Advance Notice Pay (해고예고수당) in Korea: Calculation, Eligibility & Exceptions – Foreign Workers' Guide

What Is Advance Notice Pay (해고예고수당)?

When an employer dismisses a worker, they must give at least 30 days' advance notice under Article 26 of the Labor Standards Act (근로기준법 제26조). If the employer fails to give 30 days' notice, they must pay the worker at least 30 days' ordinary wages as advance notice pay (해고예고수당). The purpose of this system is to protect workers from the sudden loss of livelihood caused by abrupt dismissal.

Payment Standard: When Does It Arise?

Advance notice pay arises when both of the following conditions are met:

  1. The employer dismisses the worker (voluntary resignation at the employer's suggestion or mutually agreed retirement does not qualify)
  2. The employer did not give written notice at least 30 days before the dismissal date

For example, if you are notified of dismissal today and required to leave immediately, the employer must pay 30 days' ordinary wages as advance notice pay. If notice was given 15 days in advance, only the shortfall of 15 days' wages needs to be paid.

Calculation Method: Based on Ordinary Wages

Advance notice pay is calculated on the basis of ordinary wages (통상임금) — the amount that includes base pay and fixed, uniform allowances (e.g., position allowances, qualification allowances).

Advance Notice Pay = 1 day's ordinary wages × 30 days

The daily ordinary wage is not calculated by dividing the monthly ordinary wage by the number of scheduled working days in the month; instead it is determined using the formula monthly ordinary wage ÷ (monthly scheduled working hours × hourly wage conversion). In practice, a simplified calculation of monthly ordinary wage ÷ 30 is sometimes used, but for an accurate figure you should refer to the Ministry of Employment and Labor's administrative interpretation (근로기준과-2886, 2004) or consult a specialist.

Note for foreign workers: Your employment contract may specify terms different from the statutory minimum, but the statutory floor always applies.

Exceptions: When the Advance Notice Obligation Is Waived

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

However, even workers with less than 3 months of service may separately contest an unfair dismissal (부당해고) — the two issues should not be confused.

What to Do If Advance Notice Pay Is Not Paid

If an employer fails to pay advance notice pay, they may face imprisonment of up to 2 years or a fine of up to KRW 20 million under Article 110 of the Labor Standards Act (근로기준법 제110조). Workers can seek relief through the following channels:

  1. File a complaint or criminal accusation with the regional office of the Ministry of Employment and Labor
  2. Apply to the Labor Relations Commission for an unfair dismissal remedy (if also contesting the legitimacy of the dismissal)
  3. File a civil lawsuit to claim the unpaid wages

When filing a complaint, it is helpful to prepare evidence such as dismissal notice texts or emails, pay stubs, and the employment contract.

Check Quickly with Bylaw (바이로)

Advance notice pay often arises together with severance pay (퇴직금). Use the Bylaw (바이로) severance pay calculator at workbylaw.com — simply enter your period of service and average wages to instantly estimate your severance pay. You can also use the AI search feature to quickly find legal interpretations relevant to your specific dismissal situation.

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