Terminate/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 workers, to put a system of internal controls/systems in place that provides evidence to substantiate Korean employment terminations decisions.  We see too many companies in Korea that lack the systems necessary to substantiate termination.  Modest changes can, often, be refreshing for managers. FYI – Company executives/directors are, normally, not considered company “employees” and thus are not benefited by most of the protections afforded by the Korean Labor Standards Act.  However,

Continue reading

English-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 an email or give us a call. IPG’s Korean Labor & Employment Law Team Experience Drafted Korean employment agreements, employee handbooks, employment rules and formed a pension and corporate compliance system for a NASDAQ-listed company with a subsidiary in Korea. Oversaw a leading manufacturer’s reduction of 5% of the headcount in China and Korea.  Prevailed in cases of foreign employees of Korean companies who were wrongfully dismissed from these Korean conglomerates. 

Continue reading

Infertility/Subfertility & Childcare Leave Law in Korea

The recent Moon Administration is making drastic changes to Korea’s Employment & Labor Law.  A prior article on promises made by the Moon Administration was posted earlier in the year.  Two interesting changes relate to “Subfertility Leave” and “Childcare Leave.”  We shall be updating the reader over the next couple weeks on numerous other issues that are important for employers and employees to understand about Korean Employment & Labor Law.  Check back often and subscribe via the link to Right.   Fertility Leave Law in Korea Employees facing fertility issues may receive three days off per year with one of these days off being a paid day off – exceptions, however, exist.  This amendment shall, likely, come into effect from May of 2018. Childcare Leave Law in Korea The present childcare leave law, in short, provides 40% of the regular salary in leave up to a maximum of KRW 1 million/month. 

Continue reading

Doing Business in Korea: The Korea labor market under the Moon administration

The election of progressive President Jae-in Moon, after the impeachment and imprisonment of the conservative former President, led to, among other progressive proposals, pledges from the President Moon Administration of sweeping changes to Korea’s Labor & Employment Law.  The following appears in a publication supported by the Korean Government.  The complete publication may be found at: Discovering Business in Korea.  The following changes are the major changes proposed by the Moon Administration. The changes may have a significant affect on companies doing business in Korea and may lead to an increase in taxes as a percentage of GDP. 810,000 new jobs via expanding Korea’s public sector President Moon vowed to create over 340,000 new government social service jobs and over 140,000 new government jobs in public safety and security, while converting 300,000 non-regular workers to permanent workers.  A non-regular worker, in Korea, is a worker without employment security. Thus, the conversion of

Continue reading