Part 3: What you need to know when drafting employment contracts in hospitality
03. Key Considerations When Drafting Employment Contracts in Hospitality
Writer: Choi Chang-kyun, Managing Partner, Seocho Labor Law Firm
Editor: ONDA Manager Somora
Seocho Labor Law Firm
Seocho Labor Law Firm is the leading expert in hospitality HR management in Korea. We currently manage HR for multiple accommodation businesses, deliver training for hospitality franchise headquarters (including Yanolja), and help hospitality professionals build happier workplaces.
We believe happy workplaces make happy lives. That's why we've launched this series — to equip those building better workplaces with the HR knowledge they need.
Hospitality HR Inquiries
Website: www.노무법인서초.com
Blog: https://blog.naver.com/cpla7582
Contact: 02-6053-5482
Address: 5F Platinum Tower, 398 Seocho-daero, Seocho-gu, Seoul
Hello, I'm Choi Chang-kyun, Managing Partner at Seocho Labor Law Firm. To those of you working in hospitality: how much do you actually know about employment contracts? If you're running a property, have you ever struggled to draft or finalize contracts with your staff? Or if you're an employee, have you run into issues when signing on with a property?
Employment contracts matter across every industry — but they're especially critical in hospitality. An employment contract is a written document that sets out the basic terms between employer and employee. It's so important that the Labor Standards Act mandates it and includes penalties for non-compliance. That means the first thing you need to do when a new employee starts is draft and sign the contract.
In hospitality specifically, employment contracts go beyond legal compliance — they're your first line of defense against disputes. Most labor conflicts in this industry stem from what is (or isn't) written in the contract.
In this installment, we'll walk through real dispute cases and break down what hospitality employers need to know to draft contracts the right way.
In hospitality, employment contracts aren't just legal paperwork — they're essential for preventing disputes.
Common Disputes Around Employment Contracts in Hospitality
Most disputes in hospitality trace back to the employment contract. As the cases above show, it's not just about having a contract — it's about what's in it.
Core Principles for Drafting Employment Contracts
To prevent these scenarios, labor laws don't just require a contract — they specify what must be included and what's prohibited.
Employment Contract Drafting Principles
One critical point: if you draft a contract but don't give the employee a copy, you're treated as if you never drafted it at all — and subject to penalties. Among the mandatory items, two are especially tricky in hospitality: break times (and standard working hours) and wage structure. Get these wrong and you're looking at wage theft claims. Be specific.
Tips for Drafting Hospitality Employment Contracts
1) Before Hiring
Decide on the employment type before posting the job. For front desk/duty staff: full-time or fixed-term? For managers: independent contractor or employee? For housekeeping: employee, agency, or subcontractor?
Once you've settled the employment type, define the work pattern and hours (e.g., three-shift rotation, every-other-day schedule) and estimate the appropriate wage level in advance.
2) During the Interview
Use the job posting as a baseline and negotiate the details. Draft the contract based on what you discuss. Double-check that the contract doesn't violate minimum wage laws and that working hours are clearly spelled out.
3) On Day One
Have the employee sign the contract before they start work. Give them a copy immediately — and document the handoff (take a photo or get a signature acknowledgment).
4) When Conditions Change
Discuss any changes to terms in advance. Once both parties agree, draft a revised contract and give the employee a new copy.
That wraps up the essentials for drafting employment contracts in hospitality. Next time, we'll cover what you need to know about creating work rules for your property. See you in October. Thank you.
📖 Series Index
01. Dispute Pathways in Hospitality HR
02. How Labor Standards Apply in Hospitality
03. Key Considerations When Drafting Employment Contracts in Hospitality
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Managing Work Rules in Hospitality
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Managing Foreign Workers in Hospitality
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Managing National Insurance (4 Major Insurances) in Hospitality
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Mandatory Training in Hospitality
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Managing Holidays and Leave in Hospitality
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Managing Working Hours in Hospitality
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Wage Management in Hospitality (1)
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Wage Management in Hospitality (2)
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Managing Employee Exits in Hospitality
