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Probation Period · Trial Employment Contract

Probation Period

📂HR & Labor⏱2 min read📊Advanced🔗6 related

What is a probation period?

In one line
A period after hiring in which job suitability is assessed. A training-type probation (susup), which presumes permanent employment, differs in nature from a trial-type probation (siyong), which reserves the decision on permanent hire.
⚡ Summary in 3 lines
  • Probation and trial employment differ in legal nature
  • A refusal to confirm permanent employment also needs a reasonable cause
  • Notice of criteria, mid-term feedback and evaluation records are the heart of the process

What this distinction changes in practice is the meaning of the end date. A susup is a period of training someone whose hiring is already settled, so nothing happens on the end date. In a siyong, the end date is itself the point at which the decision on permanent hire is made. So the wording on the contract at the start of day one determines whether, three months later, the company can say “based on the evaluation, we will not make you permanent.” Without any reservation language in the contract, the company is treated as having made a regular hire from the start, and a termination notice is handled as an ordinary dismissal.

In practice, the conditions that matter are usually numbers. A minimum wage reduction is allowed only for contracts of one year or longer, only within the first 3 months of probation, and only up to 10%. It does not apply to simple manual labor. Dismissal notice is waived for employees with under 3 months of continuous service, but that only means there is no notice obligation; it does not make the dismissal itself justified. Refusing to confirm permanent employment also requires written notice. If you communicate it verbally or by messenger, without a written notice stating the specific reasons for refusal, its validity is shaky regardless of the substance. Laws and case law can change, so we recommend confirming with a labor law specialist before applying this.

Mixing it up with neighboring arrangements brings the whole design down. A fixed-term contract ends automatically when the term expires. With a probationary period, the employment relationship by default continues after the period ends, so it only ends if the company states that it refuses to hire. A hiring-track internship is also subject to probation doctrine if, in substance, it is a suitability review. The classic case is the verbal promise "We'll try you on a 3-month fixed-term contract, and if it goes well, you become permanent". Once repeated renewals and a practice of conversion to permanent status build up, it is easily judged fixed-term in form, probationary in substance. An extension of the probation also cannot be imposed unilaterally unless the contract states its basis and a cap.

The most common misconception is, “It’s probation, so we can let them go any time within three months.” Notify someone that they “don’t fit the team culture” without a single evaluation form, and if it is ruled an unfair dismissal, you bear reinstatement plus back pay for the dismissal period, and the seat you already filled is thrown into doubt again. Conversely, even with thorough evaluations, if no record of interim feedback exists, the dismissal can be overturned for failing to give the employee a chance to improve. Once a dispute starts, the first question the Labor Relations Commission usually asks is whether the evaluation criteria were given to the employee in writing at the time of hire.

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💡 In plain English
It is like a test-drive period. But the data recorder has to be running, or you cannot explain later why you returned the car.
Why it matters in practice
Probation is the period when a company assesses a person, but it is also the period in which the company's compliance with procedure gets recorded. No records, no judgment call.
Origin and sources

The concept comes from the practice of checking a hire’s suitability for a set period after signing the employment contract. In Korea, courts distinguish the legal nature of a training-type probation (susup) from a trial-type probation (siyong) and have developed the standards for when refusing permanent hire is justified.

Source · Employment contract practice and case law on probationary employment and refusal to confirm permanent hire
An example

Here is the case of Company A, a food-ingredient distributor in the Seoul metropolitan area. It has 140 employees and KRW 48 billion (≈ US$35,912,000) in annual revenue. Turnover in warehouse and delivery roles is high: in one year it hired 32 people, and 7 of them did not complete the 3-month probation. Last year, 2 employees who were told their probation was ending filed relief applications with the Regional Labor Relations Commission, and the company lost one case because it had given no written notice. (Hypothetical example)

  1. When the head of management support pulled 96 employment contracts from the past two years, every one had just a single line, '3-month probation,' and the company's labor attorney put it bluntly: "This isn't a trial period. It's just a regular hire."
  2. They rewrote the contract with a probationary clause covering a 3-month period and 5 evaluation items (shipping accuracy, safety rules, attendance, collaboration, vehicle care), and required every new hire to sign an acknowledgment of evaluation criteria on the first day.
  3. They made a week-6 check-in meeting mandatory and had the site team leader write a one-page record. HR asked that it use numbers, such as "Shipping errors are at 3 per week and must come down to 2 or fewer."
  4. Two weeks before the end, the site team leader and the HR manager each score the employee. If their scores differ by 20 points or more, a reconciliation meeting chaired by the CEO is held, so no decision rests on one person's opinion.
  5. When refusing to confirm permanent hire, they delivered a written notice with the evaluation results and specific facts 10 days before the end. One year later, relief applications fell from 2 to 0, and mid-probation departures fell from 7 to 3. All 4 refusals were resolved with no objection.
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Last updated 13 Sep 2026 · Reviewed by John Kim

FAQ

No. Even for a siyong, case law holds that refusing permanent hire requires an objective and reasonable ground. Without prior notice of the evaluation criteria and a record of the evaluation, it is hard to have the refusal upheld.
Three months is common in practice, but the law does not set it uniformly, and an excessively long period invites disputes. State the duration and whether it can be extended clearly in the contract.
Whether a reduction is allowed and its limit depend on the law and minimum wage regulations, which may be amended. Always check the latest law and state the basis in the contract.
The evaluation should be done by the superior who directly assigns and checks the work, with HR confirming that the criteria are applied consistently. This dual structure is the safe one. If only one person's subjective judgment remains, the grounds are weak in a dispute.