Annual Leave
Annual leave regulations vary from one country to another, with Korea boasting some of the most robust labor laws globally.
We are well-equipped to elucidate the intricacies of annual leave laws and their application, including the standard procedures for calculating and managing annual leave entitlements within Korean companies.
Annual Leave Rules and Regulations
Standard Regulations:
In Korea, there are specific regulations governing annual leave entitlements for employees, outlined as follows:
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Minimum Annual Leave: Employees are entitled to a minimum of 15 days of annual leave per year.
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First Year Entitlement: During their first year of employment, employees may utilize one day of annual leave for each completed month of work. Upon completion of their first full month, employees are eligible to take one day of leave.
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Usage Threshold: Once an employee has worked for 80% of the total working days within their first year, they can access the remainder of their allotted annual leave for that year. However, the actual utilization of annual leave is subject to company policy and approval.
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Incremental Increase: Beginning from the fourth year of employment, annual leave entitlement increases incrementally. An additional day of leave is granted every two years, with the maximum automatic increase capped at 25 days. Further increases beyond this limit may be determined by the employment agreement or company policy.
Unused Annual Leave Handling:
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Rollover Option: Employers have the option to allow unused annual leave to be carried over to the following year. However, any leave rolled over from the previous year cannot be rolled over again.
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Reimbursement or Utilization: Alternatively, employers may require employees to utilize or reimburse them for any unused annual leave, typically providing a six-month notice before the leave expires.
Calculation Method:
The calculation of unused annual leave typically follows two approaches:
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Based on Last Day of Work: This method involves multiplying the monthly salary by the fraction of days remaining until the last day of work in the month.
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Based on Days Worked: Alternatively, the calculation is based on the number of days worked in the month divided by the total number of working days in the month, multiplied by the monthly salary.
It's important to note that all annual leave is considered paid leave, and the use of annual leave during the resignation/notice period is subject to mutual agreement between the employee and employer.
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