Essential Strategies to Check Before Consulting a Wage Claim Attorney
Unpaid Wages May Go Beyond a Simple Dispute
Unpaid wages are not merely a civil monetary dispute. They may constitute a criminal violation of the Labor Standards Act, including Article 36 (Settlement of Monetary Claims) and Article 43 (Payment of Wages).
Under Article 109(1) of the Labor Standards Act, such violations may result in criminal liability punishable by up to three years’ imprisonment or a fine of up to KRW 30 million.
In principle, unpaid wages constitute a violation of the Labor Standards Act regardless of the employer’s ability to pay or financial difficulties.
An exception is recognized only in limited circumstances where, despite the employer’s full good-faith efforts, non-payment was unavoidable to a degree that is socially acceptable (Supreme Court Decision, October 9, 2008, Case No. 2008Do5984).
Because unpaid wages directly affect an individual’s livelihood, this issue should never be treated lightly.
We hope this article serves as a practical starting point for those currently facing anxiety and uncertainty over wage-related issues.
Common Situations That Constitute Unpaid Wages
Whether wages are unpaid is determined not by the employer’s explanation or circumstances, but by whether payment was actually made—and whether it was made on time.
Substance prevails over form. When the following factors are present, the situation is likely to be deemed unpaid wages:
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Agreed wages or weekly holiday allowances were not paid on the scheduled payday
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Overtime, night, or holiday work was performed but the corresponding premiums were omitted
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Severance pay was not paid within 14 days after termination of employment
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Despite contractual labels, the worker was in fact under the employer’s direction and supervision
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Wage payment was delayed due to the company’s cash flow or financial issues
Statements such as “payment was scheduled soon” or “the company was experiencing difficulties” do not, by themselves, excuse liability for unpaid wages.
Article 43(2) of the Labor Standards Act requires wages to be paid at least once per month on a fixed date. Violation of this provision generally constitutes a breach of the Act.
Liability may be exceptionally excluded only where it is socially recognized that payment was impossible despite the employer’s full and sincere efforts (Supreme Court Decision, October 9, 2008, Case No. 2008Do5984).
Ultimately, Liability Falls on the Representative
One of the most common responses in unpaid wage cases is the belief that “this is merely a company issue.”
However, from the perspective of investigations and trials, unpaid wages are often attributed not to the company as an abstract entity, but to the individual representative who decided and managed wage payments.
Key considerations include whether the representative determined the priority of fund disbursement, whether wages could have been paid but other expenses were chosen instead, and what actions were taken after becoming aware of the arrears.
Explanations such as “the matter was handled by staff” or “it was delegated to the finance team” are frequently insufficient to disperse responsibility.
Moreover, attitudes and explanations provided during labor office investigations are often reflected throughout subsequent proceedings.
If wage issues are treated as internal disputes or handled without a clear legal framework at this stage, cases can quickly escalate into criminal liability—after which resolution through settlement or delayed payment becomes far more difficult.
Unpaid wages are not merely the result of poor management decisions.
If mishandled, they can lead to fines imposed on the representative personally, a criminal record, and enhanced penalties for repeated violations. This is no longer an issue that can be postponed—the initial judgment effectively determines the scope of liability.
How Decent Law Firm Assists – When a Wage Claim Attorney Gets Involved, Outcomes Change
Decent Law Firm does not approach unpaid wage cases as simple complaints or emotional disputes.
We systematically analyze working hours, various wage components, and severance calculations, and design response strategies that comprehensively consider civil, criminal, and administrative procedures.
The role of a wage claim attorney goes beyond drafting documents. It involves determining which procedures to pursue, at what timing, and how to respond at each stage to maximize the likelihood of recovery.
Unpaid wage cases are ultimately a race against time. While hesitation and worry persist, the situation can quickly become more unfavorable.
Do not take this issue lightly. Before it is too late, seek the assistance of a labor law specialist at an early stage.
