Unpaid Wages, Severance Pay and Workplace Injury

The Supreme Court held that an employment contract made by a foreigner without work authorization is not automatically void, and that the worker can receive payment for work already done and industrial accident insurance benefits (Supreme Court Decision 94Nu12067, September 15, 1995). An employer refusing to pay wages because the worker has no status of stay is not justified.

If you file a petition with the Labor Office, a labor inspector investigates the facts. A labor inspector's investigation of unpaid wages is one of the duties in which the duty to notify immigration can be waived when helping the victim comes first (Enforcement Rules of the Immigration Act Article 70-2(5)). However, this requires the judgment of the official in charge, so get advice before filing a petition.

Severance pay for workers under the Employment Permit System is mainly paid through Departure Guarantee Insurance, to which the employer contributes monthly. Enrolling in this insurance is treated as setting up a severance pay system, but if the insurance payment is less than the severance pay calculated under the law, you need to consider whether you can claim the difference from the employer. Differences often arise when there was a lot of overtime or wages increased.

In principle, Departure Guarantee Insurance is paid within 14 days after departure, and the claim expires if not made within 3 years. Check the amount you will receive before leaving, and leave accurate bank account information.

First, we calculate the amount owed using your employment contract, pay slips, attendance records and salary transfer records. Next, we file a petition with the regional employment and labor office to have the unpaid wages confirmed, and if the employer still does not pay, we create an enforceable basis through a civil lawsuit or a payment order (지급명령). If there is a risk that the company's assets will be moved, we first apply for a provisional attachment.

If the company has gone bankrupt or is found unable to pay, or if you have obtained a judgment ordering payment of unpaid wages, you can use the substitute payment system (대지급금), under which the state pays a certain range of wages on the employer's behalf (Wage Claim Guarantee Act Article 7).

From October 8, 2026, the penalty for employers who fail to pay wages and retirement payments became heavier: imprisonment of up to 5 years or a fine of up to KRW 50 million. For unpaid wages that arose before then, the provisions before the amendment may apply.

Industrial accident insurance applies to businesses that employ workers, regardless of the worker's status of stay. Even if the company blocks an industrial accident claim or suggests handling it privately as a company-paid injury (공상), the worker can apply directly to the Korea Workers' Compensation and Welfare Service (근로복지공단) for medical care benefits. Keep the contact details of coworkers who know what happened on the day of the injury, hospital records and photos.

During treatment, your departure schedule is the biggest worry. Being under treatment for a work-related injury is sometimes taken into account in extending your stay or calculating the workplace change period, so get advice together with your expiry date in mind.