Labor contracts must specify key working conditions such as wages and working hours and are essential for the protection of the rights of both employees and employers.
Labor contracts must specify wages, working hours, holidays, annual paid leaves, duties, vacations, retirement allowances, etc. A standard labor contract is provided on the website of the Ministry of Employment and Labor.
Employees on Probation
Probationary employment is a type of work that is intended to develop the working skills or adaptability of a new employee who has formally signed a labor contract. As the Labor Standards Act also applies to employees on probation, they cannot be dismissed without justifiable causes.
※ Related laws: Article 5.2 of the Minimum Wage Act, Article 3 of the Enforcement Decree of the Act
Fixed-term workers refer to workers who have signed labor contracts for fixed periods of time. Employers may hire fixed-term workers for periods not exceeding two years. When an employer hires a fixed-term worker for more than two years, the fixed-term worker is deemed a worker subject to a non-fixed-term employment contract. Employers shall not give discriminatory treatment to fixed-term workers on the grounds of employment status compared with other workers engaged in the same or similar kinds of work on non-fixed-term employment contracts at the business or workplace concerned.
Temporary Agency Workers
Temporary agency workers are workers employed by a temporary work agency who work for dispatched companies under the direction and supervision of those dispatched companies in accordance with the terms and conditions of a contract for the temporary placement of workers. Jobs permitted for temporary work agency businesses shall be deemed appropriate for that purpose in consideration of professional knowledge, skills, experiences, or the nature of duties and prescribed by Presidential Decree, except for those directly related to production in the manufacturing industry.
Justification of Dismissal
Dismissal refers to the termination of a working relationship against the will of an employee. Employers shall not, without justifiable causes, dismiss, lay off, suspend, or transfer employees, reduce their wages, or take other punitive measures against them.
- Disciplinary dismissal : This refers to the termination of a working relationship as a disciplinary measure when employer and employee cannot continue to maintain their working relationship. For disciplinary dismissal, various circumstances, including disciplinary purposes, characteristics of the business, duties of the worker, non-compliance, and the impact on the corporate order, are comprehensively evaluated.
- Dismissal for managerial reasons : This refers to the termination of a working relationship based on urgent managerial needs for the sake of the stability and existence of a company. Employers shall make every effort to avoid dismissal, establish and follow reasonable and fair criteria for the selection of those subject to dismissal, inform them at least fifteen days before the intended date of dismissal, and consult in good faith with labor unions.
Advance Notice of Dismissal
When an employer intends to dismiss a worker (including dismissal for managerial reasons), the employer shall give the worker a notice of dismissal at least 30 days in advance of such dismissal, and, if the employer fails to give such advance notice, that worker shall be paid ordinary wages for not less than 30 days.
Written Notice of Dismissal
When an employer intends to dismiss a worker, the dismissal shall become effective only upon written notice specifying the reasons for and time of the dismissal.
Restrictions on Dismissal Time
An employer shall not dismiss a worker during a period of temporary interruption of work for the medical treatment of an occupational injury or disease or within 30 days thereafter. If the employer fails to give such advance notice, dismissal of that worker shall be restricted for 30 days.