| *Korean Labor Standards Act defines as ‘labor contract.’: more known as ’employment contract’ This question seems a little out of date considering that it is 21st century and that we are living in a hi-tech world- we might not need any paper document on our desk anymore in the near future, and yes, even now there are some companies with non-paper management system. But only recently a clear guideline has been provided by the Ministry of Employment and Labor on this issue (Labor Standards Policy Division-5455, Sep. 1, 2016). This guideline gives a clear answer to particular situations that happen in the field, such as: – What kind of electronic documents will be recognized as legallabor contract? –Exactly whenwill these electronic documents become effective? – How should these electronic documents be deliveredto employees? |
| This issue is also relevant to electronic commerce which is partially mandated in the Framework Act On Electronic Documents and Transactions; the guideline fully follows the provision included in the Act. The summary of the guideline is as following. A. Employers can write labor contracts with employees in electronic form. Electronic labor contract (e-labor contract) can be made via electronic document generation program such as Office, Web editor, PDF, Hangul, etc. using PC, smartphone, or any other electronic devices created to support electronic document processing. The system must have devices, etc. to guarantee that both employers and employees can write (make), verify, and modify the labor contract, and to let the final signed contract be sent automatically to both parties. |
| To prevent any kind of legal dispute between employers and employees considering labor conditions, an e-labor contract should clearly include both parties’ signature before it is electronically transformed, or it should be signed electronically, using digital signature programs. It is recommended that e-labor contract is kept/saved as read-only version (read-only PDF, Hangul, image file format such as JPG, TIF, etc.) after both parties have finally signed, to avoid any kind of invalid modification by any side. If supported by an information processing system, it is necessary that the system has a certain device helping in a way when one party modifies any part of the contract after signing the final version, the other party can be informed immediately and able to identify the part amended (i.e., hash value MD5, DRM, or watermark, etc.). |
| B. Employers must deliver the e-labor contract to employees under**Article 17 (2)of the Labor Standards Act to let employees know well of their own labor conditions. **provision: Article 17 (Clear Statement of Terms and Conditions of Employment): (1) An employer shall state the following matters clearly. The same shall also apply to any alteration of the following matters after entering into a labor contract. <Amended by Act No. 10319, May 25, 2010> 1. Wages; 2. Contractual work hours; 3. Holidays under Article 55; 4. Annual paid leaves under Article 60; 5. Other terms and conditions prescribed by Presidential Decree. (2) An employer shall deliver the written statement specifying constituent items, calculation methods and payment methods of wages with respect to the wages under paragraph (1) 1 and the matters prescribed in subparagraphs 2 through 4 to workers: Provided, That where the matters under the main sentence is modified due to reasons prescribed by Presidential Decree, such as changes, etc. of collective agreements or rules of employment, such matters shall be delivered to the relevant workers at their request. <Newly Inserted by Act No. 10319, May 25, 2010> |
| There are several accepted methods of delivering: To print out as a paper document and deliver in person. To send the e-labor contract automatically through information processing system designated by employees, intranet, a software or attached storage space, mail, or email service provided by portal websites, etc. It will be recognized legally effective, when employers delivered as following: 1. When there is a certain information processing system designated by employees 1-1. Using information processing system designated by employees When the employer ‘enters’ an e-labor contract into the system. 1-2. Using other information processing system which is not designated by employees If employees checked the system and printed out their labor contract, even though it is not a ‘designated’ system it will be recognized legally effective. |
| 2.When there is noinformation processing system designated byemployees It will be recognized legally effective if the employer ‘enters’ an e-labor contract into a system ‘managed by’ employees, though it is not a designated system. However, if the employees do not agree to being delivered ‘electronically’, the employer must deliver as printed paper contracts in person. 3. When delivering electronically under condition of ‘return receipt’ It will be recognized legally effective if the employer received a return receipt sent from the employee(s). C. Employers must preserve all e-labor contracts written between their employees and themselves, not only during the execution of the contract but for three years after the employment is terminated, under ***Article 42 of the Labor Standards Act. ***provision: Article 42 (Preservation of Documents in Relation to Contract) An employer shall, for three years, preserve a register of workers and other important documents related to labor contracts as prescribed by Presidential Decree. |
Korean Labor Law - Briefs 