HR systems process employees' personal information and payroll data, requiring simultaneous compliance with labor regulations and data protection laws. Furthermore, data structures that follow global HR standards reduce transition costs when expanding overseas or integrating with global HR systems. VEXPLOR HR pre-embeds the core requirements of local labor regulations and global HR standards into its data structure, structurally reducing legal risk.
Labor Standards Act
Why does this regulation matter?
The Labor Standards Act is the foundational law applicable to all workplaces. Violations can result in fines and penalties for employers, with serious violations subject to criminal prosecution. In particular, exceeding the 52-hour weekly limit (Article 53) can result in imprisonment of up to 2 years or fines of up to 20 million KRW, making working hour management the top priority for manufacturing HR teams.
How is it applied in VEXPLOR?
| Labor Standards Act Article | Impact on Your Business | VEXPLOR Approach |
|---|
| Article 17: Statement of Working Conditions | Working conditions including wages and working hours must be specified in writing when concluding an employment contract | Employment contract templates are managed to ensure no mandatory items are omitted |
| Article 50: Working Hours (40 hours/week) | Overtime pay obligations arise when statutory working hours are exceeded | Working hours are automatically aggregated from clock-in/out records for immediate identification of overages |
| Article 53: Overtime Limit (12 hours/week) | Exceeding 52 hours per week (40 base + 12 overtime) is subject to criminal penalties | Overtime request/approval management and weekly working hour monitoring are built in. A first alert is automatically sent at 48 hours, and a second warning at 50 hours |
| Article 54: Breaks | Breaks of at least 30 minutes for 4 hours of work and 1 hour for 8 hours of work must be provided | Break times are included in shift patterns and automatically reflect statutory requirements |
| Article 55: Holidays | Weekly rest days and statutory public holidays must be provided as paid days off | Holidays are managed in the company calendar and automatically reflected in attendance calculations |
| Article 60: Annual Paid Leave | Workers with 80% or higher attendance over one year must receive 15 days of annual leave | Leave granting, usage, and remaining days are automatically tracked. Compensatory leave management is also included |
| Article 26: Advance Notice of Dismissal | 30 days' advance notice or payment in lieu of notice is required for dismissal | Exit interview records are managed. Detailed dismissal procedure management is planned for future enhancement |
| Article 36: Settlement of Claims | All outstanding payments must be settled within 14 days of separation | Severance pay calculation is built in |
| Article 48: Wage Ledger/Pay Slip | Maintaining wage ledgers and issuing pay slips are legal obligations | Payroll ledgers and pay slips are automatically generated by the system |
Social Insurance (Four Major Insurances)
Why does this system matter?
National Pension, Health Insurance, Employment Insurance, and Workers' Compensation Insurance are mandatory enrollments with required premium payments for all workplaces. Rates may change annually, and incorrect application leads to under/over-payment, resulting in additional costs during settlement. Missing or delayed monthly filings are subject to surcharges.
How is it applied in VEXPLOR?
| Social Insurance | Impact on Your Business | VEXPLOR Approach |
|---|
| National Pension | Both employer and employee each bear 4.5% based on standard monthly income | Managed in the rate table, with monthly reporting data automatically aggregated |
| Health Insurance | 7.09% of monthly remuneration (2024 standard) is split equally between employer and employee | Rate management and monthly reporting are supported. Annual settlement (total remuneration reporting) is planned for future enhancement |
| Employment Insurance | Unemployment benefit and vocational development premiums must be paid | Rate management and monthly reporting are supported |
| Workers' Compensation | Differentiated rates by industry type apply, fully borne by the employer | Rate management and monthly reporting are supported. Detailed industry-type classification is planned for future enhancement |
When rates change, updating the table immediately reflects in payroll calculations for all employees.
Payroll Tax
Why does this area matter?
Earned income withholding is a monthly legal obligation for employers, and year-end tax settlement is a large-scale annual process involving all employees. Errors in tax rate application or exceeding tax-exempt limits become targets for additional collection during tax audits.
How is it applied in VEXPLOR?
| Tax Item | Impact on Your Business | VEXPLOR Approach |
|---|
| Earned Income Withholding | Income tax must be withheld, reported, and paid each month when wages are disbursed | Tax brackets are built into the system and automatically applied during payroll calculation |
| Year-End Settlement | All employees' income/tax deductions must be settled annually in February | Automated through a 6-step workflow: notification, input, calculation, verification, finalization, communication |
| Tax-Exempt Items | Exceeding statutory limits for items like meal allowances (200,000 KRW/month) or vehicle maintenance (200,000 KRW/month) makes them taxable | Tax-exempt items are separately managed within Pay Elements |
| Retirement Income Tax | Retirement income tax must be calculated and withheld when severance pay is disbursed | Severance pay calculation is included. Precise retirement income tax calculation logic is planned for future enhancement |
HR-XML / HR Open Standards
Why does this standard matter?
HR-XML is an international standard schema for data exchange between HR systems. Following this standard facilitates data integration with external recruitment platforms, payroll outsourcing providers, and global HR systems. It also ensures data compatibility during future system transitions or integrations.
How is it applied in VEXPLOR?
| HR-XML Area | Impact on Your Business | VEXPLOR Approach |
|---|
| Recruiting | A standard structure is needed when exchanging data with external job portals or ATS systems | Applicant and job posting tables conform to the HR-XML schema |
| Screening | Interview evaluations and screening results must be structured and managed | Screening results and interview scores are systematically recorded |
| Benefits | A data structure for benefit plan enrollment, claims, and settlement is needed | Benefit plans, enrollments, and claims tables are implemented in standard structure |
| Compensation | Compensation plans and adjustment history must be systematically managed | Compensation plans and adjustment tables are included |
| Time & Attendance | Standardization of clock-in/out, shift, and leave data is needed | Clock-in/out records and shift patterns/assignments follow ISO 8601 time notation |
ISO 30400 Series -- HRIS Standards
Why does this standard matter?
The ISO 30400 series is an international standard for Human Resource Management (HRM), providing guidelines for recruitment, workforce planning, governance, and HR reporting. Compliance with this standard may be verified during global enterprise HR audits. ISO 30414 (HR Reporting Guidelines) in particular is used as human capital metrics in the Social (S) dimension of ESG reports.
How is it applied in VEXPLOR?
| ISO Standard | Impact on Your Business | VEXPLOR Approach |
|---|
| ISO 30405 (Recruitment Guidelines) | Referenced when the systematic nature of recruitment processes must be demonstrated | The pipeline from workforce planning through hiring to onboarding is implemented |
| ISO 30408 (Governance) | Transparency and approval structures for HR decision-making are needed | Approval chains and approval processes are managed |
| ISO 30409 (Workforce Planning) | Evidence data for strategic workforce planning is needed | A dedicated workforce planning table is available |
| ISO 30414 (HR Reporting Guidelines) | Human capital KPIs such as turnover rate, training investment, and diversity are required for ESG reports | Key KPIs are included. Some items such as diversity metrics and leadership trust indicators are planned for future enhancement |