Useful Info

The employer must pay wages to the employee on the regular payday while the employee is in service, and in the case of resignation, must settle any unpaid amounts such as wages, bonuses, severance pay, etc., within 14 days from the resignation date. However, if agreed upon in advance with the employee, this period can be extended within a range of up to 3 months from the resignation date. If the employer fails to settle the payments even after this period due to the company's bankruptcy or business deterioration, the employee can file a complaint with the local labor office in charge of the workplace or obtain a certificate of priority distribution for unpaid wages from the local labor office and apply to the court for distribution. If the employer's property is auctioned off due to an auction request by other creditors, the employee can receive priority distribution from the auction proceeds. In addition, by attaching the employer's property and filing a wage claim lawsuit in court for unpaid wages, or in the case of small amounts, using simplified trial systems such as payment orders, small claims trials, or mediation applications to obtain a final judgment and then securing enforcement power from the court to seize and auction the employer's property, the employee can receive repayment for the wage claim. Payment orders and small claims trials can be easily prepared and submitted immediately at the court counter with the assistance of court staff, making them accessible to anyone.