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
Presidential Decree No. 32048, Oct. 14, 2021
The purpose of this Decree is to prescribe matters mandated by the Wage Claim Guarantee Act and matters necessary for the enforcement thereof. [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: | 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 of Substitute Payments of Overdue Wages, etc.) |
| (1) | The types of substitute payments of overdue wages, etc. (hereinafter referred to as "substitute payment") that the Minister of Employment and Labor makes on behalf of an employer pursuant to Articles 7 (1) and 7-2 (1) of the Act shall be as follows: |
| (2) | The upper limit of a substitute payment shall be determined by the Minister of Employment and Labor in consultation with the Minister of Economy and Finance, taking into account the wage or income level of an employee, inflation rate, financial status of the Fund, and the age of an employee as at the time he or she retires (such age is only applicable where the upper limit of a substitute payment is determined under Article 7 (1) of the Act). |
| (3) | The Minister of Employment and Labor shall publicly notify the details of the upper limit of a substitute payment prescribed in paragraph (2) in the Official Gazette and on its website. |
[This Article Wholly Amended on Oct. 14, 2021]
| Article 7 (Employees Eligible for Substitute Payments) |
| (1) | A bankruptcy substitute payment shall be paid to employees who retire from the relevant business or place of business (hereinafter referred to as "business") within three years after the date one year prior to the date classified as follows: |
| 1. | Where there is a decision to commence rehabilitation procedures or a decision to declare bankruptcy (hereinafter referred to as "declaration of bankruptcy, etc.") under Article 7 (1) 1 or 2 of the Act, the date of application therefor; |
| 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 date of application therefor or the date of declaration of bankruptcy; |
| 3. | Where a fact of bankruptcy, etc. was acknowledged, 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 a single underlying 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). |
| 1. | Substitute payments under Article 7 (1) 4 of the Act: An employee who files a lawsuit, etc. (hereinafter referred to as "lawsuit, etc.") for a judgment, order, mediation, or decision falling under the items of Article 7 (1) 4 of the Act (hereinafter referred to as "judgment, etc.") within two years from the date following the date his or her retirement from the business; |
| 2. | Substitute payments under Article 7 (1) 5 of the Act: An employee who files a petition, appeal, pleading, complaint, accusation, or the like (hereinafter referred to as "petition, etc.") against the relevant employer on the grounds of the delayed payment of wages, etc. within one year from the day following his or her retirement from the business. |
| (3) | Among simple substitute payments, those provided in under Article 7-2 (1) of the Act shall be paid to employees who meet all of the following criteria: |
| 1. | The employee's employment contract with the relevant employer is in effect as at the time of filing a lawsuit, etc. or petition, etc. (excluding daily workers whose employment contract term is less than one month); |
| 2. | The amount of wages stipulated in the employment contract with the relevant employer shall be less than the amount determined and publicly notified by the Minister of Employment and Labor; |
| 3. | A lawsuit, etc. or petition, etc. against the employer shall be filed within the period classified as follows: |
| (a) | Where an employer falls under Article 7 (1) 4 of the Act: Within two years from the day following the date on which the last default of wages, etc. occurs before the date of filing the relevant lawsuit, etc.; |
| (b) | Where the employer falls under Article 7 (1) 5 of the Act: Within one year from the day following the date on which the last default of wages, etc. occurs, before the date of filing the relevant petition, etc. |
[This Article Wholly Amended on Oct. 14, 2021]
| Article 8 (Criteria for Employers) |
| (2) | Substitute payments under Article 7 (1) 4 of the Act shall be paid only to a retired employee who has been employed by an employer who meets all of the following criteria: <Amended on Oct. 14, 2021> |
| 1. | The employer shall have engaged in the relevant business for at least six months after the business becomes subject to the application of the Act pursuant to Article 3 of the Act until the date the employee retires; |
| 2. | The employer shall have received a judgment, etc. for his or her failure to pay wages, etc. to the relevant employee. |
| (3) | Substitute payments under Article 7 (1) 5 of the Act shall be paid only to a retired employee who has been employed by an employer who meets all of the following criteria: <Newly Inserted on Oct. 14, 2021> |
| 1. | The employer shall have engaged in the relevant business for at least six months after the business becomes subject to the application of the Act pursuant to Article 3 of the Act until the date the employee retires; |
| 2. | Unpaid wages, etc. shall have been confirmed by a written confirmation of overdue wages, etc. and employers in arrears issued by the Minister of Employment and Labor pursuant to Article 12 of the Act (hereinafter referred to as "written confirmation of overdue wages, etc. and employers in arrears"). |
| (4) | Substitute payments under Article 7-2 (1) of the Act shall be made only to the employees in office employed by an employer who meets all of the following criteria: <Newly Inserted on Oct. 14, 2021> |
| 1. | The employer shall have engaged in the relevant business for at least six months after the business becomes subject to the application of this Act pursuant to Article 3 of the Act until the last default of wages, etc. occurs, before the date the relevant employee files a lawsuit, etc. or a petition, etc.; |
| 2. | The employer shall have received a judgment, etc. for his or her failure to pay wages, etc. to the relevant employee, or overdue wages, etc. shall be confirmed by a written confirmation of overdue wages, etc. or employers in arrears issued by the Minister of Employment and Labor pursuant to Article 12 of the Act. |
| (5) | Notwithstanding paragraphs (2) 1, (3) 1, and (4) 1, if an employer who is a subcontractor of a construction project contract under Article 44-2 (1) of the Labor Standards Act (hereafter in this paragraph, referred to as "subcontractor who is not a constructor") fails to engage in business for at least six months until the retirement date of the relevant employee (in cases of employees in office, referring to the date the last default of wages, etc. occurs before the date of filing a lawsuit, etc. or petition, etc.), the immediate upper tier contractor of the subcontractor who is not a constructor (if an 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 lowest tier constructor falling under that subparagraph among the upper tier contractors) shall have engaged in the relevant business for at least six months until the relevant employee retires. <Newly Inserted on Oct. 14, 2021> |
[This Article Wholly Amended on Nov. 15, 2010]
| Article 9 (Claiming and Making Substitute Payments) |
| (1) | A person who intends to receive a substitute payment shall file a claim for such payment with the Minister of Employment and Labor within the period classified as follows: |
| 1. | In cases of a bankruptcy substitute payment: Within two years from the date of declaration of bankruptcy, etc. or the acknowledgment of a fact of bankruptcy, etc.; |
| 3. | In cases of a substitute payment under Article 7 (1) 5 of the Act: Within six months from the date the relevant written confirmation of overdue wages, etc. and employers in arrears is first issued; |
| 4. | In cases of a substitute payment under Article 7-2 (1) of the Act: Within one year from the date of judgment, etc. or within six months from the date the relevant written confirmation of overdue wages, etc. and employers in arrears is first issued. |
| (2) | Except as provided in paragraph (1), matters necessary for claiming and making substitute payments, etc. under paragraph (1) shall be prescribed by Ordinance of the Ministry of Employment and Labor. |
[This Article Wholly Amended on Oct. 14, 2021]
| Article 10 (Verification of Grounds for Making Substitute Payments, such as Declaration of Bankruptcy) |
| (1) | A person who claims a bankruptcy 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 bankruptcy substitute payment under that subparagraph: <Amended on Jun. 15, 2015; Jun. 1, 2021; Oct. 14, 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; |
| 4. | The amount of the bankruptcy substitute payment to be received; |
| 5. | The fact that the relevant employer falls under an employer referred to in Article 8 (1). |
| (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]
[Title Amended on Oct. 14, 2021]
| 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 measures necessary for exercising, securing, etc. of the right to claim. [This Article Wholly Amended on Nov. 15, 2010]
| Article 12 (Collection of Charges) |
| (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) |
[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) |
[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. <Amended on Oct. 14, 2021> |
| (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. <Amended on Oct. 14, 2021> |
[This Article Newly Inserted on Jun. 1, 2021]
[Title Amended on Oct. 14, 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; Oct. 14, 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. <Amended on Oct. 14, 2021> |
[This Article Wholly Amended on Nov. 15, 2010]
[Title Amended on Oct. 14, 2021]
[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 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 classifications: <Amended on Jun. 5, 2012; Sep. 24, 2014; Oct. 14, 2021> |
| 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 fraud or other improper means or the substitute payment or loan erroneously provided). |
| (2) | When the Minister of Employment and Labor decides to clawback 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 obligated to make the payment to pay the relevant amount. <Amended on Jun. 5, 2012; Sep. 24, 2014; Oct. 14, 2021> |
| (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. <Amended on Oct. 14, 2021> |
| (4) | Except as provided 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; Oct. 14, 2021> |
[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 by fraud 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. <Amended on Oct. 14, 2021> |
| (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 "monetary awards"), 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]
[Title Amended on Oct. 14, 2021]
| Article 20-3 (Standards for Payment of Monetary Awards) |
Monetary awards shall be paid by the Minister of Employment and Labor in accordance with the following standards within the limit of 100 million won. In such cases, the amount unit below 1,000 won shall not be paid: <Amended on Oct. 14, 2021>
| 1. | If the substitute payment received by fraud or other improper means (hereinafter referred to as "amount of fraudulent receipt") is at least 50 million won: 11 million won + (Amount of fraudulent receipt exceeding 50 million won x 10/100); |
| 2. | If the amount of fraudulent receipt is at least 20 million won but less than 50 million won: 3 million won + (Amount of fraudulent receipt exceeding 10 million won x 20/100); |
| 3. | If the amount of fraudulent receipt is less than 10 million won: Amount of fraudulent receipt x 30/100. |
[This Article Wholly Amended on Nov. 15, 2010]
| Article 20-4 (Time Limit for Filing Report or Accusation) |
Monetary awards 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 by fraud or other improper means has received the relevant substitute payment by fraud or other improper means (hereinafter referred to as "fraudulent receipt"). <Amended on Oct. 14, 2021>
[This Article Wholly Amended on Nov. 15, 2010]
| Article 20-5 (Payment Methods of Monetary Awards 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 monetary awards. <Amended on Oct. 14, 2021> |
| (2) | In cases falling under paragraph (1), the monetary awards 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 monetary awards have applied for the payment of the monetary awards 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]
[Title Amended on Oct. 14, 2021]
| Article 20-6 (Timing to Pay Monetary Awards) |
A monetary awards 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 Employment and Industrial Accident Compensation 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; Oct. 14, 2021> [This Article Wholly Amended on Nov. 15, 2010]
| Article 22 (Management and Operation of Fund) |
[This Article Wholly Amended on Nov. 15, 2010]
[Title Amended on Oct. 14, 2021]
| Article 22-2 (Standards for Accumulation of Liability Reserve) |
[This Article Wholly Amended on Nov. 15, 2010]
| Article 23 (Request to Submit Reports or Documents) |
[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; Oct. 14, 2021> |
| 1. | Issuance of documents certifying overdue wages, etc. and employers, etc. in arrears under Article 12 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); |
| 6. | Acknowledgment of facts of bankruptcy, etc. under Article 5; |
| 7. | Acceptance of claims for payment of bankruptcy substitute payments under Article 9 (1) 1; |
| 9. | Receipt of applications for payment of monetary awards under Article 20-2 (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; Oct. 14, 2021> |
| 2. | Exercise of authority related to subrogation of right to claim overdue wages, etc. under Article 8 of the 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 Employment and Industrial Accident Compensation 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 Employment and Industrial Accident Compensation 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 simple substitute payments under Article 9 (1) 2 through 4; |
| 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); |
| (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 Employment and Industrial Accident Compensation 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 Employment and Industrial Accident Compensation Insurance Premium Collection Act; |
| (f) | Deleted; <Oct. 14, 2021> |
| (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 Employment and Industrial Accident Compensation 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); |
[This Article Wholly Amended on Nov. 15, 2010]
| Article 25 (Reporting by Korea Workers' Compensation and Welfare Service) |
The Korea Workers' Compensation and Welfare Service entrusted with authority in accordance with Article 27 of the Act shall file a monthly report on the current status specified in the following subparagraphs with the Minister of Employment and Labor by the last day of the following month: | 2. | The current status of providing loans under Article 7-3; |
| 3. | The current status of collecting the amount to be restituted under Article 14 (2) of the Act (including additional money to be collected under paragraph (3) of that Article). |
[This Article Wholly Amended on Oct. 14, 2021]
| 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; Oct. 14, 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 7-3 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; |
| 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) |
The standards for the imposition of administrative fines pursuant to Article 30 (1) of the Act shall be as specified in attached Table 3. [This Article Wholly Amended on Oct. 14, 2021]
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 Monetary Awards) 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.
ADDENDA <Presidential Decree No. 32048, Oct. 14, 2021>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 14, 2021.
Article 2 (Applicability to Criteria for Employees Eligible for Substitute Payments)
| (1) | The amended provisions of Article 7 (2) 2 shall also apply where retired employees who filed petitions, etc. before this Decree enters into force file claims for substitute payments within the period provided in the amended provisions of Article 9 (1) 3. |
| (2) | The amended provisions of Article 7 (3) shall also apply where employees in office who filed lawsuits, etc. or petitions, etc. before this Decree enters into force file claims for substitute payments within the period provided in Article 9 (1) 4. |
Article 3 (Transitional Measures concerning Criteria for Payment of Monetary Awards)
The amended provisions of Article 20-3 shall also apply where procedures for paying monetary awards are pending as at the time this Decree enters into force after applications for payment of the monetary awards are filed pursuant to Article 20-2 (3) before this Decree enters into force. Article 4 (Applicability to Return of Contributions)
The amended provisions of Article 22 shall also apply to the balance of contributions remaining after persons entrusted with the duties pursuant to Article 27 of the Act before this Decree enters into force use the contributions for the entrusted projects.