Employment contracts for foreign workers: the must-knows —
standard contract, bilingual text and required items
When you hire foreign employees, the employment contract needs even more care than it does for Korean nationals. There are extra duties, such as the standard form and writing the contract in the worker’s native language as well, and missing them can lead to fines or disputes. We have summarized only what business owners really need to take care of in practice.
- If you hire through the Employment Permit System (E-9, H-2), you must use the Ministry of Employment and Labor’s standard employment contract; for other visa statuses, the Labor Standards Act duty to put the contract in writing and hand it over is the same.
- The contract must also be written in a language the worker can understand (such as their native language), and wages, working hours, holidays and leave must be stated in writing.
- Minimum wage, weekly holiday allowance and severance pay apply just as they do to Korean nationals, while overtime, night and holiday premium pay applies only to workplaces that regularly employ 5 or more workers.
1. The Labor Standards Act applies to foreign workers too
The first principle to know is that the Labor Standards Act and the Minimum Wage Act apply equally to every worker employed in Korea, regardless of nationality. Thinking “they’re foreigners, so it’s fine to pay them a little differently” is dangerous. Paying below the minimum wage, not paying weekly holiday allowance and not handing over a written contract are violations of the law, exactly as they would be for a Korean national.
On top of that, hiring foreign workers comes with additional duties that depend on their visa status. In particular, for workers who came in through the Employment Permit System, you must use the prescribed standard form.
2. When is the standard employment contract mandatory?
Contract requirements differ by visa status.
| Type | Typical visas | Contract rules |
|---|---|---|
| Employment Permit System | E-9 (Non-professional Employment), H-2 (Working Visit) | Must use the Ministry of Employment and Labor’s standard employment contract + also written in a language the worker understands |
| Other visas that permit work | F-2, F-5, F-6, D-2 part-time work, etc. | The standard form is not mandatory, but the Labor Standards Act duty to state terms in writing and hand over a copy is the same |
3. Items that must be stated in writing
Under Article 17 of the Labor Standards Act, the items below must be put in writing and handed to the employee. With foreign workers, the key is to write them in the worker’s native language as well, make sure they understand, and only then have them sign.
- Wages — components, calculation method, payment method and payday
- Contracted working hours — start and end times, break time
- Holidays — weekly paid holiday, whether public holidays apply
- Paid annual leave
- Place of work and duties, contract term (for fixed-term contracts)
Native-language text — substance, not formality
The purpose of the bilingual text is to leave a record that “the foreign worker correctly understood and agreed to their working conditions.” Rather than simply attaching a translation, it is safer to place the Korean original and the worker’s native language (or another language they understand, such as English) side by side so they can confirm the conditions are the same. This prevents later disputes along the lines of “nobody told me” or “I didn’t know.”
4. Wages — minimum wage, weekly holiday allowance, premium pay
- Minimum wage: the minimum wage announced each year applies exactly as it does to Korean nationals. You cannot pay less than the minimum wage on the grounds of room and board (deducting room and board requires separate criteria and consent).
- Weekly holiday allowance: if contracted working hours are 15 hours or more a week and the worker attends every contracted working day that week, a paid weekly holiday is earned. The same applies to part-time foreign workers.
- Overtime, night and holiday premium (50%): applies only to workplaces that regularly employ 5 or more workers. With fewer than 5, you pay ordinary wages for the hours actually worked, with no premium (reflecting this distinction accurately in the contract avoids disputes).
5. Working hours and breaks
For 4 hours of work you must give at least 30 minutes of break time, and for 8 hours at least 1 hour, during working hours. State the actual break time clearly in the contract so that working time and break time are kept apart. If there is shift or night work, it is best to reflect that pattern in the contract too.
6. The four major social insurances and severance pay
- Four major social insurances: in principle, foreign workers must be enrolled too. However, National Pension coverage can differ depending on social security agreements with the worker’s home country and reciprocity, so you need to check by nationality.
- Severance pay: with at least 1 year of continuous service + 15 or more hours a week, it is owed regardless of nationality. (For foreign workers under the Employment Permit System, separate schemes such as departure guarantee insurance also apply.)
Frequently asked questions
Q. My employee only speaks English. Can I write the contract in Korean only?
We don’t recommend it. Only when the contract is also written in a language the worker understands is there evidence that they “understood and agreed.” Prepare an English bilingual version as well and have them sign it.
Q. We have 3 employees. Do we really have to pay 1.5 times for overtime?
If you regularly employ fewer than 5 workers, the 50% premium for overtime, night and holiday work is not a legal obligation. Paying ordinary wages for the hours actually worked is enough. However, you must still comply with the minimum wage and weekly holiday allowance.
Q. What happens if I don’t give a written contract?
You may be fined for breaching the duty to state working conditions in writing and hand over a copy, and it will work against you as the employer in a dispute. The rule is to write and hand over the contract at the time of hiring.
7. Pre-hiring checklist
- Check the residence card, visa status and scope of permitted work
- Use the standard employment contract if hiring under the Employment Permit System
- State wages, working hours, holidays and leave in writing
- Add the native language (or another language they understand), then get a signature
- Apply premium pay and annual leave according to whether you have fewer than 5 or 5 or more workers
- Enroll in the four major social insurances and check National Pension reciprocity
- Hand one copy of the contract to the employee
Finding it hard to draft contracts for foreign workers yourself?
Opercent automatically creates standard contracts with Korean side by side with English, Chinese, Russian or Vietnamese.
Required items and the exceptions for workplaces with fewer than 5 workers are built in, so you can issue them without missing anything.
This article is for general information purposes and is based on the relevant laws as of August 2026. Specific figures such as the minimum wage, and the schemes themselves, may change over time and depending on individual circumstances, so before applying them please check the latest laws or consult a professional such as a certified labor attorney.