Useful Info

Shutdown allowance refers to the obligation for the employer to pay the worker an allowance of at least 70% of the average wage during the shutdown period when the company shuts down due to the employer's fault. It applies when the worker is able to come to work or provide labor but cannot do so due to the employer's fault, such as due to reduced operations for business reasons, machine repairs, or lack of work. This applies not only to full company shutdowns but also to partial shutdowns. However, if business continuation is impossible due to unavoidable reasons and approval from the Labor Relations Commission is obtained, an amount less than 70% of the average wage may be paid as shutdown allowance.