Under the Labor Standards Act of Korea (LSA), when hiring an employee, employment terms regarding the composition, calculation method and payment method of the employee remunerations should be stipulated in writing (i.e., a written notice, memo, letter, or contract stipulating the above basic terms should be provided to the employee), and a violation of this requirement will subject the employer to a potential maximum fine of KRW 5 million.
However, additional details of the employment terms may be agreed upon/provided verbally. Examples of such details include the beginning and ending work hours, breaks, holidays, vacations, work-hour sifts, issues relating to promotions, severance pay, bonuses, safety and health measures, etc.
It is noted that businesses with 10 or more employees must establish internal employment regulations, stipulating the detailed employment terms and conditions, and must at all times furnish, and make readily available, such employment regulations to the employees (Article 96 of LSA). In other words, employment terms that differ based on each individual, such as salaries, should be stipulated under an individual written contract with the employee, and all other terms that are universally applicable to all employees should be stipulated in the employment regulations.