No Written Employment Contract? Fines & Penalties Every Employer and Worker in Korea Must Know

No Written Employment Contract — How Much Is the Fine?

What happens if you don't sign a written employment contract? This is not a vague warning about "possible disadvantages." The Labor Standards Act (근로기준법) explicitly classifies failure to prepare a written employment contract as a criminal offense.

Legal Basis: Article 17 and Article 114 of the Labor Standards Act (근로기준법 제17조·제114조)

Article 17 of the Labor Standards Act (근로기준법 제17조) requires employers to specify in writing and deliver to the worker the key working conditions at the time of entering into an employment contract — including wages, scheduled working hours, holidays, and annual paid leave (연차유급휴가). It is not enough merely to draft the contract; a copy must be physically handed to the worker.

Violating this obligation is punishable under Article 114 (제114조) by a fine of up to ₩5,000,000. Because this is a criminal penalty, it may result in a criminal record. If discovered during a labor inspection by the Ministry of Employment and Labor (고용노동부), the penalty process begins immediately.

Note for foreign workers: The statutory requirements described here are the legal minimum. Your actual contract may provide better terms, but it may never fall below these standards.

Stricter Rules for Fixed-Term and Part-Time Workers

Beyond regular employees, fixed-term workers (기간제 근로자, i.e., workers on a definite-term contract) and part-time workers (단시간 근로자) are additionally protected by Article 17 of the Act on the Protection of Fixed-Term and Part-Time Workers (기간제 및 단시간근로자 보호 등에 관한 법률, hereinafter "Fixed-Term Act" / 기간제법). This Act requires more items to be specified in writing than the Labor Standards Act does, and violations are subject to a separate administrative fine (과태료) of up to ₩5,000,000.

In other words, if you fail to prepare a written contract with a part-time worker (아르바이트) or a contract-based employee, both the criminal fine under the Labor Standards Act and the administrative fine under the Fixed-Term Act may apply simultaneously.

What Must Be Included in the Contract?

The mandatory items required by Article 17 of the Labor Standards Act (근로기준법 제17조) are as follows:

If even one of these items is missing, the contract may be deemed "incomplete" and the employer may still be subject to penalties.

What If a Worker Never Received a Copy of the Contract?

If you are a worker who never received a written employment contract, you may file a complaint (진정) with the Ministry of Employment and Labor Customer Consultation Center (고용노동부 고객상담센터, dial 1350, no area code required) or with the competent Regional Employment and Labor Office (관할 지방고용노동청). Once a complaint is received, a labor inspector will investigate the workplace, and if a violation is confirmed, the employer will be issued a corrective order or referred for criminal prosecution.

When filing a complaint, it helps to prepare supporting evidence such as KakaoTalk chat logs, wage transfer records, and attendance records that demonstrate you did not receive a written contract.

Employers: Check Your Compliance Right Now

"We agreed verbally, so it's fine" does not hold up legally. An employment contract must be prepared and delivered before work begins, or at the latest on the first day of work. Even for currently employed workers, if no written contract exists, preparing one retroactively now is the best way to reduce legal risk.

Review Your Contract and Prepare a Complaint with Bylaw (workbylaw.com)

If you have already received an employment contract but are unsure whether its contents are lawful, try Bylaw's AI contract review feature. Upload your contract to quickly check for missing mandatory items and unfavorable clauses. You can also use the complaint drafting assistant to easily prepare documents for submission to the Ministry of Employment and Labor. If you want to know whether your wage conditions are appropriate, try the take-home salary 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.