Labor Law in South Korea
Introduction
South Korean labor law is governed by the Labor Standards Act (근로기준법, 1953) , the Trade Union and Labor Relations Adjustment Act (TULRAA, 노동조합 및 노동관계조정법, 1997) , and numerous specialized statutes. The legal framework reflects Korea’s evolution from an authoritarian developmental state with suppressed labor rights to a mature industrial democracy. The National Labor Relations Commission (NLRC) (중앙노동위원회) provides quasi-judicial dispute resolution.
Labor Standards Act
The Labor Standards Act (LSA) sets minimum employment conditions for all workers:
Working Hours
The LSA established a 40-hour work week (52-hour maximum including overtime, effective 2018). The “52-hour week” reform reduced the previous 68-hour maximum weekend included. Overtime is limited to 12 hours per week (Article 53).
Minimum Wage
The Minimum Wage Act requires annual minimum wage determination by the Minimum Wage Commission. As of 2024, the minimum wage is KRW 9,860 per hour (approximately USD 7.40).
Employment Contracts
Employers must provide written employment contracts specifying wages, working hours, holidays, and leave. The law requires:
- Severance pay: One month’s wages per year of continuous employment (Article 34)
- Annual leave: 15 days for one year of perfect attendance (Article 60)
- Maternity leave: 90 days (60 days paid by employer, 30 days by employment insurance)
Protection from Unfair Dismissal
The LSA prohibits dismissal without “just cause” (Article 23). The Supreme Court interprets just cause broadly to include economic difficulties, but requires objective justification and procedural fairness. The Labor Relations Commission provides remedy for unfair dismissal, including reinstatement and back pay.
Trade Union and Labor Relations
The TULRAA governs union formation, collective bargaining, and industrial action:
- Union formation: Workers may form unions without prior authorization (Article 5)
- Collective bargaining: Employers must bargain in good faith with representative unions
- Industrial action: Strikes are permitted after mandatory mediation and cooling-off periods (exceptions for essential services)
- Multiple unions: Permitted since 2011, with single bargaining channel requirement
National Labor Relations Commission (NLRC)
The NLRC adjudicates unfair labor practices (discrimination for union activity, refusal to bargain) and reviews unfair dismissals. Its decisions are subject to judicial review.
Regular Worker Protection
The Act on the Protection of Fixed-Term and Part-Time Workers (2007) prohibits discriminatory treatment of non-regular workers (fixed-term workers, part-time workers, temporary agency workers). After two years of continuous employment, a fixed-term contract is deemed an indefinite-term contract.
Industrial Relations Commission
The Industrial Relations Commission (previously Labor Relations Commission) resolves collective disputes through conciliation, mediation, and arbitration for essential public services.
Conclusion
South Korean labor law has made significant strides in worker protection since the 1987 democratization. Persistent challenges include reducing the gap between regular and non-regular workers, addressing long working hours culture, and ensuring effective enforcement of labor standards in small enterprises.