"The company is struggling, and my salary has been delayed, but the boss seems to be having a hard time too, so I can’t bring it up." This is one of the most common statements from those who come for consultation about unpaid wages. As of 2024, it is reported that the unpaid wage amount in our country has reached a staggering 2 trillion won. Even if the company is bankrupt or on the verge of closing and truly cannot pay, the livelihood of workers must not be threatened.

In today's post, I will clearly summarize realistic ways to receive delayed wages (temporary compensation) when a company goes bankrupt, along with information on whether employers face punishment, based on video content that has been confirmed.

[Table of Contents]

1. What to do first when "the company has gone bankrupt" and wages are delayed

2. The state pays instead: the 'temporary compensation' system and its limits

3. Will the boss be punished? (criminal punishment and request for non-punishment)

4. Advice from the law firm for resolving unpaid wages

1. What to do first when "the company has gone bankrupt" and wages are delayed

As the economy becomes difficult, even for those who are not unscrupulous employers, more self-employed individuals and small businesses truly lacking funds are closing or delaying wages. At this time, waiting indefinitely saying, "the boss is having a hard time too, so let’s not burden him" is not the answer. Regardless of the company's circumstances, you must follow the procedures to claim what you are owed for your legitimate labor.

The first thing to do is to file a complaint about unpaid wages with the relevant labor office. If an investigation by the labor office confirms the unpaid wages, you can obtain a 'Unpaid Wage Confirmation Certificate', which is necessary to access government support programs.

2. The state pays instead: the 'temporary compensation' system and its limits

If the employer cannot pay wages due to a lack of funds, you should utilize the 'temporary compensation (formerly small wage guarantee)' system through which the government pays part of the unpaid wages on behalf of the employer.

[Temporary Compensation Payment Limits]

• Wages (monthly salary): up to 7 million won

• Severance pay: up to 7 million won

• Total limit: combined wages and severance pay up to 10 million won

  
  

Of course, you may not receive the full amount of delayed wages, but this can be a considerable help in maintaining your livelihood and finding a new job. You can apply with the 'Unpaid Wage Confirmation Certificate' issued by the labor office.

3. Will the boss be punished? (criminal punishment and request for non-punishment)

Unpaid wages are a violation of the Labor Standards Act, and employers can face up to 3 years in prison or a fine of up to 30 million won. However, if the worker does not wish for punishment, it is also classified as a 'non-punishable offense by complaint.' If you do not want the boss to be punished but only want to receive the unpaid wages, you can issue a 'Request for Non-Punishment' after obtaining the Unpaid Wage Confirmation Certificate and submit it to the labor office. In this case, the criminal case will be closed without punishment.

Conversely, if you wish for severe punishment for willful non-payment or malicious attitudes, you can submit a 'Request for Severe Punishment' to clearly express your intention to punish. This is entirely up to you as the victim.

4. Advice from the law firm for resolving unpaid wages

As time goes by, it becomes more difficult to secure evidence for unpaid wage cases, and due to factors like concealing company assets, it may become harder to get paid. Especially if the amount owed is large or the requirements for applying for temporary compensation are complicated, or if the employer denies the existence of unpaid wages, you need to prepare clear evidence with the help of professionals from the outset.

You must not hesitate to seek your rightful claim. Unpaid wages are a matter that relates to the survival rights of workers. If handling attendance at the labor office and preparing documents alone feels overwhelming, consult with a legal expert.

The law firm provides practical solutions tailored to the client's situation, from the initial complaint about unpaid wages to the application for temporary compensation, and responses in civil and criminal matters.

This post has been written for the purpose of providing legal information and legal judgments may vary based on specific circumstances.