Advance Notice Pay (해고예고수당) in Korea: Full Guide for Foreign Workers

What Is Advance Notice Pay (해고예고수당)?

When an employer wishes to dismiss a worker, they must give at least 30 days' advance notice under Article 26 of the Labor Standards Act (근로기준법 제26조). If the employer dismisses the worker immediately without notice, or gives fewer than 30 days' notice, the employer must pay at least 30 days' worth of ordinary wages (통상임금) as advance notice pay (해고예고수당). For example, if the employer gave only 15 days' notice, they must pay the remaining 15 days' worth of ordinary wages.

Conditions for Claiming Advance Notice Pay

To claim advance notice pay, all of the following requirements must be met:

1. Existence of an employment relationship: You must be a worker under the Labor Standards Act. Freelancers and independent contractors are generally not covered.
2. Unilateral dismissal by the employer: A recommended resignation (권고사직) or mutually agreed termination does not constitute dismissal, so the advance notice obligation does not arise.
3. Failure to give 30 days' notice: The employer dismissed you immediately without notice, or gave fewer than 30 days' notice.

Exceptions: When the Advance Notice Obligation Is Waived

Under the proviso of Article 26 of the Labor Standards Act (근로기준법 제26조) and its implementing rules, an employer may dismiss a worker immediately without notice — and without paying advance notice pay — in the following cases:

• Workers with fewer than 3 months of continuous service
• Cases where continuation of the business is impossible due to a natural disaster, emergency, or other unavoidable cause
• Dismissal due to reasons attributable to the worker (as defined by Ministry of Employment and Labor guidelines: e.g., forgery of delivery documents, unauthorized abandonment of the workplace, taking employment at a competing company, or other serious misconduct)

In particular, "reasons attributable to the worker" are limited to intentional or serious misconduct, not mere work mistakes. If an employer abuses this exception, it may give rise to claims of unfair dismissal (부당해고) and non-payment of advance notice pay.

How to Calculate Advance Notice Pay

Advance notice pay equals 30 days' worth of ordinary wages. Ordinary wages include base pay and fixed allowances (e.g., position allowances, qualification allowances), but exclude expense-reimbursement items such as meal allowances and transportation subsidies.

Example: A worker whose monthly ordinary wages are KRW 3,000,000 is dismissed immediately without any notice.
→ Advance notice pay = KRW 3,000,000 ÷ 30 days × 30 days = KRW 3,000,000

If the employer gave partial notice (e.g., 10 days' notice), only the shortfall of 20 days' worth of ordinary wages needs to be paid.

What If You Don't Receive Advance Notice Pay?

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 20,000,000 under Article 110 of the Labor Standards Act (근로기준법 제110조). Workers may file a complaint (진정) with the regional office of the Ministry of Employment and Labor with jurisdiction over the workplace, or pursue the claim through civil litigation.

Check It Now on Bylaw (바이로)

Accurately calculating advance notice pay starts with determining your ordinary wages. Use Bylaw (workbylaw.com)'s annual take-home pay calculator to identify the components of your ordinary wages, and use the AI search feature to quickly find interpretations of advance notice laws relevant to your situation. If you need to draft a complaint, Bylaw's complaint-writing assistant is also available.

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