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ENFORCEMENT DECREE OF THE WAGE CLAIM GUARANTEE ACT

Presidential Decree No. 15804, May 26, 1998

Amended by Presidential Decree No. 16092, Jan. 29, 1999

Presidential Decree No. 16755, Mar. 13, 2000

Presidential Decree No. 17244, jun. 22, 2001

Presidential Decree No. 18018, jun. 25, 2003

Presidential Decree No. 18312, Mar. 17, 2004

Presidential Decree No. 18574, Oct. 29, 2004

Presidential Decree No. 18913, jun. 30, 2005

Presidential Decree No. 19010, Aug. 19, 2005

Presidential Decree No. 19422, Mar. 29, 2006

Presidential Decree No. 19513, jun. 12, 2006

Presidential Decree No. 19957, Mar. 26, 2007

Presidential Decree No. 20681, Feb. 29, 2008

Presidential Decree No. 20875, jun. 25, 2008

Presidential Decree No. 22003, Jan. 27, 2010

Presidential Decree No. 22269, Jul. 12, 2010

Presidential Decree No. 22490, Nov. 15, 2010

Presidential Decree No. 23488, Jan. 6, 2012

Presidential Decree No. 23841, jun. 5, 2012

Presidential Decree No. 25630, Sep. 24, 2014

Presidential Decree No. 25840, Dec. 9, 2014

Presidential Decree No. 26318, jun. 15, 2015

Presidential Decree No. 27050, Mar. 22, 2016

Presidential Decree No. 27751, Dec. 30, 2016

Presidential Decree No. 30423, Feb. 18, 2020

Presidential Decree No. 30509, Mar. 3, 2020

Presidential Decree No. 31176, Nov. 24, 2020

Presidential Decree No. 31240, Dec. 8, 2020

Presidential Decree No. 31721, jun. 1, 2021

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters mandated by the Wage Claim Guarantee Act and matters necessary for the enforcement of said Act.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 2 (Functions of Wage Claim Guarantee Fund Deliberation Committee)
The Wage Claim Guarantee Fund Deliberation Committee (hereinafter referred to as the "Committee") established under Article 6 of the Wage Claim Guarantee Act (hereinafter referred to as the "Act") shall deliberate on the following matters:
1. Matters concerning deciding the rate of charges under Article 9 (2) of the Act;
2. Matters concerning deciding the criteria for reduction of charges under Article 10 of the Act;
3. Matters concerning formulating an operation plan of the Wage Claim Guarantee Fund under Article 17 of the Act (hereinafter referred to as the "Fund");
4. Other matters the Minister of Employment and Labor refers to a meeting, as they are deemed important in relation to the management and operation of the Fund.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 3 (Composition of Committee)
(1) Members of the Committee shall be appointed or commissioned by the Minister of Employment and Labor according to the following distinction:
1. Members representing employees: Five persons recommended by labor unions which are confederation organizations;
2. Members representing employers: Five persons recommended by nationwide employers' organizations;
3. Members representing public interests: The following five persons:
(a) One senior executive in charge of the wage claim guarantee affairs in the Ministry of Employment and Labor;
(b) One public official of Grade III or IV in charge of wage claim guarantee affairs in the Ministry of Employment and Labor;
(c) Three persons from among the persons recommended by non-profit, non-governmental organizations defined in Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act and the persons recognized by the Minister of Employment and Labor as having extensive knowledge of and experience in social insurance.
(2) Except as provided in paragraph (1), Articles 5 through 7 and 9 through 11 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis to matters concerning the organization and operation of the Committee. In such cases, "members who fall under subparagraph 3 (a) or (b) of Article 4" in the proviso of Article 5 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall be construed as "one person from among public officials of Grade III or IV in charge of wage claim guarantee affairs in the Ministry of Employment and Labor"; "commissioned member of the Committee under Article 4" in Article 5 (3) of the Enforcement Decree of that Act as "commissioned member of the Committee under Article 3 (1)"; "the Vice Minister of Employment" in Article 6 (2) of the Enforcement Decree of that Act as "senior executive in charge of wage claim guarantee affairs"; "meetings of the Committee or the expert committees" in the main clause of Article 10 of the Enforcement Decree of that Act as "meetings of the Committee"; and "members of the Committee or the expert committees" as "members." <Amended on Mar. 22, 2016>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 4. Deleted. <Sep. 24, 2014>
 Article 5 (Requirements and Procedures for Acknowledging Fact of Bankruptcy)
(1) "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" in Article 7 (1) 3 of the Act means cases where an employee who has retired without receiving wages, etc. from his or her employer files an application and the Minister of Employment and Labor acknowledges that the relevant employer is unable to pay overdue wages, etc. (hereinafter referred to as "acknowledgment of a fact of bankruptcy, etc.”) by falling under all of the following requirements: <Amended on Sep. 24, 2014>
1. The number of regularly employed employees calculated in the manner specified in attached Table 1 (hereinafter referred to as "number of regular workforce") shall not exceed 300 persons;
2. The business shall have been closed or in the process of closing due to any of the following reasons:
(a) Where the main business facility is seized or provisionally seized or transferred to repay debts in the state that the production or business activities of the relevant business have been suspended (including cases where an auction under the Civil Execution Act is in progress);
(b) Where the license, permit, registration, etc. for the relevant business is revoked or canceled;
(c) The main production or sales activities of the relevant business have been discontinued for at least one month;
3. The employer shall be unable to pay wages, etc. or it is obviously difficult for him or her to pay wages, etc. due to any of the following reasons:
(a) Where the whereabouts of the employer is unknown for at least one month as of the date of acknowledging the fact of bankruptcy, etc.;
(b) Where it is deemed to take at least three months from the date of filing an application for acknowledgment of the fact of bankruptcy, etc. to realize or recover the employer's property;
(c) Where the employer (limited to the employer of business whose regular workforce is less than ten) fails to pay wages, etc. to an employee who has applied for the acknowledgment of the fact of bankruptcy, etc. within three months from the day following the date set for the settlement of payment under Article 36 of the Labor Standards Act.
(2) An application for acknowledgment of a fact of bankruptcy, etc. under paragraph (1) shall be filed within one year from the day following the date of retirement from the relevant business.
(3) Matters necessary for filing an application for acknowledgment of a fact of bankruptcy, etc. under paragraph (2) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 6 (Determination and Public Notice of Upper Limit to Substitute Payments)
The upper limit to the wages, etc. to be paid by the Minister of Employment and Labor on behalf of an employer pursuant to Article 7 (1) of the Act (hereinafter referred to as "substitute payment") shall be determined by the Minister of Employment and Labor, in consultation with the Minister of Economy and Finance, depending on the age of each employee as at the time of his or her retirement, taking into account wages, inflation rate, financial status of the Fund, etc.; and shall give public notice of the details thereof in the Official Gazette and on the website of the Ministry of Employment and Labor <Amended on Sep. 24, 2014; Nov. 24, 2020>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 7 (Employees Eligible for Payment)
(1) An employee eligible for a substitute payment pursuant to Article 7 (1) 1 through 3 of the Act (hereinafter referred to as "general substitute payment") shall be the employee who has retired from the relevant business or place of business (hereinafter referred to as "business") within three years from the date no more than one year has passed from each of the following dates: <Amended on Sep. 24, 2014; Jun. 15, 2015>
1. Where a ruling to commence rehabilitation proceedings under Article 7 (1) 1 of the Act or a ruling declaring bankruptcy under subparagraph 2 of that paragraph (hereinafter referred to as "declaration of bankruptcy, etc.") was issued, the filing date of the application for such ruling;
2. Where the court has declared bankruptcy ex officio after an application for the commencement of rehabilitation procedures was filed under the Debtor Rehabilitation and Bankruptcy Act, the filing date of the application for commencement of such procedures or the declaration date of bankruptcy;
3. Where a fact of bankruptcy, etc. was acknowledged pursuant to Article 5 (1), the filing date of the application for acknowledgment of the fact of bankruptcy, etc. (if the application was filed on the day following a public holiday because the last day of the application period under Article 5 (2) is a public holiday, referring to the last day of the application period; and if two or more applications were filed for the same fact which has become the basis for acknowledging the fact of bankruptcy, etc., referring to the date the first application was filed; hereinafter the same shall apply).
(2) An employee eligible for a substitute payment under Article 7 (1) 4 of the Act (hereinafter referred to as "substitute payment of small amount") shall be the one who has filed a lawsuit, application, etc. concerning a judgment, order, conciliation, ruling, etc. (hereinafter referred to as "judgment, etc.") that falls under any item of Article 7 (1) 4 of the Act, within two years from the day following the date of retirement from the business. <Newly Inserted on Jun. 15, 2015>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 8 (Criteria for Employers)
(1) An employer against whom an employee is eligible to receive a general substitute payment shall be the one to whom any ground prescribed in Article 7 (1) 1 through 3 occurs after operating the relevant business for at least six months after becoming subject to the application of the Act under Article 3 of the Act. <Amended on Sep. 24, 2014; Jun. 15, 2015>
(2) An employer against whom an employee is eligible to receive a substitute payment of small amount shall be the one who meets all of the following requirements: <Newly Inserted on Jun. 15, 2015; Feb. 18, 2020>
1. The employer shall have employed the employee for the business subject to the application of the Act under Article 3 of the Act;
2. The employer shall have operated the relevant business for at least six months until the retirement date of the relevant employee: Provided, That where an employer who is a subcontractor of a contract for construction work under Article 44-2 (1) of the Labor Standards Act (hereafter in this subparagraph, referred to as "subcontractor who is not a constructor") has not operated the relevant business for at least six months until the retirement date of the relevant employee, the immediate upper tier contractor of the subcontractor who is not a constructor (where the immediate upper tier contractor is not a constructor defined in subparagraph 7 of Article 2 of the Framework Act on the Construction Industry, referring to the constructor under that subparagraph who is at the lowest tier among the upper tier contractors; hereinafter the same shall apply) shall have operated the relevant business for at least six months until the retirement date of the relevant employee;
3. The employer shall have received a judgment, etc. that falls under any item of Article 7 (1) 4 of the Act by failing to pay wages, etc. to the relevant employee.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 9 (Claiming and Making Substitute Payments)
(1) Any person who intends to receive a substitute payment pursuant to Article 7 of the Act shall file a claim with the Minister of Employment and Labor within the period classified as follows: <Amended on Sep. 24, 2014; Jun. 15, 2015>
1. A general substitute payment: Within two years from the date of declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc.;
2. A substitute payment of small amount: Within one year from the judgment, etc. thereof.
(2) Matters necessary for claiming and making substitute payments under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 10 (Verification of Grounds for Making Substitute Payments, such as Declaration of Bankruptcy)
(1) A person who claims a general substitute payment pursuant to Article 9 (1) 1 shall obtain verification of the following matters from the Minister of Employment and Labor, and shall file an application for the verification along with a claim for a general substitute payment under that subparagraph: <Amended on Jun. 15, 2015; Jun. 1, 2021>
1. The date of the declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc., and the date of application therefor;
2. Date of retirement and the age as at the time of retirement;
3. Amount overdue among wages, etc. falling under Article 7 (2) 1 through 3 of the Act;
4. The amount of the general substitute payment to be received;
5. The fact that the relevant employer falls under an employer referred to in Article 8.
(2) If necessary to make verifications pursuant to paragraph (1), the Minister of Employment and Labor shall take necessary measures, such as requiring the relevant employer, bankruptcy administrator, administrator, manager, etc. to report matters related to the declaration of bankruptcy, etc. or to submit related documents pursuant to Article 22 of the Act.
(3) Matters necessary for verifying under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 11 (Subrogation of Right to Claim Overdue Wages)
Where the Minister of Employment and Labor subrogates an employee's right to claim overdue wages, etc. pursuant to Article 8 (1) of the Act, he or she shall take necessary measures for exercising, securing, etc. of the right to claim.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 12 (Collection of Charges)
(1) When collecting charges under Article 9 (1) of the Act, the Minister of Employment and Labor shall collect it by integrating it with the insurance premiums for the industrial accident compensation insurance under Article 13 (1) 2 of the Act on the Collection of Insurance Premiums for Employment Insurance and Industrial Accident Compensation Insurance (hereinafter referred to as the "Insurance Premium Collection Act").
(2) The Minister of Employment and Labor shall calculate the charges collected by integration pursuant to paragraph (1) every month and pay the charges to the Fund.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 13 (Public Notice of Rate of Charges)
When the Minister of Employment and Labor determines the rate of charges pursuant to Article 9 (2) of the Act, he or she shall publish the details thereof in the official gazette and at least general daily newspapers registered with nationwide circulation pursuant to Article 9 (1) of the Act on the Promotion of Newspapers.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 14 (Criteria for Employers Eligible for Reduction of Charges)
(1) Deleted. <Sep. 24, 2014>
(2) Determination on whether an employer is eligible for reduction of charges under subparagraphs 2 through 4 of Article 10 of the Act shall be based on the last day of the previous year.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 15 (Procedures or Reducing Charges)
(1) Deleted. <Sep. 24, 2014>
(2) An employer who intends to have his or her charges reduced pursuant to subparagraphs 2 through 4 of Article 10 of the Act shall file an application with the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor, after fulfilling the requirements for reducing the charges.
(3) After examining the details of the application filed under paragraph (2), the Minister of Employment and Labor shall notify the details of reduction to the employee if he or she fulfills the requirements for reducing the charges.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 16 (Public Notice of Criteria for Reducing Charges)
When the Minister of Employment and Labor determines the criteria for reducing charges pursuant to the latter part of Article 10 of the Act, he or she shall publish details thereof in the official gazette and at least general daily newspapers registered with nationwide circulation pursuant to Article 9 (1) of the Act on the Promotion of Newspapers.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 17 (Preparation of Charge Cards or other Levy Cards)
(1) The Minister of Employment and Labor shall prepare and keep charge cards or other levy cards by place of business for business subject to the application of the Act.
(2) The Minister of Employment and Labor shall allow any employer who intends to peruse charge cards or other levy cards referred to in paragraph (1) to peruse them, and may issue a certificate to an employer who intends to be issued a certificate for the necessary matters.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 18 (Accounts to Receive Substitute Payments)
(1) "Failure of the information and communications system or other unavoidable reasons prescribed by Presidential Decree" in the proviso of Article 11 (1) of the Act means a case where it is impracticable for a financial institution at which an account to receive substitute payments is opened under the main clause of that paragraph (hereinafter referred to as "account to receive substitute payments") to conduct normal operations due to the discontinuance or suspension of business, information and communication system failure, etc. or where the financial institution is unable to transfer substitute payment due to other unavoidable cause equivalent thereto within 14 days from the date a decision to make such payment is made.
(2) Where the Minister of Employment and Labor is unable to transfer a substitute payment to an account to receive the relevant substitute payment pursuant to the proviso of Article 11 (1) of the Act, he or she may pay the substitute payment in cash directly to a person entitled to receive the relevant substitute payment.
[This Article Newly Inserted on Jun. 1, 2021]
[Previous Article 18 moved to Article 18-2 <Jun. 1, 2021>]
 Article 18-2 (Delegation of Receipt of Substitute Payments)
(1) If a person entitled to receive a substitute payment is unable to receive it due to an injury or disease, he or she may delegate receipt of such payment to his or her family member pursuant to Article 11-2 (2) of the Act. <Amended on Jun. 1, 2021>
(2) If a person delegated to receive a substitute payment under paragraph (1) intends to receive the substitute payment, he or she shall submit a document verifying the fact that such delegation has been permitted and his or her family relations.
[This Article Wholly Amended on Nov. 15, 2010]
[Moved from Article 18 <Jun. 1, 2021>]
 Article 19 (Matters to be Entered in Property List)
When the Minister of Employment and Labor orders an employer to submit a property list pursuant to Article 13 (1) of the Act, he or she shall require him or her to prepare the property list including the following matters:
1. Ownership, superficies, right to lease on a deposit basis, right of lease of real estates, and right to request transfer of real estate, and right to request to transfer the rights thereto;
2. Ownership and right to request transfer of the motor vehicles, construction machinery, vessels, aircraft, etc. subject to registration or enrollment, and right to request to transfer the rights thereto;
3. Mining rights, fishing rights, and other rights to which the provisions related to real estate applies mutatis mutandis, and the right to request transfer the rights thereto;
4. In cases of claims secured by a real right granted by way of security, such as pledge right or mortgage, the purport thereof and the details of the real right granted by way of security.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 20 (Restitution of Unjust Enrichment)
(1) Pursuant to the provisions of Article 14 (1) and (2) of the Act, the Minister of Employment and Labor shall not pay the claimed amount or provide a loan to a person who intends to receive or has already received a substitute payment or loan by fraud or other improper means, or shall clawback the amount of substitute payment or loan erroneously provided, from a person who has already received it, according to the following category: <Amended on Jun. 5, 2012; Sep. 24, 2014>
1. Where the person fails to fulfill the requirements for provision of the substitute payment or loan: All of the claimed amount or paid amount;
2. Where the person fulfills the requirements for provision of the substitute payment or loan: Part of the claimed amount or paid amount (referring to the amount equivalent to the substitute payment or loan intended to receive or already received by fraudulent or other improper means or the substitute payment or loan erroneously provided).
(2) When the Minister of Employment and Labor decides to claw back a substitute payment or loan received pursuant to paragraph (1) (including additional collection under Article 14 (3) of the Act; hereinafter the same shall apply), he or she shall notify the person obliged to make the payment to pay the relevant amount. <Amended on Jun. 5, 2012; Sep. 24, 2014>
(3) A person in receipt of a notice under paragraph (2) shall pay the notified amount within 30 days from the date the notice is received.
(4) Except as otherwise expressly provided for in paragraphs (1) through (3), non-provision of substitute payments or loans, or the procedures for restitution thereof, and other matters necessary for handling illegal receipt thereof shall be determined by the Minister of Employment and Labor. <Amended on Jun. 5, 2012; Sep. 24, 2014>
[This Article Wholly Amended on Nov. 15, 2010]
[Title Amended on Sep. 24, 2014]
 Article 20-2 (Reporting on Fact of Receiving Substitute Payments)
(1) A person who intends to report a fact that a substitute payment has been paid through fraudulent or other improper means (hereafter in this Article, referred to as "fact of fraudulent receipt") pursuant to Article 15 of the Act shall file a report with a local employment and labor office, as prescribed by Ordinance of the Minister of Employment and Labor.
(2) An investigative agency in receipt of an accusation related to the fact of fraudulent receipt under Article 15 of the Act shall, without delay, notify the competent local employment and labor office of such fact.
(3) If a person who has filed a report or an accusation related to fraudulent receipt pursuant to Article 15 of the Act intends to receive reward money under that Article (hereinafter referred to as "reward"), he or she shall apply for the payment of a reward to the Minister of Employment and Labor, as prescribed by Ordinance of the Ministry of Employment and Labor.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 20-3 (Standards for Payment of Rewards)
A reward shall be paid by the Minister of Employment and Labor in accordance with the following standards within the limit of 50 million won. In such cases, the amount unit below 1,000 won shall not be paid:
1. If the substitute payment received through fraudulent or other improper means (hereafter in this Article, referred to as "amount of fraudulent receipt") is at least 50 million won: 5.5 million won + (Amount of improper receipt exceeding 50 million won x 5/100);
2. If the amount of fraudulent receipt is at least 10 million won but less than 50 million won: 1.5 million won + (Amount of improper receipt exceeding 10 million won x 10/100);
3. If the amount of fraudulent receipt is less than 10 million won: Amount of fraudulent receipt x 15/100.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 20-4 (Time Limit for Filing Report or Accusation)
A reward shall be paid only when a report or accusation is filed within three years from the date the person who has received a substitute payment through fraudulent or other improper means has received the relevant substitute payment through fraudulent or other improper means (hereinafter referred to as "fraudulent receipt").
[This Article Wholly Amended on Nov. 15, 2010]
 Article 20-5 (Payment Methods of Rewards when Reports or Accusations are in Contention)
(1) Where two or more persons file reports or accusations respectively on the fraudulent receipt of a same substitute payment, they shall be construed as a single report or accusation in calculating the amount of reward.
(2) In cases falling under paragraph (1), the reward shall be appropriately distributed to each person in consideration of the degree of contribution to uncovering the act of fraudulent receipt, etc.; but if the persons eligible to receive the reward have applied for the payment of the reward after agreeing in advance about the method of distribution, it shall be paid according to the agreed method.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 20-6 (Timing to Pay Reward)
A reward shall be paid after a disposition on the amount to be restituted is finalized after notifying, pursuant to Article 20 (2), to pay the amount to be restituted, due to the lapse of the period for filing a complaint thereon or the completion of the appeals proceeding. <Amended on Sep. 24, 2014>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 21 (Payment and Collection of Charges and Other Levies)
Articles 10, 19-2 through 19-5, 19-7, 19-8, 20 through 27, 30-2 through 30-4, 31, 32, 33, 37 through 40, 40-2 through 40-6, 41, 41-2 through 41-4, 43, 43-2, and 44 through 53 of the Enforcement Decree of the Insurance Premium Collection Act shall apply mutatis mutandis to the calculation, payment, collection, etc. of charges and other levies under the Act. In such cases, "insurance premium" or "industrial accident insurance premium" shall be construed as "charge"; "COMWEL" or "the Health Insurance Service" as "the Minister of Employment and Labor (where entrustment is granted pursuant to Article 24, referring to the Korea Workers' Compensation and Welfare Service or the Health Insurance Service)"; "estimated insurance premium" as "estimated charge"; "insurance year" as "fiscal year"; "insurance relationship" as "wage claim guarantee relationship"; "insurance premium rate" as "charge rate"; "monthly insurance premium" as "monthly charge"; "finalized insurance premiums" as "finalized charges"; and "insurance business" as "wage claim guarantee business.” <Amended on Dec. 8, 2020; Jun. 1, 2021>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 22 (Management and Operation of Fund)
Article 86 (1) 2, the former part of Article 86 (2), and Articles 87 through 89, and 91 through 95 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act shall apply mutatis mutandis to the management and operation of the Fund. In such cases, "accounts of the Fund" shall be construed as "accounts of the Wage Claim Guarantee Fund"; "the Service" (excluding cases prescribed in Articles 88 (2) and 91 (2) of the Enforcement Decree of that Act) as "the Minister of Employment and Labor (where entrustment is granted pursuant to Article 24 (2), referring to the Korea Workers' Compensation and Welfare Service)"; "insurance premium" as "charge"; and "Industrial Accident Compensation Insurance and Prevention Fund under Article 95 of the Act" as "Wage Claim Guarantee Fund."
[This Article Wholly Amended on Nov. 15, 2010]
 Article 22-2 (Standards for Accumulation of Liability Reserve)
The liability reserve under Article 99 of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis under Article 20 (2) of the Act shall be the amount equivalent to the expenses incurred in paying substitute payments during the previous year.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 23 (Request to Submit Reports or Documents)
A request to submit a report or related documents under Article 22 of the Act shall be made in writing.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 24 (Delegation or Entrustment of Authority)
(1) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall delegate the following authority to the head of each local employment and labor office: <Amended on Jun. 15, 2015>
1. Issuance of documents certifying overdue wages, etc. and employers, etc. in arrears under Article 12 of the Act;
1-2. Order to submit a property list under Article 13 of the Act;
2. Request to submit reports or related documents under Article 22 of the Act (limited to cases where they are necessary for handling delegated affairs);
3. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling delegated affairs);
4. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling delegated affairs);
5. Imposition and collection of administrative fines under Article 30 of the Act;
6. Acknowledgment of facts of bankruptcy, etc. under Article 5;
7. Acceptance of claims for payment of general substitute payments under Article 9 (1) 1;
8. Verification under Article 10;
9. Receipt of applications for payment of rewards under Article 20-2 (3);
10. Payment of rewards under Article 20-3.
(2) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall entrust the following authority to the Korea Workers' Compensation and Welfare Service established under the Industrial Accident Compensation Act (hereinafter referred to as the "Korea Workers' Compensation and Welfare Service"): <Amended on Jun. 5, 2012; Sep. 24, 2014; Jun. 15, 2015; Jun. 1, 2021>
1. Payment of substitute payments under Article 7 of the Act;
1-2. extension of loans to cover overdue wages, etc. and living expenses under Article 7-2 of the Act;
2. Exercise of authority related to subrogation of right to claim overdue wages, etc. under Article 8 of the Act;
3. Reduction of charges under Article 10 of the Act;
3-2; Deposit or transfer of a substitute payment under Article 11 of the Act;
4. Restitution of unjust enrichment under Article 14 of the Act;
5. The following authority under the Insurance Premium Collection Act which applies mutatis mutandis under Article 16 of the Act:
(a) Imposition of monthly charges under Article 16-2 (1) of the Insurance Premium Collection Act;
(d) Receipt and collection of estimated charges under Article 17 of the Insurance Premium Collection Act;
(e) Measures following raising or lowering the charge rate under Article 18 of the Insurance Premium Collection Act;
(f) Receipt, collection and settlement of finalized charges under Article 19 of the Insurance Premium Collection Act;
(g) Reduction of charges, etc. under Article 22-2 of the Insurance Premium Collection Act;
(h) Allocation of overpaid charges, etc. and return of estimated charges, finalized charges, and overpaid amount of charges subsequent thereto under Article 23 of the Insurance Premium Collection Act;
(i) Collection of additional dues related to Article 19 (4) of the Insurance Premium Collection Act, under Article 24 (1) of that Act;
(j) Notice and overdue notice on money collectable under Article 27 of the Insurance Premium Collection Act;
(k) Collection of money collectible before payment deadline under Article 27-2 of the Insurance Premium Collection Act;
(l) Disposition on default of money collectible under Article 28 of the Insurance Premium Collection Act;
(m) Write-off of money collectible under Article 29 of the Insurance Premium Collection Act;
(n) Provision of data on default or write-off under Article 29-2 of the Insurance Premium Collection Act;
(o) Authorization for the wage claim guarantee business, authorization for the change thereof, acceptance of reports on discontinuance and change of business, and revocation of authorization under Article 33 (2) through (5) of the Insurance Premium Collection Act;
(p) Notice on payment of charges and other money collectable under Article 34 of the Insurance Premium Collection Act;
(q) Collection of additional dues and arrears under Article 35 of the Insurance Premium Collection Act;
(r) Subsidization of collection expenses or grant of other subsidies under Article 37 of the Insurance Premium Collection Act;
(s) Extension of payment deadline under Article 39 of the Insurance Premium Collection Act;
6. Request to submit reports or related documents under Article 22 of the Act (limited to cases where they are necessary for handling entrusted affairs);
7. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling entrusted affairs);
8. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling entrusted affairs);
8-2. Acceptance of claims for substitute payments of small amount under Article 9 (1) 2;
9. Preparation and keeping of, and provision for perusal of, charge cards or other levy cards and issuance of certificates under Article 17 (limited to cases where they are collected by the Korea Workers' Compensation and Welfare Service);
10. The following authority under the Enforcement Decree of the Insurance Premium Collection Act which applies mutatis mutandis under Article 21:
(a) Approval of vicarious payment of charges, acceptance of reports on changes, and revocation of approval under Article 10 of the Enforcement Decree of the Insurance Premium Collection Act;
(b) Acceptance of delegation of wage claim guarantee business and acceptance of reports on termination of the delegation thereof under Article 45 (3) of the Enforcement Decree of the Insurance Premium Collection Act;
11. Payment of charges, etc. into the accounts of the Fund under Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis under Article 22.
(3) Pursuant to Article 27 of the Act, the Minister of Employment and Labor shall entrust the following authority to the National Health Insurance Service established under the National Health Insurance Act:
1. The following authority under the Insurance Premium Collection Act which applies mutatis mutandis under Article 16 of the Act:
(a) Collection of monthly charges under Article 16-2 (1) of the Insurance Premium Collection Act;
(b) Notice of monthly charges under Article 16-8 of the Insurance Premium Collection Act;
(c) Return of excess amount and collection of shortages under Article 16-9 (3) and (4) of the Insurance Premium Collection Act;
(d) Measures following raising charge rates under Article 18 (1) of the Insurance Premium Collection Act;
(e) Payment of the residual amount after allocating the amount erroneously paid to monthly charges under Article 23 (1) of the Insurance Premium Collection Act;
(f) Collection of additional dues on monthly charges under Article 24 (2) of the Insurance Premium Collection Act;
(h) Notice and overdue notice on money collectable under Article 27 of the Insurance Premium Collection Act;
(i) Collection of money collectible before payment deadline under Article 27-2 of the Insurance Premium Collection Act;
(j) Approval, revocation of approval, etc. of installment payment of charges, etc. under Article 27-3 of the Insurance Premium Collection Act;
(k) Disposition on default of payment under Article 28 of the Insurance Premium Collection Act;
(l) Request for appointment of an administrator of inherited property under Article 28-3 (4) of the Insurance Premium Collection Act;
(m) Disclosure of personal information of persons who are in arrears with large amount or are habitually in arrears under Article 28-6 of the Insurance Premium Collection Act;
(n) Matters concerning the provision of securities for payment to defer a disposition on default of payment under Article 28-7 of the Insurance Premium Collection Act;
(o) Write-off of money collectible under Article 29 of the Insurance Premium Collection Act;
(p) Provision of data on default or write-off under Article 29-2 of the Insurance Premium Collection Act;
(q) Extension of payment deadline under Article 39 of the Insurance Premium Collection Act;
2. Request for cooperation under Article 23 of the Act (limited to cases where it is necessary for handling entrusted affairs);
3. Gaining access, conducting inspections, and asking questions under Article 24 of the Act (limited to cases where they are necessary for handling entrusted affairs);
4. Payment of charges, etc. into the accounts of the Fund under Article 88 (1) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act which applies mutatis mutandis under Article 22.
[This Article Wholly Amended on Nov. 15, 2010]
 Article 25 (Report to be Filed by Korea Workers' Compensation and Welfare Service)
The Korea Workers' Compensation and Welfare Service entrusted with the authority under Article 27 of the Act shall report to the Minister of Employment and Labor the monthly payment status of substitute payments under Article 7 of the Act and the monthly collection status of the amount of restitution under Article 14 (2) of the Act (including the amount additionally collected under paragraph (3) of that Article) not later than the last day of the following month. <Amended on Sep. 24, 2014>
[This Article Wholly Amended on Nov. 15, 2010]
 Article 25-2 (Management of Personally Identifiable Information)
The Minister of Employment and Labor (including persons to whom the authority of the Minister of Employment and Labor is delegated or entrusted under Article 24) may manage the data which contain resident registration numbers or alien registration numbers under subparagraph 1 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if unavoidable to perform the following affairs: <Amended on Jun. 5, 2012; Sep. 24, 2014; Jun. 15, 2015; Jun. 1, 2021>
1. Affairs related to providing assistance in the affairs related to substitute payments under Article 7 (5) of the Act;
1-2. Affairs related to application for, verification, etc. of loans to help cover overdue wages, etc. and living expenses under Article 7-2 of the Act;
1-3. Issuance of documents certifying overdue wages, etc. and employers in arrears of payment of wages, etc. under Article 12 of the Act;
2. Affairs related to orders to submit property lists under Article 13 of the Act;
3. Affairs related to restituting unjust enrichment under Article 14 of the Act;
4. Affairs related to the acknowledging facts of bankruptcy, etc. under Article 5;
5. Affairs related to claiming and making substitute payments under Article 9;
6. Affairs related to verifying, etc. of grounds for making substitute payments under Article 10;
6-2. Affairs related to subrogating a right to claim overdue wages, etc. under Article 11;
7. Affairs related to reducing charges under Article 15.
[This Article Newly Inserted on Jan. 6, 2012]
 Article 25-3 Deleted. <Mar. 3, 2020>
 Article 26 (Imposition and Collection of Administrative Fines)
(1) The criteria for imposing administrative fines under Article 30 (1) of the Act shall be as specified in attached Table 3.
(2) The Minister of Employment and Labor may increase or reduce the amount of an administrative fine up to one half thereof prescribed in attached Table 3, taking into account the seriousness of the violation, frequency thereof, causes and effect of such violation, etc.: Provided, That even in the case of an increase, the amount of the administrative fine shall not exceed the maximum of administrative fines prescribed in Article 30 (1) of the Act.
[This Article Wholly Amended on Nov. 15, 2010]
ADDENDA <Presidential Decree No. 15804, May 26, 1998>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 1998.
(2) (Special Cases of Application to Employers Eligible for Payment) Where an employer has operated the relevant business for at least one year from the date of establishment of insurance relationship under subparagraph 1 of Article 10 of the Industrial Accident Compensation Insurance Act as at the time this Decree enters into force, he or she shall be deemed to have fulfilled the requirements for an employer eligible for a substitute payment under Article 8 until June 30, 1999, notwithstanding Article 8.
ADDENDUM <Presidential Decree No. 16092, Jan. 29, 1999>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 16755, Mar. 13, 2000>
(1) (Enforcement Date) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability to Extension of Scope of Persons Eligible for Substitute Payments) The amended provisions of the main clause of Article 7 shall begin to apply from an employee to whom any ground for payment under Article 4 occurs after this Decree enters into force.
ADDENDA <Presidential Decree No. 17244, Jun. 22, 2001>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2001.
(2) (Applicability to Extension of Employers Eligible to Acknowledgment of Fact of Bankruptcy, etc.) The amended provisions of Article 5 (1) shall begin to apply from an employee who applies for the acknowledgment of a fact of bankruptcy, etc. pursuant to Article 5 (2) after this Decree enters into force.
(3) (Applicability to Upward Adjustment of Upper Limit of Substitute Payments) The amended provisions of Article 6 shall begin to apply from a substitute payment, any ground for payment of which under Article 4 arises after this Decree enters into force.
(4) (Transitional Measures concerning Collection, etc. of Unjust Enrichment through Substitute Payments) Notwithstanding the amended provisions of Article 20, a person who has received or has intended to receive a substitute payment by fraudulent or other improper means before this Act enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 18018, Jun. 25, 2003>
(1) (Enforcement Decree) This Decree shall enter into force on the date of its promulgation.
(2) (Applicability to Requirements for Acknowledgment of Fact of Bankruptcy, etc.) The amended provisions of Article 5 (1) shall begin to apply with the first employee who applies for the acknowledgment of a fact of bankruptcy, etc. after this Decree enters into force.
(3) (Applicability to and Transitional Measures concerning Upper Limit of Substitute Payments) The upper limit of substitute payments determined and publicly notified pursuant to the amended provisions of Article 6 shall begin to apply from a substitute payment, in the case of which any ground for the payment of overdue wages, etc. arises on or after the date of the public notice (Provided, That in cases of acknowledgment of a fact of bankruptcy, etc. under subparagraph 4 of Article 4, referring to the filing of an application therefor); and until the day preceding the date of the public notice, it shall be subject to the former provisions, notwithstanding the amended provisions of Article 6.
(4) (Applicability to Criteria for Employers) The amended provisions of Article 8 shall begin to apply from an employee who applies for the acknowledgment of a fact of bankruptcy, etc. pursuant to the amended provisions of Article 5 (2) after this Decree enters into force.
ADDENDUM <Presidential Decree No. 18312, Mar. 17, 2004>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18574, Oct. 29, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2005
Articles 2 through 9 Omitted.
ADDENDA <Presidential Decree No. 18913, Jun. 30, 2005>
(1) (Enforcement Date) This Decree shall enter into force on July 1, 2005: Provided, That the amended provisions of Article 22-2 shall enter into force on January 1, 2006.
(2) (Applicability to Payment of Rewards) The amended provisions of Articles 20-2 through 20-6 shall begin to apply from the first case where a report or an accusation is filed relating to a fact of fraudulent receipt of a substitute payment after this Decree enters into force.
ADDENDA <Presidential Decree No. 19010, Aug. 19, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 1, 2005.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 19422, Mar. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19513, Jun. 12, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 19957, Mar. 26, 2007>
This Decree shall enter into force on March 27, 2007: Provided, That the amended provisions of Article 14 (1) shall enter into force on January 1, 2008.
ADDENDA <Presidential Decree No. 20681, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 20875, Jun. 25, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2008.
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 22003, Jan. 27, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 1, 2010.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 22490, Nov. 15, 2010>
This Decree shall enter into force on January 1, 2011.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 23841, Jun. 5, 2012>
This Decree shall enter into force on August 2, 2012.
ADDENDA <Presidential Decree No. 25630, Sep. 24, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 25, 2014.
Article 2 (Applicability to Requirements for Acknowledgment of Fact of Bankruptcy, etc.)
The amended provisions of Article 5 (1) 3 (c) shall also apply to persons who have applied for the acknowledgment of a fact of bankruptcy, etc. before this Decree enters into force.
Article 3 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26318, Jun. 15, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Article 2 (Applicability, etc. to Employees Eligible to be Paid Substitute Payments)
(1) The amended provisions of Article 7 (2) shall also apply to employees who have retired before this Decree enters into force.
(2) Notwithstanding the amended provisions of Article 7 (2), where an employee who has retired before this Act enters into force, for whom two years have passed from the day following the retirement date to the date this Act enters into force but three years have not passed from such day to December 31, 2015 files a lawsuit, application, etc. concerning a judgment, etc. on or before December 31, 2015, the relevant employee shall also be deemed an employee eligible to be paid a substitute payment.
Article 3 (Applicability to Criteria for Employers)
The amended provisions of Article 8 (2) shall also apply to determination of whether an employer who uses an employee eligible to receive a substitute payment of small amount pursuant to Article 2 of the Addenda falls under the criteria for the employer of the relevant employee who is eligible to receive the substitute payment.
Article 4 (Transitional Measures concerning Calculation Method of Number of Regular Workforce)
Notwithstanding the amended provisions of subparagraph 1 of attached Table 1, calculation of the number of regular workforce in the relevant business of an employee who has applied for the acknowledgment of a fact of bankruptcy, etc. pursuant to Article 7 of the Act and Article 5 of this Decree before this Decree enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 27050, Mar. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 28, 2016. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 27751, Dec. 30, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2017. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 30423, Feb. 18, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 30509, Mar. 3, 2020>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 31176, Nov. 24, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (General Applicability to Methods of Public Announcement)
This Decree shall begin to apply to public announcements, publications, disclosures or public notices made after this Decree enters into force.
ADDENDA <Presidential Decree No. 31240, Dec. 8, 2020>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 10, 2020.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 31721, Jun. 1, 2021>
This Decree shall enter into force on June 9, 2021: Provided, That the amended provisions of the provisions, with the exception of the subparagraphs, of Article 10 (1), of subparagraph 3 of that paragraph, and of the former part of Article 21 shall enter into force on the date of promulgation of this Decree.