Advance Notice Allowance (해고예고수당) in Korea: Calculation & Payment Guide for Foreign Workers

Advance Notice Allowance in Korea: Calculation & Payment Guide for Foreign Workers

What Is the Advance Notice Allowance (해고예고수당)?

When an employer dismisses a worker, they must give at least 30 days' advance notice. If the employer dismisses a worker immediately or gives fewer than 30 days' notice, they must pay 30 or more days' worth of ordinary wages (통상임금). This payment is called the advance notice allowance (해고예고수당), and it is governed by Article 26 of the Labor Standards Act (근로기준법 제26조).

Payment Requirements

All of the following conditions must be met for the advance notice allowance to apply:

  1. The reason for termination must be "dismissal" (해고) – Voluntary resignation or mutually agreed separation does not qualify.
  2. The employer must have failed to give 30 days' advance notice – Even if 20 days' notice was given, the employer must pay the full 30 days' worth, not just the shortfall of 10 days.
  3. No exemption applies – See the exceptions listed below.

Note for foreign workers: Your employment contract may specify different notice terms, but the statutory minimum under the Labor Standards Act cannot be waived to your disadvantage.

Exemptions (Cases Where the Advance Notice Obligation Does Not Apply)

Under the proviso of Article 26 and Article 35 of the Labor Standards Act (근로기준법 제26조 단서 및 제35조), the advance notice obligation is waived in the following cases:

Note: The under-3-month exemption applies equally to daily workers and short-term contract workers, so always verify your length of service.

How to Calculate the Advance Notice Allowance

The advance notice allowance is calculated as ordinary wages × 30 days.

One day's ordinary wages = Monthly ordinary wages ÷ (Monthly scheduled working hours ÷ 8)

The most commonly used formula in practice is:

One day's ordinary wages = Monthly ordinary wages ÷ 209 hours × 8 hours
Advance notice allowance = One day's ordinary wages × 30 days

Example – A worker with monthly ordinary wages of KRW 3,000,000 is dismissed without notice:

In addition to base pay, ordinary wages include allowances paid on a regular, uniform, and fixed basis (e.g., position allowances, qualification allowances) (Supreme Court en banc decision 2013Da11310 (대법원 2013다11310 전원합의체 판결)). Items of an expense-reimbursement nature, such as meal allowances and transportation allowances, are in principle excluded.

How to Claim the Advance Notice Allowance

If you have not received the advance notice allowance, you may exercise your rights through the following steps:

  1. Direct claim to the employer – Send a certified letter (내용증명)
  2. File a complaint with the Ministry of Employment and Labor (고용노동부 진정) – Submit a wage arrears complaint to the competent Regional Employment and Labor Office
  3. Apply for relief to the Labor Relations Commission (노동위원회 구제 신청) – Unfair dismissal (부당해고) can also be contested at the same time
  4. Civil litigation – Small claims proceedings may be used

The statute of limitations for claiming the advance notice allowance is 3 years under Article 49 of the Labor Standards Act (근로기준법 제49조), so you must file your claim within 3 years from the date of dismissal.

Check Your Entitlement with Bylaw (바이로)

Accurately calculating your ordinary wages is essential to determining the correct advance notice allowance. Use the salary take-home calculator on Bylaw (workbylaw.com) to quickly identify the ordinary wage components broken down by base pay and individual allowances. You can also use the AI search feature to instantly look up dismissal-related legal interpretations for your specific situation, and use the complaint drafting tool to easily prepare documents for submission to the Ministry of Employment and Labor.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.