What an employment contract is

Employer and employee put the terms in writing and each keep one copy

An employment contract is the document in which an employer and an employee set out the working conditions. Article 17 of the Labor Standards Act requires wages, contracted working hours, holidays and paid annual leave to be stated in writing and handed to the employee. It applies not only to permanent staff but equally to part-timers, short-term workers and employees on probation.

What must be in writing

Wages

Components · calculation · payment method

Contracted hours

Start and end times of work

Break time

Given during working hours

Holidays

Including the weekly paid holiday

Paid annual leave

Per the Labor Standards Act

Place · duties

Place of work and duties to be performed

For fixed-term and part-time employees you must also state the contract term and the working hours for each working day in writing (Act on the Protection, etc. of Fixed-Term and Part-Time Employees, Art. 17).

Writing it is not the end — you must hand it over

The duty is only discharged once a copy is handed over, asked for or not

Contracts are often written and then kept at the workplace only, but Article 17(2) of the Labor Standards Act requires a copy to be handed to the employee whether or not they ask for it. Writing it and handing it over are two separate duties.

What happens if you skip it

Failing to state terms in writing or hand over a copy can result in a fine

Failing to meet the written-statement duty can result in a fine of up to KRW 5 million. The duty is only complete once the copy is handed over, so writing the contract and filing it at the workplace is not enough. The bigger practical risk is that, in a dispute, the facts are often accepted as the employee describes them when no contract exists.

How long to keep it

Kept for three years from the day the employment relationship ends

Documents relating to an employment contract must be kept for three years (Labor Standards Act Art. 42). The three years run from the day the employment relationship ends.

Frequently asked questions

Do part-timers need an employment contract too?

Yes. The duty to write and hand over a contract applies even for three hours a day. For part-time employees you must also state the working hours for each working day.

Can pay be reduced during probation?

Only where the contract runs for a year or more and the work is not simple labor, pay may be reduced to no less than 90% of the minimum wage, and only within the first three months of probation.

Do workplaces with fewer than 5 staff owe premium pay?

The 50% premium for overtime, night and holiday work applies to workplaces with 5 or more staff. Below that there is no premium, but wages for the hours actually worked must still be paid in full. Selecting whether you have 5 or more staff while building the contract switches the clause automatically.

Is this service really free?

Writing, editing, downloading the PDF and sending it by email are all free with no sign-up. Electronic contracts your employee signs on their phone, plus attendance and payroll management, are available after signing up.

You can create your contract right now

Edit the standard form on screen and get it as a PDF. Free, no sign-up.

Create a free employment contract

This guide is written around the items Article 17 of the Labor Standards Act requires. Anything that varies with your particular workplace may need to be confirmed with a professional.