Like in other advanced economies, non-regular workers are responsible for a considerable part of the total workforce in Korea.
For example, as of the end of 2012, non-regular workers are 33.3% of the whole salaried workers according to the statistics of the Ministry of Employment and Labor, which means about 6 million non-regular employees are now working in Korea.
This also means that for starting foreign companies, the use of non-regular workers is likely to be one of the recruitment choices.
This post covers the basic points for hiring non-regular workers to help managers of foreign companies with their use of non-regular workers.
1. You cannot use a fixed-term employee for more than 2 years.
Korean labor law divides employment contracts into two categories. One is an employment contract with an indefinite term. Employees with this kind of contract are supposed to work until he or she reaches retirement age.
The other is an employment contract with a definite term. Act concerning protection of Fixed-term and Part-time Employees stipulates that a fixed-term employee who has been hired for a term exceeding 2 years is deemed as having signed a contract of an indefinite term.
In short, if you hire a fixed-term worker for longer than 2 years, the legal status of the worker turns into that of a regular worker who can stay with you until his/her retirement.
Incidentally, average retirement age in companies with 300 or more employees in Korea was 57.3 according to the survey of the Ministry of Employment and Labor.
2. There are some exceptions to the 2-year limit for fixed-term contracts.
It would be unreasonable to impose such 2 year limit for every situation. So, the above-mentioned act sets forth certain exceptions as follows.
- An employer has predetermined a period of time required to complete a particular business or task.
- An employee is on leave or dispatched to another workplace, so there is a need to hire a substitute to replace the employee until he/she returns to work.
- An employee takes schooling or vocational training and he/she sets a period of time required to complete the schooling or training.
- An employer hires workers* with professional knowledge or skills that are specified in the Enforcement decree of the Act.
* Workers in the category are:
- a person holding a doctoral degree (including doctoral degrees earned in a foreign country) being engaged in the relevant field;
- a person holding a national technical qualification of technician grade under the National Technical Qualifications Act being engaged in the relevant field;
- a person holding a professional qualification specified in the attached Table 2 being engaged in the relevant field. (examples are architect, accountant, lawyer, tax accountants, doctors and etc.)
3. You can use a dispatched worker only for jobs designated by law.
Korean law uses the term “dispatched worker” to designate the workers known as “leased employees” in the United States.
These workers have employment contracts with a company but actually works under the direction of other company. Many companies in Korea are using dispatched workers, especially for jobs like secretaries and entry-level clerks.
The Act on the protection of dispatched workers allows employers to hire dispatched workers only for jobs specified in the act.
The following jobs are allowed for worker dispatch by law. Be reminded this is not an exhaustive list of the jobs.
- Computer professionals
- Administrative, business management and financial professionals
- Patent professionals
- Record keepers and librarians
- Translators and interpreters
- Creating and performing artists
- Movie, play and broadcasting professionals
- Technicians in electronic engineering
- Technicians in communications engineering
- Draftspersons and CAD operators
- Optical and electronic equipment operators
- Associate professionals in arts, entertainment and sports
- Managerial associate professionals
- Office supporting workers
- Publication and postal workers
- Debt collectors and other related workers
- Telephone switchboard and directory service workers
- Customer service workers
- Personal protection and other related workers
- Travel guides
- Gas station attendants
- Telemarketers
- Motor vehicle drivers
- Building cleaning persons Janitors and security guards
- Parking lot attendants
- Delivery and transportation workers and metermen
4. You cannot use a dispatched worker for more than 2 years.
An employer can hire a dispatched worker basically for 1 year and extend the dispatch contract up to 1 year. This 2 year period is a legal limit for using dispatched workers.
If an employer violates the limit and continues to use the worker for longer than 2 years, he/she has to directly employ the dispatched worker.
Non-compliance with the duty for direct employment can be put to fine of up to 30,000,000 Korean Won.
