Korea Updates Employment Law with New Workplace Rights and Holiday Rules

South Korea has introduced a number of important employment law developments that employers should begin preparing for over the coming months. Changes include greater flexibility around rest breaks for short working days, new statutory rights allowing annual leave to be taken in smaller increments, and strengthened legal protections for employees exercising their annual leave entitlement. Employers should review internal policies and HR procedures to ensure they remain compliant as these reforms come into force.

The Ministry of Employment and Labor has also revised its guidance on Labour Day, confirming that holiday substitution arrangements may now be used in many workplaces with five or more employees, provided the necessary written agreements are in place. This represents a significant shift from previous government guidance and offers employers greater flexibility when managing public holiday schedules.

Separately, the Korean Supreme Court has clarified the application of collective bargaining obligations under the law as it existed before the introduction of the Yellow Envelope Act. The Court confirmed that the expanded definition of “employer” introduced by the new legislation does not apply retrospectively. Businesses involved in contractor or supplier relationships should continue to assess carefully whether they exercise sufficient control over working conditions to trigger bargaining obligations under the amended legislation.

By Yulchon, Korea, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact korea@transatlanticlaw.com

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