The Rules of Employment (ROE)

The Rules of Employment are a document that is registered by the Corporation with the Department of Labor and constitute the terms and conditions of the contract. All Companies with 10 or more employees must have an R.O.E.

Hours per Month and Overtime

Korea has 5 different categories of contractual working hours per month and they range from 174 to 243 hours. The number of contractual working hours are stated within the ROE. The number of contractual working hours is used for the calculation of overtime and severance pay. The number of contractual working hours is defined as the number of paid days plus the number of days of paid leave. So, if an employer states that the employee receives two paid days of leave per week then the total number of contractual hours will be 243 and overtime will have to exceed that amount. The only way for an employer to limit Overtime payments is through the ROE.

Holidays and Sick Days

Cheosuk, Christmas, New Years all come under the category of Contract Holiday, Labor Day is a Statutory Holiday. When the employee can take a holiday and how the employee can apply for a day of Paid Leave, or Contract Holiday, are defined in the Rules of Employment. In addition many ROE’s state that if the employee is sick that Contract Holiday’s are applied used during the time of illness so the Employee does not suffer from a lost of income during the time of illness and the Employer does not pay for an unexpected absence. The number of Contract Holidays, the rate at which they increase, when they can be taken, and how, they can be used are stipulated in the Rules of Employment.

Causes of Termination, Disciplinary Procedures, & the Process of Termination

The ROE clearly defines the code of conduct expected by the employee and the consequences of breaking the code of conduct. The process of termination is a critical element of the Rules of Employment and, if well written, enables the Employer to safely terminate employees who are not suitable to their operations. Most employers get into trouble by not having these items well defined and not following them.

The Rules of Employment are the underlying foundation of employment contracts and is required by all companies with 10 or more employees. The Labor Standards Act is fair to the employer and employee if followed and if the ROE is well written.

If you have any questions on the Rules of Employment please let us know.