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Labor Law ? regarding Foreigners and Permanent Contracts
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Zyzyfer



Joined: 29 Jan 2003
Location: who, what, where, when, why, how?

PostPosted: Thu Nov 14, 2013 8:00 pm    Post subject: Labor Law ? regarding Foreigners and Permanent Contracts Reply with quote

I am hoping that I have already determined the answer to this thanks to a predecessor's efforts, but I figured I would ask here anyway since we have a few law buffs floating around compared to other Korean ESL forums I frequent.

I am approaching the end of the second year of my current contract, and HR mentioned to a coworker that, due to a labor law which guarantees a contracted employee who has been employed for two consecutive years for the same employer a permanent contract, that there was a possibility they would not hire me for a third contract because of this.

My predecessor encountered the same issue while employed here, and after digging around, interpreted that, since foreigners are generally hired on a yearly basis, and their employment is dependent on having the appropriate work visa, that this negates the labor law policy about permanent contracts in the case of foreign employees. He posed this interpretation to the Ministry of Employment and Labor and they agreed with his interpretation. Based on this, HR assented, and he had no issues with remaining a contracted employee for the duration of his employment.

Since he set the precedent, I probably have nothing to worry about, as I am willing to remain as a contracted employee. Nevertheless, I am curious about how this permanent contract issue would be interpreted by folks like ttompatz. Given how I have known so many foreigners on standard work visas over the years who have remained with one employer in excess of two years, yet never encountered such a concern, it seems like my predecessor's interpretation is legitimate.
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Lucas



Joined: 11 Sep 2012

PostPosted: Thu Nov 14, 2013 8:31 pm    Post subject: Reply with quote

Quote:
Since he set the precedent, I probably have nothing to worry about, as I am willing to remain as a contracted employee. Nevertheless, I am curious about how this permanent contract issue would be interpreted by folks like ttompatz. Given how I have known so many foreigners on standard work visas over the years who have remained with one employer in excess of two years, yet never encountered such a concern, it seems like my predecessor's interpretation is legitimate.


Or they just want some fresh blood and this is a good excuse.....
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YTMND



Joined: 16 Jan 2012
Location: You're the man now dog!!

PostPosted: Thu Nov 14, 2013 8:37 pm    Post subject: Reply with quote

I am not quite sure what you are asking. First, using "permanent contract" is not secure enough to grant you 2 years. There should be a clause which allows either party to give 30-60 day notice to terminate the contract. Nothing is permanent.

If you are being told there is a law, then that person should provide you with the law.


The contract is more of a letter of intention rather than a body of laws you can enforce. After 2 years, I don't see why you would need to worry about being branded "permanent" or year by year. If the working relationship was good for 2 years, you would think you would build up enough trust to not worry about this.


Why are you worried? On an E2 visa, I doubt we have many options for job security in the long run. If you are on an F visa, you would probably still need to update every 3 years or so.
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World Traveler



Joined: 29 May 2009

PostPosted: Thu Nov 14, 2013 8:48 pm    Post subject: Reply with quote

After two years, a company has to give better benefits (though I'm not sure what they are). A Korean friend in America told me a story about her cousin. At the two year mark, his company told him to quit and then after 30 days they would rehire him back. He agreed and resigned, but then during that break became very depressed (which was out of character for him). Instead of taking a trip, he stayed home during his time off. He said that if he worked two years again then they might pull that same stunt again and then he would never get those benefits and if he didn't have the benefits, no woman would want to marry him. My friend was the first to discover his body. He killed himself.
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YTMND



Joined: 16 Jan 2012
Location: You're the man now dog!!

PostPosted: Thu Nov 14, 2013 8:59 pm    Post subject: Reply with quote

Hmm, too much info.
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Lucas



Joined: 11 Sep 2012

PostPosted: Thu Nov 14, 2013 9:02 pm    Post subject: Reply with quote

Quote:
no woman would want to marry him. My friend was the first to discover his body. He killed himself.


He could have married a nice Vietnamese or Pilipino woman!

Suicide is such a selfish thing to do.
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Zyzyfer



Joined: 29 Jan 2003
Location: who, what, where, when, why, how?

PostPosted: Thu Nov 14, 2013 9:27 pm    Post subject: Reply with quote

World Traveler wrote:
After two years, a company has to give better benefits (though I'm not sure what they are). A Korean friend in America told me a story about her cousin. At the two year mark, his company told him to quit and then after 30 days they would rehire him back. He agreed and resigned, but then during that break became very depressed (which was out of character for him). Instead of taking a trip, he stayed home during his time off. He said that if he worked two years again then they might pull that same stunt again and then he would never get those benefits and if he didn't have the benefits, no woman would want to marry him. My friend was the first to discover his body. He killed himself.


I know we have our differences but that is a pretty sad story.

As for the benefits, after two years as a contract employee, what I am hearing is that the benefit is a promotion up to a permanent contract, which is for practical purposes tenure - you are protected from being fired until basically retirement age, and if you are wrongfully fired, you can take the case to court and be reinstated at the job. (It also includes other benefits but those aren't really a concern in my case; they would have been to your friend's cousin.)

I don't expect such a promotion because the position I hold, as well as the translator position in our department, are de facto contract positions and they will not tenure anyone in them (this is compensated by a higher salary compared to newer regular employees).

Lucas wrote:
Or they just want some fresh blood and this is a good excuse.....


Yeah maybe! However, speculations from other ESL Cafe users on my work performance are not why I started this post, and, while amusing, are not particularly constructive.

YTMND wrote:
I am not quite sure what you are asking. First, using "permanent contract" is not secure enough to grant you 2 years. There should be a clause which allows either party to give 30-60 day notice to terminate the contract. Nothing is permanent.


Um. See above, or below, whichever is to your liking.

YTMND wrote:
The contract is more of a letter of intention rather than a body of laws you can enforce. After 2 years, I don't see why you would need to worry about being branded "permanent" or year by year. If the working relationship was good for 2 years, you would think you would build up enough trust to not worry about this.


A "permanent contract" is not what you think it is.
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YTMND



Joined: 16 Jan 2012
Location: You're the man now dog!!

PostPosted: Thu Nov 14, 2013 9:40 pm    Post subject: Reply with quote

Quote:
A "permanent contract" is not what you think it is.


Ok, then if you want feedback, please tell us exactly what you were agreeing what would be any different.

"A permanent contract is an official or written agreement between an employee and employer stating the rules and regulations in a full-time or part time basis and the rules and conditions under which both parties are going to work and/or including the terms and condition for compensation and the targets or milestones to be achieved." - http://www.ask.com/question/what-is-a-permanent-contract
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Lucas



Joined: 11 Sep 2012

PostPosted: Thu Nov 14, 2013 9:44 pm    Post subject: Reply with quote

Quote:
Yeah maybe! However, speculations from other ESL Cafe users on my work performance are not why I started this post, and, while amusing, are not particularly constructive.


I just meant that, as I'm sure you're aware - Koreans can be very 'smoke and mirrors' when it comes to saying what is on their mind.

I hope you sort the situation out.
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Zyzyfer



Joined: 29 Jan 2003
Location: who, what, where, when, why, how?

PostPosted: Thu Nov 14, 2013 10:18 pm    Post subject: Reply with quote

YTMND wrote:
Ok, then if you want feedback, please tell us exactly what you were agreeing what would be any different.


This is a link referring to the scenario:

link

Website wrote:
Fixed-term contracts cannot exceed two years and beyond this limit, an employee must be treated as if they have an indefinite contract.


This is the relevant quote from the Labour Standards Act about fixed-term employees being permanent employees:

Labor Standards Act wrote:
- case a person has been employed for a considerably long period of time and his/her employment contract, whose term is essentially a formality, has been already renewed several times, is it possible for the employer to refuse to renew the contract by saying that the previous contract term has been matured?

- Even when a person is employed for a fixed term, if his/her contract renewal has been repeated for a long time and the contract term itself is a just formality, the person is de facto an employee hired for a job with no term fixed. In this case, the employer shall not refuse to renew the contract without giving a justifiable reason. (Supreme Court ruling on Jan. 11, 1994: No. 93Da17843)


The LSA does not specify the two-year rule in this quote, I am still looking for that particular law.

-----

Now, the interpretation about which I am seeking secondary opinions is that, as foreigners, we are illegible for becoming a de facto employee due to our inherently transient nature, as our employment is contingent on immigration approval and regulations.

This interpretation is just that. There is no formal law that states foreigners are exempt from obtaining a permanent employment contract.

Lucas wrote:
I just meant that, as I'm sure you're aware - Koreans can be very 'smoke and mirrors' when it comes to saying what is on their mind.

I hope you sort the situation out.


Yes, I am aware. The fact that my predecessor had to deal with the same issue (and remain employed for some time longer as a fixed-term employee) is reassuring, as is the fact that everyone isn't just shrugging and telling me good luck.

Anyway, thanks, I hope I sort it out as well, it has some interesting potential implications outside of my personal sphere when you think about it...
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denverdeath



Joined: 21 May 2005
Location: Boo-sahn

PostPosted: Fri Nov 15, 2013 7:16 am    Post subject: Reply with quote

Zyzyfer wrote:
World Traveler wrote:
After two years, a company has to give better benefits (though I'm not sure what they are). A Korean friend in America told me a story about her cousin. At the two year mark, his company told him to quit and then after 30 days they would rehire him back. He agreed and resigned, but then during that break became very depressed (which was out of character for him). Instead of taking a trip, he stayed home during his time off. He said that if he worked two years again then they might pull that same stunt again and then he would never get those benefits and if he didn't have the benefits, no woman would want to marry him. My friend was the first to discover his body. He killed himself.


I know we have our differences but that is a pretty sad story.

As for the benefits, after two years as a contract employee, what I am hearing is that the benefit is a promotion up to a permanent contract, which is for practical purposes tenure - you are protected from being fired until basically retirement age, and if you are wrongfully fired, you can take the case to court and be reinstated at the job. (It also includes other benefits but those aren't really a concern in my case; they would have been to your friend's cousin.)

I don't expect such a promotion because the position I hold, as well as the translator position in our department, are de facto contract positions and they will not tenure anyone in them (this is compensated by a higher salary compared to newer regular employees).

Lucas wrote:
Or they just want some fresh blood and this is a good excuse.....


Yeah maybe! However, speculations from other ESL Cafe users on my work performance are not why I started this post, and, while amusing, are not particularly constructive.

YTMND wrote:
I am not quite sure what you are asking. First, using "permanent contract" is not secure enough to grant you 2 years. There should be a clause which allows either party to give 30-60 day notice to terminate the contract. Nothing is permanent.


Um. See above, or below, whichever is to your liking.

YTMND wrote:
The contract is more of a letter of intention rather than a body of laws you can enforce. After 2 years, I don't see why you would need to worry about being branded "permanent" or year by year. If the working relationship was good for 2 years, you would think you would build up enough trust to not worry about this.


A "permanent contract" is not what you think it is.


Hope ttompatz, or someone else, can correct me, but I think it depends where you work. If you're at a place that's at or less than 10(12?) hours weekly, you're sol, esp when you're on an E2. Maybe I'm only thinking about severance for a private place???
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ed4444



Joined: 12 Oct 2004

PostPosted: Sat Nov 16, 2013 3:39 am    Post subject: Reply with quote

This law definitely exists. If you do three consecutive one year contracts then subsequent contracts are just to establish conditions as you are technically a permanent worker.

However, there is a lot of small print exceptions with this law so you have to check very carefully to see if you fall within one of the loopholes.

For example I fell into a loophole because I earn more than 49,000,000Won per year. That classifies me as being in the top 20% of earners in Korea currently. Therefore, I am considered to be an "executive" and I can be kept indefinitely on rolling one year contracts unfortunately.

I was very upset to find out about this bit of smallprint because I was sure I was a permanent employee by then.
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mr. positive



Joined: 02 Jan 2008
Location: a happy place

PostPosted: Sun Nov 17, 2013 11:31 am    Post subject: Reply with quote

As I understand it, yes, after two years of employment at an employer, you are considered a permanent, full-time employee who cannot be terminated without very good cause. HOWEVER, no employer is obligated to provide you with a work visa - so you can have all the legal rights in the world to permanent employment, but if your employer decides to stop providing you with visa support, you would be screwed in that regard if you are not an F-visa holder. That is what makes non-F-visa holders de facto contract employees.
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The Cosmic Hum



Joined: 09 May 2003
Location: Sonic Space

PostPosted: Sun Nov 17, 2013 3:43 pm    Post subject: Reply with quote

Zyzyfer wrote:
Now, the interpretation about which I am seeking secondary opinions is that, as foreigners, we are illegible for becoming a de facto employee due to our inherently transient nature, as our employment is contingent on immigration approval and regulations.

This interpretation is just that. There is no formal law that states foreigners are exempt from obtaining a permanent employment contract.

Foreigners are a hard bunch to read...maybe it has to do with their transient nature. Wink

Please keep this thread going...an excellent topic.
Would love to hear more on this...from E and F visa holders.

Zyzyfer...you are on an E2 visa?
I wonder how this would affect you if you were on an F5 visa?

Quote:
Anyway, thanks, I hope I sort it out as well, it has some interesting potential implications outside of my personal sphere when you think about it...

Best of luck...and yes...more information on this subject would be of value to many.
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YTMND



Joined: 16 Jan 2012
Location: You're the man now dog!!

PostPosted: Sun Nov 17, 2013 3:46 pm    Post subject: Reply with quote

Zyzyfer wrote:
YTMND wrote:
Ok, then if you want feedback, please tell us exactly what you were agreeing what would be any different.


This is a link referring to the scenario:

link

Website wrote:
Fixed-term contracts cannot exceed two years and beyond this limit, an employee must be treated as if they have an indefinite contract.


This is the relevant quote from the Labour Standards Act about fixed-term employees being permanent employees:

Labor Standards Act wrote:
- case a person has been employed for a considerably long period of time and his/her employment contract, whose term is essentially a formality, has been already renewed several times, is it possible for the employer to refuse to renew the contract by saying that the previous contract term has been matured?

- Even when a person is employed for a fixed term, if his/her contract renewal has been repeated for a long time and the contract term itself is a just formality, the person is de facto an employee hired for a job with no term fixed. In this case, the employer shall not refuse to renew the contract without giving a justifiable reason. (Supreme Court ruling on Jan. 11, 1994: No. 93Da17843)


The LSA does not specify the two-year rule in this quote, I am still looking for that particular law.

-----

Now, the interpretation about which I am seeking secondary opinions is that, as foreigners, we are illegible for becoming a de facto employee due to our inherently transient nature, as our employment is contingent on immigration approval and regulations.

This interpretation is just that. There is no formal law that states foreigners are exempt from obtaining a permanent employment contract.

Lucas wrote:
I just meant that, as I'm sure you're aware - Koreans can be very 'smoke and mirrors' when it comes to saying what is on their mind.

I hope you sort the situation out.


Yes, I am aware. The fact that my predecessor had to deal with the same issue (and remain employed for some time longer as a fixed-term employee) is reassuring, as is the fact that everyone isn't just shrugging and telling me good luck.

Anyway, thanks, I hope I sort it out as well, it has some interesting potential implications outside of my personal sphere when you think about it...


So you are going to use US law to rule Korea? Lots of luck. Laughing
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