Useful Info

Payment Requirements To receive priority repayment of unpaid wages or severance pay in the event of the company's bankruptcy or insolvency, an application for wage guarantee payment must be submitted to the Ministry of Employment and Labor. Requirements for employers and employees subject to wage guarantee payment
a) Employer's Requirements
①Must be the employer of a business subject to mandatory industrial accident insurance (mandatory application business refers to a workplace with 5 or more regular employees)
②Must have operated the business for a period of 1 year or more
③Must have received a bankruptcy declaration or similar, which is the reason for wage guarantee payment, or obtained factual recognition
a) Employee Requirements For an employee to receive wage guarantee payment, the employer at the time of retirement must meet the above requirements, and the employee must have retired from the business within 1 year from 1 month before the date of application for bankruptcy declaration or factual recognition.
b) Claim Procedure
①Claimant (Employee) - Apply for factual recognition of insolvency at the local employment office
②Local office - Notify factual recognition of insolvency
③Employee - Apply for confirmation and payment claim at the local employment office
④Local office - Notify confirmation result
⑤Local office - Send payment claim form to the Korea Workers' Compensation & Welfare Service
⑥Korea Workers' Compensation & Welfare Service - Remit to financial institution⑦Financial institution - Deposit into employee's account