You probably know that if you don’t write a labor contract, you’ll be fined up to W5 million or fined. However, you don’t necessarily have to pay all W5 million. In some cases, you can pay a much smaller amount, a suspended sentence, or a larger amount.
Today, we will have time to organize the fine standard if the labor contract is not completed. We will write it in as easy and detailed as possible so that anyone can understand it based on the standard of regular and non-regular workers.
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Reason for writing a labor contract
In small businesses, it was common for workers and businesses to verbally set working conditions. However, they often misunderstood the terms of the contract or violated the terms of the contract, which led to disputes. Therefore, the law stipulates that the mandatory working conditions must be clearly specified in writing to prevent these problems.
By clearly writing working conditions such as wages, working hours, and vacations through a labor contract, both businesses and workers can claim their rights and receive legal protection in the event of a dispute in the future. Therefore, it is mutually beneficial to write it.
Summary of fines for non-fulfillment of labor contracts
Labor contract application criteria
Even if you hire just one employee, it is mandatory. This includes not only regular workers but also non-regular workers (daily, short-term, part-time jobs), workers under the age of 18, and foreign workers. It should be written and divided into one copy each of the employer’s workers. The filing period is three years.
Fines for failure to fill out a labor contract
Who will be fined for not writing a labor contract?
Failure to write a labor contract violates the Labor Standards Act. Since the employer is legally responsible for this, the employer will pay a fine if it is not completed. If you have written a labor contract but have not issued it, it is not an exception. If so, how much will you be fined? If you are a regular worker, we will learn more about the criteria for fines if you do not write a labor contract.
Fines for not completing a full-time employment contract
If you are a regular worker, you will be fined 5 million won. 5 million won here means the maximum legal fine, and the amount of the fine is determined by considering the reasons and circumstances for not writing the labor contract. Simply put, 5 million won is the maximum standard, but if you do not write a labor contract, you will not pay all 5 million won in fines.
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The suspension of prosecution or fines will be imposed in consideration of intentional and specific circumstances, such as whether the employer has been punished for not writing a labor contract in the past, if the employer tried to write a labor contract but refused or delayed, if the worker left the company after working for a short period of time, or if only some employees wrote it.
Standard labor contract (if there is no fixed period)
If you didn’t intend not to write a labor contract, or if you didn’t have a past record of unpaid wages or punishment, you could end up paying a deferred prosecution or a fine of 300,000 to 500,000 won. However, if you pay a fine for not writing a labor contract, you should remember that criminal punishment will result in a criminal record. Even if you are suspended from prosecution, you won’t have a criminal record, but your investigation record will be kept for 5 or 10 years.
Fines for non-regular workers who fail to fill out a labor contract
Penalties for failure to fill out a contract worker’s labor contract
If contract workers (term, short-term, short-term workers, part-time jobs) differ from regular workers, the fixed-term law, not the Labor Standards Act, is applied. Since it is an administrative procedure, not a punishment, there is no criminal record even if you pay a fine. However, it imposes a fine as soon as it is caught without a corrective deadline, and the law is much more stringent than regular workers.
In the case of contract workers, a fine will be imposed for each item if the labor contract is not completed. You can find more details below.
Amount of penalty for each item if a contract worker’s labor contract is not completed
Penalty amount for violations
1st violation 2nd violation 3rd violation
Labor contract period 500,000 won, 1 million won, 2 million won
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Working hours by working day
Holiday, vacation information 300,000 won, 600,000 won, 1.2 million won
Working hours, break time
Job details at the place of employment
Let me explain in a simple way, for example. The owner of a convenience store, Mr. Nuckoo, hired Mr. Park as a part-time worker and did not write a labor contract. What would be the penalty that Mr. Nuckoo would pay?
Labor contract period not stated: KRW 500,000
Wages not listed: 500,000 won,
Non-stated by working day: 500,000 won
Holiday not listed: 300,000 won
Working hours and break hours not included: 300,000 won
Place of employment not listed: 300,000 won
In total, Mr. Nuckul-Hwi will pay a fine of 2.4 million won. If Mr. Nuckul-Hwi hired three part-timers and all three of them did not write a labor contract, a fine of 2.4 million won x 3 people = 720 total of 7.2 million won will be imposed.
Standard labor contract (if there is a fixed period)
Even if you have written a labor contract, if the items mentioned in the table above are omitted, you will be fined for adding the missing items. For example, if you write a labor contract but you miss two things about working days and holidays, you will be fined a total of 800,000 won.
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Workers can also be punished if they threaten to report their business owners and demand money. This is a crime that is strictly a crime of blackmail.
at the end of the day
Today, we had a time to complete the fine if the labor contract is not completed. The labor contract stipulates in writing that the employer pays wages in exchange for the worker’s labor, so that all workers can claim their rights and be protected by the law. Therefore, it is recommended that you write it, and it is mutually beneficial to write everything carefully and accurately when writing a labor contract.