KOREAN LABOUR LAW Article 1 (Purpose) The purpose of this Act is to establish the standards for the working conditions in conformity with the Constitution, thereby securing and improving the fundamental living standards of workers and achieving a well-balanced development of the national economy. Article 2 (Standards of Working Conditions) The working conditions as prescribed by this Act shall be the minimum standards for employment, and the parties to labor relations shall not lower the working conditions below the above mentioned standards under the pretext of compliance with this Act. Article 3 (Establishment of Working Conditions) The working conditions shall be freely established on the basis of equality, as agreed between workers and their employer. Article 4 (Observance of Working Conditions) Both workers and employers shall comply with collective agreements, rules of employment, and terms of labor contracts, and each of them shall be obliged to do so in good faith. Article 5 (Equal Treatment) An employer shall neither discriminate against workers on the basis of gender, nor take discriminatory treatment in relation to the working conditions on the ground of nationality, religion, or social status. Article 6 (Prohibition of forced Labor) An employer shall not force a worker to work against his own free will through the use of violence, intimidation, confinement, or any other means by which mental or physical freedom of workers might be unduly restricted. Article 7 (Prohibition of Violence) An employer shall not do violence to or batter a worker for the occurrence of accidents or for any other reason. Article 8 (Elimination of Intermediary Exploitation) No person shall intervene in the employment of another person for making a profit, nor gain benefit as an intermediary, unless otherwise prescribed by any Act. Article 9 (Guarantee of Exercise of Civil Rights) An employer shall not reject a request from a worker to grant time necessary to exercise the franchise or other civil rights, or to perform official duties, during work hours : Provided, That the time requested may be changed, unless such change impedes the exercise of those rights or performance of those official duties. Article 10 (Scope of Application)

(1) This Act shall apply to all businesses or workplaces in which not less than five workers are ordinarily employed: Provided, That this Act shall neither apply to any business or workplace in which only relatives living together with its employer are engaged, nor to servants hired for the employer's domestic works. (2) With respect to a business or workplace in which not more than four workers are ordinarily employed, some of the provisions of this Act may apply under the conditions as prescribed by the Presidential Decree. Article 11 (Scope of Application) This Act and the Presidential Decree promulgated in accordance with this Act shall apply to the State, the Seoul Special Metropolitan City, each Metropolitan City, each Do, Shi, Kun, Ku, Eup, Myon, Dong or other equivalents. Article 12 (Obligations of Report and Appearance) An employer or worker shall, without delay, report on matters required, or shall appear, whenever the Minister of Labor, the Labor Relations Commission, or a labor inspector requests to do so in relation to the enforcement of this Act. Article 13 (Publicity of Main Points of Act and Decree, etc.) (1) An employer shall acquaint workers with the main points of this Act, the Presidential Decree promulgated pursuant hereto, and the rules of employment, by posting or keeping them at each workplace at all times. (2) An employer shall post or keep the provisions relating to dormitories of the Decree as referred to in paragraph (1) and the dormitory rules, at the dormitory, to acquaint workers accommodated therein with them. Article 14 (Definition of Worker) The term of "worker" used in this Act means a person, regardless of being engaged in whatever occupation, who offers work to a business or workplace (hereinafter referred to as a "business") for the purpose of earning wages. Article 15 (Definition of Employer) The term of "employer" used in this Act means a business owner, or a person responsible for management of the business or a person who acts on behalf of a business owner with respect to matters relating to workers. Article 16 (Definition of Work) The term "work" used in this Act means both mental work and physical work. Article 17 (Definition of Labor Contract) The term "labor contract" used in this Act means a contract which is entered into in order that a worker offers work for which the employer pays its corresponding wages. Article 18 (Definition of Wages) The term "wages" used in this Act means wages, salary and any other kind of money or valuables, regardless of its titles, which the employer pays to a worker as remuneration for work.

Article 19 (Definition of Average Wages) (1) The term "average wages" used in this Act means the amount calculated by dividing the total amount of wages paid to an relevant worker during three calendar months immediately before the day on which a cause for calculating his average wages occurred by the total number of calendar days during those three months. This shall apply mutatis mutandis to the employment of less than three months. (2) When the amount calculated pursuant to provisions of paragraph (1) is lower than that of the ordinary wages of the worker concerned, the amount of the ordinary wages shall be deemed his average wages. Article 20 (Definition of Contractual work hours) The term "contractual work hours" used in this Act means work hours on which workers and employers have made an agreement with the limit of work hours under Article 49, the main sentence of Article 67 of this Act, or under Article 46 of the Industrial Safety and Health Act. Article 21 (Definition of Part-Time Worker) The term "part-time worker" used in this Act means a worker whose contractual work hours per week are shorter than those of a full-time worker engaged in the same kind of work at the workplace concerned. CHAPTER 2 LABOR CONTRACTS Article 22 (Labor Contracts in Violation of This Act) (1) A labor contract which has established working conditions which do not meet the standards as prescribed by this Act shall be null and void to that extent. (2) Those parts which are null and void in accordance with paragraph (1) shall be governed by the standards as prescribed by this Act. Article 23 (Term of Contract) The term of a labor contract shall not exceed one year, except in case where there is no fixed term or where there is a otherwise fixed term as necessary for the completion of a certain project. Article 24 (Statement of Working Conditions) An employer shall clearly state wages, work hours, other working conditions to the relevant workers at the time when he enters into a labor contract with them. In this case, the matters concerning constituent items, calculation methods and payment methods of wages shall be specified in accordance with the methods prescribed by the Presidential Decree. Article 25 (Working Conditions of Part-Time Workers) (1) Working conditions of part-time workers shall be determined on the basis of relative ratio computed in comparison of those work hours with those of full-time workers engaged in the same kind of work at the pertinent workplace. (2) The criteria and other matters to be considered for the determination of working conditions under paragraph (1) shall be prescribed by the Presidential Decree.

(3) With respect to part-time workers with considerably short contractual work hours who are specified by the Presidential Decree, some provisions of this Act may not apply as prescribed by the Presidential Decree. Article 26 (Violation of working conditions) (1) When any of the working conditions as expressly set forth pursuant to Article 24 is found to be inconsistent with the actual working conditions, the worker concerned shall be entitled to claim damages on the ground of the breach of the working conditions, or may immediately terminate the labor contract forthwith. (2) When a worker intends to claim damages in accordance with paragraph (1), he may file a request with the Labor Relations Commission, and if a labor contract has been terminated, the employer concerned shall provide travel expenses for returning home to the worker who changes his residence for the purpose of taking up a new job. Article 27 (Prohibition of Predetermination of Penalty for Breach-of- Contract) An employer shall not enter into any contract in which a penalty or indemnity for possible damages caused by the breach of a contract concerned is predetermined. Article 28 (Prohibition of Offsetting Wages with Advances) An employer shall not offset wages with an advance or other credits given in advance on the condition that a worker offers work. Article 29 (Prohibition of Compulsory Saving) (1) An employer shall not enter into any contract incidental to a labor contract, which provides for compulsory savings or saving deposits management. (2) When an employer is to manage a worker's saving deposits entrusted by a worker, he shall obtain authorization from the Minister of Labor by determining the methods of maintenance and repayment of them. Article 30 (Restriction on Dismissal, etc.) (1) An employer shall, without justifiable cause, not dismiss, lay off, suspend, transfer a worker, reduce wages, or take other punitive measures against a worker. (2) An employer shall not dismiss a worker during a period of suspension of work for medical treatment of an occupational injury or disease and within thirty days immediately thereafter, and any female worker before and after childbirth shall not be dismissed during a period of suspension of work as prescribed by this Act and for thirty days immediately thereafter: Provided, That this shall not apply in case where the employer has paid a lump sum compensation as provided for under Article 87 or in case where a natural disaster, calamity or other unavoidable circumstances prevent the employer to carry on a business. (3) In case of the latter part of the proviso of paragraph (2), admission of the Minister of Labor shall be required with respect to the cause concerned. Article 31 (Restrictions on Dismissal for Administrative Reasons) (1) Where an employer wishes to dismiss a worker for administrative reasons, there must be an urgent administrative necessity. In this case, it shall be deemed that there is

an urgent administrative necessity for the transfer, merger, or acquisition of the business in order to prevent administrative deterioration. (2) In case under paragraph (1), the employer shall make every effort to avoid dismissal and shall establish and follow reasonable and fair criteria for the selection of those persons subject to dismissal. In this case there shall be no discrimination on the basis of gender. (3) Where there is an organized labor union which represents more than half of the workers at a business or business location, the employer shall inform and consult in good faith with the labor union (where there is no such organized labor union, this shall refer to a person who represents more than half of the workers; hereinafter referred to as "labor representative") regarding the methods for avoiding dismissals and the criteria for dismissal under the provisions of paragraph (2) at least 60 days before the intended date of dismissal. (4) When an employer intends to dismiss personnel under the provisions of paragraph (1) above the fixed limit as prescribed by the Presidential Decree, he shall report to the Minister of Labor under the conditions as determined by the Presidential Decree. (5) When an employer dismisses workers in accordance with the conditions in the provisions of paragraphs (1) through (3), it shall be deemed as a dismissal with proper cause under the provisions of Article 30 (1). [This Article Wholly Amended by Act No. 5510, Feb. 20, 1998] Article 31-2 (Preferential Reemployment) (1) When an employer who has dismissed workers under the provisions of Article 31 wishes to employ workers within 2 years of the date of dismissal, he shall consider the duties of the workers prior to their dismissal and make every effort to preferentially reemploy them if they so desire. (2) The Government shall take the necessary measures for dismissed workers under the provisions of Article 31 such as stabilization of livelihood, reemployment, and vocational training on a priority basis. [This Article Newly Inserted by Act No. 5510, Feb. 20, 1998] Article 32 (Advance Notice of Dismissal) (1) When an employer intends to dismiss workers (including dismissal for administrative reason), he shall give the worker a notice of dismissal at least thirty days in advance of such dismissal, and if the employer fails to give such advance notice, he shall pay that worker the ordinary wages for not less than thirty days: Provided, That this shall not apply in case where a natural disaster, calamity or other unavoidable circumstances prevent the continuance of the business concerned or in case where the worker concerned has, on purpose, caused a considerable hindrance to the business or inflicted any damage to property. (2) In case of the proviso of paragraph (1), the cause attributable to a worker shall be subject to approval of the Minister of Labor. Article 33 (Request for Remedy from Unfair Dismissal, etc.) (1) When a worker is, without any justifiable cause, dismissed, laid off, suspended, transferred, has his wages reduced or placed under any other punitive action, he may request a remedy for it to the Labor Relations Commission.

(2) The provisions of Articles 82 through 86 of the Trade Union and Labor Relations Adjustment Act shall apply mutatis mutandis to the procedures for a request for remedy and a review thereof under paragraph (1): Provided, That the provisions of Article 85 (5) of the Trade Union and Labor Relations Adjustment Act shall be excluded. Article 34 (Retirement Allowance System) (1) An employer shall establish a retirement allowance system by which the average wages for not less than thirty days shall be paid for each one year of continuous employment as a retirement allowance to a retired worker: Provided, That this shall not apply in case where the worker has been employed for less than one year. (2) In establishing the retirement allowance system as referred to in paragraph (1), a system of different retirement allowances to different persons within the same business, shall not be permitted. (3) Notwithstanding the provisions of paragraph (1), an employer may, upon a request of a worker, even before his retirement, pay a retirement allowance calculated on the basis of consecutive years of employment. In this case, the number of consecutive years of employment for the calculation of a retirement allowance after such advance payment, shall be reckoned anew from the moment of the latest adjustment of balances. (4) Where an employer enrolls a worker as the insured person or beneficiary of retirement insurance or a lump-sum retirement trust (hereinafter referred to as "retirement insurance") as prescribed by the Presidential Decree, and causes the worker to receive a lump sum or pension at the time of retirement, he shall be deemed to have established a retirement allowance system under the provisions of paragraph (1): Provided, That the amount of the lump sum from the retirement insurance may not be less than the amount of the retirement allowance under the provisions of paragraph (1). [Amended by Act No. 5473, Dec. 24, 1997] Article 35 (Exception of Advance Notice of Dismissal) The provisions of Article 32 shall not apply to a worker falling under any of the following subparagraphs: 1.A daily employed worker who has been employed for less than three consecutive months; 2.A worker who has been employed for a fixed period not exceeding two months; 3.A worker who has been employed for less than six months as a monthly paid worker; 4.A worker who has been employed for any seasonal work for a fixed period not exceeding six months; and 5.A worker in a probationary period. Article 36 (Payment of Money or Valuables) When a worker dies or retires, an employer shall pay the wages, compensations, and other money or valuables within fourteen days after the cause for such payment occurred: Provided, That the period may, under special circumstances, be extended by mutual agreement between the parties concerned. Article 37 (Preferential Payment for Claims for Wages) (1) Wages, retirement allowance, accident compensation, and other claims arising from employment shall be paid in preference to taxes, public charges, or other claims except

for claims secured by pledges or mortgages on the whole property of an employer: Provided, That this shall not apply to those taxes and public charges which take precedence over said pledges or mortgages. (2) Notwithstanding the provisions of paragraph (1), the claim falling under any of the following subparagraphs shall be paid in preference to any claims secured by the right of pledge or mortgage on the whole property of the employer, taxes, public charges and other claims: [Amended by Act No. 5473, Dec. 24, 1997] 1.The wages of the last 3 months; 2.The retirement allowance of the last 3 years; and 3.Accident compensation allowance. (3) The retirement allowance under paragraph (2) 2 shall be the amount equivalent to a 30 days' portion of the average wage for each one year of continuous employment. [Newly Inserted by Act No. 5473, Dec. 24, 1997] Article 38 (Certificate of Employment) (1) Whenever an employer is requested by a worker to issue a certificate specifying terms of employment, kinds of work performed, position(s) taken, wages received, and other necessary information, he shall immediately prepare and deliver a certificate based on facts, even after the retirement of the worker. (2) The certificate as referred to in paragraph (1) shall contain nothing other than what has been requested by the worker. Article 39 (Prohibition of Interference with Employment) No person shall prepare and use secret signs or lists, or have communications, for the purpose of interfering with employment of a worker. Article 40 (Register of Workers) (1) An employer shall prepare a register of workers by workplace, containing each worker's name, birth date, personal history, and other items as prescribed by the Presidential Decree. (2) When there is any change in the items stated pursuant to paragraph (1), correction shall be made without delay. Article 41 (Preservation of Documents in Relation to Contract) An employer shall, for three years, preserve a register of workers and other important documents related to a labor contract as prescribed by the Presidential Decree. CHAPTER 3 WAGES Article 42 (Payment of Wages) (1) Payment of wages shall be directly made in full to workers in currency: Provided, That if otherwise prescribed by Acts and subordinate statutes or by a collective agreement, wages may partially be reduced or may be paid by means other than currency. (2) Wages shall be paid at least once per month on a fixed day: Provided, That this shall not apply to extraordinary wages, allowances, or another similar payment, or those wages prescribed by the Presidential Decree.

Article 43 (Payment of Wages in Contract Project) (1) When a project is executed based on several tiers of subcontracting and a subcontractor has failed to pay wages to workers because of a cause attributable to the immediate preceding contractor, the immediate preceding contractor shall be liable for the wages jointly and severally with the subcontractor concerned. (2) The scope of the cause attributable to the immediate preceding contractor as referred to in paragraph (1) shall be determined by the Presidential Decree. Article 44 (Emergency Payment) An employer shall advance partial payments of wages corresponding to work offered even prior to the payday, if a worker requests the employer to do so in order to meet the expenses for childbirth, diseases, disasters, or other cases of emergency as prescribed by the Presidential Decree. Article 45 (Shutdown Allowance) (1) When a business shuts down because of a cause attributable to an employer, he shall pay the workers concerned allowances of not less than seventy percent of their average wages for the period of shutdown: Provided, That if the amount equivalent to seventy percent of their average wages exceeds that of their ordinary wages, their ordinary wages may be paid as their shutdown allowance. (2) Notwithstanding the provisions of paragraph (1), an employer who cannot continue to carry on the business for any unavoidable reason may, with the approval of the Labor Relations Commission, pay workers a shutdown allowance lower than the standards as prescribed in paragraph (1). Article 46 (Subcontract Workers) For those workers who are employed by subcontract or other equivalent thereto, an employer shall guarantee certain amount of wages in proportion to their actual hours. Article 47 (Wage Ledger) An employer shall prepare a wage ledger for each workplace, and shall, at the time of every payment, enter the matters which serves as a basis for determining wages and family allowance, the amount of wages, and other matters as prescribed by the Presidential Decree at each time of payment. Article 48 (Prescription of Wages) A claim for wages under this Act shall be extinguished by prescription, unless exercised within three years. CHAPTER 4 WORK HOURS AND RECESS Article 49 (Work Hours) (1) Work hours shall not exceed forty-four hours a week, excluding hours of recess. (2) Work hours shall not exceed eight hours a day, excluding hours of recess. Article 50 (Flexible Work Hours System) (1) An employer may, under the conditions as prescribed by the rules of employment (including other rules equivalent thereto), extend the work hours in excess of those as

referred to in Article 49 (1) in a particular week, or extend work hours in excess of those as referred to in Article 49 (2) in a particular day, to the extent that average work hours per week during a certain unit period of not more than two weeks do not exceed work hours as referred to in Article 49 (1): Provided, That work hours in any particular week shall not exceed forty eight hours. (2) When an employer has determined matters falling under the following paragraphs by a written agreement with the workers' representative, he may extend work hours in excess of those as referred to in Article 49 (1) in a particular week, or may extend work hours in excess of those as referred to in Article 49 (2) in a particular day, to the extent to which an average work hours per week during a certain unit period of not more than a month do not exceed work hours referred to in Article 49 (1): Provided, That work hours in any particular week or in any particular day shall not exceed fifty six hours or twelve hours respectively: 1.Scope of workers subject to this paragraph; 2.Unit period (determined to be a certain period not exceeding one month); 3.Working days in a unit period, and work 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 who are not less than fifteen years and less than eighteen years of age, and to female workers who are in pregnancy. (4) When an employer needs to have the relevant worker work in accordance with paragraphs (1) and (2), the employer shall prepare measures to ensure that the existing level of wages is not lowered. (5) An employer shall report to the Minister of Labor the contents of a written agreement as referred to in paragraph (2) in accordance with the Presidential Decree. Article 51 (Selective Work Hours System) When an employer has determined the matters falling under the following subparagraphs by a written agreement with the workers' representative with regard to workers who are allowed to decide on their own beginning and finishing time of work hours pursuant to rules of employment (including other rules equivalent thereto), the employer may extend weekly work hours beyond those referred to in Article 49 (1) and daily work hours beyond those referred to in Article 49 (2), to the extent to an average work hours per week during adjustment period of balances set within the limit of a month do not exceed the work hours referred to in Article 49 (1): 1.Scope of workers to whom this paragraph applies (excluding those workers at the age not less than fifteen years and less than eighteen); 2.Adjustment period of balances (a specified period not exceeding one month); 3.Total work hours during an adjustment period of balances; 4.Beginning and finishing time of work hours, during which works must be provided; 5.Starting and ending time of work hours which workers are allowed to determine; and 6.Matters prescribed by the Presidential Decree. Article 52 (Restrictions on Extended Works) (1) In case where there exists an agreement between the parties concerned, work hours as referred to in Article 49 may be extended up to twelve hours per week,

(2) In case where there exists an agreement between the parties concerned, work hours as referred to in Article 50 may be extended up to the limit of twelve hours per week, and work hours as referred to in Article 51 may be extended, up to twelve hours per week averaged during a period of adjustment of balances as referred to in subparagraph 2 of Article 51. (3) Under special circumstances, an employer may extend work hours as referred to in paragraphs (1) and (2) with authorization of the Minister of Labor and consent of the workers: Provided, That in case where a situation is so urgent that the employer has no time enough to obtain authorization of the Minister of Labor, he shall immediately obtain ex post facto approval of the Minister of Labor. (4) In case where the Minister of Labor finds that the extension of work hours as referred to in paragraph (3) is not appropriate, the Minister may order an employer concerned to allow the workers concerned recess hours or days off equivalent to the extended work hours. Article 53 (Recess Hours) (1) An employer shall allow a recess of not less than thirty minutes if working for four hours or a recess of not less than one hour if working for eight hours, during the work hours. (2) A recess hours may be freely used by workers. Article 54 (Holidays) An employer shall allow workers at least one paid holiday per week on the average. Article 55 (Extended Work, Night and Holiday Work) An employer shall, in addition to the ordinary wages, pay fifty percent or more thereof for overtime work (work during the hours as extended pursuant to Articles 52 and 58, and the proviso of Article 67), for night work (work between 10:00 p.m. and 6:00 a.m.), or for Sunday or public holiday work. Article 56 (Special Case Provisions for Calculation of Work Hours) (1) When it is difficult to calculate work hours provided by a worker because he carries out his duty in whole or in part outside the workplace owing to a business trip or any other reason, it shall be deemed that he has worked for contractual work hours: Provided, That in case where it is ordinarily necessary for a worker to work in excess of contractual work hours in order to carry out said duty, it shall be deemed that he has worked during the hours ordinarily required to carry out that duty. (2) Notwithstanding the proviso of paragraph (1), in case where there exists a written agreement between an employer and the workers' representative in regard to the work concerned, the hours as determined by such a written agreement shall be regarded as those ordinarily required to carry out the relevant duty. (3) In case of works designated by the Presidential Decree as those works which are, in the light of their characteristics, necessary to leave the methods of performance to a worker' discretion, it shall be deemed that the works have been provided for such work hours as determined by a written agreement between the employer and the workers' representative. In this case, such written agreement shall contain the matters falling under the following subparagraphs:

1.Work to be provided; 2.Statement that an employer would not give specific directions to the worker regarding how to perform the work, and how to allocate work hours, etc.; and 3.Statement that the calculation of work hours shall be determined by the written agreement concerned. (4) An employer shall report the contents of such a written agreement as referred to in paragraphs (2) and (3) to the Minister of Labor in accordance with the Presidential Decree. (5) Other matters necessary for implementing paragraphs (1) and (3) shall be determined by the Presidential Decree. Article 57 (Monthly Paid Leave) (1) An employer shall allow the workers a one day's paid leave per month. (2) Such monthly paid leaves as referred to in paragraph (1) may be used by a worker concerned at his own free will, by accumulating or dividing them within one year. Article 58 (Special Provisions as to Working and Recess Hours) (1) An employer who runs a business which falls under any of the following subparagraphs may, if any written agreement between him and the workers' representative, have workers work in excess of twelve hours per week as referred to in Article 52 (1) or may change recess hours as referred to in Article 53: 1.Transportation business, goods sales and storage business, finance and insurance business; 2.Movie production and entertainment business, communications business, educational study and research business, advertisement 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, which are necessary for the convenience of the public at large or in consideration of the characteristics of a business. (2) An employer shall report to the Minister of Labor the contents of a written agreement as referred to in paragraph (1) in accordance with the Presidential Decree. Article 59 (Annual Paid Leave) (1) An employer shall grant ten days' annual paid leaves to a worker who has offered work without an absence throughout a full year and eight days' leaves to a worker who has registered not less than ninety percent of attendance during one year. (2) An employer shall grant a worker who has been employed for not less than two consecutive years one day's paid leave for each year after an initial year of consecutive employment years, in addition to annual paid leaves as referred to in paragraph (1): Provided, That in case where the total number of leaves to be granted does exceed twenty days, ordinary wages may paid for the number of days in excess of twenty days, instead of granting paid leaves. (3) An employer shall grant paid leaves as referred to in paragraphs (1) and (2), at such days as requested by a worker, and shall pay ordinary wages or average wages for the period of such leaves in accordance with the rules of employment or other regulations: Provided, That the period of leave to be granted may be altered in case where it might

cause a serious impediment to the operation of the business to grant such paid leaves at such days as requested by the worker. (4) The period of suspension of work resulting from occupational injury or disease of a worker and the period of suspension of work before and after childbirth for a female worker in accordance with Article 72 shall be regarded as equivalent to the period of work without suspension in application of paragraph (1). (5) Claims for paid leaves as referred to in paragraphs (1) and (2) shall be extinguished if not used within one year: Provided, That this shall not apply in case where the worker concerned has been prevented from using them due to any cause attributable to the employer. Article 60 (Substitution of Paid Leave) An employer may, by a written agreement with the workers' representative, have workers take a paid leave on a particular working day in substitution of a monthly paid leave as referred to in Article 57 or a annual paid leave as referred to in Article 59. Article 61 (Exemption from Application) The provisions pertaining to work hours, recess and holidays as referred to in this Chapter and Chapter 5 shall not apply to workers who fall under any of the following subparagraphs: 1.A worker engaged in cultivation or reclamation of land, seeding, cultivation or collection of plants, or other agricultural and forestry work; 2.A worker engaged in breeding of animals, collection or catching of marine animals and plants, cultivation of marine products, or other cattle- breeding, sericulture and fishery business; 3.A worker engaged in surveillance or intermittent work, whose employer has obtained approval of the Minister of Labor; and 4.A worker engaged in such business as prescribed by the Presidential Decree. CHAPTER 5 FEMALES AND MINORS Article 62 (Minimum Age and Employment Permit Certificate) (1) A minor under the age of fifteen shall not be employed in any work: Provided, That this shall not apply to a person with a employment permit certificate issued by the Minister of Labor. (2) An employment permit certificate referred to in paragraph (1) shall be issued only by designating the kind of work at the request of the relevant minor himself, as far as compulsory education is not impeded. Article 63 (Prohibition of Employment) Females and those under the age of eighteen shall not be employed in any work detrimental to morality or health, or any dangerous work: Provided, That the prohibited kinds of work shall be determined by the Presidential Decree. Article 64 (Minor Certificate) For each minor worker under the age of eighteen, an employer shall keep at each workplace a copy of family register verifying his age and a written consent of his parent or guardian.

Article 65 (Labor Contract) (1) Neither a person with parent authority nor a guardian shall enter into a labor contract on behalf of a minor. (2) A person with parent authority or guardian of a minor, or the Minister of Labor may terminate a labor contract, if deemed disadvantageous to the minor. Article 66 (Claim for Wages) A minor may claim his wages in his own right. Article 67 (Work Hours) Work hours of a person at the age of not less than fifteen years and less than eighteen, shall not exceed seven hours per day and forty two hours per week: Provided, That the work hours may be extended for one more hour per day and six more hours per week by an agreement between the parties concerned. Article 68 (Prohibition of Night Work) Neither females nor those under the age of eighteen shall be forced to work between 10:00 p.m. and 6:00 a.m., or on holidays: Provided, That this shall not apply in case where the consent of the worker concerned and the approval of the Minister of Labor is obtained. Article 69 (Overtime Work) An employer shall be forbidden to have any female at the age of not less than eighteen do overtime work exceeding two hours per day, six hours per week, or one hundred fifty hours per year, even if provided for in a collective agreement thereon. Article 70 (Prohibition of Work Inside Pit) An employer shall not have a female or a minor under the age of eighteen do any work inside a pit. Article 71 (Menstruation Leave) An employer shall grant a female worker one day's menstruation paid leave per month. Article 72 (Maternity Leave) (1) An employer shall grant a pregnant female worker sixty days' paid maternity leaves before and after childbirth: Provided, That not less than thirty days' paid maternity leaves shall be granted after childbirth. (2) A pregnant female workers shall be transferred to other light or easy work at her request, and shall not be assigned to overtime work. Article 73 (Nursing Hours) An employer shall grant not less than thirty minutes of paid nursing time twice a day to those female workers who have infants under the age of one, if requested by them. Article 74 (Return-Home Expenses)

An employer shall bear travel expenses when a female or a minor under the age of eighteen returns home within fourteen days from the date of his dismissal: Provided, That this shall not apply in case where the dismissal is attributable to the worker himself and the employer has obtained the approval thereof from the Labor Relations Commission. Article 75 (Educational Facilities) (1) A person who normally hires not less than thirty persons under the age of eighteen shall establish educational facilities for them: Provided, That said person may, if approved by the Minister of Labor, award scholarships to workers in lieu of establishment of educational facilities. (2) Necessary matters concerning educational facilities as referred to in paragraph (1) shall be determined by the Presidential Decree. CHAPTER 6 SAFETY AND HEALTH Article 76 (Safety and Health) Safety and health of workers shall be subject to the conditions as prescribed by the Industrial Safety and Health Act. CHAPTER 7 APPRENTICESHIP Article 77 (Prohibition of Maltreat of Apprentices) An employer shall neither maltreat training workers or probational workers, or other workers, regardless of their title, whose objective is to acquire technical skills, nor have them do his own domestic works or other works not related to the acquisition of technical skills. Article 78 (Training of Skilled Workers) (1) When it is necessary for fostering specific skilled workers requiring a long period of skills training in the course of regular employment, training methods of them, eligible employers, contract term, work hours and wages shall be determined by the Presidential Decree in consultation with the Labor Relations Commission. (2) When an employer intends to hire a worker pursuant to the Presidential Decree as referred to in paragraph (1), he shall obtain the approval of the Minister of Labor with respect to the number of workers, training methods, contract term, and the standards and payment method of wages. (3) When an employer hires a worker with the approval as referred to in paragraph (2), he shall report that fact to the Minister of Labor for obtaining a certificate verifying that the worker concerned is an apprentice, and shall keep the certificate at the workplace. Article 79 (Minor) A minor to whom Article 78 applies shall be granted twelve days' annual paid leaves per year as referred to in Article 59 (1). Article 80 (Cancellation of Approval) When an employer hiring a worker to whom Article 78 applied ceases to be eligible or violates the conditions of the approval, the Minister of Labor may cancel the approval as referred to in Article 78 (2).

CHAPTER 8 ACCIDENT COMPENSATION Article 81 (Compensation for Medical Treatment) (1) An employer shall provide necessary medical treatment at his expense or bear corresponding expenses for a worker who suffers from an occupational injury or disease. (2) The scope of occupational diseases and medical treatment as referred to in paragraph (1) shall be determined by the Presidential Decree. Article 82 (Compensation for Suspension of Work) An employer shall pay a worker who is under medical treatment pursuant to Article 81 a compensation for suspension of work equivalent to sixty percent of his average wages during the period of medical treatment. Article 83 (Compensation for Disability) When a worker suffers from a physical disability remaining even after finishing treatment for an occupational injury or disease, an employer shall provide him, in accordance with the grade of disability, with compensation for disability calculated by multiplying the average wages by the number of days as provided in the attached Table. Article 84 (Exception to Compensation for Suspension of Work and Compensation for Handicap) If a worker suffers from an occupational injury or disease due to his own gross negligence and an employer obtains the admission for said negligence from the Labor Relations Commission, the employer may not provide compensation for suspension of work or compensation for disability. Article 85 (Compensation for Survivors) An employer shall provide compensation equivalent to the average wages of one thousand days to surviving family members of a worker who dies during the performance of his duties or as a result thereof. Article 86 (Funeral Expenses) When a worker dies during the performance of his duties or as a result thereof, an employer shall provide funeral expenses equivalent to the average wages of ninety days. Article 87 (Lump Sum Compensation) When a worker who already received a compensation in accordance with Article 81 does not completely recover from the occupational injury or disease even after two years have passed since the medical treatment began, an employer may be exempted from any further liability for compensation under this Act by providing a lump sum compensation in an amount equivalent to the average wages of 1,340 days. Article 88 (Installment Compensation) When an employer proves his ability to pay compensation and obtains the consent of the recipient concerned, he may pay compensations as referred to in Article 83, 85 or 87 by installments during one year.

Article 89 (Claim for Compensation) A claim for compensation shall not be affected due to the retirement of the worker concerned, and shall not be transferred nor confiscated. Article 90 (Relationships with Other Damage Claims) When a person eligible to receive compensation has received money or other valuables corresponding to an accident compensation as prescribed by this Act for the same cause in accordance with the Civil Act and any other Acts or subordinate statutes, the employer shall be exempted from any obligation of compensation to the extent of the said value received. Article 91 (Review and Arbitration by Minister of Labor) (1) When a person has an objection to the admission of occupational injury, disease or death, methods of medical treatment, determination of compensation amount, or any other matter pertaining to the implementation of compensation, he may request the Minister of Labor to review or arbitrate the case in question. (2) When a request as referred to in paragraph (1) is filed, the Minister of Labor shall review or arbitrate the case within one month. (3) The Minister of Labor may review or arbitrate a case ex officio, if deemed necessary. (4) The Minister of Labor may have a doctor diagnose or examine the worker concerned, if deemed necessary for review or arbitration. (5) With regard to interruption of the prescription, the request for review or arbitration as referred to in paragraph (1) and the commencement of review or arbitration as referred to in paragraph (2) shall be regarded as a claim by way of judicial proceedings. Article 92 (Review and Arbitration by Labor Relations Commission) (1) If review or arbitration is made within the period specified under Article 91 (2) or if a person is dissatisfied with the result of that review or arbitration, the person concerned may file a request for review or arbitration with the Labor Relations Commission concerned. (2) When the request as referred to in paragraph (1) is filed, the Labor Relations Commission shall review or arbitrate the case within one month. Article 93 (Exceptional Cases Related to Contract Projects) (1) If a project executed based on several tiers of contracts, the primary contractor shall be regarded as an employer with regard to accident compensation. (2) In case where paragraph (1) above applies, if the primary contractor have his subcontractor liable for compensation by a written agreement, the subcontractor shall be also regarded as an employer: Provided, That the primary contractor shall not have two or more subcontractors bear overlapping compensation with regard to the same project. (3) In case where paragraph (2) above applies, if the primary contractor has been requested to pay compensation, he may ask the requesting person to demand compensation first from the subcontractor who has agreed to be liable for such compensation: Provided, That this shall not apply in case where the said subcontractor is declared bankrupt or missing. Article 94 (Preservation of Documents)

An employer shall preserve important documents related to accident compensations for two years. Article 95 (Prescription) A claim for accident compensation as referred to in this Act shall be extinguished by prescription, unless exercised within three years. CHAPTER 9 RULES OF EMPLOYMENT Article 96 (Preparation and Submission of Rules of Employment) An employer who ordinarily employs ten or more workers shall prepare the rules of employment regarding the matters falling under any of the following subparagraphs and submit such rules to the Minister of Labor. The same shall apply in case where he amends such rules: 1.Matters pertaining to the starting and ending time of work, recess hours, holidays, leaves, and shifts; 2.Matters pertaining to the determination, calculation and payment method of wages, a period for which wages is calculated and time of paying wages, and promotion to a higher payment step; 3.Matters pertaining to the methods of calculation and payment of family allowances; 4.Matters pertaining to retirement; 5.Matters pertaining to retirement allowance, bonuses and minimum wages; 6.Matters pertaining to burden of workers' meal allowances, expenses of operational tool or necessities and so forth; 7.Matters pertaining to educational facilities for workers; 8.Matters pertaining to safety and health; 9.Matters pertaining to assistance with respect to occupational and non-occupational accidents; 10.Matters pertaining to award and punishment; and 11.Other matters applicable to all workers within the business or workplace concerned. Article 97 (Procedures for Preparation and Amendment of Rules of Employment) (1) An employer shall, with regard to the preparation or alteration of the rules of employment, hear the opinion of a trade union if there is no trade union composed of the majority of the workers in the business or workplace concerned, or otherwise hear the opinion of the majority of the said workers: Provided, That in case of amending the rules of employment unfavorably to workers, an employer shall obtain their consent. (2) When an employer submits the rules of employment pursuant to Article 96, he shall attach a document containing the opinion as referred to in paragraph (1). Article 98 (Restrictions on Punishment) When a punitive reduction for workers must be contained in the rules of employment, the amount of reduced wage for each infraction shall not exceed half of one day's average wages of the relevant worker and the total amount of reduction shall not exceed one-tenth of the total amount of wages at each time of wages payment. Article 99 (Observance of Collective Agreement)

(1) Rules of employment shall not conflict with any Act and subordinate statute, or a collective agreement applicable to the business or workplace concerned. (2) The Minister of Labor may order modify any part of the rules of employment which conflicts with any Acts and subordinate statute or the collective agreement. Article 100 (Effect of Violation) If a labor contract includes any part of working conditions which does not meet the standards as provided in the rules of employment, such part shall be null and void. In this case, the invalidated part shall be governed by the standards provided for in the rules of employment. CHAPTER 10 DORMITORY Article 101 (Protection of Dormitory Life) (1) An employer shall not interfere with the private life of workers lodging in a dormitory annexed to a business or workplace concerned. (2) An employer shall not interfere with the election of staff required for the autonomous management of a dormitory. Article 102 (Preparation and Amendment of Dormitory Rules) (1) An employer who intends to lodge his workers in a dormitory annexed to a business or workplace shall prepare the dormitory rules concerning matters falling under the following subparagraphs and submit these rules to the Minister of Labor. The same shall also apply in case where said rules are amended: 1.Matters pertaining to getting-up and sleeping, 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 maintenance of buildings and facilities; and 6.Other matters applicable to all workers lodging in a dormitory concerned. (2) An employer shall obtain the consent of the representative of the majority of the lodging workers with regard to the preparation of and amendment to the dormitory rules stipulated in paragraph (1). (3) An employer shall submit the dormitory rules under the condition referred to in paragraph (1) with a document verifying the consent as prescribed in paragraph (2) attached thereto. (4) Both the employer and workers lodging in a dormitory concerned shall comply with the dormitory rules. Article 103 (Facilities, Safety and Health) (1) An employer shall take measures necessary for maintenance of health, public morals and lives of the workers lodging in a dormitory annexed to the business. (2) The standards for the measures necessary to be taken pursuant to paragraph (1) shall be prescribed by the Presidential Decree. CHAPTER 11 LABOR INSPECTOR, ETC. Article 104 (Supervisory Authorities)

(1) The Minister of Labor and its subordinate offices shall have a labor inspector to ensure the standards of the working conditions. (2) Matters concerning the qualification, appointment and dismissal, and placement of the labor inspector shall be prescribed by the Presidential Decree. Article 105 (Authority of Labor Inspector) (1) A labor inspector shall have the authority to inspect workplaces, dormitories and other annexed buildings, to request presentation of books and documents, and to interrogate both an employer and workers. (2) A labor inspector who is a medical doctor or a medical doctor entrusted by a labor inspector shall have the authority to conduct a medical examination of workers who seem vulnerable to those diseases due to which their continuous employment should be precluded. (3) In case where paragraphs (1) and (2) applies, the labor inspector or a medical doctor entrusted by a labor inspector shall show his identification card and a letter of order of inspection or medical examination issued by the Minister of Labor before performing his duty. (4) In a letter of order of inspection or medical examination order as referred to in paragraph (3), its date, time, place and scope shall be expressly specified. (5) A labor inspector shall have the authority to perform the official duties of judiciary police officials under the conditions as prescribed by the Act on the Persons Performing the Duties of Judicial Police Officials and the Scope of their Duties with regard to the crimes in violation of this Act and other labor-related Acts and subordinate statutes. Article 106 (Duty of Labor Inspector) A labor inspector shall not disclose any confidential matter which comes to his knowledge in the course of performing his duties. This shall apply after he is retired from the position. Article 107 (Report to Supervisory Authorities) (1) Workers may report to the Minister of Labor or a labor inspector if any violation of the provisions of this Act or the Presidential Decree promulgated pursuant hereto occurs at a business or workplace. (2) An employer shall not dismiss or unfairly treat a worker for making such a report as referred to in paragraph (1). Article 108 (Restrictions on Person Having Authority to Exercise Judicial Police Power) Only public prosecutors and labor inspectors shall have the authority to conduct inspections, request the presentation of documents, and interrogate the employer and workers as prescribed by this Act and any other labor- related Acts and subordinate statutes: Provided, That this shall not apply to the investigation of crimes related to the duties of labor inspectors. Article 109 (Delegation of Authority) The authority of the Minister of Labor under this Act may be delegated partly to the head of a regional labor authority under the conditions as prescribed by the Presidential Decree.

CHAPTER 12 PENAL PROVISIONS Article 110 (Penal Provision) Any person who has violated Article 6, 7, 8, 30 (1) and (2), or 39 shall be punished by imprisonment for not more than five years or by a fine not exceeding thirty million won. Article 111 (Penal Provision) Any labor inspector who connived, on purpose, at violations of this Act shall be punished by imprisonment for not more than three years or by a suspension of qualification for not more than five years. Article 112 (Penal Provision) Any person who has violated Article 36, 42, 45, 55, 63 or 70 shall be punished by imprisonment for not more than three years or by a fine not exceeding twenty million won. Article 113 (Penal Provision) A person who falls into any of the following subparagraphs shall be punished by imprisonment for not more than two years or by a fine not exceeding ten million won: 1.A person who has violated provisions of Article 9, 32 (1), 34 (1) and (2), 49, 52 (1) and (2), main sentence of Article 52 (3), 53, 54, 57 (1), 59 (1) and (3), 62, 67, 68, 69, 72, 73, 79, 81, 82, 83, 85, 86 or 107 (2); 2.A person who has violated an order referred to in Article 52 (4); and 3.A person who has violated the prescribed number of workers, method of training, term of contract, work hours, standards of wages and methods of payment thereof as referred to in Article 78 (2). Article 114 (Penal Provision) A person who has violated Article 44 shall be punished by a fine not exceeding ten million won. Article 115 (Penal Provision) A person who falls under any of the following subparagraphs shall be punished by a fine not exceeding five million won: 1.A person who has violated Articles 5, 13, 23, 24, 27, 28, 38, 40, 41, 46, 47, 50 (5), the proviso of Articles 52 (3), 56 (4), 58 (2), 64, 65, 71, 74, 75, 77, 78 (3), 94, 96, 97, 98, 101 (2), 102, 103 or 106; 2.A person who has failed to comply with the methods of custody and repayment as authorized pursuant to Article 29 (2); 3.A person who has failed to comply with an order as referred to in Article 99 (2); 4.A person who has refused, obstructed or evaded inspections or examinations by a labor inspector or a medical doctor entrusted by him, who has not made any of the required statements to his official questioning or has made false statements, or who has failed to present books and documents or has presented false books or documents, under the conditions as prescribed in Article 105; and

5.A person who has failed to make a report, or who has made a fraudulent report, or who has failed to attend, at the requests of the Minister of Labor, the Labor Relations Commission, or a labor inspector as referred to in Article 12. Article 116 (Joint Penal Provisions) If a person who has committed an act in violation of this Act is an agent, servant, or other employee who acts on behalf of a business owner in relation to the matters regarding workers at the business concerned, the said business owner shall, separately from an actual offender, be punished by a fine as provided in each corresponding Article under this Act: Provided, That this shall not apply in case where a business owner (if a business owner is a juristic person, its representative, and if a minor or incompetent who does not have the same ability as that of an adult with respect to business management, his legal representative. The same shall apply in this Article hereinafter.) has previously taken necessary measures to prevent a violation. A business owner shall be punished as an actual offender, in case where he has, knowing the plan to violate this Act, failed to take necessary measures to prevent such a violation, in case where he has, knowing the violation, failed to take necessary corrective measures, or in case where he has instigated such a violation. ADDENDA Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. [Amended by Act No. 5510, Feb. 20, 1998] Article 2 (Transitional Measure concerning Demand for Report, etc.) Requests to make report, appear, or submit books of documents, which have been made by The Minister of Labor, the Labor Relations Commission or a labor inspector to an employer or worker pursuant to any previous provisions at the time when this Act enters in force, shall be regarded to have been made pursuant to this Act. Article 3 (Transitional Measure concerning Labor Contracts, etc.) Labor contracts, rules of employment, dormitory rules, which have been entered into or drawn up pursuant to any previous provisions at the time when this Act enters into force, shall be regarded to have been entered into or drawn up pursuant to this Act. Article 4 (Transitional Measure concerning Advance Notice of Dismissal) Advance notices of dismissal, which have been made pursuant to any previous provisions at the time this Act enters into force, shall be regarded to have been made pursuant to this Act. Article 5 (Transitional Measure concerning Retirement Allowance Systems) Retirement allowance systems or retirement allowances, which have been established or paid by adjusting the balances of remuneration before retirement pursuant to any previous provisions at the time when this Act enters into force, shall be regarded to have been established or paid pursuant to this Act. Article 6 (Transitional Measure concerning Holidays, etc.)

Holidays and leaves, which an employer has granted to workers pursuant to any previous provisions at the time when this Act enters into force, shall be regarded as the holidays and leaves granted pursuant to this Act. Article 7 (Transitional Measure concerning Accident Compensation, etc.) Accident compensations, which have been made pursuant to any previous provisions at the time this Act enters into force, shall be regarded as having made pursuant to this Act. Article 8 (Transitional Measure concerning Effect of Written Agreement) A written agreement between an employer and workers' representative and a agreement between an employer and workers, which have been made pursuant to any previous provisions at the time this Act enters into force, shall be regarded to have been made pursuant to this Act. Article 9 (Transitional Measure concerning Effect of Consent) Consent, which an employer has obtained from a trade union, a majority of the workers, individual workers, a person eligible for compensation, or a person representing a majority of workers lodging in a dormitory pursuant to any previous provisions at the time this Act enters into force, shall be regarded to have been obtained pursuant to this Act. Article 10 (Transitional Measure concerning Effect of Claims, etc.) Claims or requests, which workers have made to the Minister of Labor, the Labor Relations Commission or an employer, pursuant to any previous provisions at the time when this Act enters into force, shall be regarded to have been made pursuant to this Act. Article 11 (Transitional Measure concerning Effect of Report) Reports, which an employer has made to the Minister of Labor pursuant to any previous provisions at the time when this Act enters into force, shall be regarded to have been made pursuant to this Act. Article 12 (Transitional Measure concerning Effect of Approval, etc.) Authorization, admission, approval, order, review, arbitration and cancellation of authorization, which have been done by the Minister of Labor and the Labor Relations Commission pursuant to any previous provisions at the time when this Act enters into force, shall be regarded to have been done pursuant to this Act. Article 13 (Transitional Measures concerning Effect of Employment Authorization Certificate, etc.) (1) An employment permit certificate, identification card, a letter of order for investigation, and a letter of order for medical examination, which have issued by the Minister of Labor pursuant to any previous provisions at the time this Act enters into force, shall be regarded to have been issued pursuant to this Act. (2) When a worker at the age of not less than thirteen but less than fifteen at the time when this Act enters into force, requests employment permit certificate within three months thereafter, the Minister of Labor shall issue an employment permit certificate.

Article 14 (Transitional Measure concerning Penal Provisions) Application of the penal provisions to acts committed before this Act enters into force, shall be dealt with in accordance with the previous provisions. Article 15 (Relation with Other Acts and Subordinate Statutes) References to the previous Labor Standards Act or certain provisions therein in other Acts and subordinate statutes at the time this Act enters into force, shall be construed as references to this Act or corresponding provisions herein, if any, in lieu thereof. ADDENDA[Act No. 5473, Dec. 24, 1997] Article 1 (Enforcement Date) This Act shall enter into force on the date of its promulgation. Article 2 (Transitional Measures on Preferential Payment of Wage Claims) (1) In the case of employees who retired before the enforcement of this Act, notwithstanding the amended provisions of Article 37 (2) 2, the retirement allowance for consecutive years of employment which began on or after March 29, 1989 shall be subject to preferential reimbursement. (2) In the case of employees who were recruited before and retired after the enforcement of this Act, notwithstanding the amended provisions of Article 37 (2) 2, the total amount of retirement allowance for consecutive years of employment calculated between March 29, 1989 and the enforcement of this Act, and the retirement allowance of the last 3 years generated from consecutive years of employment since the enforcement of this Act, shall be subject to preferential reimbursement. (3) The retirement allowance as an object to be paid preferentially pursuant to the provisions of paragraphs (1) and (2) is subject to calculation as an amount equivalent to one 30 days' portion for every one year of continuous employment. (4) The retirement allowance falling on preferential payment pursuant to paragraphs (1) and (2) shall not exceed one 250 days' portion of the average wages. ADDENDUM [Act No. 5510, Feb. 20, 1998] This Act shall enter into force on the date of its promulgation. [Source : Korea Legislation Research Institute "Statutes of the Republic of Korea" ]