Easily manage employment in South Korea

Employee contracts can only be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences, otherwise, prior notice must be provided before terminating an employee.

Note that terminations require careful consideration in South Korea. It can be difficult to terminate indefinite employment agreements (sometimes known as a contract) without just cause so employers need to abide by the the following termination guidelines:

• Voluntary Resignations: In South Korea, employers should not dismiss employees without cause. Voluntary resignations are legally permissible, but in this case employees must sign an agreement to confirm these terms
• Contract Expiry : Employers should provide 30 days’ notice before ending am employment agreement if the employee has worked for three months or more. Employment agreement duration for South Koreans should generally not exceed two years.
• Probation Termination : It’s advisable to get a signed notice from the employee in the event of a termination during a probation period. If the employee doesn’t sign, the employer should prepare to show strong documented evidence to justify the termination.
• Termination for Cause : Employment agreements can only be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offences – otherwise, prior notice must be provided.
• Misconduct: When offboarding an employee for reasons like poor performance or misconduct, the employer needs to use a proper template. This should include reasons to support the cited issue, backed by specific evidence to support the claim.

Employers are required to provide at least 30 days’ prior notice before terminating an employee, except if the employee is contracted to work for less than three months or has committed an intentional offence that sets back the employing organisation significantly.

Employees who have worked for at least an entire year are entitled to a severance package equivalent to a month’s wages for every year of continuous employment with the employer.

The Labour Standards Act of Korea does not have an explicit regulation on probation periods. However, the law does state that notice of termination is not required for “Employees under probationary period (of 3 months or less)”, so it is usually until 3 months.