• Can an employer deduct a sum from the salary of a worker because of the breach of the labor contract
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  • Dear, Foreign CEOs, HR managers, and Workers,

    This is the National Labor Consulation Center.

    We would like to inform you whether an employer can deduct sum from his/her workers salary for a breach of the labor contract.

    Q : According to the employment contract, a worker needs to give an employer 2 month notice in advance. However, the worker only gave us 4 weeks. Then can an employer deduct a sum from the employees salary?

    A : The focus of the Labor Standards Act of Korea is to protect the labor conditions of a worker. So, this Acts stipulate only the obligation of an employer. Therefore, regarding the workers breach of contract, if the worker breaks the labor contract without justifiable reasons and if his/her employer is damaged due to the breach of contract, the employer may sue the worker for compensation in damage according to the civil law. However, the affairs of civil action do not fall under the Ministry of Labor. For more information regarding civil suit, please call the Korea Legal Aid Corporation (http://www.klac.or.kr/, english available, Tel. no. +82-2-3482-0132).

    ○ In addition, pursuant to Article 43 of the Labor Standards Acts, the employer shall pay the wages in full to the worker. Therefore, if the employer deducts a sum(compensation for damages) from the workers salary at the employers own will for the reason of the breach of contract, the employer will be violated the above Act. Please, keep it in your mind.

    We hope we have facilitated you with helpful information to understand Korean Labor Laws.

    Best regards,




© Ministry of employment and Labor
708, 422 Hannuri-daero, Sejong-si, 339-012, Republic of Korea