The Labor Standards Act applies to all workplaces that hire workers. However, there are some articles of the law that are not mandatory for a workplace with less than 5 workers.
The following articles of the LSA do not apply to a workplace with 4 or less workers.
- prohibition of dismissal without a justifiable reason (article 23. 1)
- reasons and procedures required for lay-off (article 24)
- mandatory severance pay (article 34)
- allowance during business suspension (article 46)
However, the following articles DO apply to a workplace with 4 or less workers.
- 30 days’ prior notice for dismissal or 30 days’ ordinary wage instead of the notice (article 26)
- Payment of all wages within 14 days after retirement (article 36)
The exemption does not prevent an employer from applying the articles to his workplace on his own choice because the LSA is only a minimum standard. An employer may freely pay the severance pay or business suspension allowance.
The exemption legally means that a worker cannot charge an employer to the Ministry of Labor for non-observance of the exempt articles .
