WAGE CLAIM GUARANTEE ACT
Act No. 5513, Feb. 20, 1998
Amended by Act No. 6100, Dec. 31, 1999
Act No. 6334, Dec. 30, 2000
Act No. 7047, Dec. 31, 2003
Act No. 7379, Jan. 27, 2005
Act No. 7468, Mar. 31, 2005
Act No. 8093, Dec. 26, 2006
Act No. 8135, Dec. 30, 2006
Act No. 8372, Apr. 11, 2007
Act No. 8373, Apr. 11, 2007
Act No. 8694, Dec. 14, 2007
Act No. 8816, Dec. 27, 2007
Act No. 9339, Jan. 7, 2009
Act No. 9792, Oct. 9, 2009
Act No. 10320, May 25, 2010
Act No. 10967, Jul. 25, 2011
Act No. 11277, Feb. 1, 2012
Act No. 12528, Mar. 24, 2014
Act No. 13047, Jan. 20, 2015
Act No. 13909, Jan. 27, 2016
Act No. 14839, Jul. 26, 2017
Act No. 15850, Oct. 16, 2018
Act No. 17326, May 26, 2020
Act No. 17604, Dec. 8, 2020
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to stabilization of the livelihoods of employees by introducing measures to guarantee the payment of overdue wages, etc. to employees, etc. who have retired without receiving their wages, etc. because companies were unable to continue their business or their management was unstable due to economic volatility, changes in industrial structure, etc. <Amended on Jan. 20, 2015>
[This Article Wholly Amended on Dec. 27, 2007]
The terms used in this Act shall be defined as follows: <Amended on Jan. 27, 2010; Dec. 8, 2020; Dec. 8, 2020>
| 2. | The term "employer" means a person who operates a business by using employees; |
[This Article Wholly Amended on Dec. 27, 2007]
| Article 3 (Scope of Application) |
[This Article Wholly Amended on Dec. 27, 2007]
[Previous Article 3-2 move to Article 4 <Dec. 27, 2007>]
| Article 4 (Application Mutatis Mutandis) |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 34-2; previous Article 4 moved to Article 5 <Dec. 27, 2007>]
| Article 5 (Defrayment of National Treasury) |
The State shall, within the budgetary limits for each fiscal year, defray part of the costs of conducting administrative affairs to guarantee wage claims under this Act out of the general accounts.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 4; previous Article 5 moved to Article 6 <Dec. 27, 2007>]
| Article 6 (Wage Claim Guarantee Fund Deliberation Committee) |
| (1) | In order to deliberate on important matters relating to the management and operation of the Wage Claim Guarantee Fund under Article 17, a Wage Claim Guarantee Fund Deliberation Committee (hereinafter referred to as the "Committee" ) shall be established under the authority of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010> |
| (2) | The Committee shall be comprised of representatives of employees, employers, and the public interest, and the number of representatives of each group shall be the same. <Amended on May 26, 2020> |
| (3) | Matters necessary for the organization and operation of the Committee shall be prescribed by Presidential Decree. |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 5; previous Article 6 moved to Article 7 <Dec. 27, 2007>]
CHAPTER II GUARANTEE OF PAYMENT OF WAGE CLAIMS
| Article 7 (Payment of Overdue Wages) |
| (1) | Notwithstanding Article 469 of the Civil Act regarding repayment by a third person, if an employer falls under any of the following subparagraphs and any of his or her retired employees claims overdue wages, etc., the Minister of Employment and Labor shall pay such overdue wages, etc. to the employees on behalf of the employer: <Amended on Jun. 4, 2010; Mar. 24, 2014; Jan. 20, 2015> |
| 3. | Where the Minister of Employment and Labor acknowledges that the employer is unable to pay overdue wages, etc., according to the requirements and procedures prescribed under Presidential Decree; |
| 4. | Where any of the following judgments, orders, conciliations, rulings, etc. described below is rendered to the employer to the effect that the employer shall pay overdue wages, etc. to the employee: |
| (c) | Settlement in court, recognition and acceptance of claims, and other processes having the same effect as a final and conclusive judgment under subparagraph 5 of Article 56 of the Civil Execution Act; |
| (2) | The scope of wages, etc. to be paid by the Minister of Employment and Labor on behalf of an employer pursuant to paragraph (1) (hereinafter referred to as "substitute payment") shall be as follows: Provided, That the upper limit of the amount of substitute payment under paragraph (1) 1 through 3 and the upper limit of the amount of substitute payment under subparagraph 4 of the same paragraph may be separately determined based on an employee's age, etc. at the time of his or her retirement as prescribed by Presidential Decree, and a substitute payment needs not be made if the amount is insubstantial: <Amended on Jun. 4, 2010; Jul. 25, 2011; Jan. 20, 2015; Dec. 8, 2020> |
| (3) | Where a substitute payment under paragraph (1) 1 through 3 is made to an employee with respect to the same working period or the same period of suspension of business, or the same period of maternity leave, a substitute payment under subparagraph 4 of the same paragraph shall not be made, and if a substitute payment under paragraph (1) 4 is made, a substitute payment under subparagraphs 1 through 3 of the same paragraph shall be made by deducting the relevant amount. <Newly Inserted on Jan. 20, 2015; Dec. 8, 2020> |
| (4) | The eligibility criteria that employees and employers need to meet to be entitled to a substitute payment shall be prescribed by Presidential Decree. <Amended on Jan. 20, 2015> |
| (5) | Where an employee who meets the standards determined by Ordinance of the Ministry of Employment and Labor, including size of a place of business, claims a substitute payment pursuant to paragraph (1), he or she may obtain assistance from a certified labor consultant designated by Ordinance of the Ministry of Employment and Labor in preparing a written claim for a substitute payment, verifying details, etc. <Newly Inserted on May 25, 2010; Jun. 4, 2010; Jan. 20, 2015> |
| (6) | Where an employee is assisted by a certified labor consultant pursuant to paragraph (4), the Minister of Employment and Labor may subsidize all or part of expenses incurred therein, and necessary matters relating to the amount of subsidies, detailed method of payment, etc. shall be determined by Ordinance of the Ministry of Employment and Labor. <Newly Inserted on May 25, 2010; Jun. 4, 2010; Jan. 20, 2015> |
| (7) | Other matters necessary for requests for and payment, etc. of a substitute payment shall be prescribed by Presidential Decree. <Amended on May 25, 2010; Jan. 20, 2015> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 6; previous Article 7 moved to Article 8 <Dec. 27, 2007>]
| Article 7-2 (Loans for Overdue Wages and Living Expenses) |
| (1) | If an employer is in arrears of wages, etc. for any employee due to his or her temporary financial difficulties or other grounds prescribed by Ordinance of the Ministry of Employment and Labor, the Minister of Employment and Labor may, upon the employer’s application, provide him or her with loans necessary to pay the overdue wages, etc. <Amended on Jan. 20, 2015> |
| (2) | In order to stabilize the livelihood of employees who have not received wages, etc. from their employers (including retired employees), the Minister of Employment and Labor may make loans to them for living expenses at the request of such employees. <Newly Inserted on Dec. 8, 2020> |
| (3) | Any loan under paragraphs (1) and (2) shall be disbursed by the Minister of Employment and Labor directly to the relevant employee. <Amended on Dec. 8, 2020>" |
| (4) | Specific amounts and periods of, and standards and procedures for loans for overdue wages, etc. and for living expenses under paragraphs (1) and (2), respectively, shall be prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Dec. 8, 2020> |
[This Article Newly Inserted on Feb. 1, 2012]
[Title Amended on Dec. 8, 2020]
| Article 8 (Subrogation of Right to Claim Overdue Wages) |
| (1) | When the Minister of Employment and Labor has made a substitute payment to an employee pursuant to Article 7, he or she shall subrogate the employee's right to claim overdue wages, etc. against his or her employer to the extent of the amount of the substitute payment. <Amended on Jun. 4, 2010> |
| (2) | Preferential rights to repayment of wage claims under Article 38 (2) of the Labor Standards Act and preferential rights to repayment of retirement benefits, etc. under Article 12 (2) of the Guarantee of Employee' Retirement Benefits Act shall remain in existence with regard to the rights subrogated under paragraph (1). <Amended on Jul. 25, 2011> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 7; previous Article 8 moved to Article 9 <Dec. 27, 2007>]
| Article 9 (Charges Imposed on Employers) |
| (1) | The Minister of Employment and Labor shall collect charges from employers to cover expenses incurred in making a substitute payment of overdue wages, etc. under Article 7. <Amended on Jun. 4, 2010> |
| (2) | The amount of charges to be borne by an employer pursuant to paragraph (1) shall be an amount calculated by multiplying the total remuneration of all employees engaging in the business concerned by the rate of charges determined by the Minister of Employment and Labor within 2/1000 of such total wages following deliberation by the Committee. <Amended on Jan. 27, 2010; Jun. 4, 2010> |
| (5) | This Act shall apply to charges imposed on employers in preference to other statutes. <Newly Inserted on Oct. 16, 2018> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 8; previous Article 9 moved to Article 10 <Dec. 27, 2007>]
| Article 10 (Reduction of Charges) |
The Minister of Employment and Labor may reduce charges under Article 9 for any of the following employers. In such cases, the criteria for the reduction shall be determined by the Minister of Employment and Labor through deliberation by the Committee: <Amended on Jun. 4, 2010; Jul. 25, 2011> | 1. | Deleted; <Mar. 24, 2014> |
| 2. | Employers who have settled and paid retirement allowances in advance pursuant to the Labor Standards Act or the Guarantee of Employees' Retirement Benefits Act; |
| 3. | Employers who have purchased retirement insurance, etc. pursuant to Article 2 (1) of the Addenda to the Guarantee of Employees' Retirement Benefits Act (Act No. 7379) and employers who have established a defined benefit plan under Chapter III of the Guarantee of Employees' Retirement Benefits Act, a defined contribution plan under Chapter IV of the same Act, or an individual retirement account under Article 25 of the same Act; |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 9; Previous Article 10 moved to Article 11]
| Article 11 (Accounts to Receive Substitute Payments) |
| (1) | The Minister of Employment and Labor shall, upon receipt of request from a retired employee, deposit a substitute payment into a designated account in the name of the employee (hereinafter referred to as "account to receive substitute payments"): Provided, That where it is impracticable to transfer a substitute payment to an account to receive substitute payments due to failure of the information and communications system or other unavoidable reasons prescribed by Presidential Decree, a substitute payment may be paid as prescribed by Presidential Decree, such as in the form of cash. |
| (2) | A financial institution at which an account to receive substitute payments is opened shall ensure that only substitute payments prescribed in this Act are deposited into the account |
| (3) | Matters necessary for the methods and procedures for making requests under paragraph (1) and for the management of an account to receive substitute payments under paragraph (2) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 8, 2020]
[Previous Article 11 moved to Article 11-2 <Dec. 8, 2020>]
| Article 11-2 (Protection of Entitlement) |
| (1) | No entitlement to a substitute payment shall be transferred, seized, or provided as collateral. <Amended on Jan. 20, 2015> |
| (2) | The receipt of a substitute payment may be delegated as prescribed by Presidential Decree. |
| (3) | Any employee who is a minor may independently claim a substitute payment. |
| (2) | No claims on deposits into an account to receive substitute payments shall be subject to seizure. <Newly Inserted on Dec. 8, 2020> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 11 <Dec. 8, 2020>]
| Article 12 (Verification of Overdue Wages) |
| (1) | If necessary to institute a lawsuit according to procedures, etc. of legal aid in Article 22 of the Legal Aid Act, any employee who is not paid wages, etc. may file for issuance of a document certifying overdue wages, etc. and employers, etc. in arrears with the Minister of Employment and Labor. |
| (2) | The Minister of Employment and Labor in receipt of a request under paragraph (1) may issue a document certifying overdue wages, etc. and employers, etc. in arrears verified in the course of handling administrative affairs for labor supervision to the employee in paragraph (1) or to the Korea Legal Aid Corporation established under Article 8 of the Legal Aid Act. |
| (3) | Necessary matters relating to the procedures, methods, etc. of issuance of documents under paragraph (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor. |
[This Article Wholly Amended on Jan. 20, 2015]
| Article 13 (Order to Submit Property List) |
| (1) | If the Minister of Employment and Labor intends to make a substitute payment to an employee pursuant to Article 7, he or she may order the employer concerned to submit a property list indicating detailed property relationship, as prescribed by Presidential Decree. <Amended on Jun. 4, 2010> |
| (2) | Each employer who is ordered to submit a property list pursuant to paragraph (1) shall submit to the Minister of Employment and Labor the property list indicating detailed property relationship within seven days therefrom, in the absence of special circumstances. <Amended on Jun. 4, 2010> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 12; previous Article 13 moved to Article 14 <Dec. 27, 2007>]
[Previous Article 13-2 moved to Article 15 <Dec. 27, 2007>]
| Article 14 (Restitution of Unjust Enrichment) |
| (1) | Where a person attempts to receive a substitute payment or loan under Article 7 or 7-2 by fraud or other improper means, the Minister of Employment and Labor may opt not to provide all or some of the substitute payment or loan as prescribed by Presidential Decree. <Amended on Jun. 4, 2010; Feb. 1, 2012; Mar. 24, 2014; Dec. 8, 2020> |
| (2) | Where a person in receipt of a substitute payment or loan under Article 7 or 7-2 falls under any of the following subparagraphs, the Minister of Employment and Labor shall clawback all or some of the substitute payment or loan according to the methods prescribed by Presidential Decree: <Newly Inserted on Mar. 24, 2014; Dec. 8, 2020> |
| 1. | Where the person receives the substitute payment or loan by fraudulent or other improper means; |
| 2. | Where the substitute payment or loan is paid erroneously. |
| (3) | Where a clawback of a substitute payment arises under paragraph (2), an amount not exceeding the amount of such substitute payment received by fraudulent or other improper means may be additionally collected as prescribed by Ordinance of the Ministry of Employment and Labor. <Amended on Jun. 4, 2010; Mar. 24, 2014> |
| (4) | In cases falling under paragraphs (2) and (3), if a substitute payment or loan is provided by fraudulent means, such as making a false report, making a false statement or false certification, or submitting false documents, the employer and the recipient of the substitute payment or loan shall be jointly and severally liable therefor. <Amended on Feb. 1, 2012; Mar. 24, 2014; Jan. 20, 2015> |
[This Article Wholly Amended on Dec. 27, 2007]
[Title Amended on Mar. 24, 2014]
[Moved from Article 13; previous Article 14 moved to Article 16 <Dec. 27, 2007>]
| Article 15 (Payment of Rewards) |
Any person who files a report or an accusation related to receipt of a substitute payment by fraud or other improper means with a local employment and labor office or an investigation agency may be paid a reward in accordance with the standards prescribed by Presidential Decree. <Amended on Jun. 4, 2010>
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 13-2; previous Article 15 moved to Article 17 <Dec. 27, 2007>]
| Article 16 (Application Mutatis Mutandis) |
With regard to the payment and collection of charges and other levies under this Act (including requests for the return of a substitute payment), Articles 16-2 through 16-11, 17 through 19, 19-2 and 20, 22-2, 22-3, 23 through 25, 26-2, 27, 27-2, 27-3, 28, 28-2 through 28-7, 29, 29-2, 30, 32 through 37, 39 and 50 of the Insurance Premium Collection Act shall apply mutatis mutandis. In such cases, "the insured" shall be construed as an "employer", "premium" as "charge", "insurance" as "wage claim guarantee", "insurance business" as "wage claim guarantee business", "Corporation" or "National Health Insurance Corporation" as the "Minister of Employment and Labor" (referring to the Korea Workers' Compensation & Welfare Service or the National Health Insurance Corporation where the authority is delegated as provided in Article 27 of this Act), "estimated premium" as "estimated charge", "insurance year" as "fiscal year", "insurance relations" as "wage claim guarantee relations", "premium rate" as "charge rate", "fixed premiums" as "fixed charges", and "Employment Policy Council under Article 6 of the Framework Act on Employment Policy or Industrial Accident Compensation Insurance and Prevention Deliberation Committee under Article 8 of the Industrial Accident Compensation Insurance Act" as "Committee". <Amended on Oct. 9, 2009; Jan. 27, 2010; Jun. 4, 2010> [This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 14; previous Article 16 moved to Article 18 <Dec. 27, 2007>]
[Previous Article 16-2 moved to Article 19 <Dec. 27, 2007>]
CHAPTER III WAGE CLAIM GUARANTEE FUND
| Article 17 (Establishment of Fund) |
In order to finance a substitute payment under Article 7, the Minister of Employment and Labor shall establish the Wage Claim Guarantee Fund (hereinafter referred to as the "Fund"). <Amended on Jun. 4, 2010> [This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 15; previous Article 17 moved to Article 20 <Dec. 27, 2007>]
| Article 18 (Creation of Fund) |
| (1) | The Fund shall consist of the following resources: |
| 1. | Payments made by employers under Article 8; |
| 2. | Charges paid by employers under Article 9; |
| 3. | Borrowings under paragraph (2); |
| 4. | Revenues from the operation of the Fund; |
| (2) | The Minister of Employment and Labor may, if necessary for the operation of the Fund, borrow from financial institutions or other funds at the cost of the Fund. <Amended on Jun. 4, 2010> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 16; previous Article 18 moved to Article 21 <Dec. 27, 2007>]
| Article 19 (Purpose of Fund) |
The Fund shall use its funds for the following purposes: <Amended on May 29, 2016; Dec. 8, 2020>
| 1. | To make substitute payments and return amounts erroneously paid or others; |
| 2. | To subsidize expenses incurred in relation to assistance from a certified labor consultant under Article 7 (6); |
| 3. | To provide employers and employees with loans necessary to pay overdue wages, etc. and living expenses, respectively, under Article 7-2; |
| 4. | To make contributions to persons entrusted with affairs under Article 27; |
| 5. | To repay borrowings and interest accrued thereon; |
| 6. | To conduct research on wage claim guarantee systems, such as the prevention of arrears of wages, etc. and support for their settlement; |
| 7. | To make contributions to the Korea Legal Aid Corporation under the Legal Aid Act: Provided, That such contributions shall be limited to support for legal aid services for employees with overdue wages, etc.; |
| 8. | To carry out projects for wage claim guarantee, and manage and operate the Fund. |
[This Article Wholly Amended on Feb. 1, 2012]
[Previous Article 19-2 moved to Article 23 <Dec. 27, 2007>]
| Article 20 (Management and Operation of Fund) |
| (1) | The Fund shall be managed and operated by the Minister of Employment and Labor. <Amended on Jun. 4, 2010> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 17; previous Article 20 moved to Article 24 <Dec. 27, 2007>]
The fiscal year of the Fund shall conform to that of the Government.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 18; previous Article 21 moved to Article 25 <Dec. 27, 2007>]
CHAPTER IV SUPPLEMENTARY PROVISIONS
The Minister of Employment and Labor may request the relevant parties, including employers of the businesses governed by this Act or employees engaged in the businesses concerned, to make a report or submit related documents necessary for the following subparagraphs, as prescribed by Presidential Decree: <Amended on Jun. 4, 2010>
| 1. | Managing and operating the Fund; |
| 2. | Making a substitute payment. |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 19; previous Article 22 moved to Article 26 <Dec. 27, 2007>]
| Article 23 (Request for Cooperation from Relevant Agencies) |
| (1) | The Minister of Employment and Labor may request any of the following persons to submit the following relevant materials or to use the relevant computer network (hereinafter referred to as “provision of materials, etc.”) to conduct duties provided for in this Act, such as the payment of overdue wages, etc. under Article 7, the provision of loans for overdue wages, etc. and living expenses under Article 7-2, the subrogation of right to claim overdue wages, etc. under Article 8, the restitution of unjust enrichment under Article 14 and so forth. In such cases, any person in receipt of a request for the provision of materials, etc. shall comply with such request unless there is good cause: <Amended on Jun. 4, 2010; Jan. 27, 2016; Jul. 26, 2017; Oct. 16, 2018; May 26, 2020; Dec. 8, 2020> |
| 1. | Request to the Minister of National Court Administration for the provision of a certificate of registration of buildings or a certificate of registration of land owned by a delinquent employer, a person who has made unjust enrichment or a person who has joint and several liability therefor (hereinafter referred to as “delinquent employer, etc.”); |
| 2. | Request to the Minister of the Interior and Safety for the provision of certified copies of or extracts from the resident registration certificate of a delinquent employer, etc.; |
| 3. | Request to the Minister of Land, Infrastructure and Transport for the provision of materials (including original registers) related to property held in the name of a delinquent employer, etc., including real estate, automobiles, construction machinery, aircraft and yachts; |
| 3-2. | Request to the Minister of Oceans and Fisheries for the provision of materials (including original registers) related to ships in the name of a delinquent employer, etc.; |
| 3-3. | Request to the head of a relevant central administrative agency for the provision of materials related to investment certificates in the name of a delinquent employer, etc. of a mutual aid association under the supervision of such head; |
| 4. | Request to the Commissioner of the National Tax Service for the provision of materials related to golf (condominium) memberships, intangible property right (patent right, copyright, etc.), books, antiques and goodwill held in the name of a delinquent employer, etc.; |
| 5. | Request to the head of a local government for the provision of materials related to family relationship registers (family relationship certificates, marital relationship certificates and identification certificates), local tax certificates levied on property, general (collective) building registers, land (forest land) cadastre of a delinquent employer, etc. and materials related to registration and license taxes levied on registration of rights and registration of leasehold rights, rights to lease on a deposit basis, provisional seizure, etc. in the name of a delinquent employer, etc.; |
| 6. | Request to the President?of the Korea Legal Aid Corporation established under Article 8 of the Legal Aid Act for the provision of documents related to civil proceedings (including complaints, applications, judgments, and decisions) between an employee and an employer who delayed payment of wages, etc., such as lawsuits related to overdue wages, etc., preservation dispositions, compulsory execution, and so forth; |
| 7. | Request to?the President of the National Health Insurance Service under Article 13 of the National Health Insurance Act for the provision of materials related to the payment of insurance premiums provided in the National Health Insurance, National Pension, Industrial Accident Compensation Insurance, and Employment Insurance (including data on default in the payment of insurance premiums) of a delinquent employer, etc. and the amount of health care benefits claimed by a health care institution that is a delinquent employer, etc. pursuant to Article 47 of the National Health Insurance Act; |
| 7-2. | Request to the President of the Korea Workers' Compensation and Welfare Service under Article 10 of the Industrial Accident Compensation Insurance Act for the provision of data on a delinquent employer, etc. as to the acquisition of eligibility of insurant of industrial accident compensation insurance and employment insurance and insurance premiums, etc. overpaid pursuant to Article 23 of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance; |
| 8. | Request to retirement pension trustees under Article 26 of the Act on the Guarantee of Employees' Retirement Benefits for the provision of materials concerning retirement pensions, including whether an employee claiming a substitute payment has joined a retirement pension plan, the contribution period, the amount of reserve or contributions and the amount of payment (limited to a period subject to a substitute payment); |
| 9. | Request to insurance companies under the Insurance Business Act for the provision of materials concerning the purchase of or subscription for an insurance or trust for departure guaranty or a guaranty insurance by a foreign employee claiming a substitute payment and the payment records (limited to information covered by a period subject to a substitute payment); |
| 11. | Request to persons who have obtained permission for surety insurance pursuant to Article 4 (1) 2 (d) of the Insurance Business Act for the provision of materials related to the establishment of security and collateral security in the name of a delinquent employer, etc. |
| (2) | Any request for the provision of materials, etc. pursuant to paragraph (1) shall be made by a document that includes the following: <Amended on Jan. 27, 2016> |
| 1. | Personal information of a delinquent employer, an employee claiming a substitute payment and a person who has made unjust enrichment (including a person who has joint and several liability therefor); |
| 3. | List of materials requested for provision. |
| (3) | Fees, usage charges, etc. shall be exempted for materials provided pursuant to paragraph (1). <Newly Inserted on Jan. 27, 2016> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 319-2; previous Article 23 moved to Article 27 <Dec. 27, 2007>]
| Article 23-2 (Protection of Personal Information) |
| (1) | Any request by the Minister of Employment and Labor for the provision of materials specified in the subparagraphs of Article 23 (1) shall be made only to the minimum extent necessary to conduct the relevant duties. <Amended on May 26, 2020> |
| (2) | When using materials specified in the subparagraphs of Article 23 (1), the Minister of Employment and Labor shall take measures to protect personal information about employers, employees, etc., such as security education. <Amended on May 26, 2020> |
| (3) | Where the Minister of Employment and Labor intends to request the provision of materials referred to in Article 23 (1) 8 or 9, he or she shall obtain the consent of the subject of information in advance. |
| (4) | Where the Minister of Employment and Labor has achieved the purpose of the relevant duty, such as the payment of overdue wages, etc. or subrogation of the right to claim overdue wages, etc., using materials specified in the subparagraphs of Article 23 (1), he or she shall destroy the relevant materials without delay. <Amended on May 26, 2020> |
| (5) | The personal information prescribed in the subparagraphs of Article 23 (1) shall be managed only by those who are approved to manage such personal information by the heads of institutions delegated with authority by the Ministry of Employment and Labor or the Minister of Employment and Labor, who are in charge of the duties provided for in the main sentence of the same paragraph, with the exception of its subparagraphs, at the relevant institutions. |
| (6) | No person who engages or previously engaged in the duties related to wage claim guarantee shall divulge information on employers, employees, etc. which comes to his or her knowledge in the course of performing his or her duties to any third party or use such information for any purpose other than its originally intended purposes. |
| (7) | The Minister of Employment and Labor shall determine detailed matters necessary for the development of personal information protection measures, such as security education, prescribed in paragraph (2), methods for acquiring prior consent of a subject of information prescribed in paragraph (3), timing and methods for destroying materials after achieving the purposes provided for in paragraph (4), procedures for approving the handling of personal information referred to in paragraph (5), and so forth. |
[This Article Newly Inserted on Jan. 27, 2016]
| (1) | If the Minister of Employment and Labor deems it necessary for the implementation of this Act, he or she may authorize related public officials to enter a workplace subject to this Act and inspect related documents or ask questions to related persons. <Amended on Jun. 4, 2010> |
| (2) | Each public official who enters a workplace and conducts an inspection pursuant to paragraph (1) shall carry a certificate indicating his or her authority and produce it to related persons. |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 20; previous Article 24 moved to Article 28 <Dec. 27, 2007>]
If any employer violates this Act or an order issued under this Act, any of its employees may report such violation to a labor inspector and request him or her to take measures to correct such violation.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 21; previous Article 25 moved to Article 29 <Dec. 27, 2007>]
| Article 26 (Extinctive Prescription) |
| (1) | The right to collect charges and other levies under this Act or the right to seek a refund of a substitute payment or charges shall be extinguished by prescription if it is not exercised within three years. |
| (2) | The extinctive prescription under paragraph (1) shall be subject to the Civil Act, except otherwise provided in this Act. |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 22; previous Article 26 moved to Article 30 <Dec. 27, 2007>]
| Article 27 (Delegation and Entrustment of Authority) |
Part of the authority held by the Minister of Employment and Labor under this Act may be delegated to the head of a local employment and labor office or entrusted to the Korea Workers' Compensation & Welfare Service under the Industrial Accident Compensation Insurance Act and the National Health Insurance Corporation under the National Health Insurance Act, as prescribed by Presidential Decree. <Amended on Jan. 27, 2010; Jun. 4, 2010> [This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 23 <Dec. 27, 2007>]
CHAPTER V PENALTY PROVISIONS
| Article 27-2 (Penalty Provisions) |
Any person who violates Article 23-2 (6) shall be punished by imprisonment with labor for not more than 10 years or by a fine not exceeding 100 million won. [This Article Newly Inserted on Jan. 27, 2016]
| Article 28 (Penalty Provisions) |
| (1) | Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on Feb. 1, 2012; Mar. 24, 2014> |
| 1. | A person in receipt of a substitute payment under Article 7 or a loan under Article 7-2 by fraud or other improper means; |
| 2. | A person who causes another person to receive a substitute payment under Article 7 or a loan under Article 7-2 by fraud or other improper means; |
| 3. | A person who refuses to submit a property list under Article 13 without good cause or submits a false property list. |
| (2) | Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Newly Inserted on Mar. 24, 2014> |
| 1. | A person who submits a false report, certification, or document to unduly receive a substitute payment under Article 7 or a loan under Article 7-2; |
| 2. | A person who submits a false report, certification, or document to unduly causes another person to receive a substitute payment under Article 7 or a loan under Article 7-2. |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 24 <Dec. 27, 2007>]
| Article 29 (Joint Penalty Provisions) |
If the representative of a corporation, or an agent or employee of, or other persons employed by, a corporation or an individual commits any violation described in Article 28 in connection with the business affairs of the corporation or individual, not only shall such violator be punished accordingly, but the corporation or individual shall also be punished by a fine prescribed in the relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation. [This Article Wholly Amended on Jan. 7, 2009]
| Article 30 (Administrative Fines) |
| (1) | The following persons shall be subject to an administrative fine not exceeding five million won: |
| 1. | Deleted; <Jan. 20, 2015> |
| 2. | A person who fails to comply with a request to report or submit related documents made under Article 22 without any justifiable ground, or who makes a false report or submits false documents; |
| 3. | A person who refuses to answer questions made by a related public official under Article 24 (1), or refuses, interferes with or evades an inspection conducted by him or her without any justifiable ground. |
| (2) | An administrative fine under paragraph (1) shall be imposed and collected by the Minister of Employment and Labor as prescribed by Presidential Decree. <Amended on Jun. 4, 2010> |
| (3) | Deleted. <Feb. 1, 2012> |
| (4) | Deleted. <Feb. 1, 2012> |
| (5) | Deleted. <Feb. 1, 2012> |
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 26 <Dec. 27, 2007>]
ADDENDA <Act No. 5513, Feb. 20, 1998>
| (1) | (Enforcement Date) This Act shall enter into force on July 1, 1998. |
| (2) | (Applicability) The provisions of Article 6 (1) regarding the payment of overdue wages and retirement allowances shall be applicable to cases where grounds for the payment, such as bankruptcy, occurs on or after this Act enters into force. |
ADDENDA <Act No. 6100, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2000. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 6334, Dec. 30, 2000>
| (1) | (Enforcement Date) This Act shall enter into force on January 1, 2001: Provided, That the amended provisions of Article 13 (1) shall enter into force on July 1, 2001. |
| (2) | (Applicability for Scope of Substitute Payment) The amended provisions of Article 6 (1) and (2) shall be applicable to a substitute payment, a cause for the payment of which occurs on or after this Act enters into force. |
| (3) | (Transitional Measures for Ceiling on Business Suspension Allowances) The monthly amount of business suspension allowances to be paid in accordance with the amended provisions of Article 6 (2) shall not exceed the following amount until June 30, 2001 with reference to an employee's age at the time of his/her retirement: |
| 1. | A person of less than 30 years of age: 560,000 won; |
| 2. | A person of not less than 30 but less than 45 years of age; 700,000 won; |
| 3. | A person of not less than 45 years of age: 840,000 won. |
ADDENDA <Act No. 7047, Dec. 31, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2005.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 7379, Jan. 27, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on December 1, 2005. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 7466, Mar. 31, 2005>
| (1) | (Enforcement Date) This Act shall enter into force on July 1, 2005: Provided, That the amended provisions of subparagraph 1-2 of Article 9 regarding the Guarantee of Employees' Retirement Benefits Act shall take effect on date this Act enters into force. |
| (2) | (Applicability for Additional Charges) The amended provisions of Article 13 (2) shall be applicable to a substitute payment made on or after this Act enters into force. |
| (3) | (Transitional Measures for Fines for Negligence) The former provisions shall apply with regard to the application of penal provisions to any violation committed on or before this Act enters into force. |
ADDENDA <Act No. 8093, Dec. 26, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Effective Term of Exemption from Charges, Additional Dues and Arrears)
Article 3 (Applicability for Due Date of Special Charges for Businesses subject to Special Collection)
Article 4 (Applicability for Reduction of Charges)
Article 5 (Applicability for Exemption from Charges, Additional Dues and Arrears)
Article 6 (Applicability for Collection before Due Date)
Article 7 (Applicability for Payment in Installments of Charges and other Levies under this Act)
ADDENDA <Act No. 8135, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 8373, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8694, Dec. 14, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2008. (Proviso Omitted.)
Articles 2 through 26 Omitted.
ADDENDA <Act No. 8816, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 Omitted.
Article 3 (Relationship with other Acts and Subordinate Statutes)
Where the previous Wage Claim Guarantee Act or its provisions are cited in other Acts or subordinate statutes as at the time this Act enters into force, this Act or the corresponding provisions of this Act shall be deemed to be cited in lieu of the previous provisions if provisions corresponding thereto exist in this Act.
ADDENDUM <Act No. 9339, Jan. 7, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9792, Oct. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010.
Articles 2 through 3 Omitted.
ADDENDA <Act No. 9794, Oct. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force after six months from the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 9991, Jan. 27, 2010>
This Act shall enter into force on January 1, 2011.
ADDENDUM <Act No. 10320, May 25, 2010>
This Act shall enter into force on January 1, 2011.
ADDENDA <Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall enter into one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10967, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into one year after the date of its promulgation.
Articles 2 through 13 Omitted.
ADDENDUM <Act No. 11277, Feb. 1, 2012>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 12528, Mar. 24, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of subparagraph 1 of Article 10 shall enter into force on the date of its promulgation. Article 2 (Applicability to Redemption of Excessive Profits)
The amended provisions of Article 14 (2) shall apply to substitute payments or loans made after this Act enters into force.
ADDENDA <Act No. 13047, Jan. 20, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2015.
Article 2 (Applicability to Payment of Overdue Wages, etc.)
The amended provisions of Article 7 (1) 4 shall apply to judgments, orders, conciliation, decisions, etc. rendered after this Act enters into force. Article 3 (Applicability to Confirmation of Overdue Wages, etc.)
The amended provisions of Article 12 shall apply to requests for the issuance of documents certifying overdue wages, etc. and employers, etc. in arrears after this Act enters into force. Article 4 (Applicability to Restitution of Unjust Enrichment)
The amended provisions of Article 14 (4) shall apply to substitute payments made after this Act enters into force. Article 5 (Transitional Measures concerning Administrative Fines)
The application of administrative fines to acts committed before this Act enters into force shall be governed by the former provisions.
ADDENDUM <Act No. 13909, Jan. 27, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 5 of this Addenda, amended parts of the Acts which were promulgated before this Act enters into force but the enforcement dates of which have not arrived, shall enter into force on the enforcement date of the relevant Act, respectively.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15850, Oct. 16, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 17326, May 26, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 17604, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of subparagraph 3 of Article 2 and Article 7 (2) 3 shall enter into force on the date of its promulgation. Article 2 (Applicability to Substitute Payments)
The amended provisions of subparagraph 3 of Article 2 and Article 7 (2) 3 shall apply, beginning with the first claim for substitute payment made after this Act enters into force.