Employment Contract Form Complete Guide: Mandatory Items & How to Write One – Foreign Workers in Korea

Employment Contract (근로계약서): Why Must You Always Write One?

An employment contract is a document that clearly establishes the working conditions between an employer and an employee. It is not merely a formality — under Article 17 of the Labor Standards Act (근로기준법 제17조), employers are legally required to provide it in writing. Violating this obligation can result in a fine of up to KRW 5,000,000 (Article 114 of the Labor Standards Act / 근로기준법 제114조). A verbal promise alone makes it difficult to protect workers in the event of a dispute, and employers also expose themselves to unnecessary legal risk.

Mandatory Items That Must Appear in an Employment Contract Form

Article 17 of the Labor Standards Act (근로기준법 제17조) requires the following items to be stated in writing and delivered to the employee:

  1. Wages (임금) – Breakdown of components, calculation method, and payment method
  2. Scheduled working hours (소정근로시간) – Daily and weekly hours
  3. Holidays (휴일) – Paid and unpaid holidays, including the weekly holiday (주휴일)
  4. Annual paid leave (연차 유급휴가) – Accrual basis and how to use it
  5. Place of work and duties

For fixed-term and part-time workers, Article 17 of the Act on the Protection of Fixed-Term and Part-Time Workers (기간제 및 단시간근로자 보호 등에 관한 법률 제17조) additionally requires the contract period, working days, and daily working hours per working day to be specified.

Practical Cautions When Drafting the Form

① Break down wage items in detail

Basic pay, various allowances (meal allowance, transportation allowance, position allowance, etc.), and bonuses must be listed separately. Writing something vague like "monthly salary of KRW OOO" can lead to disputes when calculating weekly holiday allowance (주휴수당) or severance pay (퇴직금).

② Be careful with all-inclusive wage (포괄임금제) clauses

The Supreme Court has ruled that an all-inclusive wage arrangement is void when it is disadvantageous to the worker or unreasonable in light of all circumstances (Supreme Court Decision 2010da91046, etc.). Simply writing "overtime, night-shift, and holiday work allowances included" does not automatically make the clause legally valid.

③ Specify the probationary period

If a probationary period is used, its duration and whether wages will be reduced during that period must be clearly stated. For probationary workers within 3 months, wages may be reduced to as low as 90% of the minimum wage; however, reduction is not permitted for workers in simple manual labor positions.

④ Signatures/seals and the obligation to deliver a copy

Both the employer and the employee must sign or affix their seal to the contract, and one copy must be delivered to the employee. If the contract is prepared as an electronic document, it is recognized as a written delivery provided it bears an electronic signature under the Electronic Signature Act (전자서명법).

Note for foreign workers: The statutory terms above are the minimum required by law. Your actual contract may include additional terms — make sure any terms that differ from the statutory minimum are clearly written in the contract before you sign.

Where Can You Get a Standard Employment Contract Form?

The Ministry of Employment and Labor (고용노동부) provides standard employment contract forms by industry and employment type free of charge on its official website. There are various versions — for general workers, fixed-term workers, part-time workers, daily construction workers, and more — so it is important to choose the form that matches your employment type.

Review Your Contract and Calculate Your Pay in One Place with Bylaw

Once you have drafted an employment contract, it is equally important to check how much of the stated wage you will actually take home. Use the salary take-home calculator at Bylaw (workbylaw.com) to instantly see your net pay after tax and four major social insurance deductions. You can also use the AI contract review feature to quickly check whether your employment contract is missing any required items or contains any unfavorable clauses.

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