CHAPTER I General Provisions
- Article 1 (Purpose)
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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)
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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)
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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
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[Previous Article 3-2 move to Article 4
]
- Article 4 (Application Mutatis Mutandis)
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@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)
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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)
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(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>
CHAPTER Ⅱ Guarantee of Payment of Wage Claims
- Article 7 (Substitute payment to retired employees)
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(1) Notwithstanding Article 469 of the Civil Act regarding repayment by a third person, if an employer falls under any of the following subparagraphs and any of his or her retired employees claims overdue wages, etc., the Minister of Employment and Labor shall pay such overdue wages, etc. to the employees on behalf of the employer:
1. Where a ruling to commence rehabilitation proceedings is issued against the employer under the Debtor Rehabilitation and Bankruptcy Act;
2. Where a ruling declaring bankruptcy is issued against the employer under the Debtor Rehabilitation and Bankruptcy Act;
3. Where the Minister of Employment and Labor acknowledges that the employer is unable to pay overdue wages, etc., according to the requirements and procedures prescribed under Presidential Decree;
4. Where any of the following judgments, orders, conciliations, rulings, etc. described below is rendered to the employer to the effect that the employer shall pay overdue wages, etc. to the employee:
(a) A judgment which has become final and conclusive under Article 24 of the Civil Execution Act;
(b) Payment order which has become final and conclusive under subparagraph 3 of Article 56 of the Civil Execution Act;
(c) Settlement in court, recognition and acceptance of claims, and other processes having the same effect as a final and conclusive judgment under subparagraph 5 of Article 56 of the Civil Execution Act;
(d) Conciliation made under Article 28 of the Judicial Conciliation of Civil Disputes Act;
(e) Ruling in lieu of conciliation which has become final and conclusive under Article 30 of the Judicial Conciliation of Civil Disputes Act;
(f) Ruling on performance recommendation which has become final and conclusive referred to in Article 5-7 (1) of the Trial of Small Claims Act.
(2) The scope of wages, etc. to be paid by the Minister of Employment and Labor on behalf of an employer pursuant to paragraph (1) (hereinafter referred to as "substitute payment") shall be as follows: Provided, That the upper limit of the amount of substitute payment under paragraph (1) 1 through 3 and the upper limit of the amount of substitute payment under subparagraph 4 of the same paragraph may be separately determined based on an employee's age, etc. at the time of his or her retirement as prescribed by Presidential Decree, and a substitute payment needs not be made if the amount is insubstantial:
1. Wages under Article 38 (2) 1 of the Labor Standards Act and retirement benefits, etc. for the final three years of service under Article 12 (2) of the Guarantee of Employees' Retirement Benefits Act;
2. Shutdown allowances under Article 46 of the Labor Standards Act (limited to the final three months' allowances);
3. Benefits during the period of maternity leave under Article 74 (4) of the Labor Standards Act (limited to the final three months' allowances).
(3) Where a substitute payment under paragraph (1) 1 through 3 is made to an employee with respect to the same working period or the same period of suspension of business, or the same period of maternity leave, a substitute payment under subparagraph 4 of the same paragraph shall not be made, and if a substitute payment under paragraph (1) 4 is made, a substitute payment under subparagraphs 1 through 3 of the same paragraph shall be made by deducting the relevant amount.
(4) The eligibility criteria that employees and employers need to meet to be entitled to a substitute payment shall be prescribed by Presidential Decree.
(5) Where an employee who meets the standards determined by Ordinance of the Ministry of Employment and Labor, including size of a place of business, claims a substitute payment pursuant to paragraph (1), he or she may obtain assistance from a certified labor consultant designated by Ordinance of the Ministry of Employment and Labor in preparing a written claim for a substitute payment, verifying details, etc.
(6) Where an employee is assisted by a certified labor consultant pursuant to paragraph (4), the Minister of Employment and Labor may subsidize all or part of expenses incurred therein, and necessary matters relating to the amount of subsidies, detailed method of payment, etc. shall be determined by Ordinance of the Ministry of Employment and Labor.
(7) Other matters necessary for requests for and payment, etc. of a substitute payment shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 6; previous Article 7 moved to Article 8]
- Article 7-2 (Loans for Employers in Arrears of Wages, etc.)
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(1) If an employer is in arrears of wages, etc. for any worker due to his/her temporary financial difficulties or other grounds prescribed by Ordinance of the Ministry of Employment and Labor, the Minister of Employment and Labor may, upon the employer’s application, provide him/her with loans necessary to pay the overdue wages, etc.
(2) Any loan under paragraph (1) shall be disbursed by the Minister of Employment and Labor directly to the relevant worker.
(3) Detailed standards, amounts, periods, and procedures regarding loans necessary for overdue wages, etc. and other relevant matters shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Newly Inserted by Act No. 11277, Feb. 1, 2012]
Enforcement Ordinance
- Article 4 Deleted.
Enforcement Ordinance
- Article 5 (Conditions and Procedures for Recognition of Facts such as Bankruptcy, etc.)
(1) “When the Minister of Employment and Labor deems it incapable of paying wages, etc.” by the Presidential Decree, under Article 7 (1) 3, means situations where an employer meets all of the conditions described in the following subparagraphs and the retired worker with unpaid wages, etc., makes an application, thus, the Minister of Employment and Labor may acknowledge the employer as being incapable of paying the unpaid wages, etc. (hereinafter referred to as the “acknowledgement of facts such as bankruptcy, etc.”)：
1. The number of workers ordinarily employed (hereinafter referred to as “the number of workers”) calculated according to the method in Table 1 is 300 or less；
2. The business has been closed or is in the process of being closed for reasons described in any of the following items：
A. The business’ production or operation activities have stopped, and major business facilities have been seized or provisionally seized, or transferred in order to repay debts (including cases where auctioning-off under the Civil Execution Act is under way)；
B. Approval, permission, registration, etc., granted to the business have been cancelled or terminated；or
C. The business’ main production and operation activities have been suspended for one month or more；
3. The employer is incapable of paying wages, etc., or remarkably difficult to pay wages, etc., for reasons described in any of the following items：
A. As of the date of the recognition of facts such as bankruptcy, etc., the whereabouts of the employer had been unknown for one month or more；or
B. It is considered to take three months or more from the date of application for the recognition of facts such as bankruptcy, etc., to cash in or retrieve the employer’s assets；and
C. When an employer of a business with less than 10 full-time workers had not payed wages to the worker who had requested recognition of bankruptcy, etc, within three months after the day of liquidation pursuant to Article 36 of Labor Standards Act；
(2) The application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (1) shall be made within one year from the date following the date of retirement from the business concerned.
(3) Necessary matters concerning the application for the recognition of facts such as bankruptcy, etc., prescribed in paragraph (2) shall be prescribed by the Ordinance of the Ministry of Labor.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 6 (Decision and Announcement of Ceiling Amount for Subrogated Payment)
The ceiling amount for wages, etc. (hereinafter referred to as the “subrogated payment”) that the Minister of Employment and Labor pays on behalf of an employer pursuant to Article 6 (1) of the Act shall be decided by the Minister of Employment and Labor according to the age of a worker at the time of retirement after consultation with the Minister of Strategic Planning and Finance in consideration of wages, price increase rates, financial conditions of the fund, etc., and the contents of the decision shall be announced in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 7 (1) of the Act on Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 7 (Workers Entitled to Subrogated Payment)
(1) An employee eligible for a substitute payment pursuant to Article 7 (1) 1 through 3 of the Act (hereinafter referred to as "general substitute payment") shall be the employee who has retired from the relevant business or place of business (hereinafter referred to as "business") within three years from the date no more than one year has passed from each of the following dates:
1. Where a ruling to commence rehabilitation proceedings under Article 7 (1) 1 of the Act or a ruling declaring bankruptcy under subparagraph 2 of the same paragraph (hereinafter referred to as "declaration of bankruptcy, etc.") was issued, the filing date of the application for such ruling;
2. Where the court has declared bankruptcy ex officio after an application for the commencement of rehabilitation procedures was filed under the Debtor Rehabilitation and Bankruptcy Act, the filing date of the application for commencement of such procedures or the declaration date of bankruptcy;
3. Where a fact of bankruptcy, etc. was acknowledged pursuant to Article 5 (1), the filing date of the application for acknowledgment of the fact of bankruptcy, etc. (if the application was filed on the day following a public holiday because the last day of the application period under Article 5 (2) is a public holiday, referring to the last day of the application period; and if two or more applications were filed for the same fact which has become the basis for acknowledging the fact of bankruptcy, etc., referring to the date the first application was filed; hereinafter the same shall apply).
(2) An employee eligible for a substitute payment under Article 7 (1) 4 of the Act (hereinafter referred to as "substitute payment of small amount") shall be the one who has filed a lawsuit, application, etc. concerning a judgment, order, conciliation, ruling, etc. (hereinafter referred to as "judgment, etc.") that falls under any item of Article 7 (1) 4 of the Act, within two years from the day following the date of retirement from the business.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 8 (Criteria for Employers)
(1) An employer against whom an employee is eligible to receive a general substitute payment shall be the one to whom any ground prescribed in Article 7 (1) 1 through 3 occurs after operating the relevant business for at least six months after becoming subject to the application of the Act under Article 3 of the Act.
(2) An employer against whom an employee is eligible to receive a substitute payment of small amount shall be the one who meets all of the following requirements:
1. The employer shall have employed the employee for the business subject to the application of the Act under Article 3 of the Act;
2. The employer shall have operated the relevant business for at least six months until the retirement date of the relevant employee: Provided, That where an employer who is a subcontractor of a contract for construction work under Article 44-2 (1) of the Labor Standards Act (hereafter in this subparagraph, referred to as "subcontractor who is not a constructor") has not operated the relevant business for at least six months until the retirement date of the relevant employee, the immediate upper tier contractor of the subcontractor who is not a constructor (where the immediate upper tier contractor is not a constructor defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry, referring to the constructor under the same subparagraph who is at the lowest tier among the upper tier contractors; hereinafter the same shall apply) shall have operated the relevant business for at least six months until the retirement date of the relevant employee;
3. The employer shall have received a judgment, etc. that falls under any item of Article 7 (1) 4 of the Act by failing to pay wages, etc. to the relevant employee.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 9 (Request for Subrogated Payment, and Provision thereof)
(1) Any person who intends to receive a substitute payment pursuant to Article 7 of the Act shall file a claim with the Minister of Employment and Labor within the period classified as follows:
1. A general substitute payment: Within two years from the date of declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc.;
2. A substitute payment of small amount: Within one year from the judgment, etc. thereof.
(2) Matters necessary for claiming and making substitute payments under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 10 (Verification, etc. of Grounds for Making Substitute Payments, such as Declaration of Bankruptcy, etc.)
(1) A person who claims a general substitute payment for bankruptcy pursuant to Article 9 (1) 1 shall obtain verification of the following matters from the Minister of Employment and Labor, and shall file an application for the verification along with a claim for a general substitute payment under Article 9 (1) 1:
1. The date of the declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc., and the date of application therefor;
2. Date of retirement and the age as at the time of retirement;
3. The wages or business suspension allowances for the final three months of service, and the overdue amount out of the retirement benefits for the final three years of service;
4. The amount of the general substitute payment for bankruptcy to be received;
5. The fact that the relevant employer falls under an employer referred to in Article 8(1).
(2) If necessary to make verifications pursuant to paragraph (1), the Minister of Employment and Labor shall take necessary measures, such as requiring the relevant employer, bankruptcy administrator, administrator, manager, etc. to report matters related to the declaration of bankruptcy, etc. or to submit related documents pursuant to Article 22 of the Act.
(3) Matters necessary for verifying under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
- Article 8 (Subrogation of Right to Claim Overdue Wages, etc.)
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(1) When the Minister of Employment and Labor has made a substitute payment to an employee pursuant to Article 7 or Article 7-2, he or she shall subrogate the employee's right to claim overdue wages, etc. against his or her employer to the extent of the amount of the substitute payment.
(2) Preferential rights to repayment of wage claims under Article 38 of the Labor Standards Act and preferential rights to repayment of retirement benefits, etc. under Article 12 (2) of the Guarantee of Employee' Retirement Benefits Act shall remain in existence with regard to the rights subrogated under paragraph (1).
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 7; previous Article 8 moved to Article 9]
Enforcement Ordinance
- Article 11 (Subrogation of Right to Claim Unpaid Wages, etc.)
The Minister of Employment and Labor shall take necessary measures to exercise the rights and secure unpaid wages, etc., if the Minister has subrogated right sto claim unpaid wages, etc., pursuant to Article 8 (1).
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 9 (Charges Imposed on Employers)
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(1) The Minister of Employment and Labor shall collect charges from employers to cover expenses incurred in making a substitute payment etc. under Article 7 or Article 7-2.
(2) The amount of charges to be borne by an employer pursuant to paragraph (1) shall be an amount calculated by multiplying the total remuneration of all employees engaging in the business concerned by the rate of charges determined by the Minister of Employment and Labor within 2/1000 of such total wages following deliberation by the Committee.
(3) The total remuneration shall be determined based on the ratio of labor announced pursuant to Article 13 (6) of the Employment Industrial AccidentInsurance Premium Collection Act if it is impracticable to determine such total remuneration.
(4) Article 9 of Employment Industrial Accident Insurance Premium Collection Act regarding the blanket application for contract business shall apply mutatis mutandis to the collection of charges under paragraph (1). In such cases, the "Corporation" in the proviso to Article 9 (1) of the same Act shall be construed as the "Minister of Employment and Labor".
(5) This Act shall apply to charges imposed on employers in preference to other statutes.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 8; previous Article 9 moved to Article 10]
Enforcement Ordinance
- Article 12 (Collection of Charges)
(1) When collecting charges pursuant to Article 9 (1) of the Act, the Minister of Employment and Labor shall collect them together with the industrial accident compensation insurance premiums prescribed in Article 13 (1) 2 of the Act on the Collection, etc. of Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as “Employment and Industrial Accident the Insurance Premium Collection Act”).
(2) The Minister of Employment and Labor shall calculate every month the charges collected in an integrated manner pursuant to paragraph (1) and pay them into the Fund.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 13 (Announcement of Rate of Charges)
The Minister of Employment and Labor shall, when he/she has decided the rate of charges pursuant to Article 9 (2) of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 9 (1) of the Act on Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 10 (Reduction of Charges)
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The Minister of Employment and Labor may reduce charges under Article 9 for any of the following employers. In such cases, the criteria for the reduction shall be determined by the Minister of Employment and Labor through deliberation by the Committee:
1. Deleted;
2. Employers who have settled and paid retirement allowances in advance pursuant to the Labor Standards Act or the Guarantee of Workers' Retirement Benefits Act;
3. Employers who have purchased retirement insurance, etc. pursuant to Article 2 (1) of the Addenda to the Guarantee of Workers' Retirement Benefits Act (Act No. 7379) and employers who have established a defined benefit plan under Chapter III of the Guarantee of Workers' Retirement Benefits Act, a defined contribution plan under Chapter IV of the same Act, or an individual retirement account under Article 25 of the same Act;
4. Employers who have purchased and subscribed for insurance and trust for departure guaranty pursuant to Article 13 of the Act on the Employment, etc. of Foreign Workers.
[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]
Enforcement Ordinance
- Article 14 (Criteria for Employers Eligible for Reduction in Charges)
(1) Deleted.
(2) A judgment of whether or not an employer is eligible for the reduction of charges under subparagraphs 2 through 4 of Article 10 of the Act shall be made based on the end of a previous year.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 15 (Procedure for Reduction in Charges)
(1) Deleted.
(2) An employer who intends to have charges reduced pursuant to subparagraphs 2 through 4 of Article 10 of the Act shall submit an application for the reduction of charges as prescribed by the Ordinance of the Ministry of Employment and Labor, after meeting the conditions for the reduction of charges prescribed in the same subparagraph.
(3) The Minister of Employment and Labor shall, after reviewing the submitted documents referred to in paragraph (2), notify the employer concerned who meets the conditions for the reduction of charges of specific details of the reduction.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 16 (Announcement of Criteria for Reduction in Charges)
The Minister of Employment and Labor shall, when he/she has decided criteria for reduction in charges pursuant to the latter part of Article 10 of the Act, announce the contents of the decision in an official gazette and one or more daily newspapers registered as having a nationwide circulation pursuant to Article 9 (1) of the Act on the Registration, etc. of Periodicals.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 17 (Preparation, etc. of Cards about Charges and Other Levies)
(1) For businesses subject to the Act, the Minister of Employment and Labor shall prepare and keep a card about charges and other levies for each workplace.
(2) The Minister of Employment and Labor shall, if an employer intends to inspect the card about charges and other levies, let him/her inspect it and if an employer intends to have a certificate issued for necessary matters, may issue it.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 11 (Protection of Right to Receive Substitute Payment)
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(1) The Minister of Employment and Labor shall, upon receipt of request from a employee, deposit a substitute payment upon Article 7 or Article 7-2 into a designated account in the name of the employee (hereinafter referred to as "account to receive substitute payments"): Provided, That where it is impracticable to transfer a substitute payment to an account to receive substitute payments due to failure of the information and communications system or other unavoidable reasons prescribed by Presidential Decree, a substitute payment may be paid as prescribed by Presidential Decree, such as in the form of cash.
(2) A financial institution at which an account to receive substitute payments is opened shall ensure that only substitute payments prescribed in this Act are deposited into the account
(3) Matters necessary for the methods and procedures for making requests under paragraph (1) and for the management of an account to receive substitute payments under paragraph (2) shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Dec. 8, 2020]
[Previous Article 11 moved to Article 11-2]
Enforcement Ordinance
- Article 18 (Delegation of Receipt of Subrogated Payment)
(1) If a person entitled to receive a substitute payment is unable to receive it due to an injury or disease, he/she may delegate his/her family member to receive it pursuant to Article 11 (2) of the Act.
(2) If a person delegated to receive a substitute payment under paragraph (1) intends to receive the substitute payment, he/she shall submit a document certifying the fact of such delegation and family relations.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article11-2 (Protection of Entitlement)
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(1) No entitlement to a substitute payment upon Article 7 or Article 7-2 shall be transferred, seized, or provided as collateral.
(2) The receipt of a substitute payment may be delegated as prescribed by Presidential Decree.
(3) Any employee who is a minor may independently claim a substitute payment.
(2) No claims on deposits into an account to receive substitute payments shall be subject to seizure.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 11]
- Article 12 (Verification of Overdue Wages, etc.)
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(1) If necessary to institute a lawsuit according to procedures, etc. of legal aid in Article 22 of the Legal Aid Act, any employee who is not paid wages, etc. may file for issuance of a document certifying overdue wages, etc. and employers, etc. in arrears with the Minister of Employment and Labor.
(2) The Minister of Employment and Labor in receipt of a request under paragraph (1) may issue a document certifying overdue wages, etc. and employers, etc. in arrears verified in the course of handling administrative affairs for labor supervision to the employee in paragraph (1) or to the Korea Legal Aid Corporation established under Article 8 of the Legal Aid Act.
(3) Necessary matters relating to the procedures, methods, etc. of issuance of documents under paragraph (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Jan. 20, 2015]
- Article 13 (Order to Submit Property List)
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(1) If the Minister of Employment and Labor intends to make a substitute payment to an employee pursuant to Article 7, Article 7-2, Article 7-3, he or she may order the employer concerned to submit a property list indicating detailed property relationship, as prescribed by Presidential Decree.
(2) Each employer who is ordered to submit a property list pursuant to paragraph (1) shall submit to the Minister of Employment and Labor the property list indicating detailed property relationship within seven days therefrom, in the absence of special circumstances.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 12; previous Article 13 moved to Article 14]
Enforcement Ordinance
- Article 19 (Entries in Property List)
An employer who is ordered to submit a list of properties pursuant to Article 13 of the Act shall submit the list containing matters described in the following subparagraphs to the Minister of Employment and Labor：
1. Ownership, surface right, right to lease on a deposit basis and right of lease with regard to real estate, and right to claim delivery of real estate, and right to claim the transfer thereof；
2. Ownership and right to claim delivery of, automobiles, construction machinery, vessels and aircraft required to be registered, and right to claim the transfer thereof；
3. Mining right, fishing right, and other rights to which real estate-related provisions apply mutatis mutandis, and right to claim the transfer thereof；and
4. In the case of claims which are secured by liens, such as pledges and mortgages, their purpose and content of the liens
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 13-2
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[Previous Article 13-2 moved to Article 15
]
- Article 14 (Restitution of Unjust Enrichment)
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(1) Where a person attempts to receive a substitute payment or loan under Article 7 or 7-2 by fraud or other improper means, the Minister of Employment and Labor may opt not to provide all or some of the substitute payment or loan as prescribed by Presidential Decree.
(2) Where a person in receipt of a substitute payment or loan under Article 7, 7-2, 7-3 falls under any of the following subparagraphs, the Minister of Employment and Labor shall clawback all or some of the substitute payment or loan according to the methods prescribed by Presidential Decree:
1. Where the person receives the substitute payment or loan by fraudulent or other improper means;
2. Where the substitute payment or loan is paid erroneously.
(3) Where a clawback of a substitute payment arises under paragraph (2), an amount not more than five times of the amount of such substitute payment received by fraudulent or other improper means may be additionally collected as prescribed by Ordinance of the Ministry of Employment and Labor.
(4) In cases falling under paragraphs (2) and (3), if a substitute payment or loan is provided by fraudulent means, such as making a false report, making a false statement or false certification, or submitting false documents, the employer and the recipient of the substitute payment or loan shall be jointly and severally liable therefor.
[This Article Wholly Amended on Dec. 27, 2007]
[Title Amended on Mar. 24, 2014]
[Moved from Article 13; previous Article 14 moved to Article 16]
Enforcement Ordinance
- Article 20 (Collection of Fraudulent Gains, etc.)
(1) If a person intends to receive or already received subrogated payment or a loan in a false or fraudulent means under Article 14 (1) of the Act, the Minister of Employment and Labor shall not pay the requested amount or shall request a return of the amount already paid in accordance with the classification described in the following subparagraphs：
1. Where the person does not satisfy the requirements to receive subrogated payment or the loan：all of the requested or paid amount；and
2. Where the person satisfies the requirements to receive subrogated payment：part of the requested or paid amount (referring to an amount equivalent to fraudulent gains).
(2) If the Minister of Employment and Labor has decided to request a return of the subrogated payment or the loan (including additional amount referred to in Article 14 (3) of the Act；hereinafter the same shall apply.) pursuant to paragraph (1), the Minister shall notify the person liable for the payment that he/she should make that payment.
(3) A person who receives notification pursuant to paragraph (2) shall pay the notified amount within 30 days from the date of notification.
(4) The necessary procedures for the non-payment or return of subrogated payment, or any other fraudulent receipt shall be by the Ordinance of the Ministry of Labor.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
<Title of this Article Amended by Presidential Decree No. 25630, Sep. 24, 2014>
Enforcement Ordinance
- Article 20-2 (Report of Fraudulent Receipt of Subrogated Payment, etc.)
(1) A person who intends to report the fact (hereinafter referred to as “fraudulent receipt”) that subrogated payment has been received in a false or other fraudulent ways as prescribed in Article 15 of the Act shall report it to a local labor office under the conditions prescribed by the Ordinance of the Ministry of Labor.
(2) An investigation agency which is informed of the fraudulent receipt of subrogated payment under Article 15 of the Act shall notify a local labor office of the fact without delay.
(3) If a person who has reported or informed on the fraudulent receipt of subrogated payment under Article 15 of the Act intends to get reward money (hereinafter referred to as “reward money”) under the same Article, he/she shall apply to the Minister of Employment and Labor to get the reward money under the conditions prescribed by the Ordinance of the Ministry of Employment and Labor.
<This Article Wholly Amended by Presidential Decree No. 18913, Jun. 30, 2005>
- Article 15 (Payment of Reward Money)
-
Any person who files a report or an accusation related to receipt of a substitute payment upon Article 7 or Article 7-2 by fraud or other improper means with a local employment and labor office or an investigation agency may be paid a reward in accordance with the standards prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 13-2; previous Article 15 moved to Article 17]
Enforcement Ordinance
- Article 20-3 (Standards for Payment of Reward Money)
A reward shall be paid by the Minister of Employment and Labor in accordance with the following standards within the limit of 100 million won. In such cases, the amount unit below one thousand won shall not be paid:
1. If the substitute payment received through fraudulent or other improper means (hereafter in this Article, referred to as "amount of fraudulent receipt") is at least 50 million won: 11 million won + (Amount of improper receipt exceeding 50 million won x 10/100);
2. If the amount of fraudulent receipt is at least 10 million won but less than 50 million won: 3 million won + (Amount of improper receipt exceeding 10 million won x 20/100);
3. If the amount of fraudulent receipt is less than 10 million won: Amount of fraudulent receipt x 30/100.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 20-4 (Deadline for Reporting or Informing)
Reward money shall be given only when a person reports or inform within three years from the date on which the recipient who has received subrogated payment in a false or other fraudulent ways (hereinafter referred to as the “fraudulent recipient”), has been given the subrogated payment.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 20-5 (Paying Method of Reward Money If Multiple Reporting or Informing Take Place)
(1) If two or more persons, each, report or inform on the fraudulent receipt of the same subrogated payment, they shall be regarded as one case of reporting or informing in calculating reward money.
(2) In the case of paragraph (1), the reward money shall be properly divided and distributed among the persons involved in consideration of the extent to which each person contributes to the discovery of the fraudulent receipt but if those who are to receive the reward money have already made an agreement on how to distribute the money and applied for the payment of reward money, the payment shall be made in accordance with the method agreed upon.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 20-6 (Timing of Payment of Reward Money)
Reward money shall be paid after the decision on such payment is confirmed as the deadline for raising an objection has passed or the procedures for raising an objection have been concluded, after redemption notification of subrogated payment under Article 20 (2) of the Act.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 16 (Application Mutatis Mutandis)
-
With regard to the payment and collection of charges and other levies under this Act (including requests for the additional payment and collection of a substitute payment upon Article 14-2 through 14-4), Articles 16-2 through 16-11, 17 through 19, 19-2, 20, 22-2, 22-3, 23, 23-2, 24, 25, 26-2, 27, 27-2, 27-3, 28, 28-2 through 28-7, 29, 29-2, 29-3, 30, 32 through 37, 39 and 50 of the Insurance Premium Collection Act shall apply mutatis mutandis. In such cases, "the insured" shall be construed as an "employer", "premium" as "charge", "insurance" as "wage claim guarantee", "insurance business" as "wage claim guarantee business", "Corporation" or "National Health Insurance Corporation" as the "Minister of Employment and Labor" (referring to the person entrusted where the authority is delegated as provided in Article 27 of this Act), "estimated premium" as "estimated charge", "insurance year" as "fiscal year", "insurance relations" as "wage claim guarantee relations", "premium rate" as "charge rate", "fixed premiums" as "fixed charges", and "Employment Policy Council under Article 6 of the Framework Act on Employment Policy or Industrial Accident Compensation Insurance and Prevention Deliberation Committee under Article 8 of the Industrial Accident Compensation Insurance Act" as "Committee".
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 14; previous Article 16 moved to Article 18]
- Article 16-2
-
[Previous Article 16-2 moved to Article 19
]
Enforcement Ordinance
- Article 21 (Payment and Collection of Charges and other Levies)
The provisions of Articles 10, 19-2 through 19-6, 20 through 27, 30-2 through 30-4, 31 through 33, 37 through 40, 40-2 through 40-6, 41, 41-2 through 41-4, 43, 43-2, 44 through 53 of the Enforcement Decree of the Insurance Premium Collection Act shall apply mutatis mutandis with regard to the calculation, payment and collection of charges and other levies under the Act. In this case, “premiums” or “insurance premium for industrial injury” shall be read as “charges”, “the Service” or “National Health Insurance Service” as “the Minister of Employment and Labor (referring to the Korea Workers’ Compensation & Welfare Service or the National Health Insurance Service in case the authority is delegated to them, pursuant to Article 24)”, “estimated premiums” as “estimated charges”, “insurance year” as “fiscal year”, “insurance relations” as “wage claim guarantee relations”, “premium rate” as “charge rate”, “monthly premiums” as “monthly charges”, “final premiums” as “final charges” and “insurance affairs” as “wage claim guarantee affairs”.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
CHAPTER Ⅲ Wage Claim Guarantee Fund
- Article 17 (Establishment of Fund)
-
In order to finance a substitute payment under Article 7 or 7-2, the Minister of Employment and Labor shall establish the Wage Claim Guarantee Fund (hereinafter referred to as the "Fund").
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 15; previous Article 17 moved to Article 20]
- Article 18 (Creation of Fund)
-
(1) The Fund shall be created with the following financial resources:
1. Payments made by employers under Article 8;
2. Charges paid by employers under Article 9;
3. Borrowings under paragraph (2);
4. Revenues from the operation of the Fund;
5. Other revenues.
(2) The Minister of Employment and Labor may, if necessary for the operation of the Fund, borrow from financial institutions or other funds at the cost of the Fund.
[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]
- Article 19 (Purposes of Fund)
-
The Fund shall use its funds for the following purposes:
1. To make substitute payments upon Article 7 or 7-2 and return amounts erroneously paid or others;
2. To subsidize expenses incurred in relation to assistance from a certified labor consultant under Article 7 (6);
3. To provide employers and employees with loans necessary to pay overdue wages, etc. and living expenses, respectively, under Article 7-3;
4. To make contributions to persons entrusted with affairs under Article 27;
5. To repay borrowings and interest accrued thereon;
6. To conduct research on wage claim guarantee systems, such as the prevention of arrears of wages, etc. and support for their settlement;
7. To make contributions to the Korea Legal Aid Corporation under the Legal Aid Act: Provided, That such contributions shall be limited to support for legal aid services for employees with overdue wages, etc.;
8. To carry out projects for wage claim guarantee, and manage and operate the Fund.
[This Article Wholly Amended on Feb. 1, 2012]
- Article 19-2
-
[Previous Article 19-2 moved to Article 23
]
- Article 20 (Management and Operation of Fund)
-
(1) The Fund shall be managed and operated by the Minister of Employment and Labor.
(2) With regard to the management and operation of the Fund, paragraphs (2) through (4) of Article 97, Articles 98 through 100 and 102 of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis. In such cases, "insurance benefits" in the same Act shall be read as "substitute payment", and "premium income" as "income from charges".
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 17; previous Article 20 moved to Article 24]
Enforcement Ordinance
- Article 22 (Management and Operation of the Fund)
The provisions of Article 86 (1) 2, the former part of Article 86 (2), Articles 87 through 89, and Articles 91 through 95 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis with regard to the management and operation of the Fund and return of contributions. In this case, "Contributor" shall be read as "a person entrusted with work pursuant to Article 27 of the Act", "Insurance year" as "fiscal year",“Industrial accident compensation insurance and prevention fund account in the Enforcement Decree of the same Act as “wage claim guarantee fund account”, “the Corporation”(except for Article 88 (2) and Article 91 (2) of the Enforcement Decree of the same Act) as “the Minister of Employment and Labor” (referring to the Korea Workers’ Compensation & Welfare Service in case the authority is delegated to it pursuant to Article 24), “premiums” as “charges”, “fund" as “wage claim guarantee fund.”
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
Enforcement Ordinance
- Article 22-2 (Criteria for Accumulation of Legal Liability Reserve)
The amount of legal liability reserve under Article 99 of the Industrial Accident Compensation Insurance Act to which the provisions of Article 20 (2) of the Act shall apply mutatis mutandis shall be an amount spent to make subrogated payment in the previous year.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 21 (Fiscal Year)
-
The fiscal year of the Fund shall conform to that of the Government.
[This Article Wholly Amended by Act No. 8816, Dec. 27, 2007]
CHAPTER Ⅳ Supplementary Provisions
- Article 22 (Report, etc.)
-
The Minister of Employment and Labor may request the relevant parties, including employers of the businesses governed by this Act or employees engaged in the businesses concerned, to make a report or submit related documents necessary for the following subparagraphs, as prescribed by Presidential Decree:
1. Managing and operating the Fund;
2. Making a substitute payment.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 19; previous Article 22 moved to Article 26]
Enforcement Ordinance
- Article 23 (Request for Report or Submission)
A request for a report or submission of related documents under Article 19 of the Act shall be made in writing.
<This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010>
- Article 23 (Request for Cooperation from Related Agencies, etc.)
-
1) The Minister of Employment and Labor may request any of the following persons to submit the following relevant materials or to use the relevant computer network (hereinafter referred to as “provision of materials, etc.”) to conduct duties provided for in this Act, such as substitue payments, etc. under Article 7 or 7-2, the provision of loans for overdue wages, etc. and living expenses under Article 7-3, the subrogation of right to claim overdue wages, etc. under Article 8, the restitution of unjust enrichment under Article 14 and so forth. In such cases, any person in receipt of a request for the provision of materials, etc. shall comply with such request unless there is good cause:
1. Request to the Minister of National Court Administration for the provision of a certificate of registration of buildings or a certificate of registration of land owned by a delinquent employer, a person who has made unjust enrichment or a person who has joint and several liability therefor (hereinafter referred to as “delinquent employer, etc.”);
2. Request to the Minister of the Interior and Safety for the provision of certified copies of or extracts from the resident registration certificate of a delinquent employer, etc.;
3. Request to the Minister of Land, Infrastructure and Transport for the provision of materials (including original registers) related to property held in the name of a delinquent employer, etc., including real estate, automobiles, construction machinery, aircraft and yachts;
3-2. Request to the Minister of Oceans and Fisheries for the provision of materials (including original registers) related to ships in the name of a delinquent employer, etc.;
3-3. Request to the head of a relevant central administrative agency for the provision of materials related to investment certificates in the name of a delinquent employer, etc. of a mutual aid association under the supervision of such head;
4. Request to the Commissioner of the National Tax Service for the provision of materials related to golf (condominium) memberships, intangible property right (patent right, copyright, etc.), books, antiques and goodwill held in the name of a delinquent employer, etc.;
5. Request to the head of a local government for the provision of materials related to family relationship registers (family relationship certificates, marital relationship certificates and identification certificates), local tax certificates levied on property, general (collective) building registers, land (forest land) cadastre of a delinquent employer, etc. and materials related to registration and license taxes levied on registration of rights and registration of leasehold rights, rights to lease on a deposit basis, provisional seizure, etc. in the name of a delinquent employer, etc.;
6. Request to the President?of the Korea Legal Aid Corporation established under Article 8 of the Legal Aid Act for the provision of documents related to civil proceedings (including complaints, applications, judgments, and decisions) between an employee and an employer who delayed payment of wages, etc., such as lawsuits related to overdue wages, etc., preservation dispositions, compulsory execution, and so forth;
7. Request to?the President of the National Health Insurance Service under Article 13 of the National Health Insurance Act for the provision of materials related to the payment of insurance premiums provided in the National Health Insurance, National Pension, Industrial Accident Compensation Insurance, and Employment Insurance (including data on default in the payment of insurance premiums) of a delinquent employer, etc. and the amount of health care benefits claimed by a health care institution that is a delinquent employer, etc. pursuant to Article 47 of the National Health Insurance Act;
7-2. Request to the President of the Korea Workers' Compensation and Welfare Service under Article 10 of the Industrial Accident Compensation Insurance Act for the provision of data on a delinquent employer, etc. as to the acquisition of eligibility of insurant of industrial accident compensation insurance and employment insurance and insurance premiums, etc. overpaid pursuant to Article 23 of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance;
8. Request to retirement pension trustees under Article 26 of the Act on the Guarantee of Employees' Retirement Benefits for the provision of materials concerning retirement pensions, including whether an employee claiming a substitute payment has joined a retirement pension plan, the contribution period, the amount of reserve or contributions and the amount of payment (limited to a period subject to a substitute payment);
9. Request to insurance companies under the Insurance Business Act for the provision of materials concerning the purchase of or subscription for an insurance or trust for departure guaranty or a guaranty insurance by a foreign employee claiming a substitute payment and the payment records (limited to information covered by a period subject to a substitute payment);
10. Request to the Chairperson of the Korea Credit Guarantee Fund under Article 4 of the Credit Guarantee Fund Act and to the Chairperson of the Korea Technology Finance Corporation under Article 12 of the Korea Technology Finance Corporation Act for the provision of materials related to the establishment of security and collateral security in the name of a delinquent employer, etc.;
11. Request to persons who have obtained permission for surety insurance pursuant to Article 4 (1) 2 (d) of the Insurance Business Act for the provision of materials related to the establishment of security and collateral security in the name of a delinquent employer, etc.
(2) Any request for the provision of materials, etc. pursuant to paragraph (1) shall be made by a document that includes the following:
1. Personal information of a delinquent employer, an employee claiming a substitute payment and a person who has made unjust enrichment (including a person who has joint and several liability therefor);
2. Purpose of use;
3. List of materials requested for provision.
(3) Fees, usage charges, etc. shall be exempted for materials provided pursuant to paragraph (1).
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 319-2; previous Article 23 moved to Article 27]
- Article 23-2(Protection of Personal Information)
-
(1) Any request by the Minister of Employment and Labor for the provision of materials specified in any subparagraph of Article 23 (1) shall be made only to the minimum extent necessary to conduct the relevant duties.
(2) With respect to using materials specified in the subparagraphs of Article 23 (1), the Minister of Employment and Labor shall take measures to protect personal information of employers, workers, etc., such as security education.
(3) Where the Minister of Employment and Labor intends to request the provision of materials referred to in Article 23 (1) 8 or 9, he/she shall obtain the consent of a subject of information in advance.
(4) Where the Minister of Employment and Labor has achieved the purpose of the relevant duty, such as the payment of overdue wages, etc. or subrogation of the right to claim overdue wages, etc., using materials specified in any subparagraph of Article 23 (1), he/she shall destroy the relevant materials without delay.
(5) The personal information prescribed in the subparagraphs of Article 23 (1) shall be managed only by those who are approved to manage such personal information by the heads of institutions delegated with authority by the Ministry of Employment and Labor or the Minister of Employment and Labor, who are in charge of the duties provided for in the main sentence of the same paragraph at the relevant institutions.
(6) No person who engages or previously engaged in the duties related to wage claim guarantee shall divulge information on employers, workers, etc. which comes to his/her knowledge in the course of performing his/her duties to any third party or use such information for any purpose other than its originally intended purposes.
(7) The Minister of Employment and Labor shall determine detailed matters necessary for the development of personal information protection measures, such as security education, prescribed in paragraph (2), methods for acquiring prior consent of a subject of information prescribed in paragraph (3), timing and methods for destroying materials after achieving the purposes provided for in paragraph (4), procedures for approving the handling of personal information referred to in paragraph (5), and so forth.
[This Article Newly Inserted by Act No. 13909, Jan. 27, 2016]
- Article 24 (Inspection)
-
(1) If the Minister of Employment and Labor deems it necessary for the implementation of this Act, he or she may authorize related public officials or employees belonging to an institution entrusted with authority upon Article 27 (limited to matters necessary for handling entrusted business) to enter a workplace subject to this Act and inspect related documents or ask questions to related persons.
(2) Each public official who enters a workplace and conducts an inspection pursuant to paragraph (1) oremployees belonging to an institution entrusted with authority upon Article 27 (limited to matters necessary for handling entrusted business) shall carry a certificate indicating his or her authority and produce it to related persons.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 20; previous Article 24 moved to Article 28]
- Article 25 (Reporting)
-
If an employer violates this Act or any order issued under this Act, his/her worker may report such violation to a labor inspector and request him/her to take action to correct such violation.
<This Article Wholly Amended by Act No. 8816, Dec. 27, 2007>
- Article 26 (Extinctive Prescription)
-
(1) The right to collect charges and other levies under this Act or the right to seek a refund of a substitute payment or charges shall be extinguished by prescription if it is not exercised within three years.
(2) The extinctive prescription under paragraph (1) shall be subject to the Civil Act, except otherwise provided in this Act.
(3) Articles 42 and 43 of the Employment and Industrial AccidentalInsurance Premium Collection Act shall apply mutatis mutandis to suspension, etc. of extinctive prescription.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 22; previous Article 26 moved to Article 30]
- Article 27 (Delegation and Entrustment of Authority)
-
Part of the authority of the Minister of Employment and Labor under this Act may be delegated to the head of a local labor office or entrusted to the Korea Workers’ Compensation & Welfare Service under the Industrial Accident Compensation Insurance Act, under the conditions prescribed by the Presidential Decree.
<This Article Wholly Amended by Act No. 8816, Dec. 27, 2007>
Enforcement Ordinance
- Article 24 (Delegation and Entrustment of Authority)
(1) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall delegate the following authority to the head of each local employment and labor office:
1. Issuance of documents certifying overdue wages, etc. and employers, etc. in arrears under Article 12 of the Act;
1-2. Order to submit a property list under Article 13 of the Act;
2. Request to submit reports or related documents under Article 22 of the Act (limited to cases where they are necessary for handling delegated affairs);
3. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling delegated affairs);
4. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling delegated affairs);
5. Imposition and collection of administrative fines under Article 30 of the Act;
6. Acknowledgment of facts of bankruptcy, etc. under Article 5;
7. Acceptance of claims for payment of general substitute payments for bankruptcy under Article 9 (1) 1;
8. Verification under Article 10;
9. Receipt of applications for payment of rewards under Article 20-2 (3);
10. Payment of rewards under Article 20-3.
(2) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall entrust the following authority to the Korea Workers' Compensation and Welfare Service established under the Industrial Accident Compensation Act (hereinafter referred to as the "Korea Workers' Compensation and Welfare Service"):
1. Payment of substitute payments under Article 7 and 7-2 of the Act;
1-2. Granting loans to employers to pay overdue wages, etc. under Article 7-3 of the Act;
2. Exercise of authority related to subrogation of right to claim overdue wages, etc. under Article 8 of the Act;
3. Reduction of charges under Article 10 of the Act;
4. Restitution of unjust enrichment under Article 14 of the Act;
5. The following authority under the Insurance Premium Collection Act which applies mutatis mutandis under Article 16 of the Act:
(a) Imposition of monthly charges under Article 16-2 (1) of the Insurance Premium Collection Act;
(b) Calculation of monthly charges under Articles 16-3 through 16-6 of the Insurance Premium Collection Act;
(c) Calculation of charges under Article 16-9 (1) and (2) of the Insurance Premium Collection Act;
(d) Receipt and collection of estimated charges under Article 17 of the Insurance Premium Collection Act;
(e) Measures following raising or lowering the charge rate under Article 18 of the Insurance Premium Collection Act;
(f) Receipt, collection and settlement of finalized charges under Article 19 of the Insurance Premium Collection Act;
(g) Reduction of charges, etc. under Article 22-2 of the Insurance Premium Collection Act;
(h) Allocation of overpaid charges, etc. and return of estimated charges, finalized charges, and overpaid amount of charges subsequent thereto under Article 23 of the Insurance Premium Collection Act;
(i) Collection of additional dues related to Article 19 (4) of the Insurance Premium Collection Act, under Article 24 (1) of the same Act;
(j) Notice and overdue notice on money collectable under Article 27 of the Insurance Premium Collection Act;
(k) Collection of money collectible before payment deadline under Article 27-2 of the Insurance Premium Collection Act;
(l) Disposition on default of money collectible under Article 28 of the Insurance Premium Collection Act;
(m) Write-off of money collectible under Article 29 of the Insurance Premium Collection Act;
(n) Provision of data on default or write-off under Article 29-2 of the Insurance Premium Collection Act;
(o) Authorization for the wage claim guarantee business, authorization for the change thereof. acceptance of reports on discontinuance and change of business, and revocation of authorization under Article 33 (2) through (5) of the Insurance Premium Collection Act;
(p) Notice on payment of charges and other money collectable under Article 34 of the Insurance Premium Collection Act;
(q) Collection of additional dues and arrears under Article 35 of the Insurance Premium Collection Act;
(r) Subsidization of collection expenses or grant of other subsidies under Article 37 of the Insurance Premium Collection Act;
(s) Extension of payment deadline under Article 39 of the Insurance Premium Collection Act;
6. Request to submit reports or related documents under Article 22 of the Act (limited to cases where they are necessary for handling entrusted affairs);
7. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling entrusted affairs);
8. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling entrusted affairs);
8-2. Acceptance of claims for substitute payments of small amount under Article 9 (1) 2;
9. Preparation and keeping of, and provision for perusal of, charge cards or other levy cards and issuance of certificates under Article 17 (limited to cases where they are collected by the Korea Workers' Compensation and Welfare Service);
10. The following authority under the Enforcement Decree of the Insurance Premium Collection Act which applies mutatis mutandis under Article 21:
(a) Approval of vicarious payment of charges, acceptance of reports on changes, and revocation of approval under Article 10 of the Enforcement Decree of the Insurance Premium Collection Act;
(b) Acceptance of delegation of wage claim guarantee business and acceptance of reports on termination of the delegation thereof under Article 45 (3) of the Enforcement Decree of the Insurance Premium Collection Act;
(c) Hearings under Article 49 of the Enforcement Decree of the Insurance Premium Collection Act;
11. Payment of charges, etc. into the accounts of the Fund under Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis under Article 22.
(3) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall entrust the following authority to the National Health Insurance Service established under the National Health Insurance Act:
1. The following authority under the Insurance Premium Collection Act which applies mutatis mutandis under Article 16 of the Act:
(a) Collection of monthly charges under Article 16-2 (1) of the Insurance Premium Collection Act;
(b) Notice of monthly charges under Article 16-8 of the Insurance Premium Collection Act;
(c) Return of excess amount and collection of shortages under Article 16-9 (3) and (4) of the Insurance Premium Collection Act;
(d) Measures following raising charge rates under Article 18 (1) of the Insurance Premium Collection Act;
(e) Payment of the residual amount after allocating the amount erroneously paid to monthly charges under Article 23 (1) of the Insurance Premium Collection Act;
(f) Collection of additional dues on monthly charges under Article 24 (2) of the Insurance Premium Collection Act;
(g) Collection of arrears under Article 25 of the Insurance Premium Collection Act;
(h) Notice and overdue notice on money collectable under Article 27 of the Insurance Premium Collection Act;
(i) Collection of money collectible before payment deadline under Article 27-2 of the Insurance Premium Collection Act;
(j) Approval, revocation of approval, etc. of installment payment of charges, etc. under Article 27-3 of the Insurance Premium Collection Act;
(k) Disposition on default of payment under Article 28 of the Insurance Premium Collection Act;
(l) Request for appointment of an administrator of inherited property under Article 28-3 (4) of the Insurance Premium Collection Act;
(m) Disclosure of personal information of persons who are in arrears with large amount or are habitually in arrears under Article 28-6 of the Insurance Premium Collection Act;
(n) Matters concerning the provision of securities for payment to defer a disposition on default of payment under Article 28-7 of the Insurance Premium Collection Act;
(o) Write-off of money collectible under Article 29 of the Insurance Premium Collection Act;
(p) Provision of data on default or write-off under Article 29-2 of the Insurance Premium Collection Act;
(q) Extension of payment deadline under Article 39 of the Insurance Premium Collection Act;
2. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling entrusted affairs);
3. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling entrusted affairs);
4. Payment of charges, etc. into the accounts of the Fund under Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis under Article 22.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 25 (Report by the Service)
The Korea Workers' Compensation and Welfare Service entrusted with the authority under Article 27 of the Act shall report to the Minister of Employment and Labor the monthly payment status of substitute payments under Article 7 of the Act and the monthly collection status of the amount of restitution under Article 14 (2) of the Act (including the amount additionally collected under paragraph (3) of the same Article) not later than the last day of the following month.
[This Article Wholly Amended by Presidential Decree No. 22490, Nov. 15, 2010]
Enforcement Ordinance
- Article 25-2 (Management of Sensitive Information and Unique Identifying Information)
The Minister of Employment and Labor (including persons to whom the authority of the Minister of Employment and Labor is delegated or entrusted under Article 24) may manage the data which contain resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if it is essential to perform the following affairs:
1. Affairs related to providing assistance in the affairs related to substitute payments under Article 7 (5) of the Act;
1-2. Affairs related to applying for loans by employers to pay overdue wages, etc. and verifying, etc. thereof under Article 7-3 of the Act;
1-3. Issuance of documents certifying overdue wages, etc. and employers in arrears of payment of wages, etc. under Article 12 of the Act;
2. Affairs related to orders to submit property lists under Article 13 of the Act;
3. Affairs related to restituting unjust enrichment under Article 14 of the Act;
4. Affairs related to the acknowledging facts of bankruptcy, etc. under Article 5;
5. Affairs related to claiming and making substitute payments under Article 9;
6. Affairs related to verifying, etc. of grounds for making substitute payments under Article 10;
6-2. Affairs related to subrogating a right to claim overdue wages, etc. under Article 11;
7. Affairs related to reducing charges under Article 15.
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
Enforcement Ordinance
- Article 25-3 (Re-examination of Regulation)
Regarding the period of claim for a substitute payment, the Minister of Employment and Labor shall review the validity and take appropriate action, such as improvement etc., every three years (this refers to the period before Jan. 1 of every third year) starting from Jan. 1, 2017.
- Article 27-2 (Penalty Provisions)
-
Any person who violates Article 23-2 (6) shall be punished by imprisonment with labor for not more than ten years or by a fine not exceeding 100 million won.
[This Article Newly Inserted by Act No. 13909, Jan. 27, 2016]
CHAPTER Ⅴ Penal Provisions
- Article 28 (Penal Provisions)
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(1) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:
1. A person in receipt of a substitute payment under Article 7 or a loan under Article 7-2 by fraud or other improper means;
2. A person who causes another person to receive a substitute payment under Article 7 or a loan under Article 7-2 by fraud or other improper means;
3. A person who refuses to submit a property list under Article 13 without good cause or submits a false property list.
(2) Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won:
1. A person who submits a false report, certification, or document to unduly receive a substitute payment under Article 7 or a loan under Article 7-2;
2. A person who submits a false report, certification, or document to unduly causes another person to receive a substitute payment under Article 7 or a loan under Article 7-2.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 24]
- Article 29 (Joint Penal Provisions)
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If a representative of a juristic person or an agent, a servant or any other employee of a juristic person or an individual commit the offense prescribed in Article 28 in relation to the business of the juristic person or individual, the fine prescribed in the respective Article shall be imposed on the juristic person or individual in addition to the punishment of the offender：Provided that this shall not apply unless the juristic person or individual neglects to give considerable attention and supervision to the business concerned in order to prevent such offence.
<This Article Wholly Amended by Act No. 9339, Jan. 7, 2009>
- Article 30 (Fines for Negligence)
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(1) The following persons shall be subject to an administrative fine not exceeding ten million won:
1. Deleted;
1-2. A person who refuses to submit a list of property pursuant to Article 13 or submits a list of property by fraud without justifiable grounds.
2. A person who fails to comply with a request to report or submit related documents made under Article 22 without any justifiable ground, or who makes a false report or submits false documents;
3. A person who refuses to answer questions or refuses, interferes with or evades an inspection conducted by him or her without any justifiable ground made by a related public official under Article 24 (1) or employees belonging to an institution entrusted with authority upon Article 27 (limited to matters necessary for handling entrusted business),
(2) An administrative fine under paragraph (1) shall be imposed and collected by the Minister of Employment and Labor as prescribed by Presidential Decree.
(3) Deleted.
(4) Deleted.
(5) Deleted.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 26]
Enforcement Ordinance
- Article 26 (Imposition and Collection of Fines for Negligence)
The criteria for imposing administrative fines under shall be as specified in attached Table 3.
