What hospitality operators need to know about statutory holiday rules
Hospitality Labor Q&A with Attorney Choi Chang-gyun
05. Holiday Pay and Substitute Days: What Happens When Staff Work Public Holidays?
Hospitality Labor Q&A Series, Part 5
Writer: Choi Chang-gyun, Labor Attorney
Editor: ONDA Manager Lee Chae-eun
Seocho Labor Law Firm specializes in hospitality labor management. We currently advise numerous hospitality businesses, conduct training for major hospitality franchise HQs (including Yanolja and Yeogi Eottae), and work to create happier workplaces across the industry.
We believe happy workplaces create happy lives. This series is designed to provide essential labor management information to those building better workplaces together.
Since 2022, paid public holidays have been extended to all businesses with 5 or more employees (see our previous post). Since most hospitality businesses operate year-round, it's critical to understand how to properly compensate employees who work on public holidays.
Today we'll cover statutory holidays—including public holidays—that employers must grant to employees.
Q1. What are the types of statutory holidays and when do they apply?
'Statutory holidays' are holidays mandated by law. When legal requirements are met, employers must grant these days off. They're distinct from 'agreed holidays,' which are negotiated between employer and employee.
There are three types of statutory holidays: 1) weekly rest days, 2) Labor Day, and 3) public holidays. Here are the specific rules:
1. Weekly Rest Days
Article 55 of the Labor Standards Act (Holidays) states: "An employer shall guarantee workers at least one paid day off per week on average."
Weekly rest days apply to all businesses regardless of employee count. One day per week must be designated in the employment contract.
For salaried employees (as opposed to hourly), weekly rest pay is included in the base monthly salary, so it's not paid separately.
However, weekly rest pay is not paid in two cases: 1) weeks with absences, 2) when average weekly working hours over the previous 4 weeks (based on the rest day) are less than 15 hours.
2. Labor Day
The Act on the Establishment of Labor Day states: "May 1st shall be Labor Day and shall be a paid holiday under the Labor Standards Act."
Labor Day applies to all businesses regardless of employee count or working hours. No exceptions.
Unlike weekly rest days, even salaried employees must receive additional pay if they work on Labor Day. Businesses with fewer than 5 employees must pay 1x the regular wage; businesses with 5 or more employees must pay 1.5x the regular wage as premium pay.
3. Public Holidays
Article 2 of the Regulations on Public Holidays for Government Offices (Public Holidays) defines public holidays, and Article 30 of the Enforcement Decree of the Labor Standards Act mandates that public holidays and substitute holidays must be paid holidays.
The public holidays are:
- Sundays
- National holidays: March 1st Independence Movement Day, Liberation Day (August 15), National Foundation Day (October 3), and Hangeul Day (October 9)
- January 1st
- Lunar New Year (day before, day of, day after)
- Buddha's Birthday (4th day of 4th lunar month)
- May 5th (Children's Day)
- June 6th (Memorial Day)
- Chuseok/Korean Thanksgiving (day before, day of, day after — 14th, 15th, 16th of 8th lunar month)
- December 25th (Christmas)
- Election days for term-expiration elections under Article 34 of the Public Official Election Act
- Other days designated by the government
Public holidays apply only to businesses with 5 or more employees. For businesses with fewer than 5 employees, these days are treated as regular workdays.
Since public holidays function as premium pay, employers must pay additional wages in the month when an employee works on a public holiday.
Q2. What happens when an employee works on a statutory holiday?
When an employee works on a statutory holiday, that day must be compensated as paid time. For businesses with 5 or more employees, employers must pay 1.5x the ordinary wage as holiday premium pay on the regular monthly payday.
Let's say an employee works on Sunday, the designated weekly rest day:
✔️ Businesses with fewer than 5 employees
Pay for the original Sunday + pay for the additional work = total of 2 days' pay
✔️ Businesses with 5 or more employees
Pay for the original Sunday + 1.5x pay for the additional work = total of 2.5 days' pay
Q3. Can statutory holidays be substituted with other days?
Sometimes operational needs require working on a statutory holiday and taking a different day off instead. Whether this is allowed depends on the type of holiday.
1) Weekly rest days can be substituted if there's mutual agreement in advance. While not mandatory, we recommend documenting this in writing. However, the substitute day must fall within the same 7-day period.
2) Labor Day cannot be substituted because the law specifies May 1st.
3) Public holidays can be substituted "with a day agreed upon in writing with the employee representative." Individual agreements don't count—you need prior written consent from an employee representative elected with majority support.
To substitute a public holiday, you'll need two documents: an employee representative election consent form and a public holiday substitution agreement.
Note: When a statutory holiday is properly substituted, no holiday premium pay is required.
Q4. What happens when a holiday overlaps with a scheduled day off?
Sometimes statutory holidays overlap with each other—for instance, when a weekly rest day falls on Labor Day or a public holiday. In these cases, treat it as one holiday. You don't pay 2 days' wages just because the weekly rest day and Labor Day coincide—you pay for 1 day.
Statutory holidays can also overlap with non-working days (days already scheduled off). In this case, no pay is required. For example, if a public holiday falls on an employee's scheduled day off, you don't need to pay public holiday premium pay for that month.
We've covered the most common questions hospitality operators ask about public holidays and statutory holidays. We hope this clarifies your questions and helps you verify that your business is properly compensating employees who work on statutory holidays—whether through substitute days or holiday premium pay.
Hospitality Labor Management Inquiries (Seocho Labor Law Firm)
Website: www.노무법인서초.com
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