Rivermate | North-Korea flag

North-Korea

Employment Agreement Essentials

Understand the key elements of employment contracts in North-Korea

Types of employment agreements

In North Korea, the employment system is unlike most other countries, with the absence of individual employment contracts. The state holds complete control over the labor market, assigning jobs to citizens through state labor administrative agencies overseen by the Workers' Party. This system prioritizes state needs over individual preferences, placing citizens in roles deemed necessary for the economy and national goals.

State Assigned Work

Under North Korea's Socialist Labor Law, along with provisions in the constitution and penal code, the state dictates job placement. This leaves minimal room for negotiation or choice of employment. The system is designed to serve the state's needs, not the individual's preferences.

Limited Options

Unlike countries with diverse employment agreements such as full-time, part-time, and contract work, North Korea's system offers limited options for workers. There might be exceptions for specific sectors attracting foreign investment, but these are likely subject to state oversight as well.

Focus on Duty, Not Rights

North Korean labor laws emphasize fulfilling work duties and contributing to the state. Concepts like minimum wage, overtime pay, or collective bargaining, common in many countries, are not central to the North Korean system. The focus is on fulfilling assigned tasks and adhering to state directives.

Essential clauses

Employment agreements in North Korea, despite the absence of a codified labor law, are governed by established regulations and practices.

Basic Information

The agreement should identify both parties involved, including full names, and for the employer, the entity name and any relevant registration details. It should also clearly outline the employee's job title and a brief description of their duties and responsibilities.

Work Arrangements

The primary workplace location should be specified, and if applicable, any remote work arrangements should be mentioned. The agreement should define the standard work hours per day and week, including breaks and any overtime expectations. It should also outline the entitlement to paid leave, including sick leave, annual leave, and any other relevant leave provisions.

Compensation and Benefits

The employee's base salary should be clearly stated, including currency and payment frequency. The agreement should detail any benefits offered, such as housing allowances, healthcare coverage, or any social security contributions the employer makes on the employee's behalf.

Termination

The agreement should outline the grounds for termination by either party, including notice periods and any required severance pay.

Dispute Resolution

The governing law applicable to the employment contract should be specified, which would likely be North Korean labor regulations. The agreement should also establish a process for resolving any disagreements arising from the employment contract.

Probationary period

In North Korea, the employment system is significantly different from most countries. The traditional employment contract, common in many parts of the world, is not prevalent in North Korea.

Assigned Work, Not Contracts

In contrast to many countries where individuals apply for jobs and negotiate contracts, North Korea assigns workers to positions through state labor administrative agencies controlled by the Workers' Party. This system prioritizes state needs over individual employment choices.

Focus on Loyalty and Service

The primary objective of North Korean employment is fulfilling state quotas and serving the nation. Workers are expected to demonstrate loyalty to the government and the ruling party.

Performance Evaluation

While there isn't a formal probationary period system, assessments of a worker's suitability do occur. However, these evaluations likely focus on adherence to state ideology and fulfilling assigned tasks rather than on specific performance metrics used elsewhere.

Limited Options for Workers

Due to the state-controlled system, workers have minimal options if they are unhappy with their assigned jobs. There's no legal framework for them to negotiate contracts or challenge job placement decisions.

Confidentiality and non compete clauses

Confidentiality and non-compete clauses are common in employment agreements worldwide, and North Korea is no exception, despite its unique legal system. The specifics of these clauses in North Korea are not well-documented due to the country's secretive nature, but we can make educated assumptions based on general principles.

Confidentiality Clauses

Confidentiality clauses are likely to be a significant part of North Korean employment agreements, particularly for roles that involve sensitive information. Given North Korea's emphasis on state secrecy, it would be crucial for employees to maintain discretion regarding state or company secrets.

While the exact scope of these clauses is uncertain, they could potentially prohibit the disclosure of:

  • State secrets and classified information
  • The employer's proprietary information and trade secrets
  • Confidential business plans and strategies

Non-Compete Clauses

The existence of non-compete clauses in North Korea is less certain. These clauses, which limit an employee's ability to work for competitors after leaving a company, may not be as necessary in North Korea due to the state-controlled nature of its economy. With limited private enterprise, competition is likely less of a concern than in market-driven economies.

However, non-compete clauses could potentially be used in certain situations, such as:

  • Employment in sensitive state industries: Employees working in strategic sectors like defense or advanced technology could be restricted from working elsewhere to protect state secrets or technical expertise.
  • Highly specialized roles: For roles that require unique skillsets crucial to a specific employer, non-compete clauses could be used to prevent immediate competition.

Enforcement Considerations

The enforcement of confidentiality and non-compete clauses in North Korea would likely involve state or party mechanisms rather than a formal court system. The specific methods of enforcement are unclear due to the opaque nature of North Korean legal proceedings.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.