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What should I do to have an employment contract reviewed?
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As my business has grown, hiring new employees has become more frequent. Until now, there have been cases where I used the existing template as is or just explained things verbally, but I heard that it can become a problem if an employment contract is not prepared or important matters are omitted. From a business owner's standpoint, I am curious about how employment contract review should properly be carried out and what points an attorney checks when reviewing it.
employment contract review
Answer to Related Inquiry
Author: 김국일
Hello. This is a corporate attorney at Daeryun Law LLC.
An employment contract refers to a contract document concluded in writing between an employee and an employer, setting out working conditions such as wages, working hours, and holidays.
Employment contract review is a key preemptive measure for preventing future labor disputes, and the larger the business grows, the greater the importance of the employment contract becomes.
Under the Labor Standards Act, an employment contract must be prepared in writing and must include, without omission, the mandatory items prescribed by law, such as wages, working hours, break times, holidays, and annual paid leave.
If even some of these are missing or drafted ambiguously, it can lead to unpaid wages, overtime disputes, or claims of unfair working conditions.
In particular, failing to prepare an employment contract can act as evidence unfavorable to the employer in the event of a dispute, and criminal punishment is imposed.
A corporate attorney's employment contract review begins by first checking whether the contract currently in use violates any provisions of relevant laws such as the Labor Standards Act.
In particular, the distinction between fixed pay and various allowances, the method of handling overtime, night, and holiday work, and the legality of setting a probationary period are the areas where disputes most frequently arise, so they are reviewed with a focus.
In addition, we also check whether there are clauses drafted in a way that does not fit the type of industry and work arrangement, and whether there are parts where the actual working conditions do not match the contents of the contract.
This is because, where the contract's contents and reality differ, the contract can instead act as evidence unfavorable to the employer.
Through the employment contract review, where necessary, we suggest a direction for revising and supplementing the contract to suit the workplace and organize the standards so that the same problem does not recur in future personnel and labor management.
This is a far more efficient approach than responding after a dispute has arisen.
If your number of employees is increasing, we recommend checking your legal risks through an employment contract review at this point in time.
At Daeryun Law LLC, corporate attorneys collaborate with related legal experts such as labor attorneys to conduct review and advisory on employment contracts and rules of employment tailored to the workplace's size and operating method, assisting you in preventing unnecessary disputes in advance.
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