The Supreme Court of Korea has ruled that the maximum paid annual leave granted to one-year fixed-term workers shall be 11 days, not 26 days.
On October 14, 2021, the Supreme Court ruled that the paid annual leave for one-year fixed-term workers is 11 days. As this decision conflicts with the previous guidelines of the Ministry of Employment and Labor ("MOEL"), stating, "If a fixed-term worker's one-year employment contract expires, allowances must be provided for up to 26 days of unused annual leave," the decision is having an enormous impact on the domestic labor sector.
The Labor Standards Act ("LSA") stipulates, "Every employer shall grant any employee who has worked not less than 80 percent of one year a paid leave of 15 days" (Article 60 (1)) and, "Every employer shall grant any employee who has continuously worked for less than one year or who has worked less than 80 percent of one year one paid-leave day for each month during which he or she has continuously worked," (Article 60 (2)). However, on November 28, 2017, the LSA was amended to remove paragraph 3 of the same Article, stating, "In cases where a paid leave is granted for the first one-year of work, the worker shall be entitled to 15 days including the leave set forth in paragraph 2, and in cases where the worker has already used the leave set forth in paragraph 2, the number of days used shall be subtracted from 15...
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