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Labor contracts

  • Last updated:2021-10-18

‧Regulations on labor contracts

 According to Article 2 of the Labor Standards Act, labor contract means an agreement that establishes an employee-employer relationship. In which employer means a business entity which hires workers, the responsible person of business operations, or the person who represents the business owner in handling labor matters; worker means a person who is hired by an employer to work for wages. For labor contracts, employees and employers shall negotiate the work content, wages, working hours, recess, holidays, severance pay, and retirement benefits based on the principle of good faith. Unless the labor contract is voided due to violation of restrictions imposed by the law or public order and good customs, the contract represents the agreement between both parties and shall take effect.

‧ Fixed term and non-fixed term labor contracts

  1. According to Article 9 of the Labor Standards Act, labor contracts may be divided into two categories: fixed term contracts and non-fixed term contracts. A contract in nature for temporary, short-term, seasonal or specific work may be made as a fixed term contract, but a contract for continuous work, should be a non-fixed term contract. If a business entity violates the abovementioned regulation, the fixed term contract signed with employees shall be a non-fixed term contract. In the event an employer violates the aforementioned regulation, the employer shall be punished in accordance with Article 79 of the Labor Standards Act. Fixed term labor contracts shall have the following denotations: temporary work and short-term work shall not exceed six months; seasonal work shall not exceed nine months; of specific work is to exceed one year, it should be reported to the competent authority for approval and record.

  2. Labor dispatching is when a labor dispatching agency dispatches its employee to a requesting business entity to provide labor services; the dispatched laborer is subjected to the command, supervision, and management of the requesting business entity. The dispatch labor industry is applicable to the Labor Standards Act as of April 1st, 1998. Labor dispatching agencies are employers of the workers they dispatch, and wages, working hours, recess, holiday, severance pay, and retirement benefits of the workers shall be in accordance with the Labor Standards Act. Furthermore, the MOL established a number of guiding principles to protect the rights of dispatch labor starting in 2009, including the following:
    (1) Guiding principles for dispatch labor rights
    (2) Labor dispatching contract example
    (3) Matters required and prohibited in dispatch labor contracts
  • Source:Department of Employment Relations
  • Publication Date:2015-04-20
  • Count Views:170678