Maternity Leave and Childcare Leave

If employees are pregnant, they may apply for pre-birth or post-birth maternity leave. They may also apply for childcare leave within one year from the date of childbirth.

1. Maternity Leave

• Qualifications
  • While childcare leave is available to parents of adopted children, only pregnant women or new mothers may apply for pre-birth and post-birth maternity leave.
  • Female employees may apply for leave regardless of their type of employment contract, in accordance with the Labor Standards Law.
• Duration of Maternity Leave
  • If there is no problem in delivery, employees may apply for 90 days of leave around the due date or the date of childbirth.
  • Employees shall use 45 days of the leave or more after giving birth.
  • Pre-birth and post-birth maternity leave is granted to employees of certain businesses, and thus the leave expires when the employment contracts expire during the leave.
• Maternity Leave Allowance
  • You will be granted maternity leave allowance during your absence.
  • Major corporations give out 100% of the employee’s usual pay for 60 days, and the remaining 30 days are paid through unemployment insurance.
  • Small and medium enterprises provide 90 days of pay from unemployment insurance.
• How to Apply for Maternity Leave Allowance
  • In order to be granted pre-birth and post-birth maternity leave allowances, you should visit a job center close to your residence or workplace and submit the following materials:
• Required Documents
  • From the company: Certificate of maternity leave (miscarriage/stillbirth), pay stubs, a copy of an employment contract
  • From the Ministry of Labor

2. Childcare Leave

Employees with a baby less than 3 years of age can apply for childcare leave for a year.

• Qualifications
  • Employees who have stayed with a company for more than a year, who are a parent of a baby less than 3 years of age can apply.
  • Childcare leave is guaranteed to prevent employees from quitting the job due to childcare and let them carry out the household tasks and company’s work in harmony.
• Duration of Childcare Leave
  • The maximum duration of childcare leave can be extended to one year.
• Childcare Leave Allowance
  • During childcare leave, the applicant is granted a monthly allowance of 50,000 won through unemployment insurance.
  • The subsidy for childcare leave (200,000 won monthly) and the subsidy for alternate employment (200,000 to 300,000 won monthly) are given to the employer apart from childcare leave allowance.
• How to Apply for Childcare Leave Allowance
  • Submit your application for childcare leave allowance to the business proprietor 30 days prior to taking leave.
  • The application form is available at the Ministry of Labor Web site or job centers.
  • Submit the application form approved by your employer to the nearest job center.

 

Overview of the Labor Standards Law

The Labor Standards Law was enacted to guarantee and improve the basic livelihood of workers, and to promote the balanced development of the national economy by setting the standards for labor terms.

• Employment Contracts
  Employment contracts are signed by employers and employees. The contracts cover major issues related to salaries and workplace responsibilities, and it is important to keep such employment contracts as documents.
• Protection of Employees in Accordance with the Labor Standards Law
  • Applicable to all companies or businesses that regularly employ five workers or more
  • Partially applicable to businesses or companies that regularly employ four workers or less
  • Salaries are to be paid directly on the fixed date, in full and in cash. The salaries shall be paid at least once a month, and in a regular manner.
  • Additional salary may be paid to employees who work overtime, at nights and on holidays.
  • Employees who have worked one year or more may apply for retirement benefits.
  • Employees may present a petition to the competent local offices of labor and the department of labor supervision if employers fail to pay salaries and retirement benefits, employees became victims of violence from employers or managers, or if employees are forced to work overtime against their will. (Labor Counseling Center ☎1350, 1544- 1350)
• Delays in Salary Payments
  • Delays in salary payments refer to cases in which employers fail to pay salaries on the fixed date. Employees may report such a case to the Labor Supervisory Officer of the competent Local Office of Labor, and request action be taken.
  • If such cases are reported to local offices of labor, the offices shall conduct the due diligence on employers and employees 10 days or 14 days later. Employees are recommended to provide diverse materials that can back up their statements.
  • Procedure

    

• Salary Compensation System
  If employees have retired from the company due to the bankruptcy of employers and have failed to receive salaries and retirement benefits, the government provides the following benefits.
  • Salaries for the final three months : Salaries for the final three months, from the date of retirement or the date of actual retirement
  • Benefits for leave for the final three months : Benefits for leave for the final three months, from the date of retirement or the date of actual retirement
  • Retirement benefits for the final three years : Retirement benefits for the final three years, calculated as of the date of retirement (average salaries for 90 days)
• Layoff
  The Labor Standards Law stipulates that the layoff of employees shall take effect only when there are reasonable causes. Causes are categorized into the following three types.
  • Personal reasons
  • Behavioral reasons
  • Emergency need for business operation

 

Labor Standards

• Working Hours
  • At workplaces to which the revised Labor Standard Act is applied, working hours should not exceed 8 hours per day and 40 hours per week, except for break time.
  • At workplaces to which the revised Labor Standard Act is not applied, working hours should not exceed 8 hours per day and 44 hours per week except for break time.
  • The working hours of small-scale companies with less than 20 employees will be reduced to 40 hours per week by 2011.
• Breaks
  • A thirty-minute break is given for every 4 hours of work, and a 1 hour break is given for every 8 hours of work.
  • Employees are free to use their breaks as they wish, but they will be unpaid during this period.
• Overtime, Night Duty and Holiday Work
  • Overtime refers to the amount of time worked beyond the legal limit of 8 hours of work.
  • Night duty refers to work that takes place between 10 p.m. and 6 a.m.
  • Holiday work refers to work that takes place on national and contractual holidays.
  • Pay for overtime, night duty, and holiday work is 1.5 times the pay given for regular working hours.
• Shifts
  • Companies that require production facilities to be run for 24 hours divide their employees into two or three teams to work in shifts.
  • Some factories make arrangements whereby their employees rotate day and night shifts on a weekly basis.
  • Others group their employees into shifts on a permanent basis.

 

Salary

• Guaranteed Minimum Income
  • This refers to the minimum amount of money that the government requires employers to pay to employees.
  • Applicable for all companies or businesses that regularly employ one worker or more
  • Period for availability: 2011. 1. 1 ~ 2011. 12. 31
  • Hourly wage: 4,320 won (You get 34,560 won a day if you work 8 hours)
  • In pursuant to the Clause 3 of the Article 63 of the Labor Standards Act, those under surveillance or do intermittent work, for which the employer has obtained the approval of the Minister of Labor, get an hourly wage of 3,456 won which is a 20 percent off the regular hourly wage.
    • Probationary employees receive 90 percent of the minimum hourly wage for 3 months.
• Payment System
  • Salary contracts can be based on hourly, weekly, monthly, or yearly pay.
  • Generally, employees working in the manufacturing industry are paid on a monthly basis, while those working in the construction industry are paid on a daily basis. Employees with hourly working contracts have their pay calculated by the hour, but most employees are paid on a monthly basis.
  • It is important to check that you are receiving the correct amount of money from your employer, and you should keep a record of your daily working hours. Some companies keep time cards in order to maintain accurate time records.
• Retirement Allowance
  • Only employees working in accordance the Labor Standard Act will qualify for retirement allowance.
  • There is no retirement allowance granted to employees who work less than 15 hours per week.
  • Retirement allowance is limited to companies with more than five employees.
  • Employees who have been with a company for more than a year are to be granted an annual bonus, equivalent to at least 30 days of pay.
• Retirement grant calculation method:
  • Total period of labor: April 30, 1998 ~ October 31, 2002 (4 years 6 months and 28 days = 1,668 days)
  • Calculation of average salary three months prior to retirement: 3,600,000 won (Total wage amount over three months) / 92 = 39,130won
  • Avg. salary 39,130 won * 30 days * 1,668 days / 365 days = 5,364,621won

 

Source| Guidebook for living in Korea for foreigners