SPECIAL: Labor Expert Choi Chang-gyun's Guide to Hospitality HR 06

TL;DR

Labor Expert Choi Chang-gyun's Guide to Hospitality HR 06

06. Managing Foreign Workers in Hospitality

Writer Choi Chang-gyun, CEO, Seocho Labor Consulting

Editor Somora Manager, ONDA

Seocho Labor Consulting

Seocho Labor Consulting is the leading expert in hospitality HR management in Korea. We currently provide HR consulting services to multiple hospitality businesses and conduct training sessions for hospitality franchise headquarters (including Yanolja), contributing to creating happier workplaces for hospitality professionals.

Believing that a happy workplace creates a happy life, we've launched this series to provide essential HR information to those building better workplaces together.

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-gyun from Seocho Labor Consulting. Over the past months, we've covered essential HR knowledge related to hiring in hospitality. Starting today, we'll explore the HR information you need after hiring employees.

Once you've hired staff for your property, as an employer (hospitality business owner), you're legally required to enroll them in Korea's four major social insurance programs. In this December issue of Magazine ON, we'll guide you through the four major insurance programs you must manage when hiring employees in hospitality.

Definition and Types of the Four Major Insurance Programs

1. Managing the Four Major Insurance Programs in Hospitality

From the employee's perspective, the four major insurance programs protect them from various social risks through an insurance-based system. When employees join a company, enrolling in these four programs gives them access to benefits from the National Pension, Health Insurance, Employment Insurance, and Industrial Accident Compensation Insurance.

Once you've hired staff for your property, as an employer (hospitality business owner), you're legally required to enroll them in Korea's four major social insurance programs.

However, since individual employees can't be expected to collect premiums themselves, social insurance law designates the employer (hospitality property owner) as the managing entity for the four major insurance programs. Therefore, when hiring hospitality staff, the employer—the property owner—is responsible for managing these insurance programs, following the process outlined below.

Four Major Insurance Management Process

2. Eligibility and Premium Rates for the Four Major Insurance Programs

Each insurance program has different eligibility requirements based on employment type, reflecting the unique characteristics of each program. Eligibility for the four major insurance programs is as follows:

Eligibility for the Four Major Insurance Programs

Once you've confirmed eligibility and completed enrollment and termination reporting, you must deduct the employee's share of premiums from their wages (withholding). The premium rates for the four major insurance programs in 2020 are as follows:

2020 Four Major Insurance Premium Rates

Conclusion

As we've seen today, managing the four major insurance programs involves confirming eligibility during hiring, deducting estimated premiums when paying wages, and completing settlement procedures upon termination.

While managing employee insurance doesn't directly generate revenue, from an HR management perspective it has several critical touchpoints: avoiding penalties for missed reporting, preventing wage payment issues from incorrect deductions, and more. I hope understanding these will help you better manage HR at your property.

In our next installment, we'll cover mandatory legal training requirements for hospitality businesses. Thank you.