Korean Labor Law Update

l Change in the expiration date of annual leave for the new hire

Under Article 60 of the Labor Standards Act (LSA) of Korea, employers shall grant its employees 15 days of paid annual leave if the employees fulfilled at least 80% attendance during one (1) year. With respect to employees who have worked for less than one (1) year, employers shall grant one (1) day of paid leave for each completed month of service. Before amendment of the LSA, however, the paid leave days used during the first year were able to be deducted from the 15 days to be granted in the second year (Article 60, Paragraph 3).

Effective from May 29, 2018, the paid leave days earned and used in the first year are not deducted from the 15 days to be granted in the second year (Articles 60, Paragraph 3 was deleted). Employees are granted one (1) day of paid leave for each completed month of service in their first year and separately, employees should be granted 15 days in the second year if fulfilled 80% attendance requirement.

Before revision, the paid leave days earned and unused in the first year (maximum 11 days) may be used for 1 year from the date the paid leave days earned. Effective from March 31, 2020, however, the unused paid leave days earned in the first year can be used for 1 year from the employment date.

This new rule shall be effective for the annual leave earned after March 31, 2020.