Labor ministry seeks views on expanded wage-payment coverage

The labor ministry is seeking public comment on a proposed rule change to align regional-office paperwork with wider payment coverage for workers who leave insolvent businesses, set to begin Aug. 20.

Changes to the Wage Claim Guarantee Act will extend payment coverage from the final three months of unpaid wages and other benefits to the final six months for former employees of insolvent workplaces. Covered amounts include wages, shutdown allowances and pay for periods of maternity leave.

The ministry plans to revise forms used by regional labor offices in recognizing and verifying employer insolvency, allowing unpaid wages and benefits to be recorded for up to six months instead of three. Forms No. 3 and No. 3-2 would be updated for the expanded entries, while forms No. 4 through No. 8 would replace the former department name, Labor Improvement Guidance Division, with Labor Standards Investigation Division.

"The labor ministry will continue wide-ranging efforts to create a society free of wage arrears, strengthening the safety net for workers owed wages while emphasizing the repayment responsibility of employers in arrears," Labor Minister Kim Young-hoon said.

The ministry issued the draft as Notice No. 2026-393 on Aug. 3 under Article 46 of the Administrative Procedure Act. Institutions, organizations and individuals can submit comments on the draft until Aug. 14.