![[HOAM Foreign Law Column] The 11-Month Contract Trick: Is It Legal?](/_next/image?url=https%3A%2F%2Fagqdgbuateknhwpocrgu.supabase.co%2Fstorage%2Fv1%2Fobject%2Fpublic%2Fasset-generation%2Fd5640e14-e5b7-41b3-800e-609cb8329013%2Fagent-generated%2F1784524367022_2.jpg&w=3840&q=75)
A notorious tactic in the Korean hagwon industry is the '11-Month Contract.' By signing you for just 11 months, employers attempt to bypass their legal obligation to pay Severance (Toejikgeum) and provide one month of paid vacation. However, Korean labor law is designed to catch this kind of exploitation.
1. Why 11 Months?
Under Korean law, Severance Pay and most paid leave benefits only kick in after one full year of continuous service. By ending a contract at 11 months and 29 days, an employer technically avoids these costs. Many hagwons then 're-hire' the instructor under a new 11-month contract to keep them for another year while still avoiding the benefit payout.
2. The 'Continuity' Principle
The Korean Supreme Court and the Ministry of Employment and Labor use the 'Continuity of Service' principle. If you sign back-to-back 11-month contracts with the same employer, the court treats it as one continuous employment period. Even if there is a small gap (e.g., a one-week 'unpaid break') between the contracts, it is often ruled as an intentional attempt to evade the law, and your right to severance is upheld.
3. Proving Intent to Evade
If your employer explicitly offered an 11-month contract to avoid severance, or if this is a systematic practice at the hagwon for all foreign teachers, this serves as evidence of an intentional evasion of legal duties. In such cases, the LSA protections still apply as if you had a one-year contract.
4. What to Do if Offered an 11-Month Deal
- Negotiate: Demand a full 12-month contract.
- Save Communication: Keep emails or texts where the employer discusses the contract length.
- Claim After Leaving: Even if you signed and worked for 11 months, if you were renewed or if the intent to evade is clear, you can file a claim with the Labor Office after you leave.
5. Why Hoam Law Firm?
The 11-month contract is a sophisticated form of labor exploitation. Hoam Law Firm has extensive experience in proving 'Continuity of Service' even when employers use complex 're-hiring' schemes. We ensure that your actual time worked is recognized by the law, forcing the hagwon to pay your full severance and benefits.
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