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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The Status of Non-Registered Company Directors in Korea as an Employee under Korean 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
Continue readingNon-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 readingThe 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,
Continue readingEmployment 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
Continue readingSuspending Korean Workers without Pay due to Economic Fallout from the Coronavirus: Korean Employment Law Basics
IPG has numerous client-employers in Korea that are facing serious economic conditions because of the spread of the coronavirus across Korea. In my nearly two decades, in Korea, we have never seen such a dire situation. This situation seems, on its face, even more dire for those in F & B and certain manufacturing sectors than the 1997 Asian Financial Crisis (IMF Crisis). Yes, I was even in Korea during the Asian Financial Crisis. Korea, as of the writing of
Continue readingTerminate/Layoff an Employee in Korea: Terminating an Employee in Korea
The Korean Labor Standards Act mandates that employees under “contract” or “regular employees” may only be terminated for “justifiable reason attributable” to the employee or “urgent managerial necessity” after the completion of the employee’s probationary period. Both Korean employment law standards are, often, difficult for an employer to meet without the professional structuring of HR policies and procedures and a nuanced approach to termination of employees in Korea. We strongly recommend, prior to even considering firing or laying off Korean
Continue readingEnglish-Speaking Korean Labor & Employment Lawyers in Korea
This Korean Law Blog is brought to you by English-speaking Korean labor lawyers & employment lawyers working for IPG Legal – an international law firm with offices in Korea. Sean is the author of this blog and English-speaking Korean lawyers contribute to the blog. Please find below a few of the most recent matters we have worked on. Leading rating services have rated IPG attorneys as leading lawyers working in Korea and throughout Asia. To learn more, please drop us
Continue readingKorean 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 Labor Standards Act (LSA). This fact remains true even when an employer establishes that the independent contractor is aware that he/she was contracted as an independent contractor, 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 of an employee including,
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 readingHiring English-Speaking Korean Labor Lawyers in Korea
In most cases involving employment issues concerning foreign language teachers and hagwons (not company executives), Korean labor lawyers may not be a cost-effective means of handling your dispute. Often a Nomusa (노무사) is an adequate means to resolve the dispute with your employer. A Nomusa is, however, often not adequate for high-net worth individuals, company executives and for complex cases. These type matters, often, should be filed to a court or shall be, likely, appealed from a Korean Labor Board
Continue readingIncreased Scrutiny of Employers by Korean’s Ministry of Employment & Labor under President Moon’s Administration: HR Audit Needed by Korean Employment Lawyers
Many Korean Employment Lawyers are taking note of the recent initiative by Korea’s Ministry of Employment & Labor. At the end of June of 2017, the Ministry announced an “Unfair Labor Practice Eradication Initiative.” This Initiative intends to investigate and punish perceived “unfair labor practices” of employers in Korea by having the Ministry of Employment & Labor conduct more audits of companies and provide punishment for those perceived to be in violation of Korea’ Labor Law. It is time to
Continue readingTermination after Childcare Leave in Korea: Childcare Leave Law in Korea
Korea’s generous Childcare Leave Law poses difficulties to many smaller employers in Korea. The Childcare Leave Law, in Korea, allows for a one year period of leave per child under the age of seven. Employers, often, are required to hire a replacement employee when the employee departs for this childcare leave. This situation, often, leads to an employee returning to employment with little to no work to do. So can an employer, in Korea, layoff the returning Korean worker for
Continue readingCan you Revise Employment Rules in Korea without the Agreement of Employees?
The Guidebook on Wage System Reform, published by the Korean Ministry of Employment & Labor, has sparked more interest, in the private sector, than the revamping of Korea’s wage system based on seniority. The major issue, in this regard, is if the Rules of Employment of a company may be amended, without violating the Labor Standards Act of Korea (“LSA”), when “wage system reform” is not consented to by a majority of the employees or the trade union. Numerous Korean
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
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