--- title: "SPECIAL: Choi Chang-gyun's Guide to Hospitality Labor Law, Part 12" description: "Managing employee departures: resignation, termination, and everything in between" published: 2020-07-07T00:00:00+00:00 author: "ONDA 편집팀" category: "Insights" image: "https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a9e12b772efe473131198d_632c2aa7b2e4040d22c185b4_Frame_201_20_14_.png" canonical: https://global.onda.me/en/blog?slug=special-coecanggyun-nomusayi-sugbageob-nomu-jeongboghagi-12 locale: en --- # SPECIAL: Choi Chang-gyun's Guide to Hospitality Labor Law, Part 12 ### **12. Managing Employee Departures in Hospitality** **Writer: Choi Chang-gyun, CEO, Labor & Law Firm Seocho** **Editor: Lee Chae-eun, Manager, ONDA** Hello, I'm Choi Chang-gyun, labor attorney at Labor & Law Firm Seocho. Most labor disputes in hospitality happen during the exit process — which is why *how* an employee leaves matters enormously. In this installment, we'll cover **what you absolutely need to know when a staff member leaves your property.** --- ### 1. Types of Employee Departure Before we dig into exit management, let's clarify the five ways an employment relationship can end — depending on *who* initiates the departure. --- 1. **Resignation** — Employee voluntarily terminates the relationship (e.g., "I'll work through the end of this month") 2. **Mutual agreement (voluntary separation)** — Both parties agree to end the relationship (e.g., Employer: "Would you be open to finishing up this month?" / Employee: "Yes, that works") 3. **Termination (dismissal)** — Employer unilaterally ends the relationship, against the employee's will (e.g., "Today is your last day" / "Don't come in after this month") 4. **Contract expiration** — Fixed-term contract reaches its end date (e.g., The employment contract clearly states a period, and that period has ended) 5. **Mandatory retirement** — Employee reaches statutory retirement age (60 in Korea as of 2020) (e.g., Employee turns 60 during employment) --- Let's walk through what to watch out for in each scenario. --- ### 2. Resignation & Mutual Agreement: Key Precautions **Resignation and mutual agreement** aren't heavily regulated by labor law. But disputes often arise later over *which category the departure actually fell into* — so you must **document everything with a resignation letter or mutual separation agreement.** ![Because disputes over the nature of departure happen frequently, always document resignations and mutual separations in writing. (Photo by Charles Deluvio on Unsplash)](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b25b198eb315063e863d_62ce59e32ab9f22cfd3a5cce_5f02c6092cc03b1d79c6ca55_Photo_2520by_2520Charles_2520Deluvio_2520on_2520Unsplash.jpeg) --- ### 3. Termination: Key Precautions **Termination** — where the employer unilaterally ends the relationship — is **tightly regulated.** The rules depend on your workforce size. --- > **Businesses with fewer than 5 regular employees** You're not restricted from terminating, but **you must give 30 days' advance notice** (or pay 30 days' wages in lieu). **∙ What is the advance notice rule?** Employers must notify employees at least 30 days before termination. **Exceptions:** employees with less than 3 months of service, force majeure events that make continued operation impossible, or cases where the employee intentionally caused serious damage to the business. --- > **Businesses with 5 or more regular employees** The advance notice rule applies **and** you can only terminate for **"just cause."** You must also **provide written notice stating the reason and effective date.** "Just cause" means circumstances so serious that the employment relationship cannot reasonably continue. What qualifies varies case by case — consult an expert before proceeding. If you fire someone, they can file an unfair dismissal claim with the Labor Relations Commission. **If the dismissal is ruled unfair, you must reinstate the employee *and* pay all back wages from the termination date to the reinstatement date.** *Example: Employee terminated in June 2020 files a claim and wins reinstatement in October 2020. You owe them 4 months of back pay plus reinstatement.* --- ### 4. Contract Expiration & Mandatory Retirement: Key Precautions **Contract expiration** only applies if the **employment contract clearly states a fixed term.** Also remember: - After 2 years of fixed-term employment, the employee is considered permanent. - If the contract expires and you continue employing the person without any formal notice or renewal, the contract is deemed automatically renewed under the same terms. ![Contract expiration only applies if the employment contract clearly states a fixed term. (Photo by Van Tay Media on Unsplash)](https://zqcfqfqgiyckyhazcfrk.supabase.co/storage/v1/object/public/blog-images/webflow/6316f3f75130788ec2d762dd/65a8b25b198eb315063e8641_62ce59e32ab9f254443a5ccf_5f1a53dff4806c55ba664b24_Photo_2520by_2520Van_2520Tay_2520Media_2520on_2520Unsplash.jpeg) **Mandatory retirement** (for businesses with 10+ employees): **the more favorable rule applies** — either the retirement age in your work rules or the statutory retirement age. If you keep employing someone past retirement age and then terminate them *because* they've passed retirement age, that may be ruled an unlawful dismissal. --- ### 5. How to Reduce Exit-Related Disputes > **Document everything in writing** As explained above, the rules vary by departure type — so it's critical to **clearly classify the departure** and verify you've followed the legal requirements. That means preparing and **executing the relevant documents**: resignation letters, employment contracts, termination notices, etc. --- > **Confirm whether termination is lawful** Many hospitality operators get into trouble by firing someone when termination isn't actually permitted. Before you proceed: 1. **Know your headcount.** The rules change at 5 employees. 2. **If you have 5+ employees, confirm with an expert** whether you have just cause. 3. **Check for other compliance issues** — e.g., missing employment contracts, minimum wage violations, undocumented foreign workers. Even if the termination itself is valid, these issues can trigger separate disputes. If any exist, **avoid termination altogether.** --- That wraps up what you need to know about managing employee exits. Follow these guidelines carefully to keep your operation stable. This concludes our 12-part series, *Choi Chang-gyun's Guide to Hospitality Labor Law*. Thank you for your interest and support. I hope this series helped lighten your labor compliance burden, and I look forward to meeting you again in the future. --- ##### 📖 Series Index [01. Common paths to labor disputes in hospitality](https://corp.onda.me/insight-content/magazine-31-post-2402) [02. Labor Standards Act: what applies to your property](https://corp.onda.me/insight-content/magazine-32-post-2478) [03. Writing employment contracts: key precautions](https://corp.onda.me/insight-content/magazine-33-post-2533) [04. Managing work rules](https://corp.onda.me/insight-content/magazine-34-post-2642) [05. Managing foreign employees](https://corp.onda.me/insight-content/magazine-35-post-2684) [06. Managing the four major insurances](https://corp.onda.me/insight-content/magazine-36-post-2856) [07. Mandatory training requirements](https://corp.onda.me/insight-content/laborseocho-07) [08. Managing holidays and leave](https://corp.onda.me/insight-content/laborseocho-08) [09. Managing working hours](https://corp.onda.me/insight-content/laborseocho-09) [10. Wage management (Part 1)](https://corp.onda.me/insight-content/laborseocho-10) [11. Wage management (Part 2)](https://corp.onda.me/insight-content/laborseocho-11) **12. Managing employee departures**