WAGE CLAIM GUARANTEE ACT [See entire ACT]

CHAPTER I General Provisions

Article 1 (Purpose)

The purpose of this Act is to contribute to stabilization of the livelihoods of workers by introducing measures to guarantee the payment of overdue wages, etc. to workers, etc. who have retired without receiving their wages, etc. because companies were unable to continue their business or their management was unstable due to economic volatility, changes in industrial structure, etc.

[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]

Enforcement Ordinance

Article 1 (Purpose)

The purpose of this Decree is to prescribe the matters delegated by the Wage Claim Guarantee Act and the matters necessary for the enforcement thereof.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

Article 2 (Definitions)

The terms used in this Act shall be defined as follows:
1. The term "worker" means a worker under Article 2 of the Labor Standards Act;
2. The term "employer" means a person who operates a business by using workers;
3. The term "wages, etc." means wages, retirement allowances and business suspension allowances under Articles 2, 34 and 46 of the Labor Standards Act;
4. The term "remuneration" means remuneration under subparagraph 3 of Article 2 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance.
[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]

Article 3 (Scope of Application)

This Act shall apply to businesses or work places under Article 6 of the Industrial Accident Compensation Insurance Act (hereinafter referred to as "business"): Provided, That this shall not apply to any business which is carried out directly by the State or local governments.

[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]

Article 3-2

[Previous Article 3-2 Moved to Article 4]

Article 3-2

[Previous Article 3-2 move to Article 4 ]

Article 4 (Application Mutatis Mutandis)

@Articles 3, 5 (4) and (5), 6 (2) through (4) and 8 of the Act on the Collection of Insurance Premiums, etc. for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as the "Employment Industrial Accident Insurance Premium Collection Act") shall apply mutatis mutandis to the guarantee of wage claims.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 34-2; previous Article 4 moved to Article 5 ]

Article 5 (Defrayment out of National Treasury)

The State shall, within the budgetary limits for each fiscal year, defray part of the costs of conducting administrative affairs to guarantee wage claims under this Act out of the general accounts.

[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]

Article 6 (Wage Claim Guarantee Fund Deliberation Committee)

(1) In order to deliberate on important matters relating to the management and operation of the Wage Claim Guarantee Fund under Article 17, a Wage Claim Guarantee Fund Deliberation Committee (hereinafter referred to as the "Committee" ) shall be established under the authority of the Ministry of Employment and Labor.

(2) The Committee shall be comprised of representatives respectively from the groups of workers, employers, and public interest, and the number of representatives for such respective group shall be the same.

(3) Matters necessary for the organization and operation of the Committee shall be prescribed by Presidential Decree.

[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]

Enforcement Ordinance

Article 2 (Function of Deliberation Commission on Wage Claim Guarantee Fund)

The Deliberation Commission on Wage Claim Guarantee Fund (hereinafter referred to as “the Commission”) under Article 5 of the Wage Claim Guarantee Act (hereinafter referred to as “the Act”) shall deliberate on matters described in the following subparagraphs:
1. Matters regarding the determination of charge rates under Article 9 (2) of the Act;
2. Matters regarding the determination of criteria for the reduction of charges under Article 10 of the Act
3. Matters regarding the establishment of plans on the operation of the Wage Claim Guarantee Fund (hereinafter referred to as “the Fund”) under Article 17 of the Act;
4. Other matters deemed important for the management and operation of the Fund and referred to by the Minister of Employment and Labor.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

Enforcement Ordinance

Article 3 (Composition, etc. of Commission)

(1) The members of the Commission shall be appointed or commissioned by the Minister of Employment and Labor in accordance with the classification described in the following subparagraphs:
1. Members representing workers shall be five persons who are recommended by a labor union which is the confederation of labor unions
2. Members representing employers shall be five persons who are recommended by the nationwide employers’ organization;and
3. Members representing the public interests:
A. A high-level public official in charge of wage claim guarantee work in the Ministry of Employment and Labor;
B. A public official of Grade III or IV in charge of wage claim guarantee work in the Ministry of Labor or a general public official;
C. Three persons from among those recommended by civic groups (referring to non-profit civic groups under Article 2 of the Assistance for Non-profit, Nongovernmental Organizations Act) and those considered by the Minister of Employment and Labor to have plenty of knowledge and experience in social insurance.
(2) With regards to the constitution and operation of the committee, Article 5 to 7 and Article 9 to 11 of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis except as otherwise provided in paragraph (1). In such cases, “those members to whom subparagraph 3 (a) or (b) of Article 4 applies,” a proviso to Article 5 paragraph (1) of The Enforcement Decree of the Industrial Accident Compensation Insurance, is deemed as “a senior civil servant dealing with wage claim guarantee tasks or a 3rd- or -4th-civil servant dealing with wage claim guarantee tasks”; a “commissioned member of the committee as prescribed in Article 4” of the same enforcement decree except the subparagraphs of Article 5 paragraph (3) as a “commissioned member of the committee as prescribed in Article 3 paragraph (1)”; the “Vice Minister of Employment and Labor” in Article 6 paragraph (2) of the same enforcement decree as “a senior civil servant dealing with wage claim guarantee tasks”; a “committee or expert committee meeting” as a “committee meeting”; a “member of the Committee or an expert committee” as a “member.”
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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