In principle, when paying wages to workers, the employer should pay them in cash, directly, in full, and on a regular basis.
Principle of currency payment- Payment of wages shall be directly made in full to employees in currency. (Refer to the main text of Article 43(1), 「Labor Standards Act」)
- Provided, that if otherwise prescribed by statutes or regulations or by a collective agreement, wages may partially be deducted or may be paid by means other than currency. (Proviso to Article 43(1),「Labor Standards Act」)
Principle of direct payment- Payment of wages shall be directly made in full to employees in currency and minor may claim his or her wages on his or her own right. (Main text of Article 43(1) and Article 68, 「Labor Standards Act」)
Principle of full payment- Payment of wages shall be directly made in full to employees in currency (Refer to the main text of Article 43(1), 「Labor Standards Act」)
- Provided, that if otherwise prescribed by statutes or regulations or by a collective agreement, wages may partially be deducted or may be paid by means other than currency. (Proviso to Article 43(1), 「Labor Standards Act」)
Principle of regular payment- Wages shall be paid at least once per month on a fixed day. (Main text of Article 43(2), 「Labor Standards Act」)
- Provided, that this shall not apply to any of the following, (Proviso to Article 43(2), 「Labor Standards Act」 and Article 23, 「Enforcement Decree of the Labor Standards Act」)
· Allowance for good attendance paid according to attendance performance for a period exceeding one month
· Continous-service allowance paid in case of continuously working for a certain period of more than one month
· Incentives, efficiency allowances, or bonuses calculated according to reasons for a period exceeding one month
· All other irregular payments
Penalty for violation (no punishment against will)- A person who violates shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding 30 million won.If payment of wages doesn’t directly made in full to employees in currency or wages doesn’t get paid at least once per month on a fixed day. (Article 109(1), 「Labor Standards Act」)
- A public prosecution against a person who violates may not be raised against the clearly expressed will of the person who has suffered the loss concerned. (Article 109(2), 「Labor Standards Act」)