Annual Leave at Workplaces with Fewer Than 5 Employees in Korea: 2026 Complete Guide for Foreign Workers

Can You Get Annual Leave at a Workplace with Fewer Than 5 Employees?

If you work at a small workplace — a convenience store, a small café, a neighborhood restaurant — with fewer than 5 employees, you may have wondered: "Do I get annual leave?" The short answer is: annual leave is not legally guaranteed, but it depends on what your contract says.

The Labor Standards Act Applies Only to Workplaces with 5 or More Employees

Article 60 of the Labor Standards Act (근로기준법 제60조), which provides for annual paid leave (연차유급휴가), applies only to workplaces with 5 or more regular employees (Article 11 of the Labor Standards Act (근로기준법 제11조) and Attached Table 1 of its Enforcement Decree). Workplaces with fewer than 5 employees are not subject to this provision, so an employer who does not grant annual leave is not in violation of the law.

Under Article 60 of the Labor Standards Act, employees at workplaces with 5 or more employees accrue up to 11 days of annual leave (1 day per month) during their first year of employment, and 15 days upon completing 1 year, increasing to a maximum of 25 days. However, these entitlements do not automatically apply to employees at workplaces with fewer than 5 employees.

If Annual Leave Is Written into Your Contract, the Situation Is Different

Even where the law does not guarantee it, if annual leave is explicitly stated in an employment contract or workplace rules, it takes effect as a binding civil-law contract. For example, if the contract states "15 days of annual leave per year," the employer is obligated to honor that. If the employer fails to do so, the employee may make a civil claim for unused annual leave allowance.

If you work at a workplace with fewer than 5 employees, it is therefore important to review your employment contract carefully.

Rights That Apply Even at Workplaces with Fewer Than 5 Employees

Not all provisions of the Labor Standards Act are excluded for workplaces with fewer than 5 employees. The following rights are guaranteed regardless of workplace size:

• Weekly holiday allowance (주휴수당): Paid when an employee works 15 or more hours per week and is not absent on any scheduled workday (Article 55 of the Labor Standards Act (근로기준법 제55조))
• Minimum wage: KRW 10,320 per hour as of 2026 (Minimum Wage Act (최저임금법))
• Severance pay (퇴직금): Paid to employees who have worked for 1 year or more (Act on the Guarantee of Employees' Retirement Benefits (근로자퇴직급여 보장법))
• Advance notice of dismissal: Obligation to give 30 days' notice or pay a notice allowance (Article 26 of the Labor Standards Act (근로기준법 제26조))

Even without annual leave, you must make sure to claim these rights.

How Is the Number of Regular Employees Calculated?

Whether a workplace has "fewer than 5" or "5 or more" employees is determined by the number of regular employees (상시 근로자 수). This is not simply a headcount on a specific day; it is based on the average number of employees over the period the business has been in operation. Part-time workers, short-hour workers, and dispatched workers may also be included, making the calculation more complex than it might seem. You can use the Regular Employee Count Calculator at Workbear (workbear.kr) to quickly check whether your workplace meets the 5-employee threshold.

If There Is No Annual Leave, You Can Negotiate

There is no legal obligation, but an employee can always discuss with the employer and include annual leave or a similar leave arrangement in the employment contract. Before signing a contract, you can use Workbear's contract review feature to check in advance for any unfavorable terms. If you want to know how many days of annual leave you have accrued or how much your leave allowance would be, try the Annual Leave Calculator as well.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.