Basic legal requirements for dismissal in Korea

Dismissal is one of the inevitable elements of human resource management. An employer can lessen a possible adverse impact of dismissal by complying with legal requirements for dismissal.

The following are the basic requirements for dismissal based on the labor standards act (LSA) of Korea.

1. An employer should have a justifiable reason to dismiss a worker.

Dismissal without a justifiable reason is deemed ineffective in Korea. However, the LSA does not show what the justifiable reason is.

The definition of a justifiable reason for dismissal has been established by court rulings. The definition reads that a justifiable reason is one that makes it impossible for an employer to maintain employment relationship. It sounds vague because it is a definition abstracted from numerous court rulings. The following list of specific reasons for dismissal recognized by courts will give you some idea about on what ground you can dismiss an employee.

  • Failure to follow instructions on job or personnel management
  • Unauthorized leave of absence
  • Early-leaving without approval, negligence
  • Poor performance at work
  • Physical or verbal violence at work
  • Criminal offences outside workplace
  • Obstruction of business, violation of the company rules
  • Causing financial damages to the company
  • Undermining the company’s reputation
  • Violating work rules and safety rules
  • Forging educational or professional attainment

2. Even if there is a justifiable reason for dismissal, an employer cannot fire a worker during the following occasions stipulated by the LSA.

  • temporary interruption of work for medical treatment of an occupational injury or disease and 30 days thereafter
  • maternity leave and 30 days thereafter

3. An employer should give an advance notice to a worker 30 days before dismissal.

If an employer fails to give such notice, he/she should give a worker ordinary wage for 30 days instead. The list shown below became obsolete by an amendment on January 15, 2019.

The LSA states that an employer does not have to give advance notice to the following categories of workers.

  • one who has been employed on a daily basis for less than three consecutive months
  • one who has been employed for a fixed period not exceeding two months
  • one who has been employed as a monthly-paid worker for less than six months (ruled as unconstitutional by the Constitution Court in 2015)
  • one who has been employed for seasonal work for a fixed period not exceeding six months
  • one in the first three months of a probationary period

4. An employer should give a worker a written notice of dismissal.

Failure to give a written notice that specifies the date of dismissal and the reason for dismissal make the dismissal null and void. If the above-mentioned 30 days’ advance notice is given in writing and includes the date of dismissal and the reason for dismissal, it is deemed the employer has given the written notice of dismissal.

Recently, some Korean companies were known to notify workers of their dismissal through email or text messaging. This will not be valid means of notification anymore according to the position of the Ministry of Labor based on the new requirement.

3 thoughts on “Basic legal requirements for dismissal in Korea

  1. Dear Mr. Barch,

    There is no explict limitation on the length of probationary period in the labor standards act of Korea. The act only says that employers do not have to give a prior notice for dismissal to a worker in his first three months of probationary period. (Article 35 of the LSA, and article 15 of the enforcement decree of the LSA).

    You can check the text of the labor standards text at http://english.molab.go.kr/english/Legislation/Legislation.jsp?grp=1&l_title=Labor%20Standards

    For your information, the basic position by the Ministry of Labor with regard to the length of probation is that the length should be decided based on the nature of the concerned job and common sense and that it is advised to stipulate it in the rules of employment or the collective agreement.

    BTW, kindly understand that I made a small change to your comment as it includes a name of a specfic company.

    Sunny Lee

  2. Dear Sir,

    I am trying to collect some data on the incorporation of probationary period clauses in the employment contracts that Korean law firms use for their Foreign Legal Consultants.

    As you may know, probationary clauses are rather common in Korea, but they are typically limited to non-professional employees like secretaries and support staff. I am informed that under the Labor Standards Act of Korea, they are limited to three months and cannot be contracted around, even with the consent of the employee. I would like to confirm this.

    Not all Korean law firms have probationary clauses, but I know that at XXX, management uses a six-month period for their two-year employment contracts, which would seem to violate the LSA and almost suggests bad faith.

    Thank you in advance for your help in this project.

    Best regards,

    David Barch
    San Francisco, CA

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