Did you get your payment in lieu of notice?
Payment in lieu of notice is the 30 days of ordinary wages an employer must pay when they dismiss an employee without giving 30 days' notice. It exists to protect workers who are suddenly let go without time to prepare. The problem is that employers rarely bring it up — and most employees don't know to ask.
This guide covers what payment in lieu of notice is, who qualifies, how it's calculated, and what to do if you never received it.
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Key Facts: Payment in Lieu of Notice
Dismissed without 30 days' notice? You're entitled to 30 days of ordinary wages
Applies regardless of workplace size — even under 5 employees
Completely separate from severance pay — you can claim both
Statute of limitations: 3 years from the date of dismissal
Article 26 of Korea's Labor Standards Act requires employers to give at least 30 days' notice before dismissing an employee. If they don't, they must pay at least 30 days of ordinary wages instead. That payment is payment in lieu of notice.
In plain terms: if your employer told you "don't come in next week" with no warning, they owe you roughly a month's pay on top of anything else you're entitled to.
It's separate from severance. Severance pay and payment in lieu of notice are two distinct legal rights. Receiving one doesn't affect your right to the other.
It applies to all workplaces. Unlike wrongful termination remedy applications — which don't apply to workplaces with fewer than 5 employees — payment in lieu of notice applies regardless of company size.
How it's calculated: Ordinary wages × 30 days. Ordinary wages include your base salary plus any fixed allowances paid regularly.
✅ You likely qualify if:
You were dismissed immediately, without 30 days' notice. This includes situations where some notice was given but fell short of 30 days — in that case, you can claim the difference.
❌ You may not qualify if:
Korean law exempts employers from the notice requirement in specific circumstances:
The employee intentionally caused significant disruption or financial damage to the business
The business became impossible to continue due to a natural disaster or other unavoidable event
The employee had worked for less than 3 months continuously
The employee was a daily worker with less than 3 months of service
That said, just because your employer claims an exemption applies doesn't mean it does. Whether the exemption is legally valid is a separate question — one worth checking before you accept their position.
If you haven't received payment in lieu of notice after your dismissal, you can still claim it — the statute of limitations is 3 years.
👉 Find out whether you're entitled to payment in lieu of notice
① Send a formal demand to your employer
A certified legal notice is a formal written demand requesting payment. It establishes a legal record and, in many cases, results in payment at this stage alone — employers often prefer to settle rather than escalate.
② File a complaint with the Labor Office
If your employer refuses, you can file a wage theft complaint with the relevant Regional Employment and Labor Office. Unpaid payment in lieu of notice is treated as unpaid wages under Korean law.
③ Civil litigation
If neither of the above works, the matter can be pursued through civil court. For smaller amounts, a simplified small claims procedure is available.
The most practical starting point is the formal demand. It's low-cost, establishes a clear legal record, and often resolves the issue without going further.
👉 Was your performance bonus also left out of your severance? — Why You Shouldn't Just Accept Your Employer's Calculation
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A Note from Your Lawyer
Payment in lieu of notice is one of the most commonly overlooked entitlements after dismissal. Employers don't bring it up, and employees are too focused on severance to think about it. If you were dismissed without notice, check your severance and your payment in lieu of notice — both of them. The statute of limitations is 3 years. It's not too late.
Knowing your rights is one thing, but asserting them against your employer is another. Taking on a company alone can be emotionally exhausting. That’s why Sugar Square Law & Advisors does it for you.
From claiming dismissal notice pay to issuing formal notices, negotiating on your behalf, and filing Labor Office petitions, we handle the entire process. We build a shield so you never have to face your employer directly, ensuring a clean and complete break. For foreign nationals in Korea, we communicate in your language—no interpreter required.
Q. How is payment in lieu of notice calculated? A. Ordinary wages × 30 days. Ordinary wages include your base salary plus any fixed allowances paid on a regular basis.
Q. My workplace has fewer than 5 employees. Can I still claim payment in lieu of notice? A. Yes. Payment in lieu of notice applies regardless of workplace size. Wrongful termination remedy applications aren't available for smaller workplaces — but payment in lieu of notice is a separate right that applies to everyone.
Q. I already received my severance. Can I still claim payment in lieu of notice? A. Yes. They're separate legal rights. Receiving severance doesn't affect your entitlement to payment in lieu of notice.
Q. How long do I have to claim? A. Three years from the date of dismissal. Even if time has passed, it's worth checking whether you're still within the window.
Q. My employer says an exemption applies and they don't owe it. What should I do? A. Whether the exemption is legally valid is a separate question from whether your employer claims it applies. Get a professional to check before you accept their position.
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