Legal disclaimer: This guide is for general informational purposes only and does not constitute legal advice. Korean labor law is applied case by case, and outcomes depend on the specific contract, the size of the workplace, and the facts of the situation. Statutes, minimum wage figures, and administrative interpretations change. Anyone facing a dispute should contact the Ministry of Employment and Labor counseling line on 1350, which offers foreign language support, or consult a certified labor attorney (공인노무사) or lawyer before acting.
This guide covers: the legal difference between the two kinds of probation in Korean law, exactly when a reduced probation salary is lawful and when it is not, the 2026 minimum wage figures that set the floor, why probation does not remove the right to social insurance or severance accrual, what a lawful dismissal during probation requires, how workplace size changes the answer, the visa consequences for teachers, and a clause-by-clause review checklist.
What a probation clause actually is
Short answer: Korean law recognizes probation as a legitimate arrangement, and a probation clause can lawfully reduce pay within limits, set evaluation criteria, and make early termination easier. It cannot remove a worker from the protection of the Labor Standards Act, cancel social insurance enrollment, erase the period from continuous service, or turn a dismissal into something an employer can do for any reason at all.
Probation clauses are standard in Korean employment contracts, including at academies hiring foreign teachers. Most are entirely lawful. The problems tend to come from a small number of specific terms that are either unenforceable or drafted in a way both sides misunderstand.
The two kinds of probation
Korean practice distinguishes between two arrangements that English contracts often collapse into the single word "probation."
| Korean term | What it means | Hiring status |
|---|---|---|
| 수습 (suseup) | A period for an already-hired worker to adapt to the job and build skills | Hiring is confirmed |
| 시용 (siyong) | A trial period to evaluate whether the worker is suitable, with the employer reserving the right to decline permanent hiring | Hiring is not yet confirmed |
The practical difference matters. Under 시용, the employer retains a reserved right of cancellation, and Korean courts accept a somewhat wider scope for ending the relationship than for an ordinary dismissal.
What decides which applies is not the label. Korean legal commentary on this point is consistent: what governs is the substance of the arrangement and how it actually operates, not the name written in the contract.
Practical tip: A contract that says "probation" in English and 수습 in Korean, while describing an evaluation that decides whether employment continues, is doing two different things at once. Asking the academy to state plainly in writing whether employment is already confirmed removes the ambiguity before it becomes a dispute.
What a probation clause CAN legally include
1. A reduced salary, within strict limits
Short answer: An employer may pay a probationary worker 90 percent of the minimum wage, but only when three conditions are met at the same time: the employment contract is for a term of one year or more, the reduction applies only within the first three months from the start of probation, and the job is not in the simple labor category.
This comes from the Minimum Wage Act (최저임금법) Article 5(2) and its Enforcement Decree, which allow an amount reduced by 10 percent of the minimum wage.
The three conditions:
| Condition | Requirement |
|---|---|
| Contract length | The employment contract must be for a period of one year or more |
| Timing | Only within three months from the day probation begins |
| Occupation | Workers in the simple labor category under the Korean Standard Classification of Occupations are excluded |
A contract shorter than one year cannot use the reduction at all.
2. The 2026 numbers
The minimum wage applying from January 1, 2026 was set at ₩10,320 per hour, a 2.9 percent increase, announced by the Ministry of Employment and Labor on August 5, 2025. The monthly equivalent is ₩2,156,880 based on a 40-hour week and 209 monthly hours, and it applies to all workplaces without distinction by industry.
That produces the following legal floors during a lawful probation reduction:
| Figure | 2026 full rate | 90 percent probation rate |
|---|---|---|
| Hourly | ₩10,320 | ₩9,288 |
| Monthly (209 hours) | ₩2,156,880 | ₩1,941,192 |
Important distinction: the 90 percent rule is about the minimum wage floor, not about the salary agreed in the contract. An employer cannot simply pay 90 percent of a ₩2,500,000 contracted salary because the word probation appears somewhere. Any reduction from the agreed salary has to be set out in the contract itself, and it still cannot fall below the statutory floor.
Violations of the Minimum Wage Act carry criminal penalties of up to three years imprisonment or a fine of up to ₩20 million.
3. An evaluation process
A probation clause can lawfully set out how performance will be assessed: criteria, review points, who evaluates, and what standard must be met. Clear criteria protect both sides. They give the teacher a fair chance to meet expectations and give the academy the documented basis it would need if it later declines to confirm employment.
4. Easier termination in the first three months, procedurally
Under the Labor Standards Act (근로기준법) Article 26, an employer must give at least 30 days advance notice of dismissal or pay at least 30 days of ordinary wages in lieu. That obligation does not apply where the worker's continuous employment has lasted less than three months.
This is a procedural exception, not a substantive one. It removes the notice requirement in the first three months. It does not remove the requirement that the dismissal itself be justified, which is covered below.
5. A defined length
Korean law does not fix a maximum probation length in a single provision, and three months is the common practice in academy contracts. Two statutory boundaries make three months the practical limit:
- The 90 percent minimum wage reduction is available only for the first three months.
- The advance notice exception applies only while continuous employment is under three months.
A probation period longer than three months is not automatically unlawful, but the employer loses both of these allowances after the third month, and an unusually long probation invites scrutiny of whether it serves any legitimate purpose.
What a probation clause CANNOT legally include
1. Pay below the statutory floor
Any clause paying less than 90 percent of the minimum wage during a lawful probation, or less than 100 percent where the three conditions are not all met, is unenforceable regardless of what the teacher signed. A contract shorter than one year, for example, cannot carry a reduced probation rate at all.
2. Removal of social insurance enrollment
Enrollment in Korea's four major insurances follows from the employment relationship itself, not from whether a probation label is attached. A clause stating that enrollment begins only after probation ends does not reflect how the obligation arises.
For teachers this matters immediately. National health insurance is the mechanism that covers medical costs, and a gap in enrollment during the first months is a gap in coverage at exactly the point when a new arrival is most likely to need a clinic.
3. Exclusion of probation from continuous service
Short answer: Probation counts toward continuous service. Under the Act on the Guarantee of Employees' Retirement Benefits, severance is payable to workers with one year or more of continuous service who work an average of 15 hours or more per week, and Korean case law treats probation time as part of that continuous period.
The Supreme Court held (Decision of July 11, 1995, case 93다26168) that where someone is hired as a probationary worker or intern and then continues as a regular employee without a break, the two periods are added together as the continuous service period forming the basis for severance calculation.
The practical consequence for a teacher on a twelve-month contract is significant. A clause stating that the twelve months run from the end of a three-month probation, rather than from the start date, changes when severance entitlement arises. That structure deserves close attention before signing.
4. Elimination of paid annual leave accrual
Under the Labor Standards Act Article 60(2), a worker with less than one year of service is entitled to one day of paid leave for each month worked with full attendance. Probation status does not switch that off.
5. Dismissal for any reason at all
This is the most widely misunderstood point on both sides.
Under Article 23(1) of the Labor Standards Act, an employer may not dismiss a worker without justifiable cause. For a trial-period arrangement, the Supreme Court has held (Decision of July 22, 2003, case 2003다5955) that dismissal during a trial period or refusal of permanent hiring is an exercise of the employer's reserved right of cancellation, and is recognized more broadly than an ordinary dismissal, but that even then there must exist an objectively reasonable ground and it must be recognized as socially acceptable.
In plain terms: the bar is lower during probation, but there is still a bar. A conclusion that someone is simply "not suitable," with nothing behind it, is difficult to defend.
6. Verbal or text-message dismissal
Article 27 of the Labor Standards Act requires an employer to notify a worker of the reasons for dismissal and the timing of dismissal in writing, and a dismissal is effective only where that written notice is given. Refusal of permanent hiring at the end of a trial period is treated as a dismissal, so this requirement applies. A verbal notice or a message alone does not satisfy it.
7. A waiver of statutory rights
A contract clause cannot waive rights the Labor Standards Act grants. Signing does not make an unlawful clause lawful, and the enforceable position is the statutory one.
The exception that changes everything: workplace size
Short answer: Workplaces with four or fewer regular employees are exempt from several core dismissal protections. Article 23(1) on dismissal without justifiable cause, Article 27 on written notice, and Articles 28 to 33 on applying to the Labor Commission for remedy do not apply. The advance notice requirement in Article 26 does apply.
This is the single most important structural fact in this guide, and it is why the same probation clause can have very different consequences at two different academies.
| Provision | 5 or more employees | 4 or fewer |
|---|---|---|
| Article 23(1), dismissal requires justifiable cause | Applies | Does not apply |
| Article 26, advance notice or 30 days pay | Applies | Applies |
| Article 27, written notice of reasons | Applies | Does not apply |
| Articles 28 to 33, unfair dismissal remedy at the Labor Commission | Applies | Does not apply |
| Minimum Wage Act | Applies | Applies |
| Severance under the Retirement Benefits Act | Applies | Applies |
Small academies are common, and many operate with fewer than five employees. A teacher at such an academy retains minimum wage protection, severance accrual, social insurance, and the advance notice rule, but does not have access to the unfair dismissal remedy process.
Practical tip: Employee count is a reasonable question to ask before signing, and it is not an aggressive one. It determines which protections apply, and the answer is a fact about the workplace rather than a negotiation point.
If a dismissal happens during probation
Short answer: For workplaces with five or more employees, an application for remedy against unfair dismissal is made to the Labor Commission within three months of the dismissal. That deadline is strict. For smaller workplaces, wage claims and the advance notice rule remain available through the Ministry of Employment and Labor.
Steps worth taking immediately
- Get it in writing. Where written notice is required, request the written notice of reasons and timing. Where it is not required, request written confirmation of the end date anyway, because wage and insurance matters depend on dates.
- Preserve the record. Keep the contract, payslips, schedules, messages, and any evaluation documents. Chat records with dates are frequently the clearest evidence of what was agreed.
- Note the deadline. Three months from the dismissal is the window for a Labor Commission application where that route is available.
- Call 1350. The Ministry of Employment and Labor counseling line handles wages, contracts, working hours, and dismissal, and offers foreign language support. It provides information and counseling rather than legal representation.
- Check unpaid wages separately. Wages already earned are owed regardless of how the relationship ended, including any final month and any unpaid overtime.
- Address the visa in parallel. This is covered next, and it runs on its own timeline.
The part that is specific to teachers: the visa
Short answer: An E-2 visa is tied to a specific employer. A dismissal during probation therefore creates an immigration matter as well as an employment one, and the immigration timeline moves faster than most dispute processes.
- Changes of workplace must be reported to immigration promptly. Reporting obligations apply within a short window after a change, so the paperwork cannot wait for a dispute to resolve.
- A gap in status is difficult to repair. Where a contract ends without a new job in place, a change of status to the D-10 job seeker visa must be applied for while the E-2 is still valid. Letting it lapse first removes the option.
The employment dispute and the visa situation run in parallel and on different clocks. The practical order is usually to secure status first and pursue the wage or dismissal matter from a stable position. See the guide comparing the E-2, F-2, and D-10 visas for how that switch works, and note that the Immigration Contact Center on 1345 handles the status side while 1350 handles the labor side.
Reviewing a probation clause before signing
The following clause patterns are worth reading closely. Most are not unlawful in themselves, but each one changes the position materially.
| Clause pattern | Why it matters |
|---|---|
| "Probation salary is X percent of the stated salary" | Lawful only if written in the contract, and never below the statutory floor |
| Probation pay below ₩1,941,192 per month in 2026, at full-time hours | Below 90 percent of the minimum wage monthly equivalent |
| Probation reduction in a contract shorter than one year | The 90 percent reduction is not available at all |
| "The contract term begins after probation" | Affects when the one-year severance threshold is reached |
| "Insurance enrollment begins after probation" | Does not match how enrollment obligations arise |
| "Employment may be terminated during probation at the employer's discretion" | Overstates the position at workplaces with five or more employees |
| Probation longer than three months | Legal allowances for reduced pay and no-notice termination end at three months |
| Probation extendable at the employer's option | Open-ended extension deserves a defined limit before signing |
| No evaluation criteria stated | Leaves "unsuitable" undefined for both sides |
| Airfare or training costs repayable if employment ends during probation | Deductions from wages are restricted, and such clauses need careful review |
Practical tip: The most useful question to ask an academy before signing is not "can you remove this clause." It is "what exactly happens at the end of probation, and what are you assessing." An academy with a clear answer usually has a functioning process. An academy that cannot answer has not thought about it, which is its own piece of information.
For academies drafting the clause
Hagwon Hub content is read by academy operators as well as teachers, and most probation disputes are avoidable at the drafting stage.
- Write the reduced rate as a figure, not a percentage of an unstated base. Ambiguity here produces wage claims.
- Confirm the contract is one year or more before applying the reduction. A ten-month contract cannot carry it.
- State the evaluation criteria. Documented criteria are what make a later decision defensible.
- Keep records during probation. Evaluations, feedback, and dated notes are the evidence that supports an objectively reasonable ground.
- Use written notice. Where Article 27 applies, written notice stating reasons and timing is a condition of effectiveness, not a formality.
- Do not describe probation as a period outside the Labor Standards Act. It is not, and a clause implying otherwise creates risk without benefit.
Common problems and what causes them
| Problem | Cause | What works |
|---|---|---|
| Probation pay looks too low | Reduction applied to contract salary rather than the minimum wage floor | Compare against ₩9,288 per hour and ₩1,941,192 monthly for 2026 |
| Reduction applied on a short contract | The one-year condition was not met | Raise it with the academy, then 1350 if unresolved |
| No health insurance card after two months | Enrollment treated as starting after probation | Ask the academy to confirm enrollment dates |
| Dismissed by message with no explanation | Written notice requirement overlooked, or a workplace under five employees | Confirm the employee count, then assess which route applies |
| Severance refused after twelve months | Contract term written to start after probation | Check the start date in the contract against the actual first working day |
| Missed the remedy window | The three-month Labor Commission deadline passed | Note the deadline on the day a dismissal occurs |
| Visa status lapsed during a dispute | Employment matter handled first, status second | Apply for a change of status while the E-2 remains valid |
Frequently asked questions
Is a probation period legal in Korea?
Yes. Korean law recognizes both 수습, an adaptation period for an already-hired worker, and 시용, a trial period in which the employer evaluates suitability before confirming permanent hiring.
Can an employer pay less during probation in Korea?
Yes, within limits. The Minimum Wage Act allows payment of 90 percent of the minimum wage where the contract is for one year or more, only within the first three months of probation, and where the job is not in the simple labor category. Any reduction from the agreed contract salary must itself be written into the contract.
What is the lowest legal probation salary in 2026?
Where the 90 percent reduction lawfully applies, the floor is ₩9,288 per hour, which corresponds to ₩1,941,192 per month at 209 hours. The full 2026 minimum wage is ₩10,320 per hour, or ₩2,156,880 per month.
Can a probation period be longer than three months?
It is not automatically unlawful, but the reduced minimum wage allowance and the exception from advance notice both end at three months.
Can an employer dismiss freely during probation?
No. At workplaces with five or more employees, dismissal requires justifiable cause. Courts allow a wider scope during a trial period, but still require an objectively reasonable ground that is socially acceptable.
Does an employer have to give notice during probation?
Advance notice of 30 days, or 30 days of ordinary wages in lieu, is not required where continuous employment has lasted less than three months. After three months it is required.
Does a dismissal during probation have to be in writing?
At workplaces with five or more employees, yes. Written notice of the reasons and timing is a condition of the dismissal being effective. Workplaces with four or fewer employees are exempt from that provision.
Does probation count toward severance pay?
Yes. Severance requires one year or more of continuous service at an average of 15 hours or more per week, and case law treats a probation period followed by continuous regular employment as part of the continuous service period.
Does annual leave accrue during probation?
A worker with less than one year of service is entitled to one day of paid leave per month of full attendance. Probation status does not remove this.
What if the academy has fewer than five employees?
Minimum wage, severance, social insurance, and the advance notice rule still apply. The requirement of justifiable cause, the written notice requirement, and the unfair dismissal remedy process do not.
How long is there to challenge an unfair dismissal?
Where that route is available, an application for remedy is filed with the Labor Commission within three months of the dismissal.
What happens to an E-2 visa if employment ends during probation?
The visa is tied to the employer, so the immigration side has to be addressed separately and quickly. A change of workplace must be reported promptly, and a change of status to D-10 must be applied for while the E-2 is still valid.
The short version
A probation clause in Korea can lawfully reduce pay to 90 percent of the minimum wage, but only on a contract of one year or more, only for three months, and never below ₩9,288 an hour in 2026. It can set evaluation criteria and it can remove the advance notice requirement during the first three months.
It cannot remove social insurance, erase the period from continuous service for severance, cancel annual leave accrual, or convert dismissal into something an employer may do for no articulated reason. At workplaces with five or more employees, a dismissal still needs an objectively reasonable ground and written notice.
The question worth asking before signing is how many people work at the academy. That single fact determines which half of this guide applies.
Sources
- Ministry of Employment and Labor, announcement of the 2026 minimum wage of ₩10,320 per hour (Korean)
- Beone Labor Law, conditions for applying 90 percent of the minimum wage to probationary workers under Minimum Wage Act Article 5(2) and its Enforcement Decree (Korean)
- Korea Ministry of Government Legislation, Easy Law, advance notice of dismissal under Labor Standards Act Article 26 and its exceptions (Korean)
- Korea Ministry of Government Legislation, Easy Law, application of dismissal provisions to workplaces with four or fewer employees (Korean)
- Korea Ministry of Government Legislation, Easy Law, whether probation counts toward continuous service for retirement benefits, citing Supreme Court 93다26168 (Korean)
- Lawl Law Firm, standards for dismissal during 수습 and 시용 periods, citing Supreme Court 2003다5955 and Labor Standards Act Articles 23 and 27 (Korean)
- Korea Law Information Center, Act on the Guarantee of Employees' Retirement Benefits
- Korea Ministry of Government Legislation, Easy Law, unfair dismissal and the remedy application process
- Ministry of Employment and Labor counseling line: 1350
- Korea Immigration Contact Center: 1345
For the visa side of a contract ending early, see the guide comparing the E-2, F-2, and D-10 visas. For reaching 1350 and 1345 in English, see the guide to English hotlines in Korea.