LABOR STANDARDS ACT [See entire ACT]
CHAPTER Ⅲ Wages
- Article 43 (Payment of Wages)
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(1) Payment of wages shall be directly made in full to employees in currency: Provided, That if otherwise prescribed by statutes or by a collective agreement, wages may partially be deducted or may be paid by means other than currency.
(2) Wages shall be paid at least once per month on a fixed day: Provided, That this shall not apply to extraordinary wages, allowances, or other similar payments, or those wages prescribed by Presidential Decree.
Enforcement Ordinance
- Article 23 (Exception to Wages to be Paid at Least Once Monthly)
The term "extraordinary wages, allowances, or other similar payments, or the wages prescribed by Presidential Decree" in the proviso to Article 43 (2) of the Act means those falling under the following subparagraphs:
1. Allowance for good attendance payable on the basis of the attendance record for a period exceeding one month;
2. Seniority allowance payable for consecutive service for a fixed period exceeding one month;
3. Incentive, proficiency allowance, or bonus calculated on a ground sustaining for a period exceeding one month;
4. Other various allowances paid on an irregular basis.
- Article 43-2 (Disclosure of Name of Business Owners with Delayed Payment of Wages)
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(1) Where at least twice of conviction against the business owner (including the representative person in cases of a corporation; hereinafter referred to as “business owner in arrear”) who fails to pay wages, compensations, allowances, or any other money or valuable pursuant to Articles 36, 43, 51-3, 52(2)2, 56 (hereinafter referred to as “wages, etc.”) are upheld due to his/her failure to pay the wages, etc. within three years prior to the date of disclosure of name, and the total amount of money in arrear with the wages, etc. during the period of one year prior to the date of the said disclosure is at least 30 million won, the Minister of Employment and Labor may disclose his/her personal information, etc.: Provided, That this shall not apply where the disclosure of name is not effective due to death or closure of business of the business owner in arrear or where other reasons as prescribed by Presidential Decree exist.
(2) Upon disclosing the name pursuant to paragraph (1), the Minister of Employment and Labor shall provide the business owner in arrear with an opportunity to explain by fixing a period of at least three months for such explanation.
(3) In order to review as to whether or not the personal information, etc. of the business owner in arrear should be disclosed pursuant to paragraph (1), the Committee for Review of Information on Overdue Wages (hereinafter referred to as the “Committee” in this Article) shall be established within the Ministry of Employment and Labor. In such cases, necessary matters, such as structure and operation, etc. of the Committee, shall be determined by Ordinance of the Ministry of Employment and Labor.
(4) Details, period and method, etc. of disclosure of name under paragraph (1) and other necessary matters for the disclosure shall be determined by Presidential Decree.
[This Article Newly Inserted by Act No. 11270, Feb. 1, 2012]
Enforcement Ordinance
- Article 23-2 (Exception of Disclosing a List of Employers Delaying Payment)
Cases Not Subject to Disclosure of Name of the Business Owner in Arrear)“Where the disclosure of name is not effective due to death of the business owner in arrear or closure of business or where other reasons prescribed by Presidential Decree exist” under the proviso to Article 43-2 (1) of the Act means any of the following cases:
1. Where the business owner (hereinafter referred to as “business owner in arrear”) who has failed to pay the wages, compensations, allowances and all other money or valuables pursuant to Articles 36, 43, 51-3, 52(2)2 or 56 of the Act (hereinafter referred to as “wages, etc.”) dies or is sentenced to the judicial declaration of disappearance pursuant to Article 27 of the Civil Act (applicable only where the business owner in arrear is a natural person);
2. Where the business owner in arrear pays the full amount of the wages, etc. in arrear before the end of the explanation period under Article 43-2 (2) of the Act;
3. Where the business owner in arrear receives the court decision for initiation of rehabilitation procedure or he/she is sentenced to bankruptcy pursuant to the Debtor Rehabilitation and Bankruptcy Act;
4. Where the business owner in arrear receives the acknowledgment of bankruptcy or other facts pursuant to Article 5 of the Enforcement Decree of the Wage Claim Guarantee Act;
5. Where the business owner in arrear is deemed, by the Committee for Review of Information on Overdue Wages under Article 43-2 (3) of the Act (hereinafter referred to as the “Committee” in this Article), necessary to be exempted from the requirement of disclosure of name because he/she has paid part of the overdue wages, etc. and sufficiently explained plans for liquidation and financing schedule with respect to the remaining overdue wages, etc.;
6. Cases equivalent to those under subparagraphs 1 through 5, where the Committee deems that disclosure of personal information, etc. of the business owner in arrear is not effective.
[This Article Newly Inserted by Presidential Decree No. 23868, Jun. 21, 2012]
Enforcement Ordinance
- Article 23-3 (Details and Period, etc. of Disclosure of Name)
(1) The Minister of Employment and Labor shall disclose the following details pursuant to Article 43-2 (1) of the Act:
1. Name, age, business name, and address of a business owner in arrear (where the business owner in arrear is a corporation, referring to the name, age, and address of its representative and the name and address of the corporation);
2. The amount of money in arrear such as the wages, etc. during three years prior to the date of disclosure of name.
(2) The disclosure under paragraph (1) shall be made through publication in the Official Gazette or posting on Internet homepage, bulletin boards of the competent local employment and labor offices, or other places available for perusal by the public for three years.
[This Article Newly Inserted by Presidential Decree No. 23868, Jun. 21, 2012]
Enforcement Ordinance
- Article 23-4 (Exceptional Cases to Providing the Data on Delayed Payment of Wages, etc.)
“Where the provision of data is not effective due to death or closure of business of the business owner in arrear or where other reasons prescribed by Presidential Decree exists” under the proviso to Article 43-3 (1) of the Act means any of the following cases:
1. Where the business owner in arrear dies or is sentenced to the judicial declaration of disappearance pursuant to Article 27 of the Civil Act (only applicable where the business owner in arrear is a natural person);
2. Where the business owner in arrear pays the full amount of the wages, etc. in arrear before the date when the data on delayed payment of wages, etc. is provided under Article 43-3 (1) of the Act (hereinafter referred to as “data on delayed payment of wages, etc.”);
3. Where the business owner in arrear receives the court decision for initiation of rehabilitation procedure or he/she is sentenced to bankruptcy pursuant to the Debtor Rehabilitation and Bankruptcy Act;
4. Where the business owner in arrear receives the acknowledgment of bankruptcy or other facts pursuant to Article 5 of the Enforcement Decree of the Wage Claim Guarantee Act;
5. Where the business owner in arrear is deemed, by the Minister of Employment and Labor, sincerely endeavoring to liquidate the overdue wages, etc. because he/she has paid the part of the overdue wages, etc. before the date of providing data on overdue payment, and sufficiently explained detailed plans for liquidation and financing schedule with respect to the remaining overdue wages, etc.
[This Article Newly Inserted by Presidential Decree No. 23868, Jun. 21, 2012]
Enforcement Ordinance
- Article 23-5 (Procedure for Providing the Data on Delayed Payment of Wages, etc.)
(1) Pursuant to Article 43-3 (1) of the Act, a person who requests the data on delayed payment of wages, etc. (hereinafter referred to as “requester”) shall submit to the Minister of Employment and Labor the documents stating the following matters:
1. Name, business name, and address of the requester (where the requester is a corporation, referring to the name of the requester and the name and address of the corporation);
2. Details and purposes of use of the requested data on delayed payment of wages, etc.
(2) The Minister of Employment and Labor may prepare the data on delayed payment of wages, etc. under paragraph (1) in the form of paper documents or electronic files and submit them to the requester.
(3) Where the event under either of the subparagraphs of Article 23-4 occurs after providing the data on delayed payment of wages, etc. pursuant to paragraph (2), the Minister of Employment and Labor shall notify the occurrence of such event to the requester no later than 15 days from the date when the Minister becomes aware of the facts.
[This Article Newly Inserted by Presidential Decree No. 23868, Jun. 21, 2012]
- Article 44 (Payment of Wages for Contract Work)
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(1) Where a project is executed based on more than one tiers of contracts, if a subcontractor(The contractor in case when there is only one tier of contract) fails to pay wages to employees for causes attributable to the immediate upper tier contractor, the immediate upper tier contractor(The contractor in case when there is only one tier of contract) shall be liable for the wages jointly and severally with the subcontractor concerned: Provided, That where a cause attributable to the immediate upper tier contractor occurs due to that of his/her upper tier contractor, such upper tier contractor shall also be jointly and severally responsible.
(2) The scope of the attributable causes referred to in paragraph (1) shall be determined by Presidential Decree.
- Article 44-2 (Joint and Several Responsibility for Payment of Wages in Construction Business)
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(1) When a construction project is being carried out through two or more tiers of contracts under subparagraph 11 of Article 2 of the Framework Act on the Construction Industry (hereinafter referred to as "contract for construction work"), if a subcontractor that is not a constructor under subparagraph 7 of Article 2 of the same Act fails to pay wages (limited to wages arising from the construction works concerned) to employees he/she has employed, an immediate upper tier contractor shall have joint and several responsibility for payment of wages to employees employed by the subcontractor.
(2) When the immediate upper tier contractor under paragraph (1) is not a constructor under subparagraph 7 of Article 2 of the Framework Act on the Construction Industry, the lowest tier constructor falling under the same subparagraph among the upper tier contractors shall be deemed the immediate upper tier contractor.
[This Article Newly Inserted by Act No. 8561, Jul. 27, 2007]
Enforcement Ordinance
- Article 24 (Causes Attributable to Contractor)
The attributable causes under Article 44 (2) shall be as follows:
1. Where a contactor fails to pay the contract amount on the due date agreed upon by the relevant contract agreement without a justifiable ground;
2. Where a contractor delays in supplying, or fails to supply, the raw materials agreed upon by the relevant contract agreement without a justifiable ground;
3. Where a contractor fails to perform any term or condition of the relevant contract agreement without a justifiable ground and, as a result, the subcontractor fails to perform contract work in a normal way.
[Title Amended by Presidential Decree No. 23868, Jun. 21, 2012]
- Article 44-3 (Special Case concerning Wages under Contract for Construction Works)
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(1) Where a concluded contract for construction work falls under any of the following subparagraphs, an immediate upper tier contractor shall directly pay the employees employed by a subcontractor an amount of money equivalent to wages (limited to wages arising from the construction works concerned) that the subcontractor shall pay at the request of employees employed by such subcontractor, within the obligation extent of the subcontract cost the immediate upper tier contractor shall pay to the subcontractor:
1. Where the immediate upper tier contractor has agreed with the subcontractor with respect to the intention that the immediate upper tier contractor may directly pay wages that the subcontractor is liable to pay to employees employed by the subcontractor and the method of and procedure for such payment;
2. Where there is an order for payment decided under subparagraph 3 of Article 56 of the Civil Execution Act, an execution deed proving that employees have a claim for wages to a subcontractor under subparagraph 4 of Article 56 of the same Act, a decision of advice of performance made pursuant to Article 5-7 of the Trial of Small Claims Act, or other title of debt corresponding to such items as above;
3. Where the subcontractor informs the immediate upper tier contractor that he/she has obligation to pay wages to his/her employees and the immediate upper tier contractor recognizes that the subcontractor has evident reasons to be unable to pay wages due to such reasons as bankruptcy, etc.
(2) When a contract for construction work has been subcontracted down two or more levels from a contractor (hereinafter referred to as "prime contractor") of a person awarding a contract under subparagraph 10 of Article 2 of the Framework Act on the Construction Industry, where employees employed by a subcontractor (including any subcontractor who has been awarded a sub-subcontract by a subcontractor who has been awarded a contract; hereafter the same shall apply in this paragraph) have a title of debt under paragraph (1) 2 to such subcontractor, employees may request the prime contractor to pay directly an amount of money equivalent to wages (limited to wages arising from the construction works concerned) which a subcontractor is to pay. The prime contractor shall comply with such request to the extent of the amount of money for which employees are entitled to exercise the subrogation right of a creditor under Article 404 of the Civil Act to themselves.
(3) Where an immediate upper tier contractor or a prime contractor has paid the amount of money equivalent to wages to employees employed by a subcontractor pursuant to paragraphs (1) and (2), it shall be deemed that the obligation to pay the subcontract price to a subcontractor has expired within such extent.
[This Article Newly Inserted by Act No. 8561, Jul. 27, 2007]
- Article 45 (Emergency Payment)
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An employer shall pay wages corresponding to work already offered even prior to the payday, if an employee requests the employer to do so in order to cover expenses for childbirth, diseases, disasters, or other cases of emergency as prescribed by Presidential Decree.
Enforcement Ordinance
- Article 25 (Payment of Wages before Payday)
"Other cases of emergency as prescribed by Presidential Decree" in Article 45 of the Act means the cases in which an employee or a person who makes a living on the employee's income falls under any of the following:
1. Giving birth to a child, becoming ill, or being overtaken by a disaster or an accident;
2. Getting married or becoming dead;
3. Going back and staying home for one week or more due to unavoidable reasons.
- Article 46 (Shutdown Allowances)
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(1) When a business shuts down due to a cause attributable to the employer, he/she shall pay the employees concerned allowances of not less than 70 percent of their average wages during the period of shutdown: Provided, That if the amount equivalent to the 70 percent of their average wages exceeds that of their ordinary wages, their ordinary wages may be paid as their shutdown allowances.
(2) Notwithstanding the provisions of paragraph (1), the employer who is unable to continue to carry on the business for any unavoidable reason may, with the approval of the Labor Relations Commission concerned, pay the employees shutdown allowances lower than the standards as prescribed in paragraph (1).
Enforcement Ordinance
- Article 26 (Calculation of Shutdown Allowance)
Where an employee has received a part of wages during a period of Shutdown due to any ground attributable to the employer, the employer shall, in compliance with the main sentence of Article 46 (1) of the Act, pay him/her an allowance equivalent to at least 70 percent of the difference calculated by subtracting that part of wages already paid to the said employee from the average wages: Provided, That where ordinary wages are paid as Shutdown allowance in accordance with the proviso to Article 46 (1) of the Act, the difference between the ordinary wages and the part already paid during the period of Shutdown shall be paid.
- Article 47 (Subcontract Employees)
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For those employees who are employed on a subcontract or other similar basis, the employer shall guarantee certain amount of wages in proportion to their work hours.
- Article 48 (Wage Ledger)
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(1) An employer shall prepare a wage ledger for each workplace and shall enter therein the matters which serve as a basis for calculating wages and family allowances, the amount of wages, and other matters as prescribed by Presidential Decree, at each time of paying wages.
② When paying wages, the employer writes to the worker a wage statement stating the the composition items and calculation method of wages, details of cases where a part of wages has been deducted according to Article 43 (1) and electronic documents pursuant to subparagraph 1 of Article 2 of the Framework Act on Electronic and Transactions.
Enforcement Ordinance
- Article 27 (Mandatory Descriptions of Wage Ledger)
(1) Every employer shall enter the following descriptions of each individual employee into the wage ledger under Article 48 of the Act:
1. Name;
2. Resident registration number;
3. Date of employment;
4. Details of assigned job;
5. Matters applied as the basis of calculation of wages and family allowances;
6. Number of working days;
7. Working hours;
8. Working hours for any overtime duty, night duty, or holiday duty, if any;
9. Amount of basic pay, allowances, and other wages by categories (if wages are paid by means other than money, the name of item, quantity, and total assessed value of means);
10. Deducted amount, if there is any wages deducted in accordance with the proviso to Article 43 (1) of the Act.
(2) With respect to daily hire employees whose employment period is less than 30 days, the matters under paragraph (1) 2 and 5 may not be described.
(3) With respect to employees falling under either of the following subparagraphs, matters under paragraph (1) 7 and 8 may not be described:
1. Employees employed by a business or workplace having a workforce of not more than four employees as set forth in Article 11 (2) of the Act;
2. Employees who fall under any of the subparagraphs of Article 63 of the Act.
- Article 49 (Prescription of Wages)
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A claim for wages under this Act shall be extinguished by prescription, unless exercised within three years.
