The Employment Permit System allows employers who have failed to hire native workers to legally hire an adequate number of foreign workers and is a system that the government uses to introduce and manage foreign workers in Korea in an organized manner.

Foreign workers are covered by the labor-related laws during employment identical to native workers such as Labor Standard Act, Industrial Safety Health Act etc.

In case the employer would prefer to terminate the labor contract period for justifiable reason. In case of refusal to renew after the labor contract has been expired. 'Justifiable reason' means contract termination due to difficulty in business management or due to worker's fault etc. In case it is not possible to continue to work in the business due to reasons not of the foreign workers faults such as shutdowns and abolishment of business. In case the business receives orders to cancel foreign worker employment permit or measures to restrict employment In case the foreign worker is unable to work in a certain business or workplace, for example having injury and has no problem in changing workplace.

In case reasons for workplace change occur, foreign workers must apply for workplace change at a local employment security center within one month after the termination of labor contract in case justifiable reasons occur. Foreign workers have to depart in case they fail to apply for workplace change within one month after the termination of labor contract or fail to receive an approval of workplace change according to Article 21 of the Immigration Control Act within 2 months after the date of application.

Foreign worker cannot apply to change workplace more than 3 times during terms of stay. Only in case the worker cannot stay at a certain business due to reasons not responsible of the foreign worker such as closing of factory, and only in cases when employment permission has been cancelled due to accidents and that the business has been changed 3 times already, foreign worker is allowed to apply for one more additional change. Changing business of the foreign worker is strictly restricted.

To protect rights and to induce voluntary departure of foreign workers who enter Korea under the EPS, employers shall provide departure guarantee insurance and delayed payment insurance to workers and workers shall insure themselves for return cost insurance and accident insurance. As soon as entering Korea, foreign workers are insured of Employment Insurance, Health Insurance by the business, and must become insured to Return Cost Insurance and Trust, Accident Insurance etc..(insured during pre-employment training period).

1. 1. An employer has to renew labor contract within 30-90 days prior to expiration of worker’s VISA.
2. 2.The employer should apply for worker’s Visa within two (2) weeks. If approved, a Certificate of Confirmation of Visa Issuance (CCVI) is issued by the Immigration Office. In some cases, only a Secret Control Number is given to the employer. Only the CCVI or the Secret Number is required by the Korean Embassy in the Philippines, when the worker applies for Visa.
3. 3. At the POEA, proceed to BALIK MANGAGAWA section.

Requirements for Reemployment: Those who are in the state of employment relationships with the same company during the period of from 180 days to 30 days prior to the sojourn period expiration. However, in case the foreign worker is transferred to another company by the reason which stipulated on the Foreign Workers Employment Act 2~4 of paragraph 1 of the Article 25(Employers' Fault), it is possible to apply for reemployment until 30 days before the sojourn period expiration.

LABOR STANDARDS ACT (Amended by: Act No. 6974 on September 15, 2003): Standard working hours per week shall not exceed fourty four (44 hrs.) excluding recess time. (For workplaces with less than 50 workers) Standard working hours per week shall not exceed fourty (40 hrs.) excluding recess time. (For workplaces with 50 workers and above) Working hours per day shall not exceed eigth hours (8hours) excluding recess time. NOTE: Effective July 1, 2008, the 40-hour workweek system shall also apply to any workplaces with 20 workers and above. In other words, the standard working hours per week shall not exceed 40-hours. And by the year 2011, 44-hours workweek shall be completely abolished.

The Labor Standards Act, which stipulates minimum working standards for workers, used to be applied to workplaces with five or more workers, but with the revision of the Enforcement Decree effective on February 24, 1998, the scope was expanded to cover all workplaces, which came into effect from January 1, l999. However, some provisions (relating to employment contracts, restrictions on dismissal, working hours, leave, etc.) are not applied to workplaces with four workers or less given economic conditions and administrative capacity.

Employers cannot dismiss employees without justifiable causes. If dismissed without justifiable causes, an employee can apply for redress to a Labor Relations Commission. Employers may be subject to punishment for any unjustifiable dismissal. On the other hand, even when an employer dismisses his/her workers for justifiable reasons, the employer must notify the workers concerned of dismissal at least 30 days in advance. Otherwise, the employer should pay the workers 30 days or more of ordinary wages.

In principle, workers shall be paid their full wages on a specific day each month. If a worker demands wages in an emergency situation, such as childbirth, sickness, accident, etc., the amounts of wages corresponding to the amount of work offered shall be paid even before payday. If a worker has worked for more than one year in a workplace with 5 workers or more, the worker shall be given severance pay in the amount of at least 30-day average wages for each year of service. Severance pay, in principle, should be paid after retirement. However, should a worker request, he or she may receive, in advance, severance pay corresponding to their years of service to date. Along with this, since July 1, 1998, the government has implemented the Wage Claim Guarantee System that guarantees to pay workers who retire from a bankrupt company part of their unpaid wages. Because it is difficult for workers to claim their unpaid wages in the event of corporate bankruptcy, the government, on behalf of employers, guarantees to pay workers overdue wages, shutdown allowances, unpaid wages of final three months and severance pay of final three years.

It is stipulated in laws that working hours, excluding recess hours, shall not exceed 44 hours per week or 8 hours per day. In the case of overtime work agreed upon by the parties concerned, 50% of ordinary wages shall be paid additionally. If the flexible working hour system is adopted, through either an employment rule or a written agreement with workers' representatives, working hours can be extended. For instance, during a certain two-week period, it is possible to extend the working hours of a specific week up to 48 hours without providing additional pay, as long as the weekly average of working hours is 44 hours. On a monthly basis, working hours of a specific week and a specific day can be extended up to 56 hours and 12 hours, respectively, under a written agreement between an employer and workers, as long as the weekly average does not exceed 44 hours.

Weekly Holiday: One paid holiday shall be granted to those who have worked for a week without an absence. Monthly Paid Leave: One-day paid leave shall be granted to those who have worked for a month without an absence. Annual Paid Leave: Ten-days paid leave shall be granted to those who have worked for a year without an absence. In case of 90% of attendance during one-year period, 8-days paid leave shall be granted. (One-day annual leave is added for each of consecutive service years exceeding one year. If the number of leave days exceeds 20 days, the excess can be replaced with monetary compensations.)

The Minimum Wage Act, which aims to stabilize the livelihood of low-income workers and narrow wage gap. The coverage of the Act was extended to workplaces with 5 employees or more in September 1999, and further extended to all workplaces on November 24, 2000. The government sets and announces the minimum wage no later than August 5 of every year, and the minimum wage applies from September 1 of each year to August 31 of the following year.

If a worker dies or retires, an employer shall pay the wages, compensations, and other money or valuables within 14 days after the cause for such payment has occurred; however, the period, under special circumstances, may be extended by the mutual agreement between the parties concerned (article 36 of the Labor Standards Act). A person who has violated the said provisions shall be punished by imprisonment of up to three years or a fine up to 20 million won (article 112 of the Labor Standards Act).

- Receipt of petition → registering the petition to the petition handling ledger Issuance of summons summoning the petitioner and the employer the petition is filed again on a date set within 10 days from the date the petition is received. Fact-finding: Examining the workplace, identifying the reason for overdue wage, confirming the amount of the wage unpaid and adjusting the time to liquidate the overdue wage and other valuables . Payment of wages or severance pay: ending the case when the worker receives his/her wage. In case the employer does not pay the overdue wage or severance pay by the set date, he/she is prosecuted for violation of the Labor Standards Act and subject to criminal punishment (the labor inspector should send the person prosecuted for violation of the Labor Standards Act to the Prosecutor's Office within 60 days since he/she is booked).

Foreigners and Coverage : At the time of the introduction of the Scheme, foreigners were not mandatorily covered. Only foreigners working in a workplace covered under the Scheme could be covered as a workplace based insured person by submitting an application. Foreigners working at the workplace with 5 or more full-time employees were included in the mandatory coverage in August 1995 and those working at the workplace with less than 5 employees including self-employed foreigners were also included in the mandatory coverage in April 1999. Accordingly, foreigners aged from 18 to less than 60 who reside in Korea must be, in principle, covered under the Scheme. But foreigners falling under any of the following items are excluded from the coverage.

Foreigners and payment of lump-sum refund : Foreign insured persons under the National Pension Scheme are equally treated as the national insured persons. For example, there is no discrimination in terms of the benefit amount and remitting benefit abroad, etc. But there is a certain distinction in regarding a lump-sum refund. In principle, a lump-sum refund is not paid to foreigners leaving Korea after having been covered under the scheme. But, in the case of foreigners falling under any of the following items, a lump-sum refund is paid; People whose country grants Koreans a benefit corresponding to a lump-sum refund under the National Pension Scheme under this rule, only the nationals from 29 countries may receive the Korean lump sum refund.

Procedures of application for a Lump-sum refund : If you reside in Korea, you should visit the regional office and having the following documents ready; An Application for Korean Benefits (The form is ready at the regional offices.) a copy of your ID card your local bankbook A copy of an airline ticket. (the date of departure has to be in less than a month from the date of the claim) If you are insured under the other public pension schemes, a certificate of employment and a copy of a certificate of coverage should be presented If you reside overseas, a claim can be made by an agent or mail.

IACI benefits are awarded to an employee or his surviving family in cases of his injury, sickness, disability or death arising out of or in the course of his employment with a business or workplace which is covered under the IACI, in order to help the employee safely return to work and guarantee a certain level of income for his family during his recovery or after his death.

- Medical Care Benefits : In case of work-related injury or disease for 4 days or longer, the whole medical care expenses within National Health Insurance's coverage of medical examination will be covered
- Temporary Disability Benefits : The amount equivalent to 70% of the average daily wage for each day of work will be given
- Injury-disease compensation Annuity : Benefits at a high rate for an insured employee who has not recovered from his work-related injury or sickness even after 2 years of medical treatment and suffered from the disability of Grade 1～3 will be paid
- Permanent Disability Benefits: For an employee whose work-related injury or disease has resulted in physical or mental impairment even after he has recovered from the injury or disease, it will be awarded according to the extent of disability
- Nursing Benefits : For an employee who, owing to work-related injury or sickness, medically requires a constant or occasional nursing and actually receives nursing services, even though he has recovered from the injury or sickness
- Survivors Benefits : For the surviving dependent(s) of an employee who dies or is presumed dead due to a work-related reason, it will be granted in order to guarantee a decent living for his surviving family
- Funeral Expenses : The actual costs incurred for funeral service in case of an insured employee's death from a work-related cause.