Labor attorney Choi Chang-gyun explains why hospitality operators need formal employment rules once they hit 10 employees—and how to draft, file, and update them without legal missteps.
04. Managing Employment Rules in Hospitality
Writer Choi Chang-gyun, CEO, Seoucho Labor Firm (Labor Attorney)
Editor Somora, Manager, ONDA
Seoucho Labor Firm
Seoucho Labor Firm is Korea's leading hospitality HR specialist. We manage labor affairs for multiple lodging businesses and deliver training for hospitality franchises (including Ya***) — all to help build happier workplaces.
We believe happy workplaces make happy lives. That's why we launched this series: to share the essential HR knowledge every hospitality professional needs.
Hospitality HR Inquiries
Website: www.노무법인서초.com
Blog: https://blog.naver.com/cpla7582
Tel: 02-6053-5482
Address: 5F Platinum Tower, 398 Seocho-daero, Seocho-gu, Seoul
Photo by Samuel Zeller on Unsplash
Managing Employment Rules in Hospitality
As your team grows, a unique culture takes shape — driven by management style, employee relationships, and evolving norms. Some of these become working conditions: holiday bonuses, bereavement leave, disciplinary protocols.
The problem? You can't spell all this out in every employment contract. And onboarding a new hire is already packed — there's no time to explain "how we do things around here."
That's where employment rules come in. Think of them as your company's operating manual: a standardized framework for managing work relationships at scale. They're basically the terms and conditions employees agree to — like insurance policy fine print, but for your workplace.
Because employment rules govern working conditions and reflect management policy, Korean labor law mandates strict procedures. This issue covers everything you need to know.
1. Required for workplaces with 10+ employees
Article 93 of the Labor Standards Act requires employers with 10 or more regular employees to draft and file employment rules.
Most resorts, mid-sized motels, and hotels meet this threshold. If you don't comply, you'll face a fine of up to ₩5 million.
Because employment rules govern working conditions and reflect management policy, Korean labor law mandates strict procedures.
2. What to include
Employment rules are the employer's responsibility — so the law spells out mandatory items to ensure nothing critical is left out.
Mandatory items in employment rules
- Work start/end times, break times, holidays, leave, and shift schedules
- Wage determination, calculation, payment method, pay period, payment date, and raises
- Family allowances: calculation and payment method
- Retirement
- Severance pay, bonuses, and minimum wage
- Employee expenses: meals, work supplies, etc.
- Training facilities for employees
- Maternity leave, parental leave, and other work-life balance protections
- Workplace accommodations based on gender, age, or physical characteristics
- Work-related and non-work-related injury/disaster support
- Workplace harassment prevention and response
- Awards and disciplinary actions
- Any other terms applicable to all employees at the workplace
Once you've drafted the rules covering these points, you need to consult employees — or get their consent.
Consult the majority representative: if more than half your workforce is unionized, that's the union rep. Otherwise, it's a majority of employees.
- If the new rules are less favorable than existing conditions → consent required
- If the new rules are more favorable → consultation required
In practice, proving you "consulted" is tough. Best practice? Get written confirmation either way.
3. How to file employment rules
Submit your completed employment rules to your regional Ministry of Employment and Labor office, along with:
- Employee consent form
- Employment Rules Filing Form (official MOEL form)
A labor inspector will review your submission. If there are issues, they'll call to request revisions.
The review checks two things:
- Do the rules meet legal minimums?
- Are all mandatory items included?
FYI: Not filing triggers the penalty. But as long as you secured valid employee consent, the rules are still legally binding.
4. Special considerations for hospitality
Hospitality businesses often make side agreements with staff — performance bonuses, "double" incentives, etc. If you try to codify every perk in your employment rules, you'll box yourself in.
Include the mandatory items. Be selective about everything else. Flexibility matters.
Remember: employment rules work like internal law. If an employee's contract offers less favorable terms than the rules, the rules win. So before drafting contracts, check for conflicts.
Finally: post or distribute the rules so employees can access them. Violating this requirement? Another ₩5 million fine.
That's employment rules in a nutshell. Next issue: managing foreign workers in hospitality. See you then.
📖 Series Index
01. Labor Dispute Pathways in Hospitality
02. How Labor Standards Apply to Hospitality
03. Employment Contract Pitfalls in Hospitality
04. Managing Employment Rules in Hospitality
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Managing Foreign Workers in Hospitality
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Managing the Four Major Insurances in Hospitality
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Mandatory Legal Training in Hospitality
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Managing Holidays and Leave in Hospitality
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Working Hours Management in Hospitality
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Wage Management in Hospitality (1)
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Wage Management in Hospitality (2)
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Exit Management in Hospitality
