Knowledge · HR & Labor

Flextime System

Flexible(Selective) Working Hours

📂HR & Labor⏱2-min read📊Practitioner🔗7 related

What is flextime?

In one line
A system in which only the total working hours for a settlement period are set, and employees decide their own start and end times.
⚡ Summary in 3 lines
  • Only the total hours are fixed; you decide when to work
  • Requires work rules and a written agreement with the worker representative
  • Core time design decides whether the system succeeds

What this system really changes is the baseline for attendance management. Before, the test was whether someone arrived by 9 or completed 8 hours that day, but under flextime the unit of management shifts from the day to the settlement period. Even if someone worked 5 hours yesterday and 11 today, as long as the total stays within the settlement-period amount, it is neither overtime nor lateness. The key point is that the 8-hours-a-day yardstick does not apply within the settlement period, so unless the attendance approval chain and the overtime calculation logic are changed together, the system never gets traction.

The settlement period is generally capped at one month, and extends to three months only for new-product and new-technology R&D work. If it is set longer than one month, employers must guarantee 11 consecutive hours of rest between the end of one working day and the start of the next, and must pay premium wages for hours above an average of 40 per week in each month. Workers aged 15 to 17 are excluded. The key difference from the easily confused variable working hours system is who sets the times. Under the variable system, the company allocates weekly and daily hours in advance, but under flextime the company sets only the total and employees decide the schedule. It also differs from systems that replace time measurement itself, such as deemed working hours for off-site work or discretionary work.

The most common failure in practice is core time. If you set 7 hours, such as 10 a.m. to 5 p.m., as mandatory, there is only an hour or two of slack on either side, so it is effectively a staggered-hours system. If you also require team leader approval for 'I'm coming in late today,' the system turns into a de facto permission system. There is legal risk too. If you run it on a work rules notice alone, without a written agreement with the employee representative, the system is not recognized, and overtime pay may have to be recalculated retroactively on an 8-hour-day basis. Conversely, treating a shortfall in total hours over the settlement period as unauthorized absence goes beyond the settlement method written in the agreement and invites disputes. Requirements and limits can be amended, so check current law before adopting the system.

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💡 In plain English
It is like handing out a monthly pass and letting each person decide when to travel. The only fixed part is the time when everyone has to be together.
Why it matters in practice
Many organizations introduce flexible work, yet no one can actually use it. The usual reason: core time is effectively the same as regular working hours.
Origin and sources

Korea's Labor Standards Act provides for a flexible working hours system (Article 52). Eligible employees are set in the work rules, and a written agreement with the employee representative sets the settlement period, total working hours, and core and flexible time bands.

Source · Labor Standards Act, Article 52 (Flextime System)
An example

Consider a hypothetical example: Company A, a B2B software developer with 240 employees. It introduced flextime two years ago but set core time at 10 a.m.–5 p.m., so in six months only 7 of the 90 people in the development division had actually changed their start times. In exit interviews with employees raising young children, 'a policy in name only' came up three times in a row.

  1. The head of HR pulled six months of attendance records and found that 83 of the 90 people in the development division started work between 9:55 and 10:05 a.m., and an internal norm had set in: 'to come in late, get your team lead’s approval.'
  2. The head of development laid out four weeks of meeting schedules and found that all-hands meetings were held only on Tuesday and Thursday afternoons. On that basis, core time was cut to three hours, 1–4 p.m., and all remaining hours were opened up as flexible time.
  3. In the written agreement with the worker representative, the settlement period was fixed at one month and total hours at 'scheduled working days × 8 hours,' and the team lead’s prior-approval clause was changed to 'mark it on the calendar by the previous day,' turning approval into simple notification.
  4. The CTO wrote in a company-wide notice, 'If your seat is empty at 1 p.m., note a reason just for that time; no one will ask why you were not at your desk at 9 a.m.,' which shut down managers’ habit of applying subtle pressure.
  5. Hours beyond the settlement period are paid as premium pay in the following month’s salary, and HR set a rule to meet with the team lead once cumulative monthly overtime exceeds 40 hours; over three months, five teams were flagged for these meetings.
  6. Six months later, the number of people in the development division using the system rose from 7 to 61, start times ranged from 7:30 to 10:00 a.m., and voluntary resignations among employees with young children fell from 4 to 1 over the same period.
Related terms
52-Hour Workweek · Flexible Work ArrangementsThe cap on weekly working hours, together with the range of arrangements that let employers run work hours and locations flexibly within that cap.Variable Working Hours SystemAverages hours over a set unit period so that weekly hours stay within the statutory limit, while allowing longer hours in particular weeks or days.Deemed & Discretionary Working HoursA system where, when hours are hard to measure (such as work outside the workplace), a set number of hours is deemed worked, or the method of work is left to the employee’s discretion and an agreed number of hours is treated as working time.Worker Representative · Written AgreementThe person who represents employees in signing written agreements with the employer on matters the law specifies, such as introducing working-hours systems; the legality of the election process determines whether the agreement is valid.Remote · Hybrid WorkRemote work done outside the office, and hybrid work that mixes office and remote days. It changes how leadership and collaboration work.Async Collaboration · Document-Based CommunicationA way of working in which people exchange information and move work forward through documents and records instead of meeting at the same time.4.5-Day Workweek · Reduced Working HoursA work format that cuts actual hours, such as working a half day on one of five days or taking one day off every other week. It is not a statutory system but one that companies design through labor-management agreement.
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Last updated 13 Sep 2026 · Reviewed by John Kim

FAQ

They are different. Staggered commuting lets employees choose start and end times from set options while daily working hours stay fixed; under flextime, the length of the working day itself can vary within the settlement-period total.
Time worked beyond the total working hours for the settlement period counts as overtime. Unlike a standard work schedule, going over 8 hours in a day does not automatically make it overtime.
It is not mandatory, but most organizations that need collaboration set one. However, if core time is too broad, the system loses its practical value.
Upper limits differ by type of work, and longer settlement periods come with extra requirements. The law may be amended, so please check the latest statutes.