Unpaid Wages and Severance Pay in Korea: What Foreign Workers Need to Know

Many foreign workers in Korea face problems involving unpaid wages, delayed salary payments, or severance pay disputes. Some employees are unsure about their rights, while others are afraid to take legal action because of visa concerns.

The good news is that Korean labor law generally protects foreign workers in the same way it protects Korean employees.

1. Can Foreign Workers Claim Unpaid Wages?

Yes.

Under Korean law, employers must pay employees on the agreed payday and in full. If an employer fails to pay wages, overtime pay, holiday pay, or other earned compensation, the employee may file a complaint with the Labor Office.

Common examples include:

• Salary not paid for several months
• Unpaid overtime work
• Illegal deductions from wages
• Failure to pay final wages after resignation

2. What Is Severance Pay?

In Korea, employees who have worked for at least one year are generally entitled to severance pay when their employment ends.

The basic rule is:

• At least one year of continuous employment
• Average of at least 15 working hours per week

Many foreign workers mistakenly believe that severance pay is available only to Korean citizens. This is not true.

For some workers holding E-9 or H-2 visas, severance benefits may be paid through a Departure Guarantee Insurance system. If the insurance payment is lower than the amount legally owed, the difference may still be claimed from the employer.

3. When Must the Employer Pay?

As a general rule, wages and severance pay should be paid within 14 days after the employment relationship ends.

However, the payment deadline may be extended if both the employer and employee agree. Before signing any document that delays payment, workers should carefully review its contents and understand when payment will actually be made.

4. Does Filing a Complaint Affect My Visa?

Many foreign workers worry that reporting unpaid wages could affect their immigration status.

In many cases, filing a wage complaint itself does not automatically create immigration problems. However, each situation is different, especially when the worker's visa status is connected to the employer.

Even undocumented workers are generally entitled to claim unpaid wages and severance pay under Korean labor law. However, because immigration issues may arise during the process, obtaining legal advice before taking action is often advisable.

5. What Evidence Should You Keep?

If you believe your employer owes wages or severance pay, try to keep:

• Employment contract
• Payslips
• Bank transfer records
• Attendance records
• Text messages or emails from the employer

These documents can be important when proving your claim.

6. Can You Sue the Employer?

Yes.

In addition to filing a complaint with the Labor Office, workers may pursue civil claims to recover unpaid wages and severance pay.

Depending on the circumstances, employers who intentionally fail to pay earned wages may also face criminal liability.

Conclusion

Unpaid wages and severance pay disputes are among the most common labor issues faced by foreign workers in Korea. Korean law provides important protections regardless of nationality, and workers may have legal remedies even after leaving their jobs.

If you are dealing with unpaid wages or severance pay in Korea, seeking legal advice early can help protect your rights and improve the chances of recovery.

Contact for Consultation

If you are dealing with unpaid wages, severance pay disputes, wrongful termination, or other employment-related issues in Korea, legal assistance may be available.

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