Understanding Annual Leave Entitlements Under Korean Labor Standards Act

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date 25-10-24 00:15

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According to the Korean Labor Standards Act, annual leave is granted at a rate of one day for each month of full attendance, up to a total of 11 days before completing one year of employment. If an employee maintains an attendance rate of over 80% during their first year, they receive an additional 15 days of leave starting the day after completing one year of service.

For the second year, if the employee again meets the 80% attendance requirement, they will receive 15 days of leave on the day after completing their second year. However, if they do not meet the 80% attendance, they will receive one day of annual leave for each month of full attendance instead. This annual leave is generally interpreted as compensation for the previous year’s work and as a necessary break for recovery from work-related fatigue.

An interesting inconsistency arises with the annual leave disparity accrued during the first year of employment. Under the current system, the total number of annual leave days granted for the first year of work is 26 days (11 days prior to completing one year plus the 15 days awarded upon completion). This means that even if an employee leaves the company just a day or two after completing one year, they are still entitled to 26 days of leave (unused leave can be compensated monetarily).

In contrast, the total number of annual leave days granted for the second year—after surpassing the one-year mark—is only 15 days. There seems to be no reasonable justification for the discrepancy in annual leave days between the two years, as the value and fatigue from work in the first year should not inherently differ from that of the second year.

Historically, the Labor Standards Act deducted the annual leave days used during the first year from the 15 days granted after completing that year. Thus, the number of annual leave days for the first year of employment was effectively equal to the number of days for the subsequent year. However, following a legal amendment at the end of 2017, this system was changed to its current form.

Moreover, providing annual leave uniformly based on an 80% attendance requirement raises questions about its fairness. Under the present system, a worker with 80% attendance is treated the same as one with 100% attendance, which seems illogical, as both have the same leave entitlement despite differences in attendance.
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