In response to the increasing number of disputes arising from minimum service period agreements, the Ministry of Labor issued Circular No. Laodong-Guan-2-Zi-1150141814 on June 5, 2026, reiterating the relevant provisions of Article 15-1 of the Labor Standards Act. The key points are as follows: 

1. When an employer and an employee enter into a minimum service period agreement, the agreement must comply with Article 15-1 of the Labor Standards Act and must be both necessary and reasonable. 
2. Costs arising solely from routine in-house training, general on-the-job training, on-the-job training for new employees, or legally mandated training do not constitute valid grounds for an employer to enter into a minimum service period agreement with an employee, nor can they serve as the basis for claiming penalty fees or reimbursement of expenses. 
3. Where retention bonuses, signing bonuses, or other advance payments are used as reasonable compensation for a minimum service period agreement, the details must be clearly disclosed to the employee. If an employee resigns before the expiration of the agreed service period and the employer seeks reimbursement, the amount must be calculated proportionally based on the unfulfilled portion of the service period, and full reimbursement cannot be demanded. 

Finally, the Ministry of Labor urges that, since minimum service period agreements involve employees’ freedom of occupational choice and the right to career mobility, employers should carefully evaluate the necessity and reasonableness of such clauses when establishing them, and refrain from using improper agreements to restrict employees’ freedom to choose their occupation. Should disputes arise between employers and employees regarding minimum service periods, penalty fees, or the return of retention bonuses, either party may submit relevant evidence and materials to the local labor administration authority to request assistance and resolution.