Severance Pay is a payment which the employer is required to pay an “employee” for a retiring, terminated or resigning employees that works for a company in Korea for, at least, one year. The reason for termination, retirement or resignation does not effect the applicability of the severance requirement. Even an employee who is fired due to fault can claim severance pay under Korean law. Severance pay is a statutory liability of the employer. It doesn’t matter whether an employment
Continue readingTag: Korean Employment Law
Non-Compete Clauses in Korean Employment Agreements and Korean Business Sales Agreements
Non-compete clauses in Korean employment contracts are enforceable in Korea, but there are some limitations and requirements that must be met for them to be regarded as lawful and, thus, enforceable. A Non-Compete Clause is a type of restrictive covenant that is designed to protect the business of an employer from competition from a particular party. These clauses are, typically, utilized after the completion of the sale of a business or after termination of employment. The following article shall, specifically,
Continue readingDismissal of Employees in Korea: Supreme Court of Korea Precedent
The Korean Supreme Court ruled, in March of 2018, that a company may terminate employees for one incident of employee gambling. The case is a precedent that may make it easier for employees to terminate employees that violate certain company rules without the need to provide notification and an opportunity to improve. The case stems from the termination of bus drivers that were caught on one occasion gambling prior to driving buses. The lower courts ruled, in short, that gambling
Continue readingKorean Labor Law Checklist for Employers and Employees
The Korean Ministry of Labor created this list with revisions by Sean Hayes and IPG. I will update the list periodically. The checklist is intended for all employers that employ five or more workers. The list contains many generalizations, thus, don’t take this as the end all list. I suggest, also, clicking on the label to the right entitled Korean Employment Law. Please note that Korea’s Labor Law is evolving rapidly, thus, this list may not reflect recent changes. KOREAN
Continue readingLast week’s Recap of the Top Legal Headlines in South Korea for the week of August 9, 2021:
Samsung leader Jay Y Lee wins parole from prison South Korean school teacher sentenced in Bitcoin assault case Korean politicans to amend sex crime laws criminalising semen terrorism Press freedom to nose dive after Korean parliament introduces fake news bill Former government official wins discrimination case against Korean government You may schedule a free initial consultation with a lawyer at: Please Schedule a Call with an Attorney. Latest Posts: The Signs of a Great Criminal Lawyer in Korea | English-Speaking
Continue readingMinimum Wage Raised in Korea for 2020: Employment Law Updates
South Korea has chosen to raise the minimum wage by 2.9% for 2020 to KRW 8,590 (c. USD 7.11). The Minimum Wage Commission of Korea set the wage at a lower than expected increase because of deteriorating economic conditions in Korea. President Moon’s plan to raise the minimum wage to KRW 10,000 per hour shall fall short, because of, among other things, a slower than expected growth rate and regional geopolitical issues facing Korea. We shall keep the reader updated
Continue readingIs your Korean Employee a Dispatched Worker and Thus a De Facto “Employee” under the Korean Labor Standards Act?
In 2015, the Korean Supreme Court detailed standards in determining if a Subcontracted Worker in Korea is actually a Dispatched Worker and, thus, a de facto employee of your Korean Company. The designation has implications for retirement benefits, employment security and the payment of benefits. Dispatched Workers vs. Subcontracted Workers Companies employ, in Korea, often workers via manpower supply companies and via subcontracting agreements. These employees are not retained directly by the Company, but are retained via a manpower company
Continue readingRestrictive Covenants in Korean Employment Agreements and the Lawyers in Korea that Draft Them
The form agreements dished out by some Korean “legal experts” on employment law at many of the “ubiquitous” Korean “law firms” has led me to write, again, on this issue. If a lawyer gives you a form labor agreement/employment separation agreement that does not consider the below, no need to fret, you are not alone – just move on. Most firms and attorneys in Korea are providing work product that is much lower in quality than the mediocre firms overseas
Continue readingLegality of an Employer Lockout in Korea: Korean Labor & Employment Law Basics
Korea, in the eyes of many domestic and foreign companies, has been lax in the enforcement of the rights of employers to run a business. One noted cases that lead to a decision by the Supreme Court of Korea comes to mind. Because of a labor strike at a major automobile parts manufacturer and the physical blocking of the use of replacement workers and employer machinery by the employees, the employer implemented a partial unpaid lockout of certain employees (employees
Continue readingIPG’s Korean Employment & Labour Law Chapter in Global Legal Insights 2018
IPG is proud to announce the contribution of the Korean chapter to GLI’s 2018 Edition of Employment & Labour Law. The publication contains chapters from 29 different countries. The publication may be found at: Employment & Labor Law, Sixth Edition. Key Issues addressed are, among others,: -General Labour Market Conditions in Korea -Employment Policies under the Moon Administration -Litigation Trends in Korea -Definition of “Ordinary Wage” in Korea -Korean Supreme Court’s Regular Interval Bonus Case -Director as an Employee for
Continue readingGuidelines on Rules of Employment & Guidelines on Fair Personnel Management Withdrawn by Korean Ministry of Employment
Inline with the labor union and employee-focused promises of the President Moon Administration, the Ministry of Employment & Labor has withdrawn the impeached President Park’s Guidelines on Rules of Employment & Guidelines on Fair Personnel Management to the regret of most of industry. The withdraw of the Guidelines does not change the present state of Korean Labor & Employment Law. Ex-President Park’s Guidelines on Rules of Employment, inter alia, noted procedures to amend the rules of employment of a company
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Korean Employment Law & Labor Law amendments under Pres. Moon Administration
President Moon President Moon promised during his presidential campaign to make major changes to Korean Labor Law & Korean Employment Law . President Moon intends to make Korean Labor Law more protective and beneficial for workers. The major changes, in short, promised by the new administation are the following: Create 810,000 New Jobs via expanding Korea’s Public Sector President Moon has vowed to create over 340,000 new government social service jobs and over 140,000 new government jobs in public safety
Continue readingMust I grant Male Employees Maternity/Paternity Leave in Korea?: Korean Labor/Employment Law Updates
Article 19 of the Korean Labor Standards Act (LSA), in part, governs whether an employer must grant an employee unpaid maternity leave. Any employer, under the LSA, must grant a male or female employee maternity leave (Literal translation: Temporary Retirement for Childcare) if the child of the parent is taking care of the child and the child is under the age of 8 (Western/Legal Age). The employer is required to give the employee a maximum of one year unpaid leave,
Continue readingUnfair/Wrongful Dismissal of Foreign Executives under Term Contract with Korean Chaebols & MNL in Korea
Expat executives working in Korea are typically hired by Korean conglomerates and multinational companies doing business in Korea based on two or three year contracts. Many of these contracts contain terms that are in violation of Korean Labor Standards Act and other laws and regulations. These employment contracts often have one to six-month at-will termination clauses. In many cases, these contracts are in violation of the Korean Labor Standards Act and other laws and regulations. Many foreign executives, recently, have
Continue readingOrdinary Wages and the Principle of Good Faith in Korea: How long should the principle be applied to Korean CBAs?
We wrote a post on this blog a few years back entitled: Ordinary Wages Under Korean Law Clarified by Supreme Court: Regular, Uniform & Flat Defined. Our post noted, in part, that: ” . . .the Supreme Court, in a case that I will call the Regular Interval Bonus Case, has delivered a couple of more clear examples, than in the past, of cases that will be considered Ordinary Wages. In the case, the employer was providing a “regular bonus”
Continue reading“Ordinary Wages” Under Korean Labor Law Clarified by the Supreme Court: “Regular, Uniform & Flat” Definition
The definition of “ordinary wage” has been clarified by the Korean Supreme Court in two decisions handed down on December 18, 2013. The cases will have a significant impact on Korean Labor & Employment Law and will, likely, lead to additional litigation. The calculation for an Ordinary Wage is utilized to calculate statutory entitlements, thus, has an impact on the aggregate amount of contributions necessary to be paid to an employee. The issue is one of the most significant issues,
Continue readingHiring Employees in Korea: The Basics by an HR Guru and Advisor to IPG Legal
“Hiring is your most important task,” said the late Steve Jobs. Considering a wrong hiring decision can be extremely expensive to repair, let’s look at some recruiting options. Ideally, a succession plan will have an internal candidate ready for promotion: advancing a rising star’s career and providing continuity with minimum controversy and a positive message to the workforce that capable people who do well will be recognized and rewarded. Often, however, hiring from outside is required. If the company has
Continue readingReturn of Fraudulently Obtained Subsidies by Employer in Korea
The Seoul Administrative Court ruled, late in 2011, that the provision of the Enforcement Decree of the Employment Insurance Act (article 56(2)) requiring the return by an employer to the Korean government of all fraudulently obtained vocational training funds (and other like funds) collected by the Korean employer was unconstitutional (2011 gu-hap 14852). The law required, in most cases, the return of all vocational training funds received if any funds were received fraudulently. The holding of the Administrative Court of
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