The document summarizes key aspects of Korea's labor laws as they relate to the Malaysia Embassy in Korea, Malaysian investors in Korea, and Malaysian workers in Korea. It discusses the main areas of focus under labor laws, including the Labor Standards Act, trade union and labor relations laws, laws around foreign workers, and an overview of Korea's legal structure around employment. It also provides more detailed summaries of rules around hiring, wages, termination, retirement benefits, and implications for foreign missions as employers under Korea's labor laws.

1. Korea Labor Law
Present to Malaysia Embassy In Korea
2013 March 20th
Maven Song / Labor Attorney
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2. Company Logo Expectation
Embassy As an Employer • Labor Standard Act ++ 70%
• Trade Union and Labor Relations 20%
As an Advisor to Malaysia Investors • Labor Standard Act ++ 50%
• Trade Union and Labor Relations 20%
As an Advisor to Malaysian
Workers
• Labor Standard Act ++ 50 %
• Trade Union and Labor Relations 20%
• Act on Foreign Workers’ Employment,
Etc. 0%
- contract, visa, protection, permit
- reentry, return, social security insurance
2

3. Company Logo Law Structure
Malaysia Korea (Special Law)
• Employment Act 1955
• Children and Young Persons Act
• Labor Standard Act
• Wage Claim Guarantee Act
• Act on the Protection, etc. of Fixed-Term and
Part-time Employees
• Act on the Protection, etc. of Dispatched
Workers
• Equal Employment Act
• Trade Union Act 1959
• Industrial Relations Act 1967
• Trade Union and Labor Relations Adjustment
Act
• Act on the Promotion of Worker Participation
and Cooperation
• Employee Provident Fund Act • Employee Retirement Benefit Security Act
• Social Security Act 1969
• Workmen’s Compensation Act 1952
• Industrial Accident Compensation Insurance
Act
• Employment Insurance Act
• Occupational Safety and Health Act
• Factories and Machinery Act 1967
• Occupational Safety and Health Act
• No ‘BUMIPUTRA’ Policy in Korea
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4. Company Logo Rules of Employment
Requirement • Mandatory to prepare for
≥ 10 𝑊𝑜𝑟𝑘𝑒𝑟𝑠 Workplace
• Report and File to MOL
Contents • Working Hours , Wage
• Allowance, Retirement, Severance
• Bonus, Expenses, Education
• Protection, Safety and Health
• Industrial Accident, Etc
Preparation • Collective Consultation
- w/Majority Composed Union
- Otherwise w/ Majority workers
Conflict with Collective Agreement or
Law
• MOL Order the Amendment
Conflict with Labor Contract • Apply ‘Advantageousness Idea’
Unfavorable Change • Need Employees’ Collective Consent
- Subject Group
- Collective Method
4

5. Company Logo
Foreign mission as Employer
Korea Labor Law
Scope
• LSA
- 5 or more Workers Employed Business
- Apply Partial to fewer than 5 Employed
- Not to which Employs only Relatives
- Not to Domestic Workers
• Social Insurance
- All Business Employing Workers
Legal Responsibility • Territorial Principle
• Vienna Convention
- Article 33 ③
- Article 41 ①
• Private International Act
- Article 28
• Supreme Court Restrictive theory of Sovereign immunity
- 97Da39216 (US Army Vs. Employee)
Immunity • Vienna Convention
- Article 22 ③
- Article 31 ①
• Supreme Court - Absolute theory of Sovereign immunity
- 89Nu4765 (France Embassy Vs. Union)
- 96Da16940 (Jaire Republic Embassy Vs. Landlord)
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6. Vienna Convention
 Article 22 ③
The premises of the mission, their furnishings and other property thereon and the means
of transport of the mission shall be immune from search, requisition, attachment or
execution
 Article 31 ①
A diplomatic agent shall enjoy immunity from the criminal jurisdiction of the
receiving State. He shall also enjoy immunity from its civil and administrative
jurisdiction, except in the case of:
 Article 33 ③
A diplomatic agent who employs persons to whom the exemption provided
for in paragraph 2 of this Article does not apply shall observe the obligations
which the social security provisions of the receiving State impose upon
employers.
 Article 41 ①
Without prejudice to their privileges and immunities, it is the duty of all persons enjoying
such privileges and immunities to respect the laws and regulations of the receiving State.
6

7. Private International Act
 Article 28 (employment Contract)
 (1) In case of an employment contract, even if the parties choose the
applicable law, the protection, given to the employee under the mandatory
provisions of the country of the applicable laws designated under
paragraph (2), shall not be deprived.
 (2) In case the parties do not choose the applicable law, irrespective of the
provisions of Article 26, the employment contract concerned shall be
governed by the law of the country where the employee habitually
provides his service. In case the employee does not habitually provide his
service within one country, the law of the country, where the business
office of the employer who hires the employee located, shall govern.
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8. Company Logo Definition
Malaysia Korea
Contract of Service Labor Contract
Rest Day Weekly Paid Holiday
Apprenticeship Internship
Probation Period
Employee Worker
Inspecting Officer Labor Inspector
N.A Workers’ Representative
Constructive Dismissal N.A
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9. Company Logo Source of Law
Labor Laws • Compulsory Provisions
- Penalty
- Enforcement Levy
• Optional Provisions
• Do not provide the Cookie Cutter Formula
• Define the Minimum Legal Boundary
Rules of Employees • Prepared by Employer
• Terms and Conditions
• Disciplinary Measures
• Unfavorable Modification Rule
Collective Agreement • Union Collective Bargaining
Labor Contract • Terms and Conditions
Bylaws of Labor-Management
Council
• Managerial Discussion / Resolution
• Grievance Handling Procedure
Other Laws • Constitution
• Civil Act
Apply ‘Advantageousness Rule’ in Confliction
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10. Company Logo Employee Consent Matters
Matters Consent Type
Managerial Dismissal §24 • Consult with Workers’ Representative
• In 50 days Advance
Using Leave as Compensation of
Excessive working hours §57
• Written Consent of Workers’
Representative
Substitution of Paid Leave §62 • Written Consent of Workers’
Representative
Night / Holiday Work to Female and
Child
• Consult with Workers’ Representative
Unfavorable Change to Rules of
Employment
• Collective Majority Consent
- Related subject group decision
Deemed Working Hour §58 • Written Consent of Workers’
Representative
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11. Company Logo Hiring 1
Requirement Provisions and Consideration
Contract Type • Regular Employee
- Unfixed Term
• Irregular Employee
- Fixed Term
- Part Time
- Dispatched / Contracted Worker
• No Formal Apprenticeship Contract
Females and Minors • Minimum Age < 𝐴𝑔𝑒 15 (LSA §64)
• Prohibition work (LSA §65)
- Pregnant or Female < 𝐴𝑔𝑒 18 from Dangerous work
- Female ≥ 𝐴𝑔𝑒 18 from Dangerous to Pregnant
Probation • Contract with Reserved right of Voidance
- Still Require Lawful Dismissal with lower standard
• No Clear Provision on Terms - Practically 3 + 3 Months
• No Advance Notice required on Dismissal
Foreign Workers • Act on Foreign Workers’ Employment, Etc.
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12. Company Logo Hiring 2
Legal Requirements Provisions and Consideration
Equal opportunity • Gender, Social Class, Race, Nationality,,,
Elimination of Intermediary
Exploitation
LSA §9 : Shall not Intervene in Hiring
process for Profit
Written Particulars in Contract • Wages (Method of Calculation, Payment)
• Contractual working hours
• Holidays
• Annual paid leave
• Probation Period if applicable
Prohibition of Interference with
Employment for ex-Employee
LSA §40 : Shall not communicate Black list
Preserve the Documents for 3
years
LSA §42 - Registry of Workers
- Labor Contract
Termination Notice Period in
Contract
• Malaysia EA 1955
- 4-8 weeks
- Liable to Both Parties
• 30 days at Employer side
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13. Company Logo Termination
Types • Dismissal
- Managerial Reason
- Disciplinary Action
- Low Performer
- Define at Rules of Employment
• Retirement
- Age
- Contract Term
- Voluntary Resignation
Legal Requirement • Restriction on Dismissal, etc. (LSA §23)
• Notification (LSA §26, §27)
- 30days Advance or pay ≥ 30𝑑𝑎𝑦𝑠 𝑤𝑎𝑔𝑒
- Written for reason and date
- Exceptions
• Restriction during Maternity / Sick leave
Procedure and Process • Should define at Rues of Employment
Remedy Action • Raise a Motion to Labor Relations Commissions
• File a Civil Action
- Strong Enforcement Power
- Can expect Provisional Disposition
Constructive Dismissal • Not Applicable in Korea
13

14. Dismissal for Managerial Reasons
 Labor Standard Act Article 24 and Judicial Rulings
 Urgent necessity in relation to the business
 Efforts were made to avoid dismissal
 Fair criteria for the selection of those persons subject to
dismissal
- ex) Older, Performance, # of Dependents, Irregular staff,,
 Informing the workers’ representative 50 days in advance and
consulting in good faith
 Report to MOL as Specified in LSA Presidential Decree
 Labor Standard Act Article 25
 Preferential Re-employment
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15. Company Logo Wages
Basic Principles (LSA §43) ① Full ② Direct ③ Cash
④ Fixed day at least once per month
Definition • Ordinary Wages
• Average Wages
Allowance • Overtime (50% additional)
• Night work (50% additional)
• Holiday work (50% additional)
• Other benefits (Food, Car, Family,,)
Social Security Insurance Employer’s Contribution - Not Wage
Lawful Deductions Union Fee, Advances, Miscalculation,,
Overdue Payment Surrogated Payment by Government
Emergency Payment LSA §45 : Reasons prescribed in
Decree (Childbirth, Disease,,,)
Business Suspension Allowance LSA §46 : 70/100 Average Wage
Bonus • By Contractual - Part of Wage
• By Discretionary - Not Wage
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16. Wage Determination
Wages Non-Wages
• Regular and continual bonuses
• Severance pay (post-paid wage)
• Paid holidays and annual leave
• Allowance for suspended work
• Monetary payment for benefit
- Price-linked allowance
- Commuter allowance
- Family allowance
- Other established practice
• Monetary payment made as a
token of courtesy, goodwill, or favor,
such as allowance for condolence
or congratulations
• Expense reimbursement
• Dismissal allowance
• Accident Compensation
• Suspended work compensation
during leave for Industrial Accident
16

17. Wage Definitions
Ordinary Wage Average Wage
Contractual Salary
- Uniform
- Periodic depends on Purpose
. Daily, Weekly, Monthly
Calculated at Specific occasion
- Daily Average in recent 3 months
- Take 𝑂𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑊𝑎𝑔𝑒 in case Lower
Apply to
- Overtime, Night Allowance
- Replacing Dismissal Notice
- Unused Annual Leave Payment
Apply to
- Severance Pay
- Suspended Work Compensation
- Unused Annual Leave Payment
- Accident Compensation
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18. Company Logo Retirement Pension Plan
Related Law Employee Retirement Benefit Security Act (ERBS)
Retirement Pension Plan
• Enacted 2005 December
• Revised 2012 July
• Types
- Defined Benefit Plan (DB)
- Defined Contribution Plan (DC)
- Individual Retirement Plan (IRP)
• Restricted Interim Payment (ERBS Decree §3)
• Managed by Outside Financial Agency (Pension
Trustee)
• Lump-sum upon Resignation or Pension from
age 55
Severance Pay System
- Abolished Article LSA §34
• Lump-sum upon Resignation
• Flexible Interim Payment
• Pre-determined Amount
• Managed by Company
Employer Contribution • ≥ 30 𝑑𝑎𝑦𝑠 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑤𝑎𝑔𝑒 for Each year
Legal Requirement • Establish the Pension Regulation
• Consent of the Workers’ Representative for New
Type introduction or Change the Type
• Permission from MOL to be the Pension Trustee18

19. Company Logo Working Hours
Standard • ≤ 40 ℎ𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑤𝑒𝑒𝑘
• ≤ 8 ℎ𝑜𝑢𝑟𝑠 𝑝𝑒𝑟 𝑑𝑎𝑦
Exceptions • Flexible Working Hour System (LSA §51)
• Selective Working Hour System (LSA §52)
• Deemed Working Hour (LSA §58)
Overtime (LSA §53) • 12 hours per week
• Special Overtime with approval of MOL
• Exception by Business type (LSA §59)
- Transportation, Medical, Entertainment,,,
• Total Exemption of the Working hour rule (LSA §63)
- Agricultural, Marine Product Cultivation,,,
Weekly Paid Holiday Average one or more holiday per week (LSA §55)
Protection • Minor (LSA §69, §70)
• Female and Pregnant (LSA §70, §71)
• Exception
- Permission from MOL
- Workers’ Rep. consent or Employee request
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20. Company Logo Leave
Annual Paid Leave • Right to request Annual Paid Leave LSA §60
• Right to request Unused Annual Paid Leave
Allowance LSA §61
• Promoting the use of Annual Paid Leave LSA §61
Maternity
Protection
• Maternity Paid Leave (90 days)
- Korea : Current Employee Only
- Malaysia : Responsible to ex-Employer (9 Months)
• Child Care Leave < 1 𝑌𝑒𝑎𝑟
• Paternity Leave
Holidays • Legal Holidays
- Weekly Paid Holiday by LSA §55
- The Labor Day (May 1st)
• Public Holidays
- Can be substituted by Annual Leave upon
agreement of Workers’ Representative §62
Sick Leave • Practically Consume Annual Leave First
• Need to define at Rules of Employment
Menstruation
Leave
Allow Non Paid leave upon Request (LSA §73)
20

21. Annual Leave Comparison
Malaysia EA 1955 Korea LSA
• 8-16 days by # of years Served
• Substituted at
- Holiday Act 1951
- ≥ 10 𝑑𝑎𝑦𝑠 National Holidays
• 15days for workers with ≥ 80% 𝐴𝑡𝑡𝑒𝑛𝑑𝑎𝑛𝑐𝑒
last year
• 1 day per month for workers served < 1 𝑦𝑒𝑎𝑟
• Add 1 day for each 2 years service
- Max. 25 days
• Substitution of Annual Leave §62
- Order to use on Particular day upon
agreement of Workers’ Representative §62
• Promoting the unused Leave §61
• Unused Annual Leave Allowance §60
- 3 Years’ Claim right
- Include the already occurring Allowance
into Average Wage for Severance
Calculation
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22. Sick Leave Comparison
Malaysia EA 1955 Korea LSA / IACIA
• 14-22 Paid days by # of
Years Served
• 60 days Paid Hospitalization
- Holiday Act 1951
- ≥ 10 𝑑𝑎𝑦𝑠 National Holidays
• Ruled by Rules of Employment
• Industrial Accident Compensation Insurance Act
- Wage replacement Benefit § 52
. 70/100 of the Average Wage
• Injury-Disease Compensation Annuity §66
- After 2 years from Accident, If the Employee
is still under recovery and cannot continue to
work, the employment can be Terminated by
paying this Annuity
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23. Company Logo Disciplinary Measures
Types of Punishment • Warning
• Demotion
• Job Suspension
• Transfer
• Wage Reduction
• Dismissal
Justification • Reason
• Fair amount of Severity Level
• Disciplinary Action History
- Opportunity of self Improvement
• Due Process and Procedure
- Opportunity of self Defense
Rules of Employment • Types of Disciplinary Action
• Positive List of Reasons
• Related Severity to each type
• Due Process and Procedure
- Disciplinary Committee
Remedy Action by Employee
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24. Remedy Action to Unfair Measures
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25. Social Security Insurance
 National Health Insurance
 Premium: 5.33% of Wage (2.665% for employer; 2.665% for employee)
 Mandatory for All Korean Nationals as either the Insured or Dependents
 National Pension
 Premium: 9% (4.5% for employer; 4.5% for employee)
 Eligible to All Korean Nationals aged 18 – 60
 Mandatory for All Employed Workers
 Employment Insurance
 Unemployment benefit: (0.45% for employer; 0.45% for employee)
 Security & Skill Development: (0.25% ~ 0.85% for employer)
 Mandatory for All Employed Workers
 Industrial Accident Compensation Insurance
 Premium rate is Based on Type of Industry (Employer is the Subscriber)
 Around 1 % of wage for office worker
 Mandatory for All Employed Workers
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26. Company Logo Industrial Accident
www.themegallery.com
Related law Labor Standard Act Industrial Accident Compensation
Insurance Act
Cost Taker Employer Country
Benefits • Medical care
• Wage replacement – 70%
• Disability
• Nursing
• Survivor’s
• Lump sum
• Funeral
• Medical care
• Wage replacement
• Disability
• Nursing
• Survivor’s
• Injury Annuities
• Funeral
• Rehabilitation
National Health
Insurance Act
Article 53 (Restriction of Benefits)
☎ (1) When a person who is eligible to receive insurance benefits falls
under one of the following subparagraphs, the Corporation shall not
provide any insurance benefit:
4. When he receives or is eligible to receive insurance benefits or
compensations under other Acts and subordinate statutes due to a
disease, an injury or a disaster that is related to his business or in line of
duty.

27. Company Logo Equal Employment
Related Law • Equal Employment Act
Prohibition of Gender
Discrimination
• Hiring §7
• Wage and Welfare §8, §9
- Same wage under same business
and same value labor
• Training, Development , Promotion §10
• Retirement Age
• Dismissal §11
- Prohibit Predetermined condition such
as Marriage, Childbirth,,,
Sexual Harassment
Employer’s Duty
• Prohibition at Work §12
- By Superior, Workers or Clients
• Implement Education program §13
• Disciplinary Action & Care §14
27

28. Company Logo Female Protection
Restriction on Overtime / Night work LSA §70 §71 §74
Menstruation Leave Unpaid upon Request §73
Health Examination of Pregnant Paid upon Request
Maternity Leave • 90 days (45 after Childbirth)
Child Care Leave • < 1 𝑌𝑒𝑎𝑟
• For aged below 6 years
• 40% Average Wage from
Employment Insurance
• Not allow dismissal on Leave
• Return to the Same Work
Reduced Hours of Work • 15 – 30 Hours / week
Paternity Leave • 3 days
Nursing Break • 2 breaks, > 30 𝑀𝑖𝑛 , per day
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29. Company Logo Collective Labor Relations
Employee Rights • Constitution Article 33
- Independent Association
- Collective Bargaining
- Collective Action
Labor Union Management • Allow Multiple Unions
Industrial Actions • Justification
- Subject Group
- Purpose on Working Condition Only
- Methods
- Timing
- Procedural (Voting by Union Members)
• Obligation to pay Wage (No work No pay)
Work to Rule Case by case (Belonging to Industrial Action)
Employer’s Right Lock-out – Principle of Equal Weapons
Collective Agreements
Unfair Labor Practice
Mediation / Compulsory Arbitration Labor Relations Commission
Remedy Action Labor Relations Commission
29

30. Company Logo Irregular Employment Management
Related Law • Act on the Protection, Etc., of Dispatched
Workers
Part-Timer • Time Proportion Protection
Short Term Contract • Less than 2 years
Dispatched • Less than 2 years
• Positive list of Jobs Permitted for Dispatch
• Duties of Employer
- Sending Employer
- Using Employer
Outsourcing • Illegal Contracted Workers
Discrimination Collection System • Equal Treatment compare to ‘Same or Similar
Job’
• Justifiable Reason
• Remedial Action to the Labor Relations
Commission
Illegal Cases • Direct Obligation of Employment to the Using
Employer §6 ②
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31. Company Logo New Government Strategy
Irregular Workers
Protection
• Recommend to rehire as Regular Workers
• Prohibit Discrimination
• Prohibit Illegal Dispatch / Contract Workers
- Hyundai Motors Co.
- Emart Co.
Secure Employment • Managerial Dismissal
- Higher Standard of Justification
- Commitment on Preferential Rehiring
• Announce the Employment Disaster Area
• Legislate Retirement Age to 60
Shorten the Working Hours • Include Holiday work hours to Overtime Limit
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32. Company Logo
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Thank You