Written by Attorney Soobin You, a former prosecutor licensed in Korea, handling civil and labor matters with consultations available in English.
Quick answer: In Korea, workers are entitled to severance pay (퇴직금), and when an employer refuses to pay, a payment order (지급명령) can secure a fast court decision. Even when the employer objects and forces a trial, the case can still be won using evidence of the debt and the legal doctrine of “acknowledgment.” In one case, the worker’s claim was effectively secured, with only the final judgment remaining.
For foreigners who work in Korea, unpaid severance pay is a common and stressful problem, made harder by unfamiliar procedures and the language barrier. Working with a Korean English-speaking lawyer can turn a confusing situation into a clear, winnable claim. Here is how one case worked.
The situation: unpaid severance and a payment order
The case was straightforward at its core. A long-serving worker requested severance pay after leaving, but the employer kept delaying. We promptly filed for a payment order to obtain a fast court decision, and the court issued one, finding the existence of the debt sufficiently shown. The employer then filed an objection, which moved the case to a formal trial. When a payment order is objected to, a trial follows, so it is wise to prepare the initial filing to full litigation standard from the start, ideally with a lawyer.
The legal point: limitation periods and “acknowledgment”
An employer may argue that the limitation period for claiming severance pay has expired. Against this, we relied on the doctrine of acknowledgment. Several kinds of employer conduct treat the debt as existing. Paying part of the severance balance. Preparing and issuing an internal severance settlement statement. Sending a message to the effect that payment is delayed due to cash flow. Each of these presupposes the debt exists, and such acknowledgment can restart the limitation period. Here, the employer’s accounting staff messages and the payroll staff’s email replies read as an acknowledgment of the entire claim, and copies could be submitted as evidence.
The strategic approach
A civil claim like this is guided through several layers of legal principle at once. Disputes over when the limitation period starts. Interruption of the limitation period through a court claim. Acknowledgment of the debt through partial payment or a settlement agreement. We also keep an abuse-of-rights argument in reserve, using it only when needed, because the limitation system exists for legal stability and cannot be set aside lightly. Still, where an employer behaved in a way designed to run out the clock, or expressed an intention to pay right up until objecting, that can constitute a violation of good faith. Here, the employer’s repeated “we’ll handle it this week” confirmations and internal approval replies were preserved in detail, and reconstructing that flow in chronological order strengthened the case. By this point, a case effectively won at the payment-order stage becomes one where only the judgment remains, even after it moves to formal litigation.
Evidence design: concise but complete
The principle for evidence is concise but complete. Five bundles cover most objection cases. Establishing the departure date, through insurance loss records, salary flow, and work schedules. Calculating the severance amount, through the employment contract, work rules, and ordinary and average wage tables. Interruption of the limitation period, through the payment order filing and proof of service. Acknowledgment, through partial payment, settlement statements, and communications. And a timeline prepared against any abuse-of-rights argument. The lawyer’s role is to distill the mass of material into the core the court can grasp at a glance.
The result: effectively secured
In the end, even in the objection phase after the payment order was granted, the claim was effectively secured by carefully arranging the starting point, interruption, acknowledgment, and good-faith points. In practical terms, only the judgment remained, and the case proceeded on the most efficient course for the client in both cost and time.
Practical advice for workers
Gather the records that prove your departure date now. If the limitation period is near, file a payment order promptly and keep proof of service. Any partial payment, settlement, or confirmation message from your employer can be evidence of acknowledgment. If an objection is filed, fix the issues early and submit one organized evidence list. Where possible, work with a lawyer from the start to minimize procedural risk.
Frequently Asked Questions
Q: Am I entitled to severance pay in Korea as a foreign worker?
A: Generally, yes. Severance pay entitlement applies based on your employment, regardless of nationality, subject to the requirements under Korean labor law.
Q: What is a payment order (지급명령) in Korea?
A: It is a fast-track court procedure to obtain a decision on a debt. If the employer does not object, it becomes enforceable. If they object, the case proceeds to a formal trial.
Q: What if my employer says the limitation period has expired?
A: The doctrine of acknowledgment may apply. Partial payment, a settlement statement, or a message treating the debt as owed can restart the limitation period, keeping your claim alive.
Q: My employer paid only part of what I’m owed. Does that help?
A: It can. Partial payment may count as acknowledgment of the debt. The timing, amount, and wording need to be reviewed together to assess the effect.
Q: Can I get help in English with an unpaid wage or severance claim?
A: Yes. A Korean English-speaking lawyer can take your account in English and build the claim to litigation standard, which matters because objections push these cases into formal court proceedings.
This article is for general information only and does not constitute legal advice. Outcomes depend on the specific facts of each case. For advice on your situation, consult a licensed attorney.
Owed severance or unpaid wages in Korea? YUSU Law Firm (법무법인 유수), led by former prosecutor Soobin You, with a team that includes Kyungmin Kim, a US-educated Korean attorney, provides English-language legal support from payment order through enforcement. With offices in Seoul (Mapo) and Gyeongju, contact us via KakaoTalk or the inquiry form.