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Wage/Severance
What is No Work, No Pay?
10/1/2025
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Author:system
The no work, no pay principle means that no wages are paid for the period during which labor is not provided due to participation in a strike. Originally, there was much controversy over whether wages should be paid during a strike period and, if so, to what extent, but the controversy was resolved when the no work, no pay principle was specifically stipulated in the Trade Union and Labor Relations Adjustment Act (Trade Union Act) in 1997. Article 44 of the Trade Union Act declares the no work, no pay principle by stating, 'Employers have no obligation to pay wages for the period to workers who participate in industrial action and do not provide labor.' The no work, no pay principle applies only to workers who are obligated to provide labor under their employment contracts, so it does not apply to full-time union officials or those on leave who are exempt from the labor provision obligation. Therefore, wages for full-time union officials must not be stopped on the grounds of a strike period. Wages for which the payment obligation is eliminated for workers participating in industrial action do not include those paid graciously by the employer (such as congratulatory or encouragement bonuses), welfare-related items (such as tuition assistance or use of company housing and recreational facilities), or expense reimbursement items (such as travel expenses, office expenses, work tool expenses, etc.), so they must be paid normally even during the industrial action period. Although employers have no obligation to pay wages to union members who participate in industrial action and do not provide labor, it is permissible to pay wages voluntarily from the perspective of labor-management harmony or living assistance. Therefore, the wage payment issue during the industrial action period can be resolved by reaching an agreement in advance in the collective bargaining agreement to pay wages even during the industrial action period. However, a labor union that conducts industrial action for the purpose of demanding and enforcing wage payment for the industrial action period shall be punished with imprisonment for not more than 2 years or a fine not exceeding 20 million won, so this point must be noted.
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