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Employment Contract Conclusion
(1) Businesses with 5 or more regular employees
- Contract Period: Set by mutual agreement within the employment activity period (3 years)
- Working Hours: 8 hours or less per day, 40 hours or less per week (excluding break time)
- Breaks: 30 minutes for 4 hours of work, 1 hour or more for 8 hours of work
- Holidays: 1 paid holiday granted upon completion of the scheduled working days in a week
- Wages
Must be stated based on the basic hourly rate and must be equal to or higher than the annual minimum hourly wage
If wages are set as a monthly salary, the amount divided by the standard monthly working hours must be equal to or higher than the minimum hourly wage for the year
Minimum wage applies to workers (Minimum Wage Act Article 6, Paragraph 1), applicable from 2026.1.1 to 2026.12.31
Based on 40 hours per week / 209 hours per month: hourly rate 10,320 KRW, daily rate (8 hours) 82,560 KRW, monthly salary: 2,156,880 KRW
Based on 44 hours per week / 226 hours per month: monthly salary: 2,332,320 KRW (applies only to businesses with fewer than 5 employees from 2011.7.1)
- Overtime and Night Work Allowances
If working more than 8 hours per day or 40 hours per week, overtime work is possible within 12 hours per week by mutual agreement, and in such cases, at least 50% of the regular wage must be added
Night work refers to work from 10 PM to 6 AM the next day, and in this case, a night work allowance of 50% or more must also be paid separately
(2) Businesses with 4 or fewer regular employees
The Minimum Wage Act applies, but some provisions of the Labor Standards Act do not apply
Non-applicable provisions: Regulations on overtime, night, and holiday work allowances, regulations on annual paid leave (paid weekly holiday system and severance pay regulations apply)
(3) Agriculture, Livestock, and Fisheries Industries
- The Labor Standards Act generally applies, but provisions regarding working hours, breaks, and holidays do not apply
Therefore, the scheduled working hours per week can be set by mutual agreement, and break times can be freely granted
After setting daily working hours and monthly working days, calculate the monthly working hours
If meal time, rest time, and nap time between start and end times are explicitly operated, such time can be excluded from working hours as break time
- Wages can be paid as hourly, daily, or monthly rates, but in all cases, the minimum wage or higher must be paid
- Annual paid leave, night work allowances, and severance pay apply equally
If the employer violates the wages or other working conditions agreed upon before entry, or if wage arrears or violations of labor laws make it difficult to maintain the employment contract, the employment permit will be canceled and foreign workers cannot be hired for the next 3 years
If foreign workers are made to work outside the business or workplace specified in the employment contract, foreign workers cannot be hired for the next 3 years (Article 19 of the Act on Foreign Workers' Employment, etc.)
When preparing the employment contract, clearly record matters related to dormitory and meal expenses and confirm them accurately with the foreign worker
If deducting room and board expenses from wages, a deduction consent form in the foreign worker's native language must be obtained in advance