Korean Labor Law for Foreign Workers: Severance Pay (Toejikgeum) & Legal Protections
Official guide to statutory severance pay calculation, the 2026 minimum wage standard, paid leave entitlements, and filing unpaid wage claims at MOEL.
- Overview: Key requirements and essential steps for Work & Business
- Source Authority: Based on South Korean government and ministry public guidelines
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01 Equal Protection Under the Labor Standards Act
The Labor Standards Act of South Korea applies equally to all employees regardless of nationality, visa category, or race. Foreign workers are legally guaranteed the exact same minimum wage, statutory working hours (52-hour weekly limit), and grievance protections as Korean citizens.
Employers who underpay foreign staff or withhold identification documents face severe criminal penalties under Korean law.
02 Statutory Severance Pay (Toejikgeum) Rules
Any employee who works at a company for at least one consecutive year with an average of 15+ hours per week is legally entitled to statutory severance pay upon separation (resignation or termination).
Calculation Formula: Severance Pay = (Average Daily Wage of Last 3 Months) Γ 30 days Γ (Total Days of Service Γ· 365). Severance must be disbursed within 14 calendar days of departure.
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03 Filing Petitions for Unpaid Wages at the Labor Office
If an employer fails to pay wages or statutory severance, employees can submit a formal Labor Petition (Jin-jeong-seo) to the local Ministry of Employment and Labor (MOEL) district office.
Labor inspectors investigate the claim and issue binding payment orders. The government also operates the Wage Arrears Substitute Payment Scheme (Chebul Imgeum Daebul-je) to reimburse workers if an employer becomes insolvent.
Official Procedures & Guide
Call the MOEL Foreign Workers Counseling Center at 1350 (press 5 for foreign languages) for free legal guidance on labor disputes.
Detailed Information Matrix
| Item / Parameter | Category / Scope | Details & Criteria | Official Source |
|---|---|---|---|
| Ministry of Employment and Labor (MOEL) | Helpline: Dial 1350 (English: Ext. 5) | Foreign worker labor dispute & wage consultation | Official Link β |
| Statutory Severance Pay (ν΄μ§κΈ) | All Workplaces (1+ year tenure) | Mandatory 30-day average wage per year worked | Official Link β |
| Statutory Minimum Wage Standard (2026) | Nationwide Minimum Wage Council | Universal statutory hourly & monthly floor | Official Link β |
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Frequently Asked Questions (FAQ)
QDoes an employee forfeit severance pay if they resign voluntarily?
No. Under Article 34 of the Labor Standards Act, statutory severance pay is mandatory upon completing 1+ year of service, regardless of whether you resigned voluntarily or were dismissed.
QHow many days of paid annual leave (Yeoncha) am I entitled to in my first year?
During your first year of employment, you earn 1 day of paid annual leave for each month of perfect attendance (up to 11 days). Starting your second year, you are entitled to 15 days of annual paid leave.
References & Official Sources
β» This guide is drafted in adherence to official notices from South Korean ministries and authorized public agencies.
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