1. The Client's Situation
The client was a business engaged in food distribution and processing, and requested a comprehensive review of whether it could hire holders of F-4 (Overseas Korean) status as fixed-term workers, whether they could be assigned to simple labor, and the scope of application of the four major social insurances. In particular, the client was concerned about the possibility of employment restrictions depending on whether the work constituted simple labor, and about the legal risk that work exceeding two years could be deemed converted into an indefinite-term contract. The client also needed clear standards established for overall practical procedures such as management of period of stay, immigration reporting obligations, and whether enrollment in employment insurance was mandatory.
2. Your Legal Team's Advice
Your Legal Team first reviewed work suitability on the premise that, under Article 23(3) of the Enforcement Decree of the Immigration Act, holders of an F-4 visa are in principle permitted to engage in employment activities, but that employment may be restricted where the work falls under restricted occupations such as simple labor activities. In particular, we specifically analyzed the relevance to occupations with possible restrictions under the public notice, such as building cleaners, facility and equipment cleaners, and regular delivery workers, and advised on whether job redesign was necessary.
We also explained that, under Article 4 of the Act on the Protection of Fixed-Term and Part-Time Workers, there is a risk of being deemed an indefinite-term contract if used beyond two years, and presented measures for setting and managing contract periods and renewals. In addition, we organized the point that, based on the limits on working hours under Articles 50 and 53 of the Labor Standards Act, there is no separate working-hour restriction based on status of stay, but that the worker is subject to the same regulation as ordinary workers.
With respect to the four major insurances, we provided guidance distinguishing that the National Pension, health insurance, and industrial accident insurance are in principle subject to mandatory enrollment, whereas employment insurance is subject to voluntary enrollment, and provided a checklist of practical procedures such as management of expiration of period of stay and reporting of acquisition of eligibility within 14 days.
3. Result
The client re-examined the jobs it planned to fill and, by separating and adjusting tasks that might fall under simple labor, preemptively blocked the risk of violating the Immigration Act. The client also reorganized its fixed-term contract period management system, establishing an internal management process able to prevent the risk of being deemed converted into an indefinite-term contract due to use exceeding two years. By clearly arranging the procedures for enrollment in the four major insurances and management of period of stay, the client minimized the possibility of administrative sanctions and fines.
The hiring of foreign workers requires prior review because status of stay, job suitability, employment contract structure, and applicability of the four major insurances are intertwined in a complex manner. Our firm provides enterprise-tailored HR and labor legal services, including advice on foreign employment, review of immigration risks, design of fixed-term contracts, and practical handling of the four major insurances.