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LABOR STANDARDS ACT

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Amended by Act No. 10366, Jun. 10, 2010

Article 1 (Purpose)

The purpose of this Act is to set the standards for the conditions of labor in conformity with the constitution, thereby securing and improving the living standards of workers and achieving a well-balanced development of the national economy. Article 2 (Definition)

(1) Terms used in this Act are defined as follows:

1. The term "worker" in this Act means a person who offers work to a business or workplace to earn wages, regardless of the kind of job he/she is engaged in.

2. The term "employer" in this Act means a business owner, or a person responsible for the management of a business or a person who works on behalf of a business owner with respect to matters relating to workers.

3. The term "work" in this Act means mental or physical work.

4. The term "labor contract" in this Act means a contract which is entered into in order for a worker to offer work and for an employer to pay wages for that work.

5. The term "wages" in this Act means wages, salaries, and any other money and valuable goods an employer pays to a worker for his/her work, regardless of how such payments are termed.

6. The term "average wages" in this Act means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calendar months prior to the date on which the event necessitating such calculation occurred by LABOR STANDARDS ACT

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the total number of calendar days during those three calendar months. This shall also apply mutatis mutandis to less than three months of employment.

7. The term "contractual working hours" in this Act means working hours on which workers and employers have made an agreement within the limit of working hours under Article 50 or Article 69 of this Act or Article 46 of the Occupational Safety and Health Act.

8. The term "part-time worker" in this Act means an employee whose contractual working hours per week are shorter than those of a full-time worker engaged in the same kind of job in the same workplace.

(2) If the amount calculated pursuant to paragraph (1) (6) is lower than the ordinary wages of the worker concerned, the amount of the ordinary wages shall be deemed the average wages.

Article 3 (Standards of Working Conditions)

The working conditions provided herein shall prescribe the minimum standards and the parties to employment relations, therefore, shall not reduce the working conditions under the pretext of complying with this Act.

Article 4 (Determination of Working Conditions)

The working conditions shall be determined based upon the mutual agreement between employers and workers, on an equal footing.

Article 5 (Observance of Working Conditions)

Both employers and workers shall comply with collective agreements, rules of employment, and terms of labor contracts, and abide by them in good faith. Article 6 (Equal Treatment)

No employer shall discriminate against workers on the basis of gender, or discriminate with regard to treatment in relation to working conditions on the basis of nationality, religion, or social status.

Article 7 (Prohibition of Forced Labor)

No employer shall force a worker to work against his own free will through the use of violence, intimidation, confinement, or any other means which unlawfully restrict mental or physical freedom.

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Article 8 (Prohibition of Violence)

No employer shall physically abuse a worker for the occurrence of accidents or for any other reason.

Article 9 (Elimination of Intermediary Exploitation) Unless otherwise provided by law, no one shall either intervene in the employment of another person for the purpose of making a profit or gain benefit as an intermediary. Article 10 (Guarantee of Exercise of Civil Rights) No employer shall reject a request from a worker to grant time necessary to exercise franchise or other civil rights, or to perform official duties during his working hours. However, the time requested may be changed, provided that such change does not impede the exercise of those rights or the performance of those civil duties. Article 11 (Scope of Application)

(1) This Act shall apply to all businesses or workplaces in which five or more workers are ordinarily employed. This Act, however, shall not apply to any business or workplace which employs only relatives living together and to a worker who is hired for domestic work.

(2) With respect to businesses or workplaces which ordinarily employ fewer than five workers, only part of the provisions of this Act may be made applicable as prescribed by the Presidential Decree.

(3) In the application of this Act, the method of calculating the number of workers ordinarily employed shall be prescribed by the Presidential Decree (Newly Inserted by Act No. 8960, Mar. 21, 2008).

Article 12 (Scope of Application)

This Act and the Presidential Decree issued in accordance with this Act shall apply to the government, Seoul Metropolitan Government, metropolitan cities, Provinces, Shi, Kun, Ku, Eup, Myon, Dong, or other municipal equivalents. Article 13 (Duty to Report and Attend)

An employer or a worker shall, without delay, report on matters required, or shall present himself, if the Minister of Employment and Labor, the Labor Relations Commission under 972 Ministry of Government Legislation

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the Labor Relations Commission Act (hereinafter referred to as the "Labor Relations Commission"), or a Labor Inspector requests to do so in relation to the enforcement of this Act (Amended by Act No. 10339, Jun. 4, 2010). Article 14 (Publicity of Law and Decree, etc.)

(1) An employer shall keep workers informed of the main points of this Act, the Presidential Decree promulgated pursuant hereto, and the rules of employment, by posting them at all times or keeping them where workers have free access. (2) An employer shall keep workers living in the dormitory informed of the provisions regarding dormitory, prescribed in the Presidential Decree referred to in paragraph (1) and the dormitory rules under Article 99 (1), by posting or keeping them in the dormitory.

Article 15 (Labor Contract contrary to This Act)

(1) A labor contract which establishes working conditions which do not meet the standards provided for in this Act shall be null and void to that extent. (2) Those conditions invalidated in accordance with the provisions of paragraph (1) shall be governed by the standards provided in this Act. Article 16 (Term of Contract)

The term of a labor contract shall not exceed one year, except in cases where no term is fixed or a term is fixed as necessary for the completion of a project. Article 17 (Statement of Working Conditions)

(1) An employer shall clearly state the matters described in any of the following subparagraphs. The same shall apply in the case of altering the following matters after a labor contract is made:

1. wages,

2. contractual working hours,

3. holidays under Article 55,

4. annual paid leave under Article 60, and Laws on Green Growth, and Economic Investment in Korea 973 05_LawsConcerningEconomicInvestment

5. other working conditions prescribed by the Presidential Decree. (2) An employer shall issue a worker with a written statement specifying the components of, the methods of calculation, and the payment of the wages referred to in paragraph (1) 1 and the matters described in subparagraphs 2 through 4; provided that, if the matters above are altered due to the reasons prescribed by the Presidential Decree, such as changes in collective agreements or employment rules, the statement shall be issued to the worker at his/her request (This Article Wholly Amended by Act No. 10319, May 25, 2010).

Article 18 (Working Conditions for Part-time Worker) (1) The working conditions for part-time workers shall be determined on the basis of the relative ratio of their working hours computed in comparison with those of full-time workers engaged in the same kind of job in the same workplace. (2) The criteria or other matters to be considered for the determination of working conditions under paragraph (1) shall be prescribed in the Presidential Decree. (3) With respect to workers whose contractual working hours is an average of less than 15 hours per week over a four-week period (the employment period, in case they are employed for less than four weeks), Articles 55 and 60 shall not apply (Amended by Act No. 8960, Mar. 21, 2008).

Article 19 (Violation of Working Conditions)

(1) If any of the working conditions set forth in accordance with Article 17 is found to be inconsistent with the actual conditions, the worker concerned shall be entitled to claim damages resulting from the breach of the working conditions or may terminate the labor contract forthwith.

(2) Any worker who intends to claim for damages in accordance with paragraph (1) may do so with the Labor Relations Commission. If a labor contract has been terminated, an employer shall pay travel expenses to a worker who changes his residence for the purpose of securing a new job.

Article 20 (Prohibition on Predetermination of Nonobservance) No employer shall enter into a contract by which a penalty or indemnity for possible damages incurred from breach of a labor contract is predetermined. 974 Ministry of Government Legislation

Article 21 (Prohibition on Offsetting Wages Against Advances) No employer shall offset wages against an advance or other credits given in advance on the condition of worker's labor.

Article 22 (Prohibition on Compulsory Saving)

(1) No employer shall enter into a contract with a worker, in addition to a labor contract, which stipulates compulsory savings or the management of savings. (2) If an employer is entrusted by a worker to manage his savings, the said employer shall observe the matters described in the following subparagraphs:

1. The type and period of savings and financial institutions which manage the savings shall be determined by the concerned worker and the savings account shall be under the name of the worker; and

2. Upon request of the concerned worker to see the related materials, such as the savings certificate, or have them returned, the employer shall immediately comply with the request.

Article 23 (Restriction on Dismissal, etc.)

(1) No employer shall dismiss, lay off, suspend, transfer a worker, reduce wages, or take other punitive measures (hereinafter referred to as "unfair dismissal, etc.") against a worker without justifiable reasons.

(2) No employer shall dismiss any worker during a period of temporary interruption of work for medical treatment of an occupational injury or disease and within 30 days thereafter, and any female worker during a period of temporary interruption of work before and after childbirth as provided herein and within 30 days thereafter; provided that, if an employer has paid lump sum compensation pursuant to Article 84 hereof or is not able to continue his business, this provision shall not apply. Article 24 (Restriction on Dismissal for Management or Business Reasons) (1) Dismissal of a worker by an employer for management or business reasons shall be based on urgent management or business needs. In cases such as the transfer, acquisition, and merger of business, which are aimed to avoid financial difficulties, it shall be deemed that an urgent management or business need exists. (2) In the case of paragraph (1), an employer shall make every effort to avoid the dismissal of workers and shall select workers to be dismissed by establishing rational and fair Laws on Green Growth, and Economic Investment in Korea 975 05_LawsConcerningEconomicInvestment

criteria for dismissal. In such cases, there shall be no discrimination on the basis of gender.

(3) With regard to the possible methods for avoiding dismissal and the criteria for dismissal as referred to in paragraph (2), an employer shall give a notice of 50 days prior to dismissal to a trade union, which is formed by the consent of the majority of all workers in the business or workplace concerned (or to a person representing the majority of all workers if such a trade union does not exist, hereinafter referred to as a "workers' representative"), and have good faith consultation. (4) An employer intending to dismiss more than the number of workers prescribed by the Presidential Decree pursuant to paragraph (1), shall report the same to the Minister of Employment and Labor as prescribed by the Presidential Decree (Amended by Act No. 10339, Jun. 4, 2010).

(5) In cases where an employer has dismissed workers in accordance with the requirements as set forth in paragraphs (1) to (3), the dismissal concerned shall be deemed to have been made for justifiable reason as provided under Article 23 (1). Article 25 (Preferential Re-employment, etc.)

(1) If an employer who dismissed a worker pursuant to Article 24 intends to employ a worker for the same job the dismissed worker was in charge of at the time of dismissal, within three years from the day when the worker was dismissed, he/she shall preferentially employ the worker dismissed pursuant to Article 24, provided that the worker wants that job.

(2) The government shall give priority to workers dismissed under Article 24 in taking necessary measures including, but not limited to, securing livelihood, reemployment, and vocational training.

Article 26 (Advance Notice of Dismissal)

An employer shall give an advance notice to a worker at least thirty days before dismissal (including dismissal for management or business reasons). If the notice is not given thirty days before the dismissal, ordinary wages of more than thirty days shall be paid to the worker, except in cases, as prescribed by the Ordinance of the Ministry of Employment and Labor, where it is impossible to continue business because of natural disasters, armed conflicts, or other unavoidable causes, or where a worker has caused considerable difficulties to business or damage to properties on purpose (Amended by Act No. 10339, Jun. 4, 2010).

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Article 27 (Written Notification of Reasons for Dismissal) (1) If an employer intends to dismiss a worker, the employer shall notify the worker of the reasons for the dismissal and the date of such dismissal in writing. (2) The dismissal of a worker shall take effect only after the written notification is given to the worker pursuant to paragraph (1).

Article 28 (Application for Remedy for Unfair Dismissal and Related Acts) (1) If an employer unfairly dismisses a worker, the worker may apply for remedy to the Labor Relations Commission.

(2) The application for remedy under paragraph (1) shall be made within three months from the date on which the unfair dismissal and related acts took place. Article 29 (Investigation, among others)

(1) Upon receiving the application for remedy under Article 28, the Labor Relations Commission shall conduct the necessary investigations and question the concerned parties without delay.

(2) When conducting an inquiry pursuant to paragraph (1), the Labor Relations Commission may, at the request of the parties concerned or by virtue of its authority, have witnesses appear before the Commission and question them regarding necessary matters.

(3) When conducting an inquiry pursuant to paragraph (1), the Labor Relation Commission shall give sufficient opportunities for the parties concerned to present evidence and to cross-examine the witnesses.

(4) Detailed procedures for the investigation and inquiry by the Labor Relations Commission under paragraph (1) shall be determined by the National Labor Relations Commission (hereinafter referred to as the "National Labor Relations Commission") under the Labor Relations Commission Act.

Article 30 (Remedy Order, Judgement and Order of Dismissal) (1) The Labor Relations Commission shall issue a remedy order to the employer, if it is determined that the case constitutes an unfair dismissal, etc. after the completion of the inquiry under Article 29; and shall dismiss the application for remedy if it is determined that the case does not constitute an unfair dismissal, etc. (2) The employer and worker concerned shall be notified in writing of the judgment, Laws on Green Growth, and Economic Investment in Korea 977 05_LawsConcerningEconomicInvestment

remedy order, and order of dismissal under paragraph (1). (3) When issuing a remedy order (referring only to an order of remedy for dismissal) pursuant to paragraph (1), if the worker does not want reinstatement, the Labor Relations Commission may order the employer to pay to the worker an amount not less than the amount of wages he/she would have received if he/she had worked during the period he/she was dismissed, in lieu of ordering his/her reinstatement. Article 31 (Confirmation of Remedy Order, Order of Dismissal) (1) If an employer or a worker is aggrieved by a remedy order or order of dismissal rendered by a Regional Labor Relations Commission in accordance with the Labor Relations Commission Act, he/she may apply for review or appeal to the National Labor Relations Commission within ten days from the date he/she received the notice of the remedy order or order of dismissal.

(2) An employer or a worker may file a lawsuit in accordance with the Administrative Litigation Act against the decision made by the National Labor Relations Commission after the review or appeal pursuant to paragraph (1) within fifteen days from the date he/she received the notice of decision on the review or appeal. (3) If no application for review or appeal is made or no administrative lawsuit is filed within the periods prescribed in paragraphs (1) and (2), the remedy order, order of dismissal, or decision on reexamination shall be finally confirmed. Article 32 (Effect of Remedy Order, Order of Dismissal, or Decisions on Review or Appeal)

The effect of remedy order, order of dismissal, or decisions on review or appeal rendered by the Labor Relations Commission pursuant to Article 31 shall not be suspended by an application for review or appeal to the National Labor Relations Commission or by the initiation of an administrative lawsuit.

Article 33 (Enforcement levy)

(1) If an employer, after receiving the remedy order (including a decision on review or appeal concerning a remedy order; hereinafter the same shall apply in this Act) from the Labor Relations Commission, fails to comply with a remedy order by the compliance deadline, an enforcement levy in the amount not exceeding 20 million won shall be imposed on the employer.

(2) The Labor Relations Commission shall inform the employer in writing of its intention 978 Ministry of Government Legislation

to impose and collect an enforcement levy, at least thirty days before the imposition thereof under paragraph (1).

(3) The imposition of an enforcement levy pursuant to paragraph (1) shall be done in writing which shall specify, among others, the amount of the enforcement levy, the reasons for the imposition, the payment deadline, the recipient organization, how to raise an objection, and to what organization such an objection can be raised. (4) The types of violations for which an enforcement levy is imposed pursuant to paragraph (1); the amount of charges based on the degree of violation; the procedures for a refund of an enforcement levy; and other necessary matters shall be prescribed by the Presidential Decree.

(5) The Labor Relations Commission may impose and collect the enforcement levy under paragraph (1) repeatedly until the order is complied with, up to twice per year from the date when the first remedy order is issued. In this case, the enforcement levy shall not be imposed or collected for more than two years. (6) The Labor Relations Commission shall not impose a new enforcement levy once a person who received a remedy order has complied with that order, but shall collect enforcement levies that had already been imposed before the compliance. (7) If a person on whom the enforcement levy has been imposed fails to pay them by the payment deadline, the Labor Relations Commission may set a deadline and urge the payment; and if the person continues to fail to pay the enforcement levy under paragraph (1), may collect them according to the process for recovery of the national taxes in arrears.

(8) If an employer who has received a remedy order fails to comply with the order by the compliance deadline, the worker may inform the Labor Relations Commission of the non-compliance within fifteen days from the compliance deadline. Article 34 (Retirement Benefit System)

With regard to the system of retirement benefits paid by employers to retiring workers, conditions prescribed by the Employee Retirement Benefit Security Act shall apply. Article 35 (Exceptions for Advance Notice of Dismissal) The provisions of Article 26 shall not apply to workers who fall within the purview of each of the following subparagraphs:

1. a worker who has been employed on a daily basis for less than three consecutive months; Laws on Green Growth, and Economic Investment in Korea 979 05_LawsConcerningEconomicInvestment

2. a worker who has been employed for a fixed period not exceeding two months;

3. a worker who has been employed as a monthly-paid worker for less than six months;

4. a worker who has been employed for seasonal work for a fixed period not exceeding six months; or

5. a worker on probationary period. Article 36 (Payment of Money and Valuables)

If a worker dies or retires, an employer shall pay the wages, compensations, and other money or valuables within 14 days after the cause for such payment has occurred; however, the period, under special circumstances, may be extended by the mutual agreement between the parties concerned.

Article 37 (Late Payment Interests on Unpaid Wages) (1) An employer who fails to pay all or part of the wages or the benefits (only those paid in a lump sum) pursuant to Article 36 or Article 2 (5) of the Employee Retirement Benefit Security Act, respectively, within fourteen days from the day when the cause for payment occurs shall pay late payment interest on the number of days from the date following the expiry of the fourteen day period until the payment is made, at a rate of up to 40/100 and as prescribed in the Presidential Decree in consideration of economic conditions, including the late payment interest rate applicable among banks under the Banking Act (Amended by Act No. 10303, May 17, 2010). (2) If an employer delays wage payment due to natural disasters, armed conflicts, or other reasons prescribed in the Presidential Decree, the provisions of paragraph (1) shall not apply to the period during which such reasons continue to exist. Article 38 (Preferential Reimbursement for Claim of Wages) (1) Wages, retirement pay, accident compensation, and other claims arising from employment shall be paid in preference to taxes, public levies, or other claims except for the claims secured by pledges, mortgages, or the liens under the Act on the Use of Movables, Receivables, etc., as Security on the total asset of the employer; however, this shall not apply to taxes or public levies which take precedence over pledges, mortgages, or the liens under the Act on the Use of Movables, Receivables, etc., as Security (Amended by Act No. 10336, Jun. 10, 2010). (2) Notwithstanding the provisions of paragraph (1), the claims which fall under the following subparagraphs shall be paid in preference to any obligation, taxes, public 980 Ministry of Government Legislation

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levies, and other claims secured by pledges, mortgages, or the liens under the Act on the Use of Movables, Receivables, etc., as Security on the total asset of an employer (Amended by Act No. 10336, Jun. 10, 2010):

1. Wages of the final three months; and

2. Accident compensation. Article 39 (Certificate of Employment)

(1) If a worker requests the employer to issue a certificate specifying the term of employment, job specification, title, and wages or other necessary information even after the retirement of the worker, the employer shall immediately prepare and issue the factually correct certificate.

(2) The certificate referred to in paragraph (1) shall only contain the items that the worker concerned has requested.

Article 40 (Prohibition of Interference With Employment) No one shall prepare and use secret signs or lists, or have communication for the purpose of interfering with the employment of a worker.

Article 41 (Registry of Workers)

(1) An employer shall maintain a registry of workers by workplace, containing the name, birth date, personal history, and other items relating to workers as prescribed by the Presidential Decree.

(2) If there is any change in the items prescribed in paragraph (1), correction shall be made without delay.

Article 42 (Preservation of Documents Regarding Contract) An employer shall preserve a registry of workers and other important documents regarding labor contract prescribed by the Presidential Decree for three years. Article 43 (Payment of Wages)

(1) Wages shall be paid in full and in cash directly to the worker; however, if special Laws on Green Growth, and Economic Investment in Korea 981 05_LawsConcerningEconomicInvestment

provisions of laws or decrees or a collective agreement stipulate otherwise, wages may be partially deducted or may be paid other than by cash. (2) Wages shall be paid at least once per month on a fixed day; however, this shall not apply to extraordinary wages, allowances, or any other similar payment, or those wages provided for by the Presidential Decree.

Article 44 (Payment of Wages in Subcontract Business) (1) If a project is carried out based upon several tiers of contracts and a subcontractor has failed to pay wages to its workers because of a fault attributable to its direct upper-tier contractor, the direct upper-tier contractor shall be jointly responsible along with the subcontractor concerned.

(2) The scope of the fault attributable to the direct upper-tier contractor referred to in paragraph (1) shall be determined by the Presidential Decree. Article 44-2 (Joint Responsibility for Paying Wages in the Construction Industry) (1) If a project in the construction industry is carried out through two or more tiers of contracts (hereinafter referred to as "construction contracts"), prescribed in Article 2 (8) of the Framework Act on the Construction Industry, and its subcontractor, other than a constructor prescribed in Article 2 (5) of the Framework Act on the Construction Industry, fails to pay wages (limited to wages incurred for the construction work concerned) to a worker it has used, the direct upper-tier contractor shall take responsibility for paying wages to the worker of the subcontractor, jointly with the subcontractor.

(2) If the direct upper-tier contractor under paragraph (1) is not a constructor prescribed in Article 2 (5) of the Framework Act on the Construction Industry, the lowest-tier constructor among its upper-tier contractors, who meets the definition of a constructor in the same subparagraph, shall be regarded as the direct upper-tier contractor (This Article Newly Inserted by Act No. 8561, Jul. 27, 2007). Article 44-3 (Special Provisions Concerning Wages Under Construction Contract in the Construction Industry)

(1) If a construction contract falls within the purview of any of the following subparagraphs, a direct upper-tier contractor shall, at the request of a worker employed by its subcontractor, directly pay the worker an amount of wages (limited to wages incurred for the construction work concerned) the subcontractor should have paid to 982 Ministry of Government Legislation

the worker, up to the amount of construction payment owed to the subcontractor:

1. Where the direct upper-tier contractor and the subcontractor have agreed that the direct upper-tier contractor may pay wages directly to a worker employed by the subcontractor instead of the subcontractor and also agreed on the methods of and procedures for the payment;

2. If there is a payment order confirmed pursuant to Article 56 (3) of the Civil Execution Act, an execution certificate pursuant to Article 56 (4), which certifies that a worker of the subcontractor has the right to file a claim for wages against the subcontractor, a decision to recommend compliance made under Article 5-7 of the Trials of Small Claims Act, and a certificate of other equivalent execution rights; and

3. In case the subcontractor has informed the direct upper-tier contractor that it has unpaid wages owed to its worker and the direct upper-tier contractor has recognized that the subcontractor has apparent reasons not to be able to pay wages, such as bankruptcy.

(2) Where the contractor (hereinafter referred to as the "original contractor") of the original contract under Article 2 (7) of the Framework Act on the Construction Industry subcontracts the construction contract resulting in two or more tiers of contractors, and where a worker of its subcontractor (including subcontractors to the subcontractor; hereinafter the same shall apply) has a certificate of execution rights under subparagraph 2 of paragraph 1, the worker may demand the original contractor to directly pay an amount equivalent to wages (limited to wages incurred for the construction work concerned) the subcontractor should have paid to him/her. The original contractor shall pay the amount to the extent that the worker can exercise his/her subrogation right against the original contractor under Article 404 of the Civil Act. (3) If a direct upper-tier contractor or original contractor pays an amount equivalent to wages to a worker of its subcontractor pursuant to paragraphs (1) and (2), it shall be deemed to have relieved itself of its payment obligation owed to the subcontractor to the extent of the amount (This Article Newly Inserted by Act No. 8561, Jul. 27, 2007). Article 45 (Emergency Payment)

If a worker requests wage payment in order to meet the expenses incurred from childbirth, disease, disasters, or other cases of emergency prescribed in the Presidential Decree, the employer shall pay wages for the work already performed even prior to the payday. Laws on Green Growth, and Economic Investment in Korea 983 Working Hours and RecessCHAPTER IV 05_LawsConcerningEconomicInvestment Article 46 (Allowances During Business Suspension) (1) If business is suspended for reasons attributable to an employer, the employer shall pay a worker allowances equivalent to seventy percent or more of the average wages during the period of suspension. If the amount equivalent to seventy percent or more of the average wages exceeds the ordinary wages, the ordinary wages may be paid as allowances during the business suspension.

(2) Notwithstanding the provisions of paragraph (1), an employer who is unable to continue business for unavoidable reasons may, upon approval of the Labor Relations Commission, pay allowances during the period of suspension in an amount lower than the standards stipulated in paragraph (1).

Article 47 (Subcontract Workers)

For those workers who are employed for subcontract or other equivalent system, an employer shall guarantee a certain amount of remuneration in proportion to their actual working hours.

Article 48 (Wage Ledger)

An employer shall prepare a wage ledger for each workplace and enter the matters which serve as a basis for determining wages and family allowances, the amount of wages, and other matters as provided for by the Presidential Decree whenever wages are paid. Article 49 (Prescription of Wages)

The statute of limitation to exercise a claim for wages under the provisions of this Act shall be three years.

Article 50 (Working Hours)

(1) Working hours per week shall not exceed forty hours, excluding recess hours. (2) Working hours per day shall not exceed eight hours, excluding recess hours. Article 51 (Flexible Working Hour System)

(1) An employer may have a worker work in accordance with the rules of employment 984 Ministry of Government Legislation

(or in accordance with rules or regulations equivalent thereto) for a specific week in excess of working hours prescribed in Article 50 (1), or for a specific day in excess of working hours prescribed in Article 50 (2), on the condition that average working hours per week in a certain unit period of not more than two weeks do not exceed the working hours under Article 50(1), provided that working hours in any particular week shall not exceed forty-eight hours.

(2) Where an employer reaches an agreement in writing with a workers' representative on the following enumerated items, the employer is allowed to have a worker work for a specific week in excess of the working hours under Article 50 (1), or for a specific day in excess of the working hours under Article 50 (2), on the condition that average working hours per week in a certain unit period of not more than three months do not exceed the working hours under Article 50 (1). However, working hours for a specific week and for a specific day shall not exceed fifty-two hours and twelve hours, respectively:

1. scope of workers subject to this paragraph;

2. unit period (a unit period not exceeding three months);

3. working days in a unit period and working hours for each working day; and

4. other matters prescribed by the Presidential Decree. (3) The provisions of paragraphs (1) and (2) shall not apply to workers aged between fifteen or older and less than eighteen, and pregnant female workers. (4) If an employer needs to have a worker work in accordance with the provisions of paragraphs (1) and (2), the employer shall prepare measures to ensure that the existing wage level is not lowered.

Article 52 (Selective Working Hour System)

Where an employer has reached a written agreement on each of the following subparagraphs with a workers' representative regarding a worker who is entrusted with the decision as to when to begin and finish work in accordance with the rules of employment (including those equivalent to rules of employment), the employer may have workers work in excess of the working hours per week set by Article 50 (1) or the working hours per day set by Article 50 (2) on the condition that average working hours per week computed on the basis of adjustment period not more than one month do not exceed the working hours prescribed in Article 50 (1):

1. scope of workers subject to this paragraph (excluding workers between the age of fifteen Laws on Green Growth, and Economic Investment in Korea 985 05_LawsConcerningEconomicInvestment

and eighteen);

2. adjustment period (a finite period not more than one month);

3. total working hours within an adjustment period;

4. starting and finishing time of working hours, if a mandatory work period is in force;

5. starting and finishing time of working hours which are allowed to be selected by workers; and

6. other matters as determined by the Presidential Decree. Article 53 (Restriction on Extended Work)

(1) If the parties concerned reach agreement, the working hours stipulated in Article 50 may be extended by up to twelve hours per week.

(2) If the parties concerned reach agreement, the working hours stipulated in Article 51 may be extended up to twelve hours per week, and the working hours under Article 52 may be extended up to twelve hours per week averaged during an adjustment period pursuant to subparagraph 2 of Article 52.

(3) Under special circumstances, an employer may extend working hours as provided for in paragraphs (1) and (2) with the approval of the Minister of Employment and Labor and the consent of workers; however, the employer shall immediately obtain the approval of the Minister of Employment and Labor ex post facto, if a situation is so urgent that time is not available to obtain such approval (Amended by Act No. 10339, Jun. 4, 2010).

(4) If the Minister of Employment and Labor finds that the extension of working hours in accordance with paragraph (3) is not appropriate, he/she may order the employer to grant recess hours or days-off equivalent to the extended working hours in later time (Amended by Act No. 10339, Jun. 4, 2010).

Article 54 (Recess Hours)

(1) An employer shall allow a recess period of more than 30 minutes for every 4 working hours and more than 1 hour for every 8 working hours during the working hours. (2) A recess period may be freely used by workers. Article 55 (Holidays)

An employer shall allow a worker on average one or more paid holiday per week. 986 Ministry of Government Legislation

Article 56 (Extended Work, Night Work, and Holiday Work) An employer shall additionally pay fifty percent or more of the ordinary wages for extended work (extended work as set forth in the provisions of Articles 53 and 59, and the proviso of Article 69), night work (work provided from 10 p.m. to 6 a.m.), or holiday work. Article 57 (System of Using Leave as Compensation) An employer may, in lieu of paying additional wages, grant the leave to a worker to compensate for the extended, night, and holiday work prescribed in Article 56, pursuant to a written agreement with the workers' representative. Article 58 (Special Provisions for Computation of Working Hours) (1) If it is difficult to compute working hours because a worker carries out his duty in whole or in part outside the workplace for business travel or for other reasons, it shall be deemed that the worker concerned has worked the contractual working hours. However, in cases where a completion of a work requires a worker to work in excess of contractual working hours, the worker is deemed to have worked for hours ordinarily required to complete the work concerned.

(2) Notwithstanding the proviso of paragraph (1), if an employer and the representative of workers have agreed, in writing, on the works concerned, the working hours set by the agreement shall be deemed to be the working hours necessary for the performance of the works concerned.

(3) In the case of works designated by the Presidential Decree as those works which need, in the light of their characteristics, worker's discretion with regard to the ways to perform the works concerned, the worker shall be deemed to have worked such working hours as determined by a written agreement between the employer and the workers' representative. Such written agreement shall contain each of the items described in the following subparagraphs:

1. provisions as to works to be provided;

2. provisions in which the employer would not give directions to the worker regarding how to perform and how to allocate working hours; and

3. provisions in which the computation of working hours shall be determined by the written agreement concerned.

(4) Other matters which are required to implement the provisions of paragraphs (1) and (3) shall be determined by the Presidential Decree. Laws on Green Growth, and Economic Investment in Korea 987 05_LawsConcerningEconomicInvestment

Article 59 (Special Provisions as to Working and Recess Hours) With regard to a business which falls under the purview of any of the following subparagraphs, the employer who has agreed in writing with the workers' representative may have the workers work in excess of the twelve hours per week prescribed in Article 53 (1) or may change the recess hours under Article 54:

1. Transportation business, goods sales and storage business, finance and insurance business;

2. Movie production and entertainment business, communication business, educational study and research business, advertising business;

3. Medical and sanitation business, hotel and restaurant business, incineration and cleaning business, barber and beauty parlor business; and

4. Other businesses determined by the Presidential Decree in consideration of the character of a business and public conveniences.

Article 60 (Annual Paid Leave)

(1) An employer shall grant 15 days' paid leave to a worker who has registered not less than 80 percent of attendance during one year.

(2) An employer shall grant one day's paid leave per month to a worker whose consecutive service period is shorter than one year, if the worker has offered work without an absence throughout a month.

(3) In case an employer grants a worker paid leave for the first year of his/her service, the number of leave days shall be 15 including the leave prescribed in paragraph (2); and if the worker has already used the leave prescribed in paragraph (2), the number of used leave days shall be deducted from the 15 days of leave. (4) After the first year of service, an employer shall grant one day's paid leave for each two years of consecutive service in addition to the leave prescribed in paragraph (1) to a worker who has worked consecutively for 3 years or more. In this case, the total number of leave days including the additional leave shall not exceed 25. (5) An employer shall grant paid leave pursuant to paragraphs (1) through (4) upon request of a worker, and shall pay ordinary wages or average wages prescribed in employment rules or other regulations during the period of leave. However, the leave period concerned may be changed in case granting the leave as requested by the worker might cause a serious impediment to the operation of the business. (6) In applying paragraphs (1) through (3), a period falling under any of the following 988 Ministry of Government Legislation

subparagraphs shall be considered a period of attendance:

1. A period during which a worker is unable to work due to occupational injuries or diseases; and

2. A period during which a pregnant woman does not work on maternity leave taken pursuant to paragraphs (1) and (2) of Article 74. (7) The leave referred to in paragraphs (1) through (4) shall be forfeited if not used within one year. However, this shall not apply in cases where the worker concerned has been prevented from using the leave due to any cause attributable to the employer. Article 61 (Promoting the Use of Annual Paid Leave) If a worker's leave has been forfeited for non-use pursuant to Article 60 (7) despite the fact that the employer has taken measures described in any of the following subparagraphs to promote the use of paid leave prescribed in Article 60(1), (3), and (4), the employer has no obligation to compensate the worker for the unused leave, and shall not be deemed to have caused the non-use attributable to the employer's action under the proviso of Article 60 (7):

1. Within the first 10 days of the three months before unused leave is to be forfeited pursuant to Article 60 (7), an employer shall notify each worker of the number of his/her unused leave days and urge them in writing to decide when they would use the leave and to inform the employer of the decided leave period; and

2. If a worker, despite the urging prescribed in subparagraph (1), has failed to decide when he/she would use the whole or part of the unused leave and to inform the employer of the decided leave period within 10 days after they were urged, an employer shall decide when the worker uses the unused leave and notify the worker of the decided leave period in writing no later than 2 months before the unused leave is to be forfeited pursuant to Article 60 (7).

Article 62 (Substitution of Paid Leave)

An employer may have workers take paid leave on a particular working day in lieu of the annual paid leave under Article 60, if the employer and the workers' representative agree in writing.

Article 63 (Exceptions to Application)

The provisions of this Chapter and Chapter V as to working hours, recess, and holidays shall not be applicable to workers who are engaged in any of works described in the Laws on Green Growth, and Economic Investment in Korea 989 Females and MinorsCHAPTER V

05_LawsConcerningEconomicInvestment

following subparagraphs:

1. cultivation of arable land, reclamation work, seeding and planting, gathering or picking-up or other agricultural and forestry work;

2. livestock breeding, catch of marine animals and plants, cultivation of marine products or other cattle-breeding, sericulture and fishery business;

3. surveillance or intermittent work, for which the employer has obtained the approval of the Minister of Employment and Labor;

4. any other work prescribed in the Presidential Decree. Article 64 (Minimum Age and Employment Permit)

(1) A person under the age of 15 (including those under the age of 18 who are attending a middle school pursuant to the Elementary and Secondary Education Act) shall not be employed as a worker. However, a person with an employment permit issued by the Minister of Employment and Labor in accordance with the criteria prescribed by the Presidential Decree may be employed as a worker (Amended by Act No. 10339, Jun. 4, 2010).

(2) The employment permit referred to in paragraph (1) may be issued at the request of the person himself only by designating the type of occupation in which he is engaged, provided that such employment will not impede his/her compulsory education. (3) If a person receives the employment permit prescribed in paragraph (1) through a false or other fraudulent pretense, the Minister of Employment and Labor shall cancel the permit (Amended by Act No. 10339, Jun. 4, 2010). Article 65 (Prohibition of Employment)

(1) No employer shall employ a female who is pregnant or has had less than one year after childbirth (hereinafter referred to as "pregnant female") and those aged less than 18 for hazardous and dangerous work in terms of morality or health. (2) No employer shall employ a female aged 18 or older who is not pregnant for work that is hazardous and dangerous to their pregnancy or childbirth among the hazardous and dangerous works in terms of health pursuant to paragraph (1). (3) The occupations prohibited pursuant to paragraphs (1) and (2) shall be determined by the Presidential Decree.

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Article 66 (Minor Certificate)

For each minor under 18, an employer shall keep in the workplace a certificate proving his/her family relationships and a written consent of his/her parent or guardian (Amended by Act No. 8435, May 17, 2007).

Article 67 (Labor Contract)

(1) Neither parent nor guardian shall enter into a labor contract on behalf of a minor. (2) The parent and/or guardian of a minor or the Minister of Employment and Labor may terminate a labor contract if a labor contract is deemed disadvantageous to the minor (Amended by Act No. 10339, Jun. 4, 2010).

(3) If an employer makes a labor contract with a person under the age of 18, the employer shall specify the working conditions in writing and issue the same pursuant to Article 17 (Newly Inserted by Act No. 8561, Jul. 27, 2007). Article 68 (Claim for Wages)

A minor may claim his wages in his own right.

Article 69 (Working Hours)

The working hours of a person aged between 15 and 18 shall not exceed seven hours per day and forty hours per week. However, the working hours may be extended up to an hour per day or six hours per week, by an agreement between the parties concerned. Article 70 (Restrictions on Night Work and Holiday Work) (1) When an employer intends to have a female aged 18 or older work from 10 P.M. to 6 A.M. and on holiday, the employer shall obtain the consent of the female concerned.

(2) An employer shall not have a pregnant female and one aged less than 18 work from 10 P.M. to 6 A.M. and on holiday. However, this shall not apply in the cases described in any of the following subparagraphs and when the employer obtains permission from the Minister of Employment and Labor (Amended by Act No. 10339, Jun. 4, 2010):

1. where the person who is less than 18-years-old gives their consent;

2. where the female who has had less than one year after childbirth gives her consent; and

3. where a pregnant female makes the request. Laws on Green Growth, and Economic Investment in Korea 991 05_LawsConcerningEconomicInvestment

(3) An employer, before obtaining permission from the Minister of Employment and Labor as stipulated in paragraph (2), shall consult in good faith with a workers' representative of the business or workplace concerned as to whether there will be night work or holiday work and its implementation methods for workers' health and maternity protection (Amended by Act No. 10339, Jun. 4, 2010). Article 71 (Overtime Work)

An employer shall not have a female who has had less than one year after childbirth work overtime exceeding 2 hours per day, 6 hours per week, and 150 hours per year, even if agreed upon in a collective agreement.

Article 72 (Prohibition on Working Inside a Pit)

No employer shall employ a female or minor under the age of 18 for any work inside a pit, except where the work is temporarily needed to perform the business as determined by Presidential Decree such as health, medicine, news report, news coverage, etc. Article 73 (Menstruation Leave)

An employer shall, upon request of a female worker, grant her one-day menstruation leave per month.

Article 74 (Protection of Pregnant Women)

(1) An employer shall grant a pregnant female worker 90 days of maternity leave before and after childbirth. In such cases, 45 days or more shall be allocated after the childbirth. (2) At the request of a pregnant female worker who has a miscarriage or stillbirth after 16 weeks of pregnancy, the employer shall grant her protective leave as prescribed in the Presidential Decree, except where the miscarriage is caused by an artificially induced abortion operation (excluding cases prescribed in Article 14(1) of the Mother and Child Health Act).

(3) Of the leave under paragraphs (1) and (2), the first 60 days' leave shall be with pay, except that if maternity leave benefits, etc., are already paid pursuant to Article 18 of the Act on Equal Employment and Support for Work-Family Reconciliation, the employer shall be relieved of the responsibility to the extent of such amount (Amended by Act No. 8781, Dec. 21, 2007).

(4) No employer shall put a pregnant female worker on overtime duty, and, if there is a request from the worker, the employer shall transfer her to a light duty. 992 Ministry of Government Legislation

Safety and HealthCHAPTER VI

ApprenticeshipCHAPTER VII

Accident CompensationCHAPTER VIII

(5) After the end of the protective leave under paragraph (1), the employer shall allow the female worker to return to the same work, or one with the same level of pay, as before the leave (Newly Inserted by Act No. 9038, Mar. 28, 2008). Article 74-2 (Allowing Time Off for Prenatal Examination) (1) If a pregnant female worker makes a request to take time off from work to receive a regular health checkup for pregnant women, the employer shall allow her to do so. (2) An employer shall not cut a worker's wages on the ground that she takes time off for the health checkup under paragraph (1) (Newly Inserted by Act No. 8960, Mar. 21, 2008).

Article 75 (Nursing Hours)

A female worker who has an infant under twelve months shall be allowed to take paid nursing recesses, twice per day for more than 30 minutes each. Article 76 (Safety and Health)

The safety and health of workers shall be subject to the conditions as prescribed in the Occupational Safety and Health Act.

Article 77 (Protection of Apprentices)

No employer shall abuse workers in training, workers on probation, or any other apprentice whose purpose is to acquire a technical skill, or assign them to domestic work or other work not related to the acquirement of technical skill. Article 78 (Medical Treatment Compensation)

(1) An employer shall provide necessary medical treatment at his own expense or bear Laws on Green Growth, and Economic Investment in Korea 993 05_LawsConcerningEconomicInvestment

corresponding expenses for a worker who suffers from an occupational injury or disease.

(2) The scope of occupational disease or medical treatment and the timing of compensation for medical treatment expenses referred to in paragraph (1) shall be prescribed by the Presidential Decree (Amended by Act No. 8960, Mar. 21, 2008). Article 79 (Compensation for Inability to Work)

(1) An employer shall provide a worker undergoing medical treatment under Article 78 with compensation for inability to work in an amount equivalent to 60/100 of the average wages during the period of medical treatment. (2) If a person to be provided with compensation for inability to work has received part of his/her wages during the period for which the compensation is provided pursuant to paragraph (1), the employer shall provide compensation for inability to work in an amount equivalent to 60/100 of the amount calculated by subtracting the paid wages from the average wages.

(3) The timing of compensation for inability to work shall be prescribed by the Presidential Decree (Newly Inserted by Act No. 8960, Mar. 21, 2008). Article 80 (Compensation for Disability)

(1) If a worker remains disabled even after completion of treatment of his/her occupational injury or disease, the employer shall provide compensation for disability in an amount equivalent to the average wages multiplied by the number of days set according to grade of disability in the attached Table.

(2) A person who already has a physical disability has that disability aggravated due to an injury or disease, the amount of compensation for disability shall be the amount calculated by subtracting the number of compensation days for the previous disability grade from the number of compensation days for the aggravated disability grade and then multiplying the resulting number by the average wages at the time when there occurs the reason for claiming the compensation.

(3) The criteria for determining disability grades for which compensation for disability has to be provided and the timing of compensation for disability shall be prescribed by the Presidential Decree (Newly Inserted by Act No. 8960, Mar. 21, 2008). Article 81 (Exceptions to Compensation for Suspension of Work and for Disability) If a worker suffers from an occupational injury or disease due to his own gross negligence 994 Ministry of Government Legislation

and the employer obtains the acknowledgment of the Labor Relations Commission for the same negligence, the employer shall not be liable to provide compensation for the inability to work or compensation for disability. Article 82 (Compensation for Survivors)

(1) If a worker dies on duty, the employer shall provide survivor's compensation equivalent to 1,000 days of the average wages to the worker's surviving family member without delay after his/her death (Amended by Act No. 8960, Mar. 21, 2008). (2) The scope of surviving family members referred to in paragraph (1), the order of priority for survivor's compensation, and the order of priority for survivor's compensation in case the person determined to receive survivor's compensation dies shall be prescribed by the Presidential Decree (Newly Inserted by Act No. 8960, Mar. 21, 2008).

Article 83 (Funeral Expenses)

If a worker dies on duty, the employer shall provide funeral expenses equivalent to 90 days of the average wages without delay after the worker's death (Amended by Act No. 8960, Mar. 21, 2008).

Article 84 (Lump Sum Compensation)

If a worker receiving compensation in accordance with Article 78 has not completely recovered from the said occupational injury or disease even after two years since the medical care began, the employer may be exonerated from any further obligation of compensation under this Act thereafter by providing a lump sum compensation equivalent to 1,340 days of the average wages of the worker. Article 85 (Installment Compensation)

If an employer proves his ability to pay compensation and has obtained the consent of a recipient, he may pay the compensation pursuant to Article 80, 82, or 84 in installments for one year.

Article 86 (Claim for Compensation)

A claim for compensation shall not be changed due to retirement and shall not be transferred or confiscated.

Laws on Green Growth, and Economic Investment in Korea 995 05_LawsConcerningEconomicInvestment

Article 87 (Relationship With Other Damage Claims) If a person to receive compensation has received money or other valuables corresponding to accident compensation stipulated in this Act by way of the Civil Code, other laws, or decrees for the same reason, the employer shall be exonerated from the obligation of compensation to the extent of the said value received. Article 88 (Reappraisal and Arbitration of the Minister of Employment and Labor) (Amended by Act No. 10339, Jun. 4, 2010)

(1) If a person has an objection to the determination of occupational injury, disease or death, methods of medical care, determination of compensation, or any other matters regarding compensation, the person concerned may request the Minister of Employment and Labor to review or arbitrate the case (Amended by Act No. 10339, Jun. 4, 2010). (2) If a request pursuant to paragraph (1) is filed, the Minister of Employment and Labor shall review or arbitrate the case within one month (Amended by Act No. 10339, Jun. 4, 2010).

(3) The Minister of Employment and Labor may review or arbitrate a dispute by its own authority, if necessary (Amended by Act No. 10339, Jun. 4, 2010). (4) The Minister of Employment and Labor may have a doctor diagnose or examine the worker concerned, if it is deemed necessary for the review or arbitration (Amended by Act No. 10339, Jun. 4, 2010).

(5) For purposes of the statute of limitations, the request for review l or arbitration in accordance with paragraph (1) and the commencement of review or arbitration pursuant to paragraph (2) shall be regarded as an institution of a judicial proceeding. Article 89 (Review and Arbitration of Labor Relations Commission) (1) If review or arbitration has not been made by the Minister of Employment and Labor within the period set forth in Article 88(2), or if a person is dissatisfied with the result of the review or arbitration, a request may be filed with the Labor Relations Commission for review or arbitration (Amended by Act No. 10339, Jun. 4, 2010). (2) If a request is filed in accordance with paragraph (1), the Labor Relations Commission shall review or arbitrate the case within one month. Article 90 (Exception to Subcontracted work)

(1) If a business is operated based upon several tiers of subcontracts, the primary contractor shall be regarded as the employer for purposes of accident compensation. 996 Ministry of Government Legislation

Rules of EmploymentCHAPTER IX

(2) With regard to paragraph (1), if a subcontractor is delegated to pay compensation by a written agreement with the primary contractor, the subcontractor shall also be regarded as the employer; however, the primary contractor shall not have more than one subcontractor bear overlapping compensation for the same business. (3) With regard to paragraph (2), the primary contractor who has been requested to provide compensation, may ask the applicant to demand compensation first from the subcontractor who has agreed to the responsibility for such compensation. However, this shall not apply if the subcontractor concerned is missing or is declared bankrupt. Article 91 (Keeping of Documents)

An employer shall not discard important documents concerning accident compensation unless accident compensation is finished or before the right to claim accident compensation is extinguished by prescription pursuant to Article 92 (Amended by Act No. 8960, Mar. 21, 2008).

Article 92 (Prescription)

The statute of limitations to exercise a claim for accident compensation in accordance with this Act shall be three years.

Article 93 (Preparation and Filing of Rules of Employment) An employer ordinarily employing ten workers or more shall prepare the rules of employment concerning matters described in any of the following subparagraphs and file it with the Minister of Employment and Labor. If any amendment to the rules of employment occurs, the same procedures shall also be followed (Amended by Act No. 10339, Jun. 4, 2010):

1. matters pertaining to the starting and finishing time of work, recess hours, holidays, leaves, and shifts;

2. matters pertaining to the determination of wages, calculation of wages, means of payment, closing of payment, time of payment, and wage increase;

3. matters pertaining to calculation of family allowances and means of payment;

4. matters pertaining to retirement; Laws on Green Growth, and Economic Investment in Korea 997 05_LawsConcerningEconomicInvestment

5. matters pertaining to retirement pay prescribed in Article 8 of the Employee Retirement Benefit Security Act, bonuses, and minimum wages;

6. matters pertaining to meal allowance and allocation of expenses for operational tools or necessities;

7. matters pertaining to educational facilities for workers;

8. matters pertaining to the maternity protection of female workers, such as maternity leave, child-care leave, etc., and support for reconciliation between work and family life (Amended by Act No. 9038, Mar. 28, 2008);

9. matters pertaining to safety and health; 9-2. matters pertaining to the improvement of workplace environments according to workers' characteristics, such as gender, age, or physical attributes (Newly Inserted by Act No. 9038, Mar. 28, 2008);

10. matters pertaining to support for occupational or non-occupational accidents;

11. matters pertaining to award and punishment; and

12. other matters applicable to all workers of the business concerned. Article 94 (Procedures for Preparation of And Amendment to Rules of Employment) (1) An employer shall consult with the trade union, if there is a trade union composed of the majority of the workers in the workplace concerned, or consult with the majority of workers if there is no trade union composed of the majority of the workers, with regard to the preparation of and amendment to the rules of employment. However, if the rules of employment are to be modified unfavorably to workers, the employer shall obtain workers' consent.

(2) When an employer submits the rules of employment in accordance with the provisions of Article 96, a written document containing the result of consultation referred to in paragraph (1) shall be attached.

Article 95 (Limitation on Punitive Provisions)

If a punitive reduction in wages for a worker is stipulated in the rules of employment, the amount to be reduced for each infraction shall not exceed half of one day's average wages, and the total amount of reduction shall not exceed one-tenth of the total amount of wages during each period of wage payment.

998 Ministry of Government Legislation

DormitoryCHAPTER X

Article 96 (Observance of Collective Agreement)

(1) The rules of employment shall not conflict with laws or decrees or the collective agreement applicable to the workplace concerned.

(2) The Minister of Employment and Labor has the authority to order amendments to the rules of employment which is deemed to conflict with laws or decrees or the collective agreement (Amended by Act No. 10339, Jun. 4, 2010). Article 97 (Effect of Violation)

If a labor contract includes employment conditions which are below the standards stipulated in the rules of employment, such nonconformity shall be null and void. In this case, the invalidated provisions shall be governed by the standards provided for in the rules of employment.

Article 98 (Protection of Dormitory Life)

(1) An employer shall not interfere with the private life of a worker lodging in a dormitory annexed to a business.

(2) An employer shall not interfere with the election of staff required for the autonomous management of a dormitory.

Article 99 (Preparation of And Amendment to Dormitory Rules) (1) An employer who wants to board his workers in a dormitory annexed to a business shall prepare the dormitory rules concerning the following matters:

1. matters pertaining to wake-up time and night retirement, going-out and overnight stay;

2. matters pertaining to events;

3. matters pertaining to meals;

4. matters pertaining to safety and health;

5. matters pertaining to the maintenance of buildings and facilities; and

6. other matters applicable to all boarding members. (2) An employer shall obtain the consent of the representative who represents a majority Laws on Green Growth, and Economic Investment in Korea 999 Labor Inspectors, etc.CHAPTER XI

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of the boarding members with regard to the preparation of and amendment to the dormitory rules stipulated in paragraph (1).

(3) Both an employer and boarding member shall comply with the dormitory rules. Article 100 (Measures for Safety and Health)

(1) An employer shall take measures necessary for the maintenance of the health, morals, and lives of the members who are lodged in a dormitory annexed to the business. (2) The standards for the measures to be taken in accordance with the provisions of paragraph (1) shall be provided for by the Presidential Decree. Article 101 (Supervisory Authorities)

(1) The Ministry of Employment and Labor and its subordinate offices shall have a labor inspector to ensure the standards of the conditions of labor (Amended by Act No. 10339, Jun. 4, 2010).

(2) Matters concerning the qualification, appointment, dismissal, job specification, and assignment of a labor inspector shall be prescribed by the Presidential Decree. Article 102 (Authority of Labor Inspectors)

(1) A labor inspector has the authority to inspect a workplace, dormitory and other annexed buildings, to request presentation of books and documents, and to question both an employer and workers.

(2) A labor inspector who is a medical doctor or a medical doctor designated by a labor inspector has the authority to conduct medical examinations of workers who appear to suffer from a disease which precludes his/her continuous employment. (3) With regard to paragraphs (1) and (2), a labor inspector or a medical doctor designated by a labor inspector shall present his identification card and a letter of order for medical examination issued by the Minister of Employment and Labor before performing his duty (Amended by Act No. 10339, Jun. 4, 2010).

(4) With regard to a letter of order for inspection or medical examination prescribed in paragraph (3), the date, place, and scope shall be clearly stated therein. (5) A labor inspector shall have the authority to perform the official duties of the judicial 1000 Ministry of Government Legislation

Penal ProvisionsCHAPTER XII

police officer in accordance with the Act Relating to Persons to Perform Duties of Judicial Police and Scope of the Duties with regard to the crimes in violation of this Act or other laws or decrees pertaining to labor affairs. Article 103 (Duty of Labor Inspector)

A labor inspector shall not disclose any confidential information which he/she learned through the course of performing his/her official duty. The same shall be applied after he/she is no longer in the official capacity.

Article 104 (Report to Supervisory Authorities)

(1) If any violation of the provisions of this Act or the Presidential Decree promulgated pursuant hereto occurs at a workplace, a worker may notify the Minister of Employment and Labor or a labor inspector of the violation (Amended by Act No. 10339, Jun. 4, 2010).

(2) No employer shall dismiss or unfairly treat the worker for giving such notification as provided for in paragraph (1).

Article 105 (Limit of Judicial Police Duty)

Public prosecutors and labor inspectors shall be wholly in charge of inspecting, requesting the presentation of documents, questioning and conducting any other investigation, in accordance with this Act and other laws or decrees pertaining to labor affairs; however, this shall not apply to an investigation into an offense or a crime committed by a labor inspector in the course of performing his official duty. Article 106 (Delegation of Authority)

The authority of the Minister of Employment and Labor under this Act may be delegated, in part, to a chief of a regional employment and labor authority in accordance with the Presidential Decree (Amended by Act No. 10339, Jun. 4, 2010). Article 107 (Penal Provisions)

A person who violates the provisions of Article 7, 8, 9, 23(2), or 40 shall be punished by imprisonment of up to five years or by a fine not exceeding thirty million won. Laws on Green Growth, and Economic Investment in Korea 1001 05_LawsConcerningEconomicInvestment

Article 108 (Penal Provisions)

A labor inspector who willfully overlooks any violation of the provisions of this Act shall be punished by imprisonment of up to three years or suspension of civil rights for up to five years.

Article 109 (Penal Provisions)

(1) A person who violates the provisions of Article 36, 43, 44, 44-2, 46, 56, 65, or 72 shall be punished by imprisonment of up to three years or by a fine not exceeding twenty million won (Amended by Act No. 8561, Jul. 27, 2007). (2) A prosecution against a person who violates the provisions of Article 36, 43, 44, 44-2, 46, or 56 shall not be filed against the clearly expressed will of the victim (Amended by Act No. 8561, Jul. 27, 2007).

Article 110 (Penal Provisions)

Any person falling within the purview of any of the following subparagraphs shall be punished by imprisonment of up to two years or by a fine not exceeding ten million won:

1. A person who violates Article 10, 22(1), 26, 50, 53(1), (2) and (3), 54, 55, 60(1), (2), (4) and (5), 64(1), 69, 70(1) and (2), 71, 74(1) through (4), 75, 78 through 80, 82, 83 or 104(2); and (Amended by Act No. 9699, May 21, 2009)

2. A person who violates orders issued in accordance with Article 53(4). Article 111 (Penal Provisions)

A person who fails to comply with a remedy order confirmed pursuant to Article 31(3) or confirmed after the filing of an administrative lawsuit, or a decision rendered after the reexamination of a remedy order shall be punished by imprisonment of up to one year or a fine not exceeding ten million won.

Article 112 (Accusation)

(1) An offence prescribed in Article 111 shall be prosecutable only with the accusation of the offense by the Labor Relations Commission. (2) A prosecutor may notify the Labor Relations Commission of an occurrence of an offense under paragraph (1) and ask the Commission to file an accusation. 1002 Ministry of Government Legislation

Article 113 (Penal Provisions)

A person who violates the provisions of Article 45 shall be punished by a fine not exceeding ten million won.

Article 114 (Penal Provisions)

A person who falls within the purview of any of the following subparagraphs shall be punished by a fine not exceeding five million won:

1. A person who violates Article 6, 16, 17, 20, 21, 22(2) or 47, the proviso of Article 53(3), Article 67(1) and (3), 70(3), 73, 74(5), 77, 94, 95, 100 or 103 (Amended by Act No. 9699, May 21, 2009);

2. A person who fails to comply with an order issued in accordance with Article 96(2). Article 115 (Joint Penal Provisions)

If an agent, a servant, or any other employee of an employer commits the offence prescribed in Article 107, Articles 109 through 111, Article 113, or Article 114 in relation to matters concerning the workers of the employer, the fine prescribed in the respective Articles shall be imposed on the employer, in addition to the punishment of the offender; provided that this shall not apply unless the employer neglects to give considerable attention and supervision to the business concerned in order to prevent such offence (This Article Wholly Amended by Act No. 9699, May 21, 2009).

Article 116 (Fine for Offense)

(1) A person who falls under the purview of any of the following subparagraphs shall be punished by a fine not exceeding five million won:

1. A person who fails to report or present himself/herself or makes a false report in response to a request from the Minister of Employment and Labor, the Labor Relations Commission or a labor inspector under Article 13; (Amended by Act No. 10339, Jun. 4, 2010)

2. A person who violates Article 14, 39, 41, 42, 48, 66, 91, 93, 98(2), or 99; or (Amended by Act No. 9699, May 21, 2009)

3. A person who refuses, avoids, or otherwise obstructs a clinical or medical examination conducted by a labor inspector or a doctor designated by a labor inspector pursuant to Article 102; fails to answer his/her question or gives a false answer; fails to submit books and documents; or submits false books and documents. Laws on Green Growth, and Economic Investment in Korea 1003 05_LawsConcerningEconomicInvestment

(2) The fine for the offense under paragraph (1) shall be imposed and collected by the Minister of Employment and Labor as prescribed by the Presidential Decree (Amended by Act No. 10339, Jun. 4, 2010).

(3) Deleted. (Act No. 9699, May 21, 2009)

(4) Deleted. (Act No. 9699, May 21, 2009)

(5) Deleted. (Act No. 9699, May 21, 2009)

ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force two years after its promulgation. Articles 2 through 4 Omitted.

Table

[Table] Disability Grade and Accident Compensation (relating to Article 80) Grade Accident Compensation Grade Accident Compensation Grade 1 1,340 days'aver. wages Grade 8 450 days'aver. wages Grade 2 1,190 days'aver. wages Grade 9 350 days'aver. wages Grade 3 1,050 days'aver. wages Grade 10 270 days'aver. wages Grade 4 920 days'aver. wages Grade 11 200 days'aver. wages Grade 5 790 days'aver. wages Grade 12 140 days'aver. wages Grade 6 670 days'aver. wages Grade 13 90 days'aver. wages Grade 7 560 days'aver. wages Grade 14 50 days'aver. wages