Hello, this is Attorney Choi Jong-ha from the Law Firm Cheongchul.

Not receiving money in your bank account on payday is one of the most frightening experiences for a worker. Knowing that you have been working hard, often face to face with your boss, and that the business is struggling, many workers hesitate to take legal action and instead trust the boss's words of "I will definitely pay you next month" and wait.

However, if you have waited like this and truly find that the business has become so difficult that there seems to be no way to receive the overdue wages, what should you do?

 In such a case, the simplest and quickest way is to apply for the Advance Payment Procedures. If it is not a workplace excluded from industrial accident insurance (Article 2 of the Enforcement Decree of the Industrial Accident Compensation Insurance Act) and the business has continued for more than 6 months, any worker employed at such a workplace can apply for up to 10 million won in advance payment to the Korea Workers' Compensation and Welfare Service.

Previously, a final judgment or document with equivalent enforcement power (such as a confirmed payment order decision or mediation record) was needed, which required a long time and effort to obtain. However, since 2021, it has become possible to apply for advance payment just by having a wage arrears confirmation letter issued by the Ministry of Employment and Labor, enabling those suffering from wage arrears to receive quicker remedies.

Below, I will explain about claiming advance payments through the wage arrears confirmation letter, distinguishing between employees who have already resigned and those who are still employed.

1.   In the case of resigned employees

 For a resigned employee to be eligible for advance payment, they must file a complaint, petition, or indictment (hereinafter referred to as "complaint") against the employer due to wage arrears within 1 year from the day after their resignation, and must apply for advance payment within 6 months after receiving the wage arrears confirmation letter (for advance payment).

 The amounts that can be received at this time include wages and retirement benefits (severance pay) for the last 3 years, the last 3 months of leave allowance, and the last 3 months of maternity leave pay. The maximum total payment is 10 million won, but it should also be noted that you can receive a maximum of 7 million won for wages, leave allowances, and maternity leave pay, and up to 7 million won for severance pay.

2.   In the case of currently employed workers

 For currently employed workers to be eligible for advance payment, their wage (ordinary hourly wage) must be less than 110% of the minimum wage, and they must have filed a complaint within 1 year from the last missed wage date before filing the complaint, applying for advance payment within 6 months after obtaining the wage arrears confirmation letter (for advance payment).

  The amount eligible for payment will be for wages, leave allowances, and the final maternity leave pay that should have been paid for the last three months, counted back from the date the complaint was filed. Since they have not yet resigned, severance pay is not applicable.