Key labor law updates from 2022 that accommodation operators need to understand
Labor Q&A for Hospitality Operators with Attorney Choi Chang-gyun
01. 2022 Labor Law Changes Every Accommodation Operator Must Know
Hospitality Labor Q&A Part 1
Writer: Choi Chang-gyun, Labor Attorney
Editor: ONDA Manager Lee Chae-eun
Seocho Labor & Law is a leading expert in hospitality labor management. We currently manage labor compliance for numerous accommodation businesses and conduct training sessions for hospitality franchise headquarters (Yanolja, Yeogi Eottae, etc.), contributing to happier workplaces across the hospitality industry.
Believing that happy workplaces create happy lives, we've launched this series to provide essential labor management information to those who care for their workplace communities.
Hello, I'm Attorney Choi Chang-gyun, returning after my "Mastering Hospitality Labor" series. It was a great opportunity to share comprehensive labor information for accommodation operators with ONDA, and I'm glad to reconnect after some time.
Among the labor topics we've covered, I'm back with a Q&A format to address the questions hospitality business owners ask most frequently. We'll also share newly updated labor regulations, so I hope 'Hospitality Labor Q&A' helps resolve some of your concerns and questions.
Today, we're starting with the 2022 labor law changes every accommodation operator must know.
Given that hospitality operates 24/7, labor management is absolutely critical in this industry. The Labor Standards Act treats rest breaks as unpaid time, while standby time counts as working hours. Since accommodation staff spend considerable time waiting for guests, determining whether this time qualifies as rest breaks or working hours becomes a key challenge. Making this distinction is essentially the core of hospitality labor management.
Labor law also continuously evolves with social conditions. While many changes took effect in 2022, today we'll focus on the revisions that accommodation business owners absolutely need to understand.
Wage Statements Are Now Mandatory
Since November 19, 2021, revised Labor Standards Act requires employers—including hospitality operators—to provide employees with wage statements each month when paying wages. You might think of wage statements as simply showing payroll deductions. But the revised law specifies mandatory items, making it different from what you may have used before.
Why are wage statements critical in hospitality?
When wage disputes arise in the accommodation industry, the regional labor office investigates. The most important document they review is the employment contract. Since it contains all details about working hours and wages, it's the signed document that confirms how many rest hours the employee claiming unpaid wages had and whether wages were calculated accordingly.
In practice, even when employment contracts exist, disputes often arise because considerable time has passed since termination and employees don't recall the contract details. The hospitality operator must then prove that wages were paid according to the employment contract.
By providing wage statements, employees receive monthly confirmation of the hours they worked, creating proof that they worked according to their employment contract.
Essentially, when the employment contract signed at hiring matches the wage statements provided during employment, you can prevent wage disputes from arising in the first place.
What must be included in wage statements?
Labor Standards Act Article 48 (Wage Ledger and Wage Statement)
② When paying wages, the employer shall provide employees with a wage statement in writing (including electronic documents as defined in Article 2, Paragraph 1 of the Framework Act on Electronic Documents and Transactions) containing items determined by Presidential Decree, including wage components, calculation methods, and details of any partial deductions made under Article 43, Paragraph 1, Proviso.
Items Determined by Presidential Decree, Labor Standards Act Enforcement Decree Article 27
- Name
- Resident registration number
- Date of employment
- Type of work performed
- Items forming the basis for calculating wages and family allowances
- Number of working days
- Number of working hours
- For overtime work, night work, or holiday work: number of hours worked
- Basic wage, allowances, and amounts by wage category
Wage statements must include the nine items specified by Presidential Decree and be provided on the regular monthly wage payment date. The most important item to note is '7. Number of working hours.' Whether you have alternating-day shift workers, 3-team 2-shift workers, or 6-day workers, you must calculate and record hours for base wages, overtime pay, night work allowances, and holiday work allowances according to each work pattern (Note: for workplaces with fewer than 5 regular employees, overtime, night work, and holiday work allowances are not mandatory).
What happens if you don't provide wage statements?
Penalties are assessed per employee who doesn't receive a wage statement. If you fail to provide wage statements to 5 employees, you'll be penalized for all 5.
Penalty Standards for Wage Statement Violations (Labor Standards Act Enforcement Decree Article 116)
Failure to issue wage statement 1st offense: ₩300,000 / 2nd: ₩500,000 / 3rd: ₩1,000,000
Omission/error in mandatory items 1st offense: ₩200,000 / 2nd: ₩300,000 / 3rd: ₩500,000
Must wage statements be provided to foreign workers too?
Yes, absolutely. The Labor Standards Act applies to foreign workers regardless of their residency status, so wage statements must be provided.
How should wage statements be prepared for shift workers and alternating-day workers?
For shift workers and alternating-day workers whose overtime work (overtime, night work, holiday work) is scheduled, create an employment contract that distinguishes rest breaks from working hours, then calculate overtime and night work allowances separately based on the ordinary hourly wage in the employment contract and reflect them in the wage statement.
Must wage statements be provided on paper?
No. Electronic delivery via email, KakaoTalk, etc. is acceptable. However, you must be able to confirm that the employee received it.
Public Holiday Coverage Expands
Most accommodation businesses operate year-round without closures. According to the Labor Standards Act, when employees work on statutory holidays, you must pay additional holiday work allowances.
Until last year, public holidays were treated as regular working days for workplaces with fewer than 30 regular employees. Paid holiday requirements had extended to companies with 30 or more employees. But starting in 2022, public holidays now apply to all workplaces with 5 or more regular employees.
How should wages be paid when working on public holidays?
Since statutory holidays are paid holidays, you must pay holiday work allowances according to the Labor Standards Act. Holiday work allowances equal 50% of the employee's ordinary wages, so pay 1.5 times the regular daily wage.
Can public holidays be substituted with other days?
Yes, it's possible. When substituting public holidays, you must specify the substitute date and create a written agreement with the employee representative. Also, when a public holiday is substituted, the substitute public holiday becomes a regular working day.
We've covered the essential 2022 labor law revisions for accommodation operators. I hope this helps not just business owners but all hospitality staff. Next time, we'll address your questions about employment contracts.
Hospitality Labor Management Inquiries (Seocho Labor & Law)
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