Labor and Employment Law: Labor Standards Act and Labor Contract Act
This section covers labor and employment law under the Labor Standards Act and the Labor Contract Act. The exam tests hiring, working conditions, wages, hours, dismissal, fixed-term contracts, and work rules.
Core rules
- Employers must state key working conditions in writing. Work rules covering ten or more employees must be filed; rules cannot undercut law or collective agreements.
- The Labor Standards Act sets maximum hours at eight per day and forty per week, with premium pay for overtime, work on statutory holidays, and night work. Exceptions require legal procedures, including labor-management agreements.
- The Labor Contract Act requires objective, reasonable grounds for dismissal; abusive dismissal is invalid. Fixed-term employees may request conversion to indefinite employment after repeated renewals under the five-year rule.
- Wages must be paid in full, in currency, directly to the worker, and on time. Unpaid overtime and disguised employment are enforcement priorities.
Worked example
An employer dismisses a worker for poor performance after one warning, without a hearing or clear targets. The dismissal is likely abusive because it lacks objective, reasonable grounds and social acceptability. The worker may seek confirmation of employment and unpaid wages. If the employer also failed to pay overtime, the Labor Standards Inspection Office can order correction and back pay.
Traps
Do not assume employment is at will. Do not confuse disciplinary and ordinary dismissal standards. Do not overlook written condition requirements and premium rates. Do not treat fixed-term renewal as automatic, but do check the conversion rule.