Get unpaid wages if company goes bankrupt(wage arrears & its limit, 체당금)

When a company becomes bankrupt, workers who have not received their wages may not receive them. The government pays the workers on behalf of the insolvent company and later recovers the payment from the company's owner. This payment made to workers is called wage arrears limit. There are two types of wage arrears limit payments: general and small-amount. To have the eligibility to receive the payment, the worker must have been owed wages. If a worker retired between one year before the application for company restructuring or bankruptcy and three years after, the worker is eligible for the general wage arrears limit. Workers who can apply for small-amount wage arrears limit are those who file a lawsuit against their former company for unpaid wages within two years after retirement.

 

Maximum Amount of Ggeneral Awage Arrears Limit by Age (in KRW 1,000,000)

	~29 of age	30 ~ 39	40 ~ 49	50 ~ 59	60 of age ~
Wages, Severance pays 임금, 퇴직금	2.2	3.1	3.5	3.3	2.3
Non-duty Allowances 휴업 수당	1.54	2.17	2.45	2.31	1.61
Salaries during maternity/paternity leave 출산전후휴가 기간 중 급여	3.1

 

Maximum amount of small-amount wage arrears limit (in KRW 1,000,000)

	Amount
Salaries and leave allowances during pregnancy, maternity/paternity leave 임신, 출산전후휴가 기간 중 급여, 휴업 수당	7
Severance pays 퇴직금	3

 

When applying for wage arrears, there are two procedures:

1. Request to the Ministry of Employment and Labor
2. Issuance of a certificate of unpaid wages by the employer
3. Claim and payment

Or

1. Lawsuit filed in court
2. Delivery of a final judgment
3. Claim and payment

 

 

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