1. Hello, this is Ministry of Employment and Labor Counseling Center.
2. It is assumed that you have enquired in regard to ‘how to calculate the number of employees regularly employed under the Labor Standards Act’, please refer to the following reply.
A. According to Article 11 (Scope of Application) of 「the Labor Standards Act」, the number of employees regularly employed shall be applied by business or workplace. In case of two or more businesses or workplaces managed by the same employer, if the location is separated, it shall be deemed a separate business or workplace. In cases where branch office, business office etc. are operated under the same structure and business system without independence, it shall be deemed one business or workplace.
- Also, our ministry’s administrative interpretation (Labor Standards 01254-13555 on
September 26, 1990), in regard to whether an each business is independent or not, is
① where it is not the same industry (high classification level) under Korean Standard
Industrial Classification; ② where they have different employment types or rules of
employment at each store (branch office); ③ management of labor or accounting is
independent and separately operated.
B. Unfortunately, it is difficult to judge with your inquiry only, but if the employer manages two or
more workplace with company A and B, it shall be reviewed with :whether their location is
separated; whether the industry under Korean Standard Industrial Classification is different or
not; whether they apply to another collective agreement, rules of employment; whether each
workplace is independently operated by personnel management such as recruiting and
management of labor or accounting etc.
- If, the right of personnel management such as recruiting, transfer, dismissal of employees are
exercised by business, and personnel management is separately carried out, such as the application
of separate collective agreement, rules of employment for each business, the establishment
and operation of labor-management council for each business site, and the independence of
financial and accounting is recognized by each business site, it is judged that the number of
employees shall be calculated by each business, otherwise, it shall be calculated as one business.
- Please be noted Article 11 (3) of the Labor Standards Act defines how to calculate the
number of employees regularly employed, not for the application period.
3. If you have any question regarding labor relations law, please call Ministry of Employment and Labor Counseling Center on 1350 (press 4 and 1 for English). Thank you.
By e-mail to firstname.lastname@example.org