Doing Business in Korea

Labor Standard Laws
µî·ÏÀÏ : 2015.10.21 13:32 Á¶È¸¼ö : 1093

1. Objectives of Labor Law

When employing workers in Korea, laws regarding hiring, salary, and dismissal shall be observed. The Labor Law of Korea has been enacted in order to provide workers with adequate protection, to protect the basic structure of business activities, and to build a solid and stable economy based on the principles of capitalism.

 

2. Labor Law Categories and Applications

The Labor Law is largely divided into four categories: Individual Labor Relations Law, Collective Industrial Relations Law, Cooperative Industrial Relations Law, and Employment Law. Depending on its characteristics, each law sets the standards for labor contracts and relations between employers and workers, enables autonomous dispute resolutions between labor and management by guaranteeing workers' right to organize a union, and ensures mutual benefits to labor and management by promoting the participation and cooperation of both employers and workers.

 

Category

Acts

No. of Employees

Remark

Individual Labor Relations Law

Labor Standards Act

5 or more

  • Some provisions are applicable to work places with 4 or fewer employees
  • Where the employer employs 10 or more workers, the rules of employment shall be prepared

Minimum Wages Act

All work places

  • 2015 minimum hourly wage: KRW 5,580

Occupational Safety and Health Act

General

All work places

  • Not all provisions are applied to certain businesses and work places with fewer than 5 employees

Person in charge of safety and health management

100 or more

  • 50 or more employees for certain businesses

Safety and health officers, etc.

50 or more

  • Some business categories are excluded

Occupational health and safety committee

100 or more

  • Some businesses with 50 ~ 99 employees are included

Industrial Accident Compensation Insurance Act

All work places

  • Some businesses with fewer than 5 employees in the agriculture, forestry, and fishery industries are excluded

Equal Employment Opportunity Act

All work places

  • Some provisions are not applied to work places with fewer than 5 employees

Collective Labor-Management Relations Law

Trade Union & Labor Relations Adjustment Act

All work places

Cooperative Labor-Management Relations Law

Act on the Promotion of Workers' Participation and Cooperation

30 or more

  • Regardless of the existence of a labor union, all businesses or work places vested with the right to determine working conditions shall establish a labor-management council
  • Work places with 30 or more employees shall implement a grievance settlement committeeman

Employment Related Law

Employment Insurance Act

All work places

  • Some businesses with fewer than 5 employees in the agriculture, forestry, and fishery industries are excluded

Employment Promotion and Vocational Rehabilitation of Disabled Persons Act

50 or more

  • Businesses shall employ disabled persons at the obligatory employment ratio within 5/100 of the total number of workers
  • Companies shall pay contributory charges in the case of non-compliance, but receive incentives in cases they hire disabled persons at over the obligatory ratio

Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion

300 or more

  • Companies shall maintain a minimum ratio of senior citizens employed to total employees (2% for the manufacturing industry, 6% of the transportation and real estate industries, 3% of other industries

  Information sourced from www.investkorea.com

÷ºÎÆÄÀÏ : Labor Laws.docx (16.75KB) 
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