What Is a촉탁 Contract Worker? Rights & Differences from Regular Fixed-Term Contracts in Korea

What Is a 촉탁 Contract Worker?

"촉탁계약직" (choktak contract worker) is not a term separately defined in the Labor Standards Act (근로기준법) or the Act on the Protection of Fixed-Term and Part-Time Workers (기간제법). In practice, it is used mainly in two situations: first, when a worker who has reached mandatory retirement age (ordinarily age 60) is rehired for a set period; and second, when an outside specialist is engaged on a short-term contract for a specific project or professional task. Regardless of whether the title is "촉탁" or "계약직," if a written employment contract is signed and the worker performs duties under the employer's direction and supervision, that person is protected as an employee under the Labor Standards Act.

Note for foreign workers: The statutory rights described below represent the legal minimum. Your individual contract may provide more favorable terms, but it cannot fall below these minimums.

How Is It Different from a Regular Fixed-Term Contract?

The most significant difference is whether the 2-year exception under the Fixed-Term Act applies. Article 4 of the Act on the Protection of Fixed-Term and Part-Time Workers (기간제법 제4조) generally provides that using a fixed-term worker for more than 2 years results in that worker being deemed an indefinite-term (무기계약직) employee. However, Item 1 of Paragraph 1 of the same article recognizes an exception when a worker aged 55 or older is rehired after reaching mandatory retirement age. In other words, a worker rehired on a 촉탁 basis after retirement may remain on a fixed-term contract even beyond 2 years.

By contrast, if a contract is simply labeled "촉탁" without any connection to mandatory retirement, the same 2-year conversion rule that applies to ordinary fixed-term workers will govern. Substance matters more than the label.

The Four Major Social Insurances and Key Working Conditions Still Apply

Because 촉탁 contract workers are employees, enrollment in the four major social insurances (4대보험) is mandatory. As of 2026, the key contribution rates are as follows:

If you work 15 hours or more per week, a weekly holiday allowance (주휴수당) is generated. After 1 year of continuous service, 15 days of annual leave (연차유급휴가) are granted. During the first year of employment, 1 day of annual leave accrues each month, up to a maximum of 11 days.

How Is Severance Pay Calculated?

Severance pay (퇴직금) is triggered when you have worked continuously for at least 1 year and at least 15 hours per week. A frequent point of dispute in practice is whether the pre-retirement service period and the post-retirement 촉탁 period are combined. The Supreme Court has recognized combined calculation in cases where the rehire contract continued without a break from the prior employment relationship (see Supreme Court Case 2017다218642, etc.). On the other hand, if the contract explicitly states "severance pay settled; new contract commences" and the settlement was actually carried out, separate calculation is possible. Severance pay must be paid within 14 days of the date of retirement; if delayed, a late-payment interest rate of 20% per annum applies (Article 17 of the Enforcement Decree of the Labor Standards Act / 근로기준법 시행령 제17조).

Unemployment Benefits When the Contract Expires

When a 촙탁 contract ends without renewal, it is recognized as an involuntary separation (비자발적 이직). If you meet the eligibility requirements — including at least 180 insured days within the 18 months before separation — you can receive job-seeker benefits (구직급여). As of 2026, the daily upper limit is 68,100 won and the daily lower limit is 66,048 won.

Checklist for Preventing Disputes

If you are a 촉탁 contract worker, make sure your employment contract clearly states: ▲ the contract period, ▲ wages, ▲ scope of duties, ▲ renewal criteria, and ▲ whether severance pay has been settled. If the employer presents conditions only verbally or refuses to provide a written contract, this constitutes a violation of Article 17 of the Labor Standards Act (근로기준법 제17조) and can be reported to the labor authorities.

To estimate your severance pay, try the severance pay calculator at workbear.kr (재주넘는곰). Enter your length of service and average wage to instantly check your statutory severance entitlement. If you need a review of whether your contract terms are lawful, the AI contract review feature is also available.

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

Frequently Asked Questions

Can a 촉탁 contract worker receive severance pay?

Yes. Even as a 촉탁 contract worker, you are entitled to severance pay 퇴직금 if you have worked continuously for 1 year or more at the same workplace and worked 15 hours or more per week. Whether the period of service before mandatory retirement and the 촉탁 period after retirement are combined depends on the contract terms and court precedents, so caution is required.

Does a 촉탁 contract worker become an indefinite-term worker after 2 years?

Under the Act on the Protection of Fixed-Term and Part-Time Workers 기간제법 , the general rule is that using a fixed-term worker for more than 2 years results in that worker being deemed an indefinite-term 무기계약직 employee. However, an exception applies when a worker aged 55 or older is rehired after reaching mandatory retirement age, meaning the fixed-term contract can continue beyond 2 years in that case Article 4, Paragraph 1, Item 1 of the Fixed-Term Act / 기간제법 제4조 제1항 제1호 .

Can I receive unemployment benefits when my 촉탁 contract expires?

If your contract ends without renewal, it is recognized as an involuntary separation. If you meet the eligibility requirements — including at least 180 insured days within the 18 months before separation — you can receive job-seeker benefits 구직급여 . As of 2026, the daily upper limit is 68,100 won.