Liquidation of money and valuables for dead or retired workers
Liquidation of money and valuables for dead or retired workers
- The employer shall pay wages, compensation, and any other money or valuables within 14 days from the date the cause of payment arises. (Body part of Article 36 of the Labor Standards Act)
※ However, in special circumstances, the payment date may be extended by agreement between the parties. (Proviso to Article 36 of Labor Standards Act)
Delay Charge on Unpaid Wages
Interest rate of delayed charge
- If the employer fails to pay all or part of the lump sum paid to the worker within 14 days of its occurrence(if there are special circumstances, it can be extended by agreement between the parties), he shall pay 20/100 of the delayed interest per year for the number of days of delay from the following date to the date of payment. (Article 37 (1) of the Labor Standards Act and Article 17 of the Enforcement Decree of the Labor Standards Act)
Reasons for exclusion of delayed interest
- The above deferred interest payment provisions shall not apply if the employer delays the payment of wages due to natural disasters or any of the following reasons (Article 37 (2) of the Labor Standards Act and Article 18 of the Enforcement Decree of the Labor Standards Act, and subparagraphs 1 to 3 of Article 7 (1) of the Wage Claim Guarantee Act):
1. Sentence of the commencement of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act
2. Sentence of declaring bankruptcy under the Debtor Rehabilitation and Bankruptcy Act
3. Recognition of bankruptcy by the Minister of Employment and Labor under Article 5 of Enforcement Decree of the Wage Claim Guarantee Act
4. Where it is difficult to secure funds to pay wages and severance pay under statutory restrictions of Debtor Rehabilitation And Bankruptcy Act, National Finance Act, Local Autonomy Act
5. Where it is deemed appropriate for the court or the labor relations commission to dispute the existence of all or part of delayed wages and retirement pay
6. Where there is any other reason equivalent to 1 through 5
Penalties for violating liquidation of money and valuables
Penalties for violating liquidation of money and valuables
- Those who violate liquidation of money and valuables shall be sentenced to up to three years in prison or fined up to 30 million won. (Article 109 (1) of the Labor Standards Act)
- In this case, the employer cannot prosecute a case against the victim's statement. (Article 109 (2) of the Labor Standards Act)
Time limitation of wage claim
Time limitation of wage claim
- Wage claim under the Labor Standards Act shall expire if they are not exercised for three years (Article 49 of the Labor Standards Act).