Tag: Korean Labor Law Firm

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Severance pay in Korea is a statutory right — not a benefit. Under the Guarantee of Workers’ Retirement Benefits Act (GWRBA), every employee who has worked in Korea for at least one year is entitled to severance pay upon leaving their job, regardless of the reason for departure. This right applies equally to Korean nationals and foreign workers, and even to employees whose contracts are governed by foreign law.

Written by a Korean-licensed labor lawyer with over 20 years of experience, this guide explains who is eligible, how severance pay is calculated, and what to do if your employer refuses to pay — whether you are working for a Korean company or a foreign multinational operating in Korea, or even working abroad for Korean employers.

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Expanding your business into South Korea requires navigating a complex landscape of local labor laws. For foreign companies, understanding the intricacies of the Korean Labor Standards Act (LSA) is essential to ensure compliance and foster a productive workplace. This article aims to demystify the process of establishing the rules of employment in Korea, focusing on key requirements, common challenges, and practical advice for international businesses.

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There are so many seconded workers in Korea.  The secondment of an employee creates various legal issues in Korea. One of them is the seconded employee’s severance pay in Korea. The Korean labor law recognizes the severance payment liability of all employers having business in Korea. This doesn’t ask the nationality of the employee. (Please check here as to how the severance pay under Korean law is recognized and operates) The problem is that some foreign companies are ignorant of their severance pay liability under Korean law.  Even further, some foreign employers try to evade their severance liability intentionally.

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Q) Please could you clean up this question that nobody seems to be willing to answer. Is there a legally binding 40 working hour a week or not in Korea?

A) Yes, there is a 40-work-hours clause in Korean labor law.

The Labor Standard Act of Korea provides that “Work hours shall not exceed 40 hours a week, excluding hours of recess”.

However, in case of workers who are not less than eighteen years of age and women workers who are not in pregnancy, an employer and a workers’ representative can legally agree to extend work hours in excess of 40 hours a week to the extent that (more…)

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Recently we got a question from a gentleman asking what the exact meaning of the below, an Internet post he’d found:

“It is possible that as of 2011, what was severance pay will be vested in the country’s pension plan. This means that workers (including teachers, etc.) will no longer receive one month’s pay for every year worked at the end of their contract. The legislation is set to discuss/vote on this in 2009.”

He was worrying that he might lose his right to severance payment under Korean law.  But the above article is quite misleading.  The severance payment is the property right of workers.  It can not be vested to anything without workers’ consent.  If the article says the amended law will give the employer or any party but the workers the power to vest the severance payment to the country’s pension plan (or whatever) without workers’ consents, it definitely violates (more…)