How to Draft a Foreign Worker Employment Contract – Key Requirements and Guidelines

Table of Contents

1. Essential Items to Check in an Employment Contract
2. Wage and Working Hour Conditions
3. Regulations on Accommodation and Welfare
4. Legal Issues in Case of Violations

---

1. Essential Items to Check in an Employment Contract

 

Contracts with foreign workers must be signed in writing using the Standard Employment Contract. The contract must clearly state the wage, working hours, holidays, accommodation, and other major conditions.

※ Relevant Law: Article 6 of the Act on the Employment of Foreign Workers (Conclusion of Standard Contract)

 

The employer must explain the contract in the worker's native language or through an interpreter to ensure full understanding. This step is crucial to prevent misunderstandings.

※ Relevant Law: Article 10-2 of the Enforcement Decree of the same Act

2. Wage and Working Hour Conditions

 

The wage must be equal to or higher than the minimum wage, and the worker must work at least 15 hours per week. Overtime must be compensated with legal extra pay (for extended hours, night shifts, and holidays).

※ Relevant Laws: Labor Standards Act Articles 50~56, Minimum Wage Act Article 6

 

Working hours must not exceed 8 hours per day or 40 hours per week. At least one paid holiday per week must be provided except in special cases.

※ Relevant Laws: Labor Standards Act Articles 53 and 55

3. Regulations on Accommodation and Welfare

If the employer provides accommodation, details about costs, inclusion of meals, and deduction items must be stated in the contract. Deductions cannot exceed 20% of the monthly wage.

※ Relevant Guidelines: Standard Contract Notice, MOEL Guidelines on Deduction for Foreign Workers’ Housing and Meals

 

It is also mandatory to enroll in the four major insurances, including industrial accident insurance. The employer must not treat the employee unfavorably or dismiss them without consent.

※ Relevant Laws: Industrial Accident Compensation Insurance Act, Labor Standards Act Articles 23~26

4. Legal Issues in Case of Violations

 

If the employer violates or falsifies contract terms, they may face fines or criminal penalties. Serious issues such as illegal stay or wage arrears may result in restrictions on employment permits for the business.

※ Relevant Laws: Foreign Workers Employment Act Article 22, Immigration Control Act, Criminal penalties under the Labor Standards Act