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Employment Law for Foreign Employers for clients in South Korea

Korean manufacturing groups in India employ large workforces on the shop floor and in offices, and employment issues there are among the most sensitive matters they handle.

Updated Reviewed by our legal team

Employment Law for Foreign Employers for clients in South Korea
In short

Korean employers in India must follow Indian law for every Indian employee: mainly the four labour codes in force since 21 November 2025 and state shops and establishments or factories rules. That covers appointment terms, wages, working hours, provident fund and ESI, POSH compliance, standing orders for industrial establishments and lawful termination. Contract labour through agencies needs separate compliance. Korean expatriates working in India are subject to Indian visa and tax rules as well.

Document route
Korean notary, then apostille from the Ministry of Foreign Affairs
Time difference
IST is 3h30 behind Korea all year (no daylight saving)
Main laws
Four labour codes, in force 21 Nov 2025
Local law
State Shops and Establishments Acts

Employment Law for Foreign Employers from South Korea: how it works

For new entities we put in place the employment documents and registrations: appointment letters for managers and workers, policies on leave, working hours, conduct and POSH, and the provident fund and ESI registrations. For factories we review standing orders, shift rosters and overtime, and how contract labour is engaged, because the principal employer can be liable if a contractor fails to pay wages or contributions. Korean-style performance management can work in India, but warnings, appraisals and inquiries should be documented in English and preserved.

When industrial relations become tense, we advise on grievance procedures, negotiation with unions and the strike and lockout notice rules under the Industrial Relations Code. For individual exits we plan the process: reason, notice period or pay, gratuity and a settlement agreement. For larger restructurings, establishments above the statutory size need prior government permission for layoff, retrenchment or closure. We also advise on posting Korean staff to India and on the social security agreement between India and Korea.

What clients in South Korea should know

  • Korean expatriates working in India for long periods usually become Indian tax residents and must pay Indian tax on salary, with treaty relief for double taxation.
  • Principal employers can be held responsible for unpaid wages and contributions of contract workers, so contractor agreements need audit and indemnity terms.
  • Restraints on joining a competitor after leaving are generally unenforceable in India, so protect trade secrets through confidentiality terms and access controls.

Step by step from South Korea

  1. Video consultation

    A call at a time that suits South Korea, after we have read your documents.

  2. Documents signed in South Korea

    Korean notary, then apostille from the Ministry of Foreign Affairs

  3. Work in India

    Our team files, appears and follows up in India, and shares scans of everything filed.

  4. Result and handover

    Certified copies and originals are couriered to you in South Korea where needed.

The full guide

This page covers what changes when you are in South Korea. For the law, the documents and the step-by-step procedure, read our main page on Employment Law for Foreign Employers, or see all services for clients in South Korea and the Doing Business in India practice area.

Please note: this page explains the law and procedure in general terms as on 30 October 2026. Fees, limits and timelines change, and the facts of each case matter, so take advice on your own papers before acting.

Questions from clients in South Korea

Can we dismiss an Indian employee for poor performance?

Yes, with a documented, fair process, the contractual notice or pay in lieu and statutory dues. Workers in industrial establishments have additional protections.

Are Korean staff in India covered by Indian provident fund?

International workers generally are, unless covered by a social security agreement certificate, such as one under the India and Korea agreement.

Do we need a POSH committee in India?

Yes, every workplace with ten or more employees must constitute an internal committee under the POSH Act.

Tell us about your matter

Send the papers you have. We reply to clients in South Korea within one working day.

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