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Overtime Without Explicit Instruction: Is the Employer Obligated to Pay Overtime Compensation?
  • Date2025/05/22 03:43
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1. Principle: Overtime Requires Mutual Agreement
According to Article 53(1) of the Labor Standards Act of Korea, overtime work is only permitted upon agreement between the employer and employee, and such work must be compensated at 150% or more of the employee’s ordinary wage.
“If the parties agree, working hours may be extended up to 12 hours per week.”
— Labor Standards Act, Article 53(1)
The Ministry of Employment and Labor has taken the position that if an employee voluntarily works overtime to increase their performance without any agreement or instruction from the employer, the employer is not obligated to pay overtime compensation.
“Where the employee performed overtime work independently to increase personal performance without employer instruction, and there is no evidence that the employer explicitly requested the overtime, the obligation to pay overtime premium does not arise.”
— MOEL Interpretation No. 근로기준과-4380, Aug. 22, 2005
 
2. Exception: When Overtime Is Practically Necessary
However, courts have held that if the nature of the work requires overtime and the company culture discourages formal overtime requests, the employee should still be compensated for the additional hours worked—even without prior approval.
“If overtime is practically necessary but the company environment discourages requesting approval, then the employer is still obligated to pay for actual overtime worked, even without formal request or approval.”
— Seoul Central District Court, Jan. 7, 2014, Case No. 2013가소5258885
 
3. Exception: Implied Consent or Acknowledgement of Overtime
Even in the absence of explicit instruction, if the employer was aware of the employee's overtime and did not object, it may be deemed that the employer tacitly consented or ratified the overtime work, thereby triggering the obligation to pay overtime wages.
“If an employer tacitly consents to or subsequently acknowledges an employee's overtime work, then the corresponding overtime pay should be granted. It is not required that overtime be explicitly instructed in writing.”
— MOEL Interpretation No. 근로기준정책과-6014, Sep. 10, 2018
Accordingly, if the employer knowingly accepts labor performed outside of regular hours without raising any objections, there is a high likelihood that the obligation to pay overtime compensation will be recognized.
 
※ Best Practice: Implement a Pre-Approval Overtime Policy
Given the potential for disputes surrounding unauthorized overtime, it is advisable to establish a clear internal policy requiring prior approval for all overtime work. The policy should also clarify that overtime pay will not be provided for hours worked without such prior approval.
 

 

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