Laying off an Employee in Korea: Korean Law on Corporate Downsizing & Redundancy

Reducing the headcount in Korea can be difficult, time-consuming, and costly without the use of an accountant and a proactive attorney. Article 24 of the Labor Standards Act of Korea governs the dismissals of employees for managerial reasons. This is the main applicable law for making an employee redundant. For a general article on terminating an employee in Korea please see: Terminating an Employee in Korea. For an employer employing “employees” in Korea to legally terminate under Article 24 of

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Korean Independent Contractor Risks: Korean Labor Standards Act Basics

The Korean Court System has been less reluctant, in recent years, to deem a Korean independent contractor an “employee” under the Korean Labor Standards Act (LSA). This fact remains true even when an employer in Korea establishes that the independent contractor is aware that he/she was contracted as an independent contractor and, thus, not a regular employee of the Korean company. Upon the establishment of the status as “employee” in Korea, the individual is entitled to all of the benefits

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Amendment to Korea’s Industrial Accident Compensation Insurance Law

Effective July 1, 2023, the scope of application of the Korean Industrial Accident Compensation Insurance Law was extended to include, also, the protection of those employees in Korea who are not “exclusively” working for a specific employer in Korea. Prior to the amendment, some employees who worked for multiple employees were not covered by the insurance. To extend the insurance benefit for these employees, the law has eliminated the exclusiveness requirement. The law’s amendment was a reflection on online “platform

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Can you claim severance pay from a Non-Korean Employer?

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

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Is a Non-Registered Company Director in Korea an Employee under Korean Labor Law

Many non-Korean workers for Korean and international companies doing business in Korea are hired under the title Director. Many of these workers are, in reality, executive employees working as executive-level managers. Many of these workers are “employees” under the Korean Labor Standards with all of the protections afforded employees. For an article on the dismissal of Foreign Executives in Korea please see: Unfair Dismissal of Foreign Executives under Korean Term Contracts and Dismissal of Employees in Korea. Korean Labor Standards

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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,

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Dismissal 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

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Korean 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 LABOR

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The Ten Commandments of Labor Relations in South Korea: Korean Human Resources Basics

Korea has one of the most capricious and least efficient labor forces in the world (which the exception of a few industries) and China is catching up with Korea very fast. Vietnam, Cambodia, Laos, Malaysia, Indonesia and the Philippines will soon follow. The fault is not only on the employees, but on the employers.  Korean companies have departed for greener fields in China to discover that the fields are not as green as originally imagined. Many of these same companies,

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Employment Support for Disabled Soldiers in the Line of Duty as per the Amended Korean Act on the Management of Civilian Personnel in the Military Service 2019

The bill on the Amendment to the Korean Act on the Management of Civilian Personnel in the Military Service (hereinafter as “Amendment to the Act on Civilian Personnel in the Military Service” or “Act”) was passed by the Korean National Assembly on March 28, 2019. The Act is intended to improve the financial and work-related recovery of Korean military soldiers, which are disabled by an injury during military service. History and Legal Background to the Amendment to the Act on

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