⚖️ Guide · 2026-04-27
Korean Inclusive-Wage Contract — 5-Minute Legality Self-Check (2026)
A self-check against Supreme Court precedent (2010Da91046) for the 5 legality requirements of Korean inclusive-wage contracts, plus a workflow to recover unpaid overtime/night/holiday wages.
Inclusive-wage is the exception, not the rule
Korea's Labor Standards Act requires separate payment for overtime / night / holiday hours. Inclusive-wage contracts are an exception recognized only by Supreme Court precedent (2010Da91046), and they must meet all 5 requirements to be lawful.
The 5 legality requirements
- Work hours must be objectively hard to measure (e.g., field/remote work)
- Must not disadvantage the worker (actual overtime pay ≥ inclusive amount)
- Items and amounts must be itemized in writing
- Must not contradict company rules or collective agreements
- Reconciliation when actual overtime exceeds the included amount
Office workers with clear time-tracking fail requirement #1, making the contract void. MOEL Administrative Interpretation No. 17 (2025) confirmed this.
5-minute self-check
| Question | Yes | No |
|---|---|---|
| Are arrival/leave times tracked? | Legality risk | OK |
| Are inclusive items/amounts itemized in contract? | OK | Likely void |
| Avg actual overtime ≤ included hours? | Legal | Can claim difference |
| Is there a reconciliation clause? | Legal | Violation |
| Does company policy mention inclusive wage? | OK | Likely void |
If 2+ rows fall in the risk/void column, consider filing with the Labor Office.
Calculating unpaid wages
Use the Working-Hours & Overtime Calculator:
- Hourly wage = (monthly wage + fixed allowances) / 209
- Overtime = hourly × 1.5 × overtime hours
- Night = hourly × 0.5 × hours between 22:00–06:00
- Holiday = hourly × 1.5 × holiday hours
Filing procedure
- Collect evidence (time records, messages, emails)
- File a wage-non-payment claim with the Labor Office (1350)
- Hearing → corrective order → criminal penalty if ignored
Claims can be filed during employment or within 14 days of leaving. Statute of limitations is 3 years.
FAQ
- Q. Is a contract that just says "inclusive" lawful? → No. Items, hours, and amounts must be separately itemized.
- Q. The company has never reconciled overtime — does it matter? → Yes. Failure to reconcile is a strong invalidity factor.
- Q. What happens if the inclusive contract is void? → It reverts to the standard wage structure and you can recover the entire difference.
Related tools
- Labor-Contract Self-Check — flag missing inclusive items
- Annual-Leave Auto Calculator — recover unpaid leave pay
Bottom line
The inclusive-wage contract is an exception only for jobs where hours can't be measured. For office roles with clear attendance tracking, the contract is very likely void. Run the self-check and file within the 3-year limit if unpaid wages surface.