South Korean law mandates employers to provide a written employment contract outlining key employment terms to new hires within 30 days of their start date. This contract fosters transparency by clearly detailing job duties, work schedules, compensation, and leave entitlements, establishing a strong foundation for the employment relationship.

● Clearly define roles and responsibilities to ensure a shared understanding of performance benchmarks.
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● Outline work schedules promote transparency and adherence to working hour regulations.
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● Specify salary, benefits, and any allowances ensures financialtransparency.

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South Korean labour laws grant employees various leave entitlements to promote work-life balance and employee well-being. Here's an overview of some key leave provisions:

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South Korea enforces a mandatory social security program known as the National Pension System (NPS). This system provides benefits for retirement ensuring a safety net for employees.

Here's a breakdown of the key points:

● National Pension: Both employers and employees contribute to the NPS. For both, the contribution rates are 4.5% of monthly basic salary with minimum KRW 17,550 and maximum KRW 277,650.
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● National Health Insurance: The NHI provides healthcare coverage where both Employer and Employee’s contribution is  4.004% of monthly salary with minimum of KRW 11,170 and maximum KRW 4,789,900.
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● Employment Insurance: The employer contributes 1.15% to 1.75% while the employee contribution is 0.9%.
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● Worker’s Accident Compensation Insurance: A total of 0.7% to 18.6% is contributed by the employer depending on type of industry.

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Employers with 5 or more employees cannot terminate an employment contract without just cause with the burden of proof falls on the employer. Termination during maternity leave and childcare leave is also prohibited.  

For fixed term contract, it cannot exceed 2 years or it will become an indefinite contract. Early termination of fixed term contract requires ad hoc compensation to employee.

Termination procedures in South Korea require adherence to specific notice periods or pay in lieu of notice and severance pay. Here's a general overview of the termination process:

● Notice Periods:   Under the law, employers must give 30 days’ advance notice prior to dismissal, failure to do so, employer is obliged to pay the employee their wages in lieu for not less than30 days (i.e. dismissal allowance). Despite no regulation on employees voluntarily resigning, employees should provide a resignation letter and give decent notice.

● Severance Pay:  Required for each employee who has worked for at least one year, at the equivalent of 30 days’ average wages for each year of continuous employment. Severance pay is obligatory for employees who have worked for more than one year, regardless of the reason.

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