Amendments to the Korean Labor Standards Act: Break-Time Flexibility and Hourly Annual Leave

Recent amendments to the Korean Labor Standards Act introduce two important changes to the statutory framework governing working hours, rest periods, and annual paid leave. The amendments address long-standing practical issues arising from the rigid application of break-time rules and the absence of an express statutory basis for using annual leave in hourly units.

The first amendment explained below permits employees who work exactly four hours to waive the statutory 30-minute break, provided the employee expressly requests to forgo the break. The second amendment, explained below, establishes a statutory basis for employees to use annual paid leave in hourly units, subject to limits and procedures to be prescribed by Presidential Decree. We shall update the reader when more is known.

These changes shall, in most cases, require revisions to attendance management systems, internal leave policies, employment rules, and related HR procedures. For additional articles in Korean Labor and Employment Law, please see: IPG Legal’s Labor & Employment Law Archive.

Background to the Amendments

Under the current Labor Standards Act of Korea, an employer must provide a rest period of at least 30 minutes when the working time is four hours or more. As a result, even where an employee’s actual working time is only four hours, such as where the employee uses half-day leave, the employee is, in most cases, required to take a 30-minute break before leaving work. This peculiarity is addressed by the present revision of the law.

Additionally, the Korean Labor Standards Act has traditionally been structured around the use of annual paid leave in daily units. Although many companies have voluntarily operated half-day or hourly leave systems through employment rules, labor-management agreements, or internal policies, hourly annual leave has not been expressly recognized as a statutory leave system. The revision also fixes this reality.

Employee Choice Regarding Break Time on Four-Hour Workdays

The amended Article 54(1) of the Korean Labor Standards Act adds a proviso allowing an employer to waive the 30-minute break when an employee works exactly four hours and expressly requests that it not be taken. This provision will take effect on December 10, 2026.

Employers should treat this as an employee-choice, not as a general exemption from the statutory break-time requirement. The employer may not unilaterally omit the break, apply a blanket policy eliminating breaks for four-hour workdays, or pressure employees to waive their break time. The legal basis exists only where the employee has clearly and voluntarily requested non-use of the break.

Statutory Recognition of Hourly Annual Leave

The amended Article 60(5) of the Korean Labor Standards Act provides that, where an employee requests annual paid leave in installments, in hourly units and days prescribed by Presidential Decree, the employer must grant such leave. This provision will take effect on June 10, 2027.

The amendment creates a statutory basis for hourly annual leave. However, the Act itself does not specify the precise hourly units, the maximum number of days that may be used on an hourly basis, or the detailed administrative method for operating the system. Those matters are delegated to the Presidential Decree. We shall update the reader when more is known.

Prohibition on Unfavorable Treatment for Use of Annual Leave

The amended Article 60(9) expressly prohibits an employer from dismissing an employee or imposing other unfavorable treatment because the employee requested or used annual paid leave. A violation of this prohibition may result in an administrative fine of up to KRW 5 million and corrective orders. In addition, failure to grant annual paid leave in accordance with the statutory requirements, including the new hourly leave framework once it takes effect, may be subject to the existing sanctions applicable to annual leave violations, including imprisonment for up to two years or a criminal fine of up to KRW 20 million.

Recommended Employer Response

1. Establish a Clear Procedure for Waiving Break Time on Four-Hour Workdays

Before the December 10, 2026, effective date, employers should implement a procedure to document an employee’s express request not to take a break where the employee works exactly four hours. This procedure should clearly confirm that the request is made by the employee and is voluntary. Employers may consider updating attendance-management systems, HR portals, or leave application forms to include an option for employees to request non-use of the 30-minute break in qualifying cases.

2. Prepare Operational Rules for Hourly Annual Leave

The introduction of hourly annual leave will require more detailed leave administration. Employers should review how leave applications, approvals, deductions, remaining leave balances, and wage calculations will be handled once employees are permitted to use annual leave in hourly units. Companies that already operate half-day leave, early departure, or temporary outing systems should define how those systems will interact with hourly annual leave. Without clear rules, employers may face disputes regarding whether a particular absence should be treated as hourly annual leave, half-day leave, unpaid time off, or another form of approved absence.

3. Review Employment Rules and Internal Policies

Because the amendments directly affect working hours, rest periods, and annual leave usage, employers should review their employment rules, leave policies, attendance management policies, service regulations, and related HR manuals. For hourly annual leave issues, employers should consider waiting until the Enforcement Decree and official guidance are finalized before adopting detailed amendments.

These amendments reflect a broader shift toward greater flexibility in Korean working-time and leave administration. However, flexibility does not mean employer discretion. Both amendments are structured around employee rights and employee choice.

Employers should therefore avoid informal or manager-driven practices and instead implement clear, documented, and consistently applied procedures. Proper preparation will reduce the risk of disputes regarding break-time waivers, leave deductions, wage settlements, and alleged unfavorable treatment related to the use of annual leave.

About Author

Sean Hayes is the first non-Korean attorney to have worked in the Korean court system (the Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw, and IPG Legal is consistently ranked Top Dispute Resolution Law for our litigation services.

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