Key HR amendments for 2026

At a glance

• In 2026, various updates and amendments to key labour laws will be applicable to employers.
• Under the Minimum Wage Act, a new hourly wage will apply from 1 January 2026.
• Amendments to the Trade Union and Labor Relations Adjustment Act (TULRAA) will come into force on 10 March 2026.
• Under an amendment to the Employee Retirement Benefit Security Act (ERBSA) Article 44, employers who habitually delay wage payments will be punished.
• The amendment to the Enforcement Decree and Enforcement Rules of the Employment Insurance Act (Act) will reinforce support for substitute employees and benefits for reduced working hours for employees who manage childcare.

---

This article has been reproduced with the permission of the authors Weon Jung Kim, Paul Cho, Ki Young Kim, Sun Ha Kweon and Hoin Lee at Kim & Chang. 

The following are updates on amendments to key labour and employment laws that we believe companies should take note of now and in 2026.

Minimum hourly wage for 2026: The Minimum Wage Act

The minimum hourly wage for 2026 will be KRW10,320, which is a KRW290 increase from the 2025 rate. This is effective as 1 January 2026.

The total amount of regular bonuses and cash welfare benefits will be fully included in the calculation of minimum wage.

Amendment to the TULRAA

TULRAA, commonly known as the Yellow Envelope Act, will become effective on 10 March 2026. The key aspects of the amendment are as follows.

Expansion of the scope of an employer: (Article 2, Sub-paragraph 2)

This amendment recognises an entity as an 'employer' under the TULRAA if it has substantial and specific control over working conditions, even if it is not the direct employer under an employment contract.

Accordingly, if a contracting entity substantially and specifically controls or determines the working conditions of a subcontractor’s employees, it may be deemed an employer and be obligated to engage in collective bargaining with the subcontractor’s union.

Expansion of the scope of 'union membership': (Article 2, Sub-paragraph 4)

Currently, the TULRAA stipulates that an organisation is not considered a trade union if it allows non-employees to join. This amendment deletes this provision, thereby ensuring the right to organise for various types of workers, including special employment workers and platform workers, and aligning with recommendations from international organisations such as the ILO.

Expansion of the scope ofan 'industrial dispute': (Article 2, Sub-paragraph 5)

Currently, the TULRAA defines an industrial dispute as 'a state of dispute arising from a disagreement over claims concerning the determination of working conditions, such as wages, working hours, welfare, dismissal, and other treatment.' This definition limits industrial disputes to disagreements arising during the process of determining working conditions applicable to all union members.

However, this amendment defines an industrial dispute as 'a state of dispute arising from a disagreement over claims concerning the determination of working conditions, such as wages, working hours, welfare, dismissal, the status of employees, and other treatment, and business management decisions that affect working conditions, as well as from the employer’s clear violation of a collective bargaining agreement regarding matters set forth in Article 92, Subparagraph 2, Items (a) through (d).' Therefore, this change expands the scope of legitimate industrial action.

Limitation on damage claims against unions: (Article 3)

While the current TULRAA grants immunity to unions or workers from liability for damages resulting from legitimate collective bargaining and industrial actions, this Amendment broadens this protection to cover damages arising from 'other activities of the trade union' as well.

It also clarifies that a union or worker is not liable for damages caused to an employer when acting in defense against the employer’s illegal acts. It prohibits employers from exercising their right to claim damages for the purpose of interfering with union activities. Also, this amendment outlines specific factors that courts must consider when determining the extent of individual liability for illegal acts committed by the union and / or workers and provides a framework for such union and / or workers to request a reduction in damages.

In line with the above, the Ministry of Employment and Labour has announced a legislative notice for a partial amendment to the Enforcement Decree of the TULRAA (ED Amendment) to facilitate a substantive collective bargaining process. The key highlights of the proposed ED Amendment are provided below.

Establishing grounds for extension of Labour Relations Commission (LRC) decision period: (Article 14-3, Para. 3 and Article 14-5, Para. 5) 

Currently, when an employer fails to make a public announcement regarding the fact of a request for bargaining, a trade union may request the relevant LRC to address this situation. So, when the LRC receives such a request for correction, it will decide thereon within ten days from the date it receives the request. However, under the ED Amendment, the LRC’s current ten-day decision-making period may be extended once by up to an additional ten days, allowing for a maximum total of 20 days, as grounds for such extension have been established.

Clarification of criteria for separation and integration decisions of bargaining unit: Article 14-11, Para. 3)

The ED Amendment establishes clear criteria for the LRC when separating or integrating bargaining units. In making determinations, the LRC must now consider additional factors, including the union’s scope, the commonality of interests, the adequacy of representation by other unions, potential inter-union conflicts, and the parties’ preferences, therefore expanding upon previous criteria such as differences in working conditions, types of employment, and bargaining practices.

Permission of punishment against employers with habitual wage payment delays under the amendment to the ERBSA (Article 44)

To strengthen sanctions against employers who intentionally and repeatedly fail to pay wages and in line with the amendment to the Labour Standards Act (LSA), which now allows punishment against employers (regardless of the victim’s will), the amendment of the ERBSA also allows punishment (regardless of the victim’s will) with respect to delays in retirement benefit payment against employers that are listed in the disclosure list pursuant to Article 43-2 of the LSA.

This came into effect on 11 November 2025.

Reinforcement of support for substitute employees and benefits for reduced working hours during the childcare period under the Act

Where an employer continues to employ a substitute employee after the employee on childcare leave returns to work, subsidies for substitute employees will be additionally provided for up to one month and will be paid in full during the period of substitute employment (Articles 29 Paragraphs 4 and 6 of the Enforcement Decree of the Act).

In calculating the amount of benefits for reduced working hours during the childcare period, the upper limit of the reference amount will be increased as follows: for the first ten hours of reduction per week (100% of ordinary wages), from KRW2.2 million to KRW2.5 million; and for the remaining reduced working hours (80% of ordinary wages), from KRW1.5 million to KRW1.6 million (Article 104-2, Paragraph 2 of the Enforcement Decree of the Act).

The procedure to apply for the work-sharing subsidy will be simplified. When filing an application for the work-sharing subsidy, the employer may simply specify the designated duty sharer in the application form without submitting any supporting documents (Article 51, Paragraph 1 of the Enforcement Rule of the Act).