Status of Interns Under the Korean Labor Standards Act: Employees Entitled to Severance/Minimum Wage?

Interns in Korea may be considered Employees under the Korean Labor Standards Act, thus, entitling the interns to minimum wage, severance, and numerous other protections and benefits under the Act. The matter is having an impact on franchises, entertainment companies, and other SMEs. The, incredibly vague, Employment & Labor Ministry Guideline 826 (April 7, 2009) notes, in part, that: If a person is considered an employee under the Labor Standards Act shall be determined by considering the subordinate relations with

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Hiring 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

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Return 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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Definition of and Obligations to Employees under Korea LSA Speech by Korean retired Judge CHEONG and Sean Hayes for AMCHAM Korea

AMERICAN CHAMBER OF COMMERCE IN KOREA SMALL & MEDIUM SIZE ENTERPRISES COMMITTEE MEETING Dear AMCHAM Members, Entrepreneurs often lack an HR professional in the early years of a business to help keep them out of legal limbo when it comes to employment law. Furthermore, as the employee number grows in the young company, new labor requirements automatically apply – often without the entrepreneur’s noticing the change. To give us an up-to-date, practical understanding of labor laws that have immediate relevancy

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