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Unpaid wages (not paying wages, shutdown allowances or overtime pay): statutory penalty and likely requested sentence

The statutory penalty for Unpaid wages (not paying wages, shutdown allowances or overtime pay) and the likely handling of the case depending on your circumstances. The results are for reference only.

Statutory penalty
Up to 5 years in prison or a fine of up to KRW 50 million
Legal basis
Labor Standards Act, Articles 107(1), 36, 43, 46 and 56
Category
Labor · Labor Standards Act

Calculate with your own circumstances

Amount unpaid
Circumstances

Compare circumstances such as a settlement, remorse or a first offense with aggravating ones such as the scale of harm or prior convictions, and choose.

Answer all 2 questions and the estimate appears right away. (0/2)

What the handling steps mean

  1. Detention considered · Detention (구속): being held in custody during the investigation and trial under a court warrant when there is a risk of fleeing or destroying evidence
  2. Formal trial · Formal trial (구공판): the prosecutor asks the court for a trial, and you stand before a judge in a courtroom
  3. Summary fine · Summary indictment (약식기소): a procedure in which a fine is set on the documents, without a trial in a courtroom
  4. Suspension of indictment possible · Suspension of indictment (기소유예): the wrongdoing is recognized, but the prosecutor takes various circumstances into account and closes the case without sending it to trial
  5. Referral to the Family Court possible · Domestic or juvenile protection case: instead of criminal punishment, the Family Court imposes protective dispositions such as counseling, a no-contact order or community service

Handling standards at a glance

Listed from heaviest to lightest. The actual decision depends on the results of the investigation and your circumstances.

  1. Formal trial (prison sentence requested)

    Likely requested sentence
    1 to 2 years in prison
  2. Formal trial (prison sentence requested)

    Likely requested sentence
    8 months to 1 year 4 months in prison
  3. Formal trial (prison sentence requested)

    Likely requested sentence
    Up to 1 year in prison
  4. Formal trial (prison sentence requested)

    Likely requested sentence
    1 year 4 months to 3 years in prison
  5. Formal trial (prison sentence requested)

    Likely requested sentence
    1 to 2 years in prison
  6. Formal trial (prison sentence requested)

    Likely requested sentence
    Up to 1 year 4 months in prison
  7. Formal trial (prison sentence requested)

    Likely requested sentence
    2 years 4 months to 5 years in prison
  8. Formal trial (prison sentence requested)

    Likely requested sentence
    1 year 4 months to 3 years in prison
  9. Formal trial (prison sentence requested)

    Likely requested sentence
    1 to 2 years in prison

Notes

  • It cannot be punished if the workers do not want punishment (not punishable against their wishes). This does not apply, however, if an employer whose name was published for unpaid wages fails to pay again during the publication period.
  • Most cases end with a fine or no punishment once the unpaid amount is paid or a settlement is reached.

Frequently asked questions

Unpaid wages (not paying wages, shutdown allowances or overtime pay): what is the statutory penalty?
Legal basis: Labor Standards Act, Articles 107(1), 36, 43, 46 and 56. Statutory penalty: Up to 5 years in prison or a fine of up to KRW 50 million.
Unpaid wages (not paying wages, shutdown allowances or overtime pay): how is the case usually handled?
Depending on the circumstances, it may be handled as follows: Formal trial (prison sentence requested). Enter your circumstances in the calculator above to see which one applies.

Other crimes in the same category

See the full list of crimes

This is only an estimate based on how investigative agencies usually handle cases. The actual decision and request depend on the facts of the case, such as a settlement, prior convictions and how the crime happened, and on the judgment of the prosecutor in charge; the final sentence is decided by the court. If you are about to be questioned, do not rely on this result alone and talk to a lawyer first.

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