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When a foreigner returns to his/her home country, a refund to the foreign subscriber of national pension fund in the form of a lump sum payment shall be granted only in the following cases (source: www.nps.or.kr, Foreigners and Lump Sum Refund): ① When the foreigner's home country’s law provides for the payment of an allowance to a Republic of Korea citizen that is tantamount to a lump sum refund paid by the Korean system ② When a social security agreement on the payment of a lump sum refund has been established between Korea and the home country of the foreigner ※Parties to Social Security Agreements (as of January 1, 2020; 21 countries): Germany, U.S.A., Canada, Czech Republic, Hungary, Australia, France, Belgium, Bulgaria, Poland, Slovakia, Romania, Austria, India (Nov. 1, 2011), Turkey (June 1, 2015), Switzerland (June 1, 2015), Brazil (Nov. 1, 2015), Peru, Luxembourg, Slovenia, Croatia ※There are other countries (27) that are recognized for their reciprocity, but recognition of reciprocity may depend on the minimum subscription period. Therefore, an inquiry should be made to the National Pension Service on whether a lump sum refund can be made or not. ③ When a foreigner with status of stay of E-8 (Industrial Trainee), E-9 (Non-Professional), or H-2 (Work and Visit) has subscribed to national pension ※When a foreigner claims a lump sum refund on the ground that he/she has to return to his/her home country, the lump sum refund is paid only when it is confirmed that he/she has departed. However, when a document is submitted proving that the person plans to leave the country within one month such as a plane ticket, a claim for a refund can be filed before departure.

In principle, mandatory subscription applies in this case. However, according to Article 109(5) of the National Health Insurance Act and Article 61-4 of the Enforcement Rules of the same Act, a foreigner residing in Korea can receive substantial medical coverage amounting to recuperation pay in accordance with foreign laws, foreign insurance or a contract with the employer. When the employer or subscriber has applied for subscription exemption, the person need not subscribe. When a foreigner is eligible to apply for exemption from subscription to national health insurance, the employer shall submit the Report on Disqualification from Workplace Subscription to the National Health Insurance Service by attaching the following forms: ① When receiving medical coverage pursuant to the laws, decrees and insurance of the foreign country – A copy of a certificate confirming applicability of foreign laws, or a document proving that the foreigner can receive medical coverage domestically such as an insurance policy (including Korean translation) – A copy of a document that indicates the intent of the foreigner to withdraw from health insurance ② When receiving medical coverage pursuant to a contract with the employer, etc. – A copy of a document such as labor contract that can proves that the foreigner can receive medical coverage domestically (including Korean translation) – A copy of a document certifying that medical expenses have been paid to the foreign employee by the pertinent business site (including Korean translation) – A copy of a document that indicates the intent of the foreigner to withdraw from health insurance ※ Working level matters such as specific procedures or required documentation must be confirmed by the National Health Insurance Service.

Foreigners residing in Korea must subscribe to national pension, just as domestic persons. When a foreigner aged 18 or older but younger than 60 is employed by a business that subscribes to national pension, he/she becomes classified as a business subscriber, while other foreigners become local subscribers. ◎ In the following cases, persons are exempted from national pension subscription: ① Trainees from abroad (employment as trainee requires subscription), foreign students, diplomats, and other cases in which legislation excludes persons from mandatory National Pension subscription ② Nationals of countries that do not does not require mandatory subscription to a pension system like the Korean national pension ③ When an employee has been dispatched to Korea from a country that has established a social security agreement with Korea submits a certificate of subscription of his/her home country ※ One must inquire with the National Pension Service to check on national pension subscription requirements per country of origin and sojourn status Diplomat (A-1), Government Official (A-2), International Agreement (A3), Visa Waiver Program (B-1), Tourist/Transit (B-2 , Short-term News Coverage (C-1), Short-term General (C-3), Short-term Employee (C-4), Culture and Art (D-1), Student (D-2), Technical Training (D-3), General Training (D-4), Religious Worker (D-6), Family Visitor (F-1), Dependent Family (F-3), Miscellaneous (G-1)

The employee of a business that has employment insurance becomes the insured person of the employment insurance, but the representative director, etc. is not. The employee provides labor under the instruction and supervision of the business owner, and receives wages in return. Directors, auditors and representatives of a corporation, or a person in the position of an executive body are not employees. However, even if one holds the title of a managing director or executive vice-president, if he/she does not have actual authority to execute operations and is not accountable for the business of the company, but provides services in a subordinate role, he/she is an employee, and therefore his actual status should be judged based on such specific facts.

According to Article 55 of the Labor Standards Act, a day of paid leave must be guaranteed for an average of at least once a week. However, it does not prescribe a certain day as the weekly holiday. This means Sunday does not necessarily have to be the designated weekly holiday. The day which marks the beginning of a week can be designated through a discussion among labor and management in accordance with internal provisions, the rules of employment, labor contract and collective agreements.

According to Article 50 of the Labor Standards Act, the statutory work hours cannot exceed eight hours a day and 40 hours a week excluding recess hours. Also, Article 53 of the Labor Standards Act limits weekly extended work hours to 12 hours. ◎ In the above case, the worker has worked seven hours in excess of eight hours per day, which makes the extended work hours a total of 21 hours (7 hours x 3 days). Therefore, even if the total weekly work hours is within 52 hours, if weekly extended work hours exceed 12 hours, it constitutes a violation of the law.

According to Article 50 of the Labor Standards Act, work hours should not exceed 40 hours a week. Based on this, the average monthly fixed work hours were calculated as follows: ◎ The monthly average number of weeks in a year is 4.345 weeks (365 days ÷ 7 days ÷ 12 months). Including eight work hours per day and eight hours of weekly holiday, the total work hours comes to 48 hours per week. Therefore, if the monthly average number of weeks is multiplied with 48 hours per week, the total monthly work hours comes to 208.59 hours (4.345 X 48 = 208.56). In other words, the hourly minimum wage was calculated based on 209 hours of statutory monthly work hours.

A probation period can be established in the labor contract to give the company time to test the capabilities of the new employee. In general, probation refers to "a form of labor in which a definitive labor contract has been established, and the purpose of which is to promote work skills and capabilities." The Labor Standards Act is also fully applied to probationary employees, and they can only be dismissed if there is a valid reason. ◎ The Labor Standards Act does not stipulate separately on the training period. However, based on subparagraph 1 of Article 26 of the Labor Standards Act, "where the period during which the employee has worked continuously is less than three months", the obligation to provide a 30 day advance dismissal notice is not applied. As a result, a probation period of three months is set in most cases.

In Article 23(1) of the Labor Standards Act, it is prescribed that "An employer shall not, without justifiable cause, dismiss, lay off, suspend, or transfer an employee, reduce his/her wages, or take other punitive measures (hereinafter referred to as "unfair dismissal, etc.") against him/her." ◎ Therefore, for the dismissal to be justified, there must be an accountable reason "that prohibits the continued service of the employee according to social norm." This is judged based on various overall circumstances, such as the purpose of the punitive measures, nature of the business, status of the employee, and the motivation for engaging in inappropriate behavior, and whether the order of the company has been disrupted. ◎ In addition, as per subparagraph 12 of Article 93 of the Labor Standards Act, the rules of employment must prescribe "matters regarding reward and punishment". In terms of procedure, they can have legitimacy only when they are impartially exercised according to the prescriptions made by an institution of authority in a collective agreement or rules of employment. ◎ Poor work attitude is generally a behavior in which the employee does not focus on his/her work and undermines efficiency or production. Of course, poor work attitude and negative performance alone can not be sufficient reasons for the employee to be subject to punitive treatment. However, when the employee continues to show lack of diligence or improvement despite numerous instructions for correction and orders for participation in training, he/she could be subject to punitive measures.

Article 8(2) of the Act on the Guarantee of Employees' Retirement Benefits stipulates that "Any employer may, upon request by an employee due to a ground prescribed by Presidential Decree, pay such employee a retirement allowance for his/her continuous service period prior to his/her retirement. In such cases, the continuous service period to be used for the calculation of the amount of a retirement allowance accumulated thereafter shall be reckoned anew from the time when the balance is settled." ◎ "Grounds prescribed by Presidential Decree" (as in Article 3 of the Enforcement Decree of the Act on the Guarantee of Employees' Retirement Benefits) are as follows: 1. Where an employee who is a non-homeowner purchases a house in his/her own name 2. Where an employee who is a non-homeowner pays a tenancy deposit under Article 303 of the Civil Act or a security deposit under Article 3-2 of the Housing Lease Protection Act for residential purposes. In such cases, the number of such occurrences shall be limited to one time while the employee works in the same business 3. Where an employee pays the medical care costs incurred for convalescence from illness or injury of any of the folowing persons, which requires at least six months of convalescence: a. The employee himself/herself b. The spouse of the employee c. The family members dependent on the employee or on the spouse of the employee 4. Where an employee is declared bankrupt pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years retroactively from the date he/she applies for interim settlement of a retirement allowance 5. Where an employee receives a decision to commence individual rehabilitation procedures pursuant to the Debtor Rehabilitation and Bankruptcy Act within five years counted retroactively from the date he/she applies for interim settlement of a retirement allowance 6. Where an employer implements a system of reducing wages based on a particular age, length of consecutive service, or amount of wage through a collective agreement, employment rules, etc. on the condition of extending or guaranteeing the current full retirement age 6-2. Where an employer has changed an employee’s contractual working hours by at least one hour a day or five hours a week under agreement with the employee, and the employee has agreed to continue to work for at least three months based on the changed contractual working hours 6-3. Where an employee receives a reduced retirement allowance due to shortened working hours as the Labor Standards Act (No. 15513) enters into force 7. Other cases falling under the grounds and requirements determined and publicly notified by the Minister of Employment and Labor, such as where damage is caused by a natural disaster, etc. ◎ In addition, the following special conditions must be met for interim settlement: ① Interim settlement of severance pay is possible "only when there is such a demand from the employee." When there is no such demand from the employee, the employer’s unilateral payment of severance pay as interim settlement is not effective. ② There must be approval by the employer for interim settlement of severance pay. The employer is not obligated to make an interim settlement of severance pay, and he/she can refuse the demand of the employee for mid-term settlement when there are justifiable business reasons to do so. ※ When severance pay has been settled mid-term with the consent of the employer, in order to pay the remaining severance pay, the number of continuous years of service must be calculated anew from the time of interim settlement. Even if the severance pay has been settled mid-term, the employee has not actually left the company. Therefore, interim settlement of severance pay will not affect the calculation of the employee’s continuous service period for HR management such as calculation of annual paid leave days, certification of career, or promotions.