Probationary Period Issues in Korea – Frequently Asked Questions (Q&A)
- Date2025/03/25 17:57
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Many Korean companies set a probationary period when hiring employees.
Today, let’s take a look at some frequently asked questions regarding the probationary period.
1. Can the employment contract be terminated due to inadequate performance after the probationary period ends?
Refusing permanent employment after the probationary period is considered a form of “dismissal”.
Dismissals during probation are a common issue in practice. However, many mistakenly believe that they can terminate the employment contract at their discretion once the probationary period ends, which is not the case.
Dismissals during probation are a common issue in practice. However, many mistakenly believe that they can terminate the employment contract at their discretion once the probationary period ends, which is not the case.
While courts may assess the legitimacy of dismissals during probation with somewhat relaxed criteria compared to regular dismissals, proving that there is a reasonable and justifiable cause is still challenging.
Since an already-executed dismissal can be difficult to reverse, it’s essential to seek professional advice before taking any action.
2. Can employers pay less than the minimum wage during the probationary period?
Under certain conditions, yes. Employers may pay 90% of the minimum wage during the first three months of the probationary period if the following criteria are met:
The employment contract must be for a fixed term of at least one year, and
The employee must be in the first three months of their probationary period.
However, this exception does not apply to short-term contract employees (e.g., 3-month or 6-month contracts), even if the contract includes a probationary period.
3. Are employers exempt from the obligation to give prior notice of dismissal for probationary employees?
Not necessarily. The exemption applies not to all probationary employees, but rather to those whose total period of continuous employment is less than three months.
While it is common for companies to set a probationary period of three months, the duration can legally exceed three months if necessary.
However, simply being on probation does not automatically exempt an employer from the obligation to provide dismissal notice.
However, simply being on probation does not automatically exempt an employer from the obligation to provide dismissal notice.
Additionally, even if the company has fewer than five employees, dismissal notice is still required.
By keeping these points in mind, employers can avoid potential legal pitfalls related to the probationary period.
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