Insurance Policy: National Health Insurance Scheme
- Coverage: Medical services including medical, dental, and vision care
Compensation and Benefits
- Minimum Wage: 9,160 KRW per hour
- Compensation Structure:
- Base salary
- Bonuses (not mandatory)
- Allowances
Work Permits and Visas
- Permit Requirements:
- Work visa (for non-Korean citizens)
- Application Process:
- Employer applies for work permit with the Korea Immigration Service
- Applicant applies for work visa at a Korean consulate
Confidentiality and Non-Compete Clauses
- Enforceability: Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities
- Common Provisions:
- Confidentiality of information
- Non-compete clauses
Training and Development
- Legal Requirements:
- Safety training
- Skills enhancement training
- Government Support:
- Government-funded training programs
- Tax incentives
Workplace Diversity and Inclusion
- Legal Requirements:
- Prohibits discrimination based on factors such as gender, race, religion
- Enforcement Measures:
- Government agencies responsible for enforcing anti-discrimination laws
- Companies implement diversity and inclusion policies
Remote Work Policies
- Legal Framework:
- Remote work is permitted, but must be negotiated with employer
- Tax and Insurance Implications:
- Remote work may impact tax and social insurance contributions
Authoritative Website Addresses
- Ministry of Employment and Labor: https://www.moel.go.kr/