No Written Employment Contract in Korea: Employer Penalties and What Workers Can Do

Why Must an Employment Contract Be in Writing?

An employment contract (근로계약서) is not merely a formality. It is a legal instrument that formally establishes the core terms of employment — wages, working hours, holidays, and job duties — in writing. Article 17 of the Labor Standards Act (근로기준법 제17조) requires employers to specify in writing and deliver to the worker the following at the time of contracting: wages, scheduled working hours, holidays, annual paid leave (연차유급휴가), workplace location, and job description.

Note for foreign workers: Your employment contract must meet these statutory minimums regardless of what your employer verbally promises. Any contractual terms that fall below these standards are invalid.

What Penalties Does an Employer Face for Not Providing a Written Contract?

An employer who fails to prepare or deliver a written employment contract is subject to a fine of up to 500,000 KRW under Article 114 of the Labor Standards Act (근로기준법 제114조). Critically, this is a criminal penalty, not a mere administrative fine.

In addition, Article 17 of the Act on the Protection of Fixed-Term and Part-Time Workers (기간제 및 단시간근로자 보호 등에 관한 법률, 기간제법 제17조) separately requires that working conditions be specified in writing when contracting with fixed-term or part-time workers. Violations carry an administrative fine of up to 500,000 KRW. This means the same obligation applies equally to part-time (arubaito) and contract workers.

What Disadvantages Can a Worker Face Without a Written Contract?

The absence of a written contract also puts the worker at a disadvantage:

What Should You Do If Your Employer Won't Give You a Written Contract? Step-by-Step

Step 1 – Request in Writing from the Employer

First, ask your employer to prepare a written employment contract. Make the request through a channel that leaves a record — such as KakaoTalk or text message — so it can be used as evidence later.

Step 2 – File a Complaint with the Ministry of Employment and Labor

If the employer refuses or ignores your request, you may file a complaint (진정) through the Ministry of Employment and Labor's civil petition portal (minwon.moel.go.kr) or at your local Regional Employment and Labor Office. The complaint should clearly state the name of the business, the employer's information, the period of employment, and the specific fact that no contract was delivered.

Step 3 – Gather Evidence

Even without a written contract, collecting wage transfer records, attendance logs, and work-instruction messages will help establish the actual employment relationship.

An Oral Agreement Is Still a Valid Employment Contract

The absence of a written contract does not negate the employment relationship itself. The Supreme Court has consistently held that "an employment contract is a consensual contract and is formed even without a written document." In other words, an oral agreement alone is sufficient to establish an employment relationship, and claims for unpaid wages or severance pay (퇴직금) remain possible. However, proving the agreed terms becomes significantly harder — which is precisely why a written contract is essential.

Resolve It Now with Bylaw

If a dispute has arisen because no written employment contract was provided, you can quickly identify legal issues in any contract or related documents you have using Bylaw's (workbylaw.com) AI contract review feature. You can also use the complaint drafting assistant to easily prepare a complaint for submission to the Labor Office. For complex labor issues, start on the right foot with Bylaw.

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