Advance Notice Pay (해고예고수당) and Recommended Resignation in Korea: Conditions & Calculation Guide for Foreign Workers

Can You Receive Advance Notice Pay After a Recommended Resignation?

One of the most commonly confused concepts when losing a job is the difference between recommended resignation (권고사직) and dismissal (해고). Some employers believe that by using the term "recommended resignation," they are not required to pay advance notice pay — but this is a mistaken understanding.

What Is Advance Notice Pay (해고예고수당)?

Article 26 of the Labor Standards Act (근로기준법 제26조) requires that an employer give an employee at least 30 days' advance notice before dismissal. If the employer dismisses an employee without such notice, the employer must pay at least 30 days' ordinary wages (통상임금). This payment is called advance notice pay (해고예고수당).

The key is the substance of the dismissal, not its label. Even if the employer calls it a "recommended resignation," courts and the Ministry of Employment and Labor will treat it as a dismissal if the employee submitted a resignation letter in circumstances where refusal was practically impossible (see Supreme Court Decision 2011Da42324, etc.). In other words, simply labeling a separation "recommended resignation" does not automatically eliminate the employer's advance-notice obligation.

When a Recommended Resignation Is Recognized as Dismissal

The following situations may be treated as a substantive dismissal:

• The employer pressured the employee to submit a resignation letter by threatening disciplinary dismissal if they refused
• The resignation letter was written without the employee's genuine intent
• The company unilaterally notified the employee of their separation

Conversely, if the employee voluntarily agreed to resign of their own free will (mutual termination / 합의해지), it is not a dismissal, and claiming advance notice pay would be difficult.

Exceptions to the Advance Notice Obligation

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

1. Employees whose continuous period of employment is less than 3 months
2. Cases where continuation of the business is impossible due to unavoidable reasons such as natural disasters or other emergencies
3. Cases where the employee intentionally caused serious disruption to the business or inflicted property damage (when the Ministry of Employment and Labor's prescribed criteria are met)

Even if an employee is in a probationary period, the advance-notice obligation arises once 3 months have passed.

How to Calculate Advance Notice Pay

Advance notice pay equals 30 days of ordinary wages (통상임금).

Daily ordinary wage × 30 days

Ordinary wages include not only base pay but also allowances paid on a regular, uniform, and fixed basis — such as position allowances (직책수당) and job allowances (직무수당). Meal allowances and transportation allowances may also be included in ordinary wages if they are paid uniformly to all employees.

For example, if monthly ordinary wages are 3,000,000 KRW, the advance notice pay is 3,000,000 KRW (30 days' worth). If the employer gave 15 days' notice, only the remaining 15 days' worth needs to be paid.

Note: Your employment contract may specify terms that differ from the statutory minimum; always check your contract alongside the law.

How to Exercise Your Rights

If you have not received advance notice pay, you may file a complaint (진정) with the Regional Employment and Labor Office (고용노동청) having jurisdiction over your workplace. Violation of the advance-notice requirement is subject to criminal penalties under Article 110 of the Labor Standards Act (근로기준법 제110조) — imprisonment of up to 2 years or a fine of up to 20,000,000 KRW. The statute of limitations for wage claims is 3 years, so you may still file a claim even after leaving the job.

Check It Instantly on Bylaw (바이로)

If you want to calculate your exact ordinary wages, use the salary take-home calculator on Bylaw (workbylaw.com). You can also search "advance notice pay calculation" using the AI search feature to get answers tailored to your situation. If you need to draft a complaint, try Bylaw's complaint drafting assistant as well.

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