4 Employees, Still you need to keep the labor law

Labor Laws that must be followed in businesses with less than 5 employees

Conquer the professional knowledge you need to know when running a business, the boss(Owner, Representative director) mock test. Based on 'real events' that bosses often experience, {part-time job exploration area} questions were set. Try to solve the riddle yourself before checking the answer.

Retirement benefits(allowances) must be paid to workers who have retired after working for one year or more, regardless of the size of the workplace.

Some provisions of the Labor Standards Act do not apply to businesses with less than five employees, but basic laws must be followed. Occasionally, there are bosses who violate the law because they believe that the Labor Standards Act is hardly applied to workplaces with less than 5 employees.

Many bosses run businesses with fewer than five employees. Unlike workplaces with 5 or more employees, workplaces with less than 5 employees are not subject to part of the Labor Standards Act, Substitute Holiday Act, and Severe Accident Punishment Act. However, depending on the size of the business, there are also labor laws that must be followed, so it is recommended that you check them.

Q. Is it okay to work over 52 hours per week without additional wages in a business with less than 5 employees?

A. Yes, it is possible to work more than 52 hours a week in the case of a workplace with less than 5 employees, and since Article 56 of the Labor Standards Act does not apply, there is no need to pay additional wages for overtime work, night work, and holiday work.

Q. For workplaces with less than 5 employees, is it okay to not give annual paid leave?

A. Yes, in workplaces with 5 or more employees, 15 days of paid leave (Article 46 of the Labor Standards Act) must be given to workers who have worked 80% or more for one year. However, there is no obligation for businesses with less than 5 employees.

Q. Is it mandatory to give menstruation leave for businesses with less than 5 employees?

A. No. According to Article 73 of the Labor Standards Act, there is no obligation for menstruation leave. However, since menstruation leave is unpaid leave, it is recommended that workers consider and decide on ‘health’ and other reasons beyond their control.

Q. In a workplace with less than 5 employees, is it okay to dismiss without a reason for ‘legitimate dismissal’?

A. Under the Labor Standards Act, it is not possible to dismiss an employee without just cause. There are no restrictions on dismissal at workplaces with fewer than 5 employees (Article 23, Paragraph 1 of the Labor Standards Act). A notice of dismissal must be given 30 days in advance, but there is no obligation to notify the reason for dismissal in advance in writing.

However, even if it is a workplace with less than 5 employees, dismissal cannot be made the period during which an employee is unable to work for treatment of work-related injury or disease and 30 days thereafter, and the period during which a woman before and after childbirth is absent from work in accordance with the Labor Standards Act and 30 days thereafter.

Q. For workplaces with less than 5 employees, should retirement benefits be given unconditionally?

A. Yes, regardless of the size of the workplace, employees who have worked 15 hours or more per week for more than one year must be paid “average wages for 30 days or more per year” as retirement benefits. Failure to pay retirement benefits may result in imprisonment for up to three years or a fine of up to 20 million won.

Q. Businesses with less than 5 employees, can I skip break times?

A. No. Break times must be observed.