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What is an Employment Contract?

10/1/2025
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Author:system
We generally enter into sales contracts or lease contracts when buying or leasing goods or real estate.


Similarly, when we agree to receive wages and provide labor, formalizing these terms in a contract constitutes an employment contract. In other words, an employment contract refers to an agreement where the employee provides labor to the employer, and the employer pays wages in return. Most hiring situations involve verbally agreeing on wages, bonuses, severance pay, and other terms, but disputes often arise during employment or upon resignation regarding these hiring conditions. Therefore, an employment contract is extremely important as a means to prevent future disputes. At the time of hiring, it is the first step in the employment relationship to clearly execute a written employment contract specifying wages, bonuses, working hours, work methods, severance pay, and other details. Upon entering into an employment contract, even if not explicitly stated, the employee has the following obligations: ① the duty to provide labor to the employer, ② the duty to honestly disclose one's work experience, education, and other background at the time of hiring, ③ the duty to protect the company's confidential information during the employment period, ④ the duty not to engage in actions that benefit competitors of the employer.


The employer

① has the duty to accept the labor provided by the employee,

② has the duty to pay wages for the employee's labor,

③ has the duty to compensate for the employee's work-related accidents,

④ has the duty to protect the employee's physical health and hygiene. These are essential obligations arising from the employment contract. If the employee fails to fulfill these essential obligations, it may constitute grounds for dismissal. If the employer refuses the employee's labor provision, the employer must pay the full amount of wages, incurring civil liability.

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What is an Employment Contract? | Foreigner Info Center | FIC