Labor Law Q&A details

Chapter 3 Working hours, Recess, Off-Days and Leave

What is the compensation which local law requires the employer to pay to an employee on sick leave? Is it possible to stop salary rights after 30 calendar days of sick leave?

Article 78 (Compensation for Medical Treatment),
Article 79 (Compensation for Suspension of Work),
Article 84 (Lump Sum Compensation), Labor Standards Act, as last amended by Act No. 12325, Jan. 21, 2014

Only when an employee is on sick leave because of an occupational disease or injuries, an employer shall compensate for the medical treatment and 60% of wage. If s/he has to be treated more than 3 days, industrial accident compensation insurance will be covered, which means an employer does not compensate the employee directly.

For the employees who have been in treatment more than 2 years, an employer can be exempt to the liability to pay him/her after paying the employee lump-sum compensation in an amount equivalent to the average wages for 1,340 days.

An employer does not have a legal obligation to compensate for employees on sick leave because of his/her personal disease or injuries.


*Labor Standards Act

Article 78 (Compensation for Medical Treatment)(1) An employer shall provide necessary medical treatment at his/her expense or bear corresponding expenses for a worker who suffers from an occupational injury or disease.

(2) The scope of occupational diseases and medical treatment therefor and period for compensation for medical treatment as referred to in paragraph (1) shall be prescribed by Presidential Decree.

Article 79 (Compensation for Suspension of Work)(1) An employer shall pay a worker who is under medical treatment pursuant to Article 78 a compensation for suspension of work equivalent to 60 percent of his/her average wages during the period of his/her medical treatment.

(2) Where a person who is to receive such compensation has received part of his/her wage during the period of receiving a compensation for suspension of work under paragraph (1), an employer shall pay the compensation for suspension of work equivalent to 60/100 of the difference between the paid amount and his/her average wages.

(3) Period of a compensation for suspension of work shall be prescribed by Presidential Decree.

Article 84 (Lump Sum Compensation)

When a worker who receives a compensation in accordance with Article 78 does not completely recover from the occupational injury or disease even after two years have passed since the medical treatment began, the employer may be exempted from any further liability for compensation under this Act by providing a lump sum compensation in an amount equivalent to the average wages for 1,340 days.

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

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