Navigating South Korea’s Overtime Regulations: What Employers Need to Know

Understanding the nuances of overtime, exemptions, compensation, and how they differ across different countries and regions is crucial for employers to ensure compliance and foster a fair workplace.

Standard Working Hours and Overtime in South Korea

South Korea’s labor law (the Labor Standards Act, as ameded 2021) sets regular working hours at 40 hours per week, with a daily maximum of 8 hours. Anything beyond this counts as overtime. However, the law allows for up to 12 hours of overtime per week, provided both the employer and employee agree on each instance. Some exceptions do apply and will be covered further down this article.

Weekly Work Limit: 52 Hours

Despite the 40-hour workweek cap, South Korea’s labor law permits employees to work more than 8 hours in a day without violating the law, as long as the total weekly working hours do not exceed 52 hours. This system gives businesses flexibility.

Overtime Restrictions for New Mothers

Special protections are in place for female employees who have recently given birth. For employees who have given birth within one year, South Korean employers cannot require them to work even with their consent:

• More than 2 hours of overtime per day

• More than 6 hours of overtime per week

• More than 150 hours of overtime per year

Compensation for Overtime and Holiday Work

South Korean labor laws emphasize fair compensation for overtime and holiday work. An employee who works on holiday is entitled to 150% of ordinary wages. An employer may grant time off in lieu of working on a rest day instead of payment of wages, in case of a written agreement between the employer and labor representatives. An employee who works for more than 8 hours on a day off is entitled to 200% of the ordinary wages.

Employers need to ensure these calculations are accurately reflected in their payroll systems, especially for employees working long hours or covering weekend shifts.

Exemptions from Work Hours Regulations

Not all employees are bound by the standard work hours and overtime rules. Employees engaged in surveillance or intermittent work such as security guards, who monitor or provide intermittent services, may qualify for exemption.

However, the employer must obtain approval from the Minister of Employment and Labor. Managerial and supervisory employees who handle managerial, supervisory, or confidential tasks are also exempt from the standard work hours, regardless of the business type.

Implication for Employers

• Employers in South Korea must ensure compliance with overtime regulations with the 52-hour weekly limit.

• Employers must ensure that employees working overtime or on holidays are paid the appropriate wages (150% or 200% of normal hourly pay).

• Employers must strategically plan work schedules and adjust to special protections for new mothers.