Employment Contracts, Resignation, and Wages: An Essential Guide to Employment Contracts

Based on 18 consultation cases · Updated October 4, 2026 · Translated from the Korean original.

An employment contract may be formed orally, but it is important to put it in writing to confirm key terms and conditions of employment, such as wages and working hours, and to prevent disputes. If the contract terms are less favorable to the employee than statutory standards, such as the minimum wage, the statutory standards may apply. Resignation, repayment of training costs, and contract renewal must be assessed based on the agreement’s terms and the actual circumstances.

People involved → Employee → Employer → An employment issue arises about contract, pay or leaving → Was a written employment contract provided? → Yes → No — Labor Standards Act, Article 114 → Are wages below the minimum wage? → Yes — Minimum Wage Act, Article 6(3) → No → Does repayment set a penalty or damages amount in advance? → Yes — Labor Standards Act, Article 20 → Pay for work performed is due Training-cost repayment needs separate review → Minimum wage applies when wages fall short Preset penalties or damages are prohibited → Check resignation terms and how wages are paid → Check repeated renewals and any statutory exception → Check the minor's contract and age-related rules → Resignation: employer agreement, contract or workplace rules → Fixed-term work: repeated renewals and continuous service → Minors: personal contract, wage claims and under-15 restrictions

Key points

When entering into an employment contract, an employer must specify the terms and conditions of employment, including wages, scheduled working hours, holidays, and annual paid leave, and must provide certain terms in writing (Labor Standards Act, Article 17 (근로기준법 제17조)).
Wages must be paid for work actually performed even if no written employment contract was prepared. Failure to provide a written employment contract may be subject to a report (Labor Standards Act, Article 114 (근로기준법 제114조)).
Any portion of wages set below the minimum wage is invalid, and the employee is deemed to have been promised the minimum wage. The employee may claim the difference (Minimum Wage Act, Article 6(3) (최저임금법 제6조 제3항)).
If the parties agree to pay overtime pay exceeding the standards under the Labor Standards Act, the employer must pay it as agreed. An agreement setting various allowances at a fixed amount may be valid if it does not disadvantage the employee and is justified.
An agreement that sets in advance a penalty or amount of damages for breach of an employment contract is prohibited. However, an agreement to repay actual training costs must be assessed separately from an agreement to repay wages or a separate penalty agreement (Labor Standards Act, Article 20 (근로기준법 제20조)).
An employee may give notice of their intention to resign, but if the employer does not agree, the employee should check the resignation provisions in the employment contract or rules of employment. If there are no such provisions, the effective date may depend on factors such as the method of wage payment (Civil Act, Article 660 (민법 제660조)).
If repeated renewals of fixed-term employment contracts result in a total period of continuous employment exceeding two years, the employee may be deemed to have an employment contract with no fixed term, unless a statutory exception applies (Act on the Protection, etc. of Fixed-Term and Part-Time Employees, Article 4 (기간제 및 단시간근로자 보호 등에 관한 법률 제4조)).
As a rule, a minor must enter into an employment contract personally and may claim wages independently. Separate age-related rules, including restrictions on employing children under 15, should also be checked (Labor Standards Act, Articles 64, 67, and 68 (근로기준법 제64조, 제67조, 제68조)).

Frequently asked questions

Q. Is an employment contract formed even if I did not sign a written employment contract?

The cases indicate that a report may be filed if an employer fails to provide a written employment contract, and explain that wages must be paid for the days actually worked even if no contract was signed. To confirm the terms and conditions of employment and prevent disputes, it is advisable to put the contract terms in writing.

Case 6, Case 8, Case 18

Q. Can I resign before the end of my contract term?

According to the cases, an employee may give notice of their intention to resign. If the employer agrees to the resignation, the employee may leave on the agreed date. If the employer does not agree, the employee should check the resignation provisions in the employment contract or rules of employment. If there are no such provisions, the effective date may depend on factors such as the method of wage payment.

Case 3

Q. Do I have to repay training costs no matter what if I do not complete the required service period?

An agreement requiring an employee to repay the actual cost of employer-funded commissioned training if they fail to complete the required service period may be valid. However, one case held invalid an agreement requiring repayment of wages paid during the training period, on the grounds that it constituted a penalty or a predetermined amount of damages. What matters is not the name of the agreement but what it actually requires the employee to repay.

Case 1

Q. If I resign, do I have to pay back both the scholarship and additional damages?

One case distinguished between a provision treating a scholarship as a loan that need not be repaid if the employee worked for a specified period, and a provision requiring the employee to pay an additional amount of damages calculated as a percentage of the scholarship if they left early. The former may give rise to an obligation to repay, while an agreement that sets an additional damages amount in advance may be invalid under the Labor Standards Act. The actual terms and nature of the agreement must be examined.

Case 2

Q. If my contracted wage is below the minimum wage, can I still claim the difference even though I signed the contract?

Any portion of an employee’s wages set below the minimum wage is invalid, and the employee is deemed to have been promised the minimum wage. If the amount actually paid is below the minimum wage, the employee may claim the difference or file a report with the local labor office.

Case 15, Case 17

Q. If the agreed overtime pay is higher than the statutory amount, can I receive the agreed amount?

The cases explain that if the parties have agreed to pay overtime pay exceeding the standards set by the Labor Standards Act, the employer must comply with that agreement. When overtime, night-work, or holiday-work allowances are set at a fixed monthly amount, it must be considered whether the arrangement disadvantages the employee and whether it is justified in light of all the circumstances.

Case 11, Case 13

Q. Can I be dismissed due to the expiration of my contract if I have worked for more than two years through repeated one-year renewals?

According to the cases, if a fixed-term employee is employed for more than two years without a statutory exception applying, the employee is deemed to have an employment contract with no fixed term. In that case, refusing to renew the contract on the ground that its term has expired may be regarded as a dismissal, for which a justifiable reason may be required.

Case 9, Case 10, Case 12

Q. Can a parent enter into an employment contract on behalf of a minor?

The cases explain that a person with parental authority or a guardian cannot enter into an employment contract on behalf of a minor; as a rule, the minor must enter into the contract personally. A minor may also claim wages independently, and restrictions on employment may apply depending on the minor’s age.

Case 4

Q. Do I have to pay an employee who worked for only two days before quitting?

According to the cases, wages must be paid for the period actually worked. If an employee’s unauthorized departure causes actual damage to the workplace, the employer may separately claim damages; however, wages must still be paid if no damage was caused.

Case 18

Relevant laws

Labor Standards Act, Article 7 (근로기준법 제7조)
Labor Standards Act, Article 16 (근로기준법 제16조)
Labor Standards Act, Article 17 (근로기준법 제17조)
Labor Standards Act, Article 20 (근로기준법 제20조)
Labor Standards Act, Article 23 (근로기준법 제23조)
Labor Standards Act, Article 43 (근로기준법 제43조)
Labor Standards Act, Article 55 (근로기준법 제55조)
Labor Standards Act, Article 60 (근로기준법 제60조)
Labor Standards Act, Article 64 (근로기준법 제64조)
Labor Standards Act, Articles 66 through 70 (근로기준법 제66조부터 제70조까지)
Labor Standards Act, Article 114 (근로기준법 제114조)
Civil Act, Article 398 (민법 제398조)
Civil Act, Article 660 (민법 제660조)
Act on the Protection, etc. of Fixed-Term and Part-Time Employees, Article 4 (기간제 및 단시간근로자 보호 등에 관한 법률 제4조)
Minimum Wage Act, Article 6(3) (최저임금법 제6조 제3항)

Watch out for

When reviewing an agreement to repay training costs, distinguish among the actual training costs, wages paid during training, and any additional damages for leaving early.
Giving notice of an intention to resign does not always end the contract immediately. First check the relevant provisions in the employment contract and rules of employment.
Statutory exceptions may apply when a fixed-term employee is employed for more than two years, so do not determine the employee’s status solely by counting the number of renewals.
Even if an employee has signed an employment contract, terms that fall below statutory standards, such as the minimum wage, do not thereby become valid.

Source cases

This guide was compiled by AI from the following Korea Legal Aid Corporation consultation cases (in Korean).

This guide is general legal information about Korean law, not legal advice for your situation. For a specific case, consult a lawyer or the Korea Legal Aid Corporation (call 132 in Korea).