South Korea

• New Year’s Day
• Korean New Year
• March 1st Movement
• Labour Day
• Children’s Day
• Buddha’s Birthday
• Memorial Day
• Liberation Day
• Harvest Festival
• National Foundation Day
• Hangeul Day
• Christmas Day.

Working Hours

In South Korea, the standard work week is 40 hours a week over five days.

Minimum Wage

South Korea’s minimum wage may be fixed on an hourly, daily, weekly, or monthly basis.

The hourly minimum wage is KRW 10,890; the daily minimum wage is KRW 78,120; and the monthly minimum wage is KRW 2,273,832 for a 40-hour week.

Bonuses

High performing staff are often awarded with significant bonuses, but there are no statutory bonus schemes in South Korea.

In South Korea, all contracts must state the applicable wages, hours, holidays, paid leave and working conditions. Contract format varies from company to company.

Fixed term contracts are allowed but must not exceed two years.

Annual Leave

During the first year of employment, employees are entitled to 11 days of paid annual leave.

From the second year of employment, the entitlement is 15 days of paid leave per year. An additional one day of paid leave is accrued for each additional two years of service, up to a maximum entitlement of 25 days.

Sick Leave

Employers are required to provide paid leave for work-related illnesses or injuries, but there is no legal requirement to provide paid sick leave to employees for non-work-related illnesses or injuries.

It is not uncommon for companies to provide paid sick leave whether or not an injury or illness is job-related. Employees may use their annual paid leave as sick days if paid sick leave is not available.

Parental Leave

In South Korea, 90 days maternity leave is granted, which can be used before or after birth. Compensation for 60 days is paid by the employer while the remaining 30 days is paid for by the Employment Insurance Fund.

In the case of multiple births, mothers are entitled to 120 days’ leave total in pre- and post-natal periods, of which 75 days are paid.

Paternity leave of three paid days and two unpaid days is offered.

Termination Process

In South Korea, dismissal without a justifiable reason is not permitted. Justifiable reasons make it impossible for an employer to maintain the employment relationship. Even if there is a justifiable reason for dismissal, an employer cannot fire a worker in the event of:

• Temporary interruption of work for medical treatment of an occupational injury or disease and 30 days thereafter;
• Maternity leave and 30 days thereafter.

An employer must give 30 days’ notice (or the equivalent compensation) before dismissal.

Severance Pay

Unless it has established a retirement pension plan, every company with one or more employees must pay statutory separation pay to any departing employee who has worked at a given company for at least one year, regardless of the reason for dismissal.

The legal minimum severance pay is 30 days' average wages for each consecutive year of service.

Severance pay must be issued within 14 days of the employee’s termination date unless the time is extended by mutual agreement.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.