We Resolve Legal Matters
How can we assist you?
Blogs
More-
Penalties for Unpaid Wages: If You Are an Employer, This May Be Your Critical Opportunity to Respond Properly
Unpaid Wages Are No Longer Just a “Civil Matter” Failure to pay wages is no longer treated as a simple contractual or civil issue. It may result in criminal liability under the Labor Standards Act. In particular, recent legislative amendments have significantly strengthened the maximum penalties applicable to employers involved in unpaid wage cases, increasing the maximum sentence from up to three years’ imprisonment to up to five years’ imprisonment. Under the revised law, the maximum penalty for employers responsible for unpaid wages has been increased from: Up to 3 years’ imprisonment or a fine of up to KRW 30 million to: Up to 5 years’ imprisonment or a fine of up to KRW 50 million This means unpaid wage cases are no longer matters that simply end with administrative fines. Employers must now realistically consider the possibility of actual imprisonment. The Initial Response During the Investigation Stage Determines the Outcome The moment a criminal complaint regarding unpaid wages is filed, criminal proceedings effectively begin. At this stage, the following factors become critically important: ① Whether there was intentional misconduct ② The employer’s actual financial ability to make payment ③ Efforts made toward repayment or settlement Investigative authorities do not focus solely on whether wages were unpaid. They place significant weight on how the employer responded to the situation. Depending on the employer’s initial statements and conduct, the case may be viewed either as: “Malicious and intentional nonpayment of wages,” or “An unavoidable financial or managerial difficulty” This distinction often has a direct and substantial impact on the severity of punishment. Why Legal Representation Matters One of the biggest mistakes employers make in wage-related cases is assuming: “I’ll just attend the investigation first and deal with it later.” However, once a statement is submitted during an investigation, it cannot easily be reversed. Legal counsel plays an essential role in areas such as: Legally restructuring and explaining the circumstances surrounding the unpaid wages Organizing evidence demonstrating payment intent and repayment efforts Designing settlement strategies and determining the appropriate timing Establishing an effective response strategy toward investigative authorities In unpaid wage criminal cases, whether and when a settlement is reached often becomes one of the most decisive factors affecting the final outcome. There are many cases where employers either attempt settlements recklessly or, conversely, neglect the matter entirely, ultimately worsening the situation. Improper handling of the case may lead not merely to fines, but to actual imprisonment. This is therefore not an issue that should ever be taken lightly. Decent Law Firm’s Response Strategy Decent Law Firm approaches unpaid wage cases not merely from the perspective of defense, but with a primary focus on minimizing criminal liability and overall legal risk. Our main response strategies include: Analyzing the structural causes of unpaid wages and narrowing the scope of liability Establishing strategies to demonstrate lack of intentional misconduct Designing phased settlement processes Simultaneously managing criminal proceedings and related civil risks In particular, wage-related disputes arising during business operations require a structural and strategic approach rather than the type of response typically used in ordinary individual disputes. By combining expertise in both labor law and criminal law, Decent Law Firm provides strategies focused on achieving practical and meaningful results. Now that criminal penalties have already been significantly strengthened, the decisions made at this stage may ultimately determine whether criminal punishment is imposed. If you are currently facing concerns regarding this issue, establishing the right direction now may substantially change the outcome of the case. This is not the time to allow the problem to escalate. It is the time to strategically control and minimize legal risk.
-
Winning an Unfair Dismissal Case: What You Need to Know About Remedies and Strategic Response
Criteria and Legal Framework for Unfair Dismissal Under Article 23 of the Labor Standards Act, an employer may not dismiss an employee without just cause. Accordingly, whether a dismissal is lawful is generally assessed based on three key factors. 1) Justifiability of the Grounds for Dismissal A minor mistake or a relatively light disciplinary issue is generally not sufficient to justify termination of employment. 2) Legality of the Procedure If the employer failed to follow the disciplinary procedures set out in the rules of employment or collective agreement, or failed to provide the employee with a sufficient opportunity to explain or defend themselves, the dismissal may be deemed procedurally defective. 3) Proportionality of the Dismissal If other employees received only warnings for the same or similar conduct, while only one specific employee was dismissed, the dismissal may be considered excessive. In such cases, the nature and seriousness of the misconduct, the purpose of disciplinary action, and the standards for determining disciplinary measures are assessed comprehensively. If the disciplinary measure is found to be objectively and clearly unreasonable, it may be deemed a violation of the principle of equality. These factors are assessed as a whole. If the dismissal fails to meet these standards, there is a high possibility that the Labor Relations Commission may issue a remedy order, or that a court may render a judgment invalidating the dismissal. Key Evidence Required to Win an Unfair Dismissal Case In an unfair dismissal case, the most important element is evidence. If you begin searching for documents only after receiving notice of dismissal, it may already be difficult to secure key materials. The following materials may play a critical role: Written notice of dismissal or disciplinary notice Performance evaluation records and work performance documents Company rules of employment and personnel regulations Emails and messenger conversation records Statements from colleagues or internal company notices These materials serve as essential evidence to prove that the grounds for dismissal were unjustified. In actual cases, whether sufficient evidence has been secured often significantly affects whether the dismissal is recognized as unfair and whether remedies are granted. In particular, if the company claims redundancy dismissal based on “managerial necessity,” objective materials must be secured to refute whether the employer satisfied the separate requirements under Article 24 of the Labor Standards Act, including urgent managerial necessity, efforts to avoid dismissal, reasonable and fair selection of employees subject to dismissal, and sincere consultation with employee representatives. If the dismissal is based on disciplinary grounds such as “work attitude issues,” evidence is needed to prove that such grounds are unjustified. Why Legal Representation Matters in Unfair Dismissal Cases An unfair dismissal case cannot be resolved simply by arguing that the dismissal was unfair. In Labor Relations Commission proceedings, an application for remedy must be filed within three months from the date of unfair dismissal. The process requires systematic preparation, including drafting the application, responding to the employer’s submissions, submitting evidence, and preparing for the hearing. In addition, employers usually respond with assistance from certified labor consultants or legal professionals. If an employee proceeds alone, they may be placed at a disadvantage in procedural and strategic aspects. Professional assistance is especially important in the following areas: Organizing the legal issues of the case Developing a strategy for collecting and organizing evidence Preparing for Labor Relations Commission hearings Establishing a strategy for reinstatement and claims for wages equivalent to lost earnings An unfair dismissal case is not just a simple dispute. It can significantly affect one’s future employment and career. Therefore, to increase the possibility of obtaining relief for unfair dismissal, a strategic approach from the initial stage is crucial. If the issue is taken lightly and the timing for response is missed, it may lead to consequences that are difficult to reverse. A careful approach is essential. Decent Law Firm’s Strategy for Unfair Dismissal Cases Because unfair dismissal is directly connected to an individual’s livelihood, it requires a careful approach that goes beyond basic legal response. Based on our experience in labor cases, Decent Law Firm supports clients in the following ways. First, we closely review the lawfulness of the grounds and procedures for dismissal at the initial stage and objectively assess the likelihood of success in an unfair dismissal case. Second, we systematically design an evidence preservation strategy and present persuasive materials during Labor Relations Commission hearings. Third, we establish a tailored response strategy based on the client’s objectives, including reinstatement, claims for wages equivalent to lost earnings, and potential settlement. Our goal is to provide practical support to those facing unfair dismissal. Rather than attempting to resolve the matter alone, working with professionals to develop a strategy can become a decisive turning point in the direction of the case. If you have received an unfair notice of dismissal, the initial response can determine the outcome. Accurate analysis and strategic response are essential to increasing the likelihood of success in an unfair dismissal case.
-
Termination of Regular Employees: Key Requirements, Procedures, and Legal Considerations
What Can Make the Termination of a Regular Employee Unlawful? Under the Labor Standards Act, the termination of a regular employee is only valid when strict legal requirements are satisfied. An employer must have just cause for termination, provide the employee with a meaningful opportunity to explain or defend themselves before dismissal, and issue a written notice of termination. In cases involving managerial or business-related dismissals, additional requirements must also be satisfied, including: Urgent managerial necessity Efforts to avoid dismissal Reasonable standards for selecting employees subject to termination Prior notice to employee representatives at least 50 days before dismissal and sincere consultation procedures In practice, there are many cases where disciplinary procedures are carried out only formally, or where employees are pressured into submitting resignation letters, effectively inducing termination in substance. Even in such cases, the termination may still be considered unfair dismissal when the actual circumstances are examined. The legality of terminating a regular employee is not determined solely by the employer’s claims. Objective evidence and procedural fairness are the key factors. What Must Be Prepared Immediately After Receiving a Notice of Termination If you receive a notice of termination, it is important to avoid emotional reactions and systematically secure relevant evidence, including: Personnel appointment or transfer documents Notices regarding disciplinary committee proceedings Messages encouraIn addition, applications for relief before the Labor Relations Commission must generally be filed within three months from the date of dismissal pursuant to Article 28(2) of the Labor Standards Act. The three-month period is generally calculated based on the termination date stated in the notice of dismissal. However, if the notice lists a termination date that has already passed, the period may instead be calculated from the date the employee actually received the notice. It is also important to establish clear objectives and legal strategies, such as: Claims for wages equivalent to lost earnings Requests for reinstatement to the original position Without proper preparation, there is a significant risk that the employer’s arguments may prevail, leading to an unfavorable outcome. Why Legal Representation Matters Labor disputes involve both emotional and complex legal elements. Employers typically respond with the support of internal documentation and legal counsel. By contrast, employees who respond alone often face difficulties fully asserting their rights due to procedural mistakes or insufficiently organized arguments. In termination cases involving regular employees, it is necessary to carefully dispute issues such as: The specificity and legitimacy of the grounds for dismissal Whether the principle of proportionality was violated Whether the disciplinary measures imposed were appropriate A consistent strategy must also be established with future proceedings in mind, including: Applications for relief before the Labor Relations Commission Appeals before the National Labor Relations Commission Subsequent administrative litigation Professional legal intervention is therefore not merely about drafting documents — it is about determining the overall direction and strategy of the case. Decent Law Firm’s Legal Support In cases involving the termination of regular employees, Decent Law Firm structures the factual background of the case from the initial consultation stage and designs evidence preservation strategies tailored to the dispute. We also provide systematic support throughout the entire process, including: Applications for relief before the Labor Relations Commission Analysis of employer response submissions Hearing preparation and litigation strategy development Based on our understanding of corporate HR structures and disciplinary procedures, we proactively anticipate employer arguments and prepare effective counterpoints in advance. The termination of a regular employee is a critical turning point that can affect an individual’s career and livelihood. It is not a matter that should be delayed or approached lightly. Legal rights ultimately belong to those who actively assert them. Prompt and strategic action is often what determines the final outcome.
-
How Foreign Workers Can Receive Severance Pay and Strategic response
Can Foreign Workers Receive Severance Pay? Retirement benefits are governed by Article 8(1) of the Act on the Guarantee of Employees’ Retirement Benefits. The Supreme Court has held that foreign workers are equally subject to the provisions of the Labor Standards Act regarding severance pay and the Minimum Wage Act regarding wage guarantees (Supreme Court Decision 2006Da53627, Dec. 7, 2006). Therefore, foreign workers are entitled to severance pay under the same standards as Korean nationals if the following conditions are met: Continuous employment of at least one year Average weekly prescribed working hours of at least 15 hours over a four-week period Qualification as a “worker” under the Labor Standards Act Regardless of visa type—such as E-9 (non-professional employment), E-7 (specific activities), or F-series visas—if the individual worked under the direction and supervision of an employer, severance pay entitlement applies. Despite this, some employers argue that “foreigners are excluded” or “fixed-term contract workers are not entitled.” In most cases, such claims lack legal basis. Severance pay for foreign workers is not optional; it is a mandatory statutory right that cannot be arbitrarily excluded. Common Disputes Involving Foreign Workers’ Severance Pay In practice, the following dispute types frequently arise: 1. Non-payment after departure from Korea A worker’s departure from Korea does not eliminate the employer’s obligation to pay severance. Under Article 9(1) of the Act on the Guarantee of Employees’ Retirement Benefits, an employer must pay severance within 14 days from the date the cause for payment arises. Violation may result in criminal penalties (Article 44(1)). 2. Settlement disputes involving E-9 workers under the Employment Permit System Some employers claim that payment through the “departure guarantee insurance” (mandatory departure insurance) constitutes full settlement. However, merely asserting that the matter was settled through departure insurance does not extinguish the severance obligation. The actual insurance payout must be compared with the statutory severance calculation to determine whether any shortfall exists. 3. Disputes over disguised subcontracting or freelancer status Some employers deny worker status based on the absence of social insurance enrollment. In such cases, worker status is determined based on substance over form, considering factors such as supervision and control, working structure, and wage payment methods. These issues should not be treated lightly. Delayed 대응 may make recovery of rights significantly more difficult. Legal Procedures When Severance Pay Is Unpaid If severance pay is not paid, the following steps may be taken: Filing a complaint with the Ministry of Employment and Labor Determination of unpaid wages Applying for a payment order or filing a civil lawsuit Simultaneously filing a criminal complaint, if appropriate Employers must pay severance within 14 days of the occurrence of the payment obligation (Article 9(1)). Failure to do so is punishable by up to three years of imprisonment or a fine of up to KRW 30 million (Article 44(1)). For workers planning to leave Korea, it is particularly important to secure evidence and file a complaint before departure. Missing the appropriate timing may significantly hinder actual recovery. For those facing unpaid severance as foreign workers, understanding these procedures can provide meaningful practical assistance.
-
If You Need Help Reporting Unpaid Compensation as a Freelancer and Seeking Assistance from the Labor Office, Read This Carefully
Why Is Unpaid Compensation So Common for Freelancers? One of the most frequent problems freelancers face is the non-payment of service fees or compensation. Phrases such as “Let’s settle everything next month,” “The client hasn’t paid us yet,” or “The performance is unclear, so it’s hard to finalize the amount” come up repeatedly. Payment responsibility is often postponed on the grounds that the individual is “not an employee,” or work proceeds without a clearly defined payment structure from the outset. The absence of employment insurance or coverage under the four major social insurance schemes, combined with an environment where it feels difficult to raise issues about non-payment, makes freelancers even more vulnerable. At this stage, however, one point must be clearly understood. The root of the problem is not the freelancer’s status itself, but contracts and compensation structures that were disadvantageously designed from the beginning. Being a Freelancer Does Not Mean “Wages” Are Never Protected Many freelancers facing unpaid compensation conclude, “I’m not an employee, so I’m not protected.” However, legal determinations are not based on the title of the contract, but on the actual nature of the work relationship. Courts consider factors such as whether the user determined the content of the work and exercised substantial direction and supervision during its performance, whether working hours and locations were designated and binding, and whether the individual could independently operate a business—for example, by owning equipment or hiring third parties to perform the work. They also assess whether the compensation constitutes payment for the labor itself, whether a base or fixed salary was set, and whether there was continuity in the work relationship and exclusivity toward the user. When these elements are recognized, there are many cases where, despite a “freelancer” contract, worker status is acknowledged and the issue of unpaid service fees is treated as unpaid wages under the Labor Standards Act. Even if worker status is ultimately denied, that does not mean there is no way to respond. Claims can still be pursued as civil claims for unpaid service fees or compensation. The most dangerous decision is to prematurely rule out these possibilities on your own. Why Handling the Issue Alone Often Makes Things Worse for Freelancers When payment is withheld, emotions can easily take over. However, a single hastily sent message can put the entire response to unpaid freelancer compensation at a disadvantage. Such messages are often used to justify non-payment or are exploited as evidence to evade responsibility. Outcomes vary significantly depending on whether a payment date was specified, how performance-based clauses are interpreted, and what legal meaning is attributed to verbal agreements or messenger conversations. If handled incorrectly, freelancers may be directly exposed to arguments such as “the compensation was never agreed upon,” “performance was insufficient,” or “there is no obligation to pay due to contract termination.” This is not an issue an individual should be expected to endure alone. Without reassessing the underlying structure, unpaid compensation issues for freelancers tend to become prolonged. Decent Law Firm’s Approach to Handling Unpaid Compensation for Freelancers Decent Law Firm does not view unpaid freelancer compensation as a simple matter of payment demands. From the initial stage, we review both the contract and the actual work performed to conduct a detailed analysis of potential worker status. We systematically organize messenger records, emails, and past payment practices to prevent the formation of justifications for refusing payment. Where worker status is recognized, we pursue claims that include unpaid wages, severance pay, and statutory late payment interest (20% per annum under Article 37(1) of the Labor Standards Act and Article 17 of its Enforcement Decree). Where worker status is denied, we shift strategy to claims for unpaid service fees or damages under civil law. There is only one guiding principle. Whether the chosen approach makes it realistically possible to recover the money. If you are a freelancer losing sleep over this issue, remember clearly that you are not alone. If, on the other hand, you treat this matter lightly, even amounts that could have been recovered may be lost, and unpaid compensation can solidify into irreversible financial damage.
-
If You Need Help Understanding the Meaning, Timeline, and Supreme Court Precedents on Lawsuits to Confirm Worker Status
Why Lawsuits to Confirm Worker Status Matter Even when contracts are signed under labels such as “freelancer,” “outsourcing,” or “independent contractor,” the first and most critical issue in a dispute is whether the individual legally qualifies as a “worker.” A lawsuit to confirm worker status is the procedure that definitively resolves this issue, and it serves as the starting point for all subsequent legal determinations, including wages, severance pay, the legality of dismissal, and entitlement to social insurance. Once worker status is recognized, the protective provisions of the Labor Standards Act—covering wages, severance pay, and restrictions on dismissal—apply retroactively. As a result, previously unsettled rights and obligations are determined all at once (Article 2(1)1 of the Labor Standards Act). This makes the issue a source of real protection for one party and, at the same time, a significant legal burden for the other. Above all, if the initial approach is misdirected, it can lead to legal risks that are difficult to remedy later. For this reason, the issue must never be approached lightly. How Courts Determine Worker Status When determining whether an individual qualifies as a worker, courts do not focus on the form or title of the contract. Instead, they examine the substance of the working relationship—specifically, whether the individual provided labor to the employer in a subordinate relationship for the purpose of receiving wages. In practice, courts comprehensively consider economic and social factors such as: Whether the employer determines the content of the work and exercises substantial direction and supervision over how it is performed Whether the employer designates working hours and the workplace, and whether the individual is bound by such designation Whether the individual can independently operate a business at their own expense and responsibility Whether the individual bears the risks of profit and loss arising from the provision of labor Whether the remuneration constitutes compensation for the labor itself Whether a base salary or fixed compensation is set, and whether wage income tax is withheld The continuity of the working relationship and the degree of exclusivity toward the employer Whether the individual is recognized as a worker under social security systems That said, factors such as the existence of a fixed salary, withholding of wage income tax, or recognition under social insurance schemes are matters the employer—often in a stronger economic position—can unilaterally determine. Therefore, worker status should not be easily denied based on these factors alone. In short, no single element is determinative. The key lies in assessing the overall structure and substance of the working relationship. Practical Issues That Commonly Arise in Disputes In lawsuits to confirm worker status, the burden of proving worker status generally lies with the individual asserting it (Supreme Court Decision dated June 25, 2020, Case No. 2020Da207864). Accordingly, it is essential to secure concrete evidence that demonstrates actual working conditions and the existence of direction and supervision. In practice, claims for unpaid wages or severance pay are often combined with a worker status confirmation claim. If worker status is recognized, rights are applied retroactively, which can significantly expand the scope of the dispute and the associated risks. As a result, the later a strategic approach is taken, the greater the financial and legal burden becomes for the parties involved. Decent Law Firm’s Approach to Lawsuits Confirming Worker Status In lawsuits to confirm worker status, the most important task is not merely asserting that worker status exists, but proving—through concrete facts—that the substance of the labor relationship constitutes a relationship of subordination to the employer. Decent Law Firm approaches these cases by focusing on the actual substance of the working relationship, rather than the form or title of the contract, and by structuring the facts in a way that allows the court to make a clear legal determination. We also view worker status confirmation lawsuits not as isolated win-or-lose cases, but as the starting point of the entire dispute. In doing so, we comprehensively assess the client’s situation and the potential legal risks that may arise after the judgment, and set a strategy aimed at minimizing burdens that could extend beyond the outcome itself. A lawsuit to confirm worker status is a procedure that should never be taken lightly. This is precisely why professional legal assistance is essential from the initial planning stage onward.
