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Business Topic

Applicable Subjects and Essential Requirements for Claims

(I) Applicable Subjects: Workers employed by business entities subject to the Labor Standards Act (hereinafter referred to as "the Act").
(II) Essential Requirements for Claims
  1. The business entity has suspended operations, entered into liquidation or declared bankruptcy and failed to pay the Wage Arrears of the workers (the wages to be paid under the labor contract, which have been overdue for less than six months), pension or severance pay under the Act, or severance pay under the Labor Pension Act when claimed by the workers. (If business operations are suspended on a temporary basis and are likely to resume in the future, this shall be considered a different case from suspension, liquidation or declaration of bankruptcy. The workers are therefore not yet entitled to apply for payment).
  2. The business entity shall have contributed to the wage arrears payment fund. The worker cannot apply for repayment if the business entity has not contributed to the wage arrears payment fund. The worker, however, may apply for payment when the business entity has settled the outstanding amount of contribution to the wage arrears pay
Last Update:2018-11-13