If your company is sold, your job usually continues — you can get unpaid wages through 대지급금 (substitute payment)

If your company is sold, your job and your work period usually continue. Keep your complaint open, and you can apply for 대지급금 (substitute payment).

✓ Last verified 2026-10-13📎 Sources 22

Quick summary

Sometimes a company is sold by handing over the workers and the equipment together (영업양도, business transfer). In that case, your job usually passes to the new boss (Supreme Court ruling 2011다45217).
If your job continues, your work period also continues. As a rule, your 퇴직금 (severance pay) is calculated by adding your time at the old company and the new company.
The company must make an employment transfer report to the 고용센터 (Job Center) within 15 days from the day the change happens.
If the new company does not take you, or the company closes, you can apply to the 고용센터 for a workplace change. If it is accepted as a reason that is not your fault, it does not count toward your number of workplace changes.
If you already filed a complaint about unpaid wages (진정), you can continue it even if the company is sold. If the boss cannot pay, you can apply for 대지급금 (substitute payment) from 근로복지공단 (Korea Workers' Compensation and Welfare Service). Foreigners can also get it.

When does this apply?

When your boss says "I will sell the company" or "A new boss is coming"
When you hear that the company name or the company head will change
When your wages are unpaid and the factory or shop is passing to another person
When the company stops working and only wants to sell the machines or the building

First, check how the company is being handed over. The result depends on the way it happens.

Way of handover	What it means	Your job
Business transfer (영업양도)	Workers, machines and customers are handed over together as one unit	Usually continues with the new boss
Only shares are sold	The company (corporation) stays the same. Only the owner of the shares or the head of the corporation changes	Your employer (the company) is the same, so your work contract usually stays the same
Only assets are sold	Only machines or buildings are sold, and the business ends	It may not be seen as a business transfer. It is closer to a closure

Courts look closely at whether the people and the equipment moved together, in the same form (Supreme Court ruling 94다20198). If you are not sure which one it is, you can ask 1350 or 1577-0071.

Steps

Check the facts in writing. Ask your boss by text message or KakaoTalk: "Who are you handing the company to, and when? Will I keep working at the new company? Who will pay my unpaid wages?" Take a screenshot of the answer.
If your wages are unpaid, file a complaint and tell the labor inspector. If you have not filed a complaint (진정) yet, file one first (How to report unpaid wages). If you already filed one, tell the labor inspector in charge your case number and tell them the company is being sold. If you know the new company name and the new boss's name, tell them too. Do not withdraw your complaint. Keep it open.
Do not sign a resignation letter. They may tell you to write a resignation letter, saying "You are joining the new company as a new worker." Courts have said that when the companies decide to make you resign and rejoin only on paper, your work period is not broken (Supreme Court ruling 91다40276). Still, get advice before you sign anything.
If you keep working at the new company, check the report. When the company is handed over or the company name changes, the company must submit a "외국인근로자 고용사업장 정보변동 신고서" (report of change in workplace information for foreign workers) to the 고용센터 within 15 days. This form has sections for workplace information and employment transfer. You can go to the 고용센터 with your 외국인등록증 (Alien Registration Card) and ask if your workplace information was changed. Ask 1345 if you need a separate procedure at the 출입국·외국인관서 (Immigration Office).
If the new company does not take you, or the company closes, apply for a workplace change. Apply at the 고용센터 within 1 month from the day your work contract ended. A 고용노동부 (Ministry of Employment and Labor) notice says these cases are "reasons that are not the worker's fault":
- You leave because the boss advised you to (or similar), due to a business transfer, takeover or merger
- The business has really ended, for example because of a closure report, a bankruptcy application, or the business stopping
If you do not want to go to the new company, get advice using unpaid wages as the reason. Unpaid wages alone can be a reason for a workplace change. For example: 30% or more of your monthly wage was not paid for over 2 months, or was not paid 2 or more times. You must apply while wages are still unpaid, or within 4 months from the day the unpaid wages ended. For details, see Workplace change – reasons, steps, number of changes.

Unpaid wages and severance pay

Your right to get unpaid wages does not disappear because the company was sold. Ask the labor inspector in charge who you should claim from. If the unpaid wages are confirmed, you can get a 체불 임금등·사업주 확인서 (certificate of unpaid wages and employer) from the labor office.

If the boss cannot pay, apply for 대지급금 (substitute payment). In this system, 근로복지공단 pays you first, in place of the boss.

Type	When	What is covered and the limit	Deadline
간이대지급금 (simple substitute payment)	When you got the certificate, or there is a court decision or similar	Last 3 months of wages up to 7,000,000 원, last 3 years of severance pay up to 7,000,000 원, total up to 10,000,000 원	Certificate: file the complaint within 1 year from the day after you left the job, and claim within 6 months from the day the certificate was first issued. Court decision: file a lawsuit within 2 years from the day after you left the job, and claim within 1 year from the court decision
도산대지급금 (insolvency substitute payment)	When there is a rehabilitation or bankruptcy decision, or when 고용노동부 made an "insolvency recognition" (도산등사실인정). It covers people who left the job within 3 years from the day 1 year before that application date	Wages: if the rehabilitation/bankruptcy decision or insolvency recognition is on or after August 20, 2026, the last 6 months (before that, the last 3 months). Severance pay: last 3 years. The limit depends on your age when you left the job	Apply for insolvency recognition within 1 year from the day after you left the job, and claim within 2 years from the recognition date

For both types, the boss must have run the business for 6 months or more.
For insolvency recognition, all of these must be true: 300 or fewer regular workers, the business has ended or is ending, and the boss cannot pay wages. If work has stopped and the main facility, such as the factory, was handed over to pay debts (including auction), this also counts as "ending."
Even if you get 간이대지급금 first, you can apply for 도산대지급금 later. The amount you already received will be taken out.
If you are not sure whether you qualify, ask 근로복지공단 (1588-0075).

What happens to your severance pay:

If you keep working at the new company, when you leave later, it is usually calculated for your whole work period. If you got severance pay early only on paper because of the company situation, there is a court ruling that you get the severance pay for the combined period minus the amount you already got (Supreme Court ruling 91다40276).
If your work at the old company ends, you should usually get your remaining wages and severance pay within 14 days from that day. For calculation, see How to calculate and get severance pay.

What to prepare

Complaint case number, the labor inspector's name and phone number
체불 임금등·사업주 확인서 (certificate of unpaid wages and employer) (if you got one)
근로계약서 (work contract), 외국인등록증, passport
급여명세서 (pay slips), bank deposit records
Photos of text messages or notices that say the company is being sold, the new company name and the new boss's name
When claiming 대지급금: copy of your bankbook, copy of your 외국인등록증 (or copy of your passport)

Be careful

Keep the 1-month deadline. If you wait for the new company's decision and miss the deadline, you may have to leave Korea. You must get permission to change workplace within 3 months from the day you applied.
Do not stop going to work without saying anything. If you are absent for 5 days or more without a proper procedure, the boss has a reason to report you to the 고용센터. If the company does not give you work, keep a record of this by text message and get advice from the 고용센터 first.
Do not sign a paper saying "I received all the money." If you write that you got money you did not get, it becomes hard to get the rest.
Do not miss the 대지급금 deadline. You must file a complaint within 1 year from the day after you left the job to qualify for 간이대지급금.
Your stay period or job-search period may end first. If your case takes a long time, see Unpaid wages but my stay period is ending.
You cannot claim wages and severance pay after 3 years.

Frequently asked questions

Q. If the company is sold, can I keep working at the new company? A. If it is a business transfer, your job usually passes to the new company. If you do not want this, there is a court ruling that you can say you object within a reasonable time after you learn about it (Supreme Court ruling 2011다45217). If you object, you may stay with the old company, or you may end up leaving both companies (Supreme Court ruling 2000두8455). If you leave, it may be treated as if you quit by yourself. Then it may count toward your number of workplace changes, and the 1-month application deadline also starts. Before you object, get advice from the 고용센터 or 1577-0071 first.

Q. Will the new boss pay my unpaid wages? A. It depends on how the company was handed over and what the contract says. Keep your complaint open and ask the labor inspector who the claim should be against. If no one pays, apply for 대지급금.

Q. The new boss says, "I will not take foreigners." A. Courts say that, in a business transfer, an agreement to leave some workers out of the transfer is the same as dismissal, so it needs a fair reason. The business transfer itself is not a fair reason (Supreme Court ruling 2000두8455 and others). This rule applies to workplaces with 5 or more regular workers. If you want to keep working, get advice from 1350. If you want to move, apply to the 고용센터 for a workplace change within 1 month. If you left because you were advised to due to the business transfer, it can be accepted as a reason that is not your fault. The 고용센터 decides whether it is accepted.

Q. My boss did not sell the company. They just closed it. A. A closure is a reason for a workplace change that is not the worker's fault. Apply at the 고용센터 within 1 month. For the unpaid money, keep your complaint open and you can get it through 대지급금.

Q. Can foreigners also get 대지급금? A. Yes. 근로복지공단 says that if you meet the conditions of a worker under the 근로기준법 (Labor Standards Act), you can claim it, whether or not you broke the Immigration Act. When you claim, submit a copy of your 외국인등록증 (or a copy of your passport).

Where to get help

Organization	Phone / website	What they help with
고용노동부 고객상담센터 (Ministry of Employment and Labor call center)	1350 (weekdays 09:00~18:00)	Labor advice on complaints, unpaid wages, company sales
외국인력상담센터 (Foreign Workers Support Center)	1577-0071 (365 days 09:00~18:00, many languages including Nepali)	Advice on workplace change
외국인종합안내센터 (Immigration Contact Center)	1345 (weekdays 09:00~22:00, 20 languages. After 18:00, only Korean, English and Chinese)	Questions about stay and immigration procedures
근로복지공단	1588-0075	Claiming 대지급금
대한법률구조공단 (Korea Legal Aid Corporation)	132	Free lawsuit help for unpaid wages (conditions apply)
고용센터	The 고용센터 in charge of your workplace address (Which job center should I apply to?)	Checking the employment transfer, applying for workplace change
고용노동부 Labor Portal	labor.moel.go.kr	Filing a complaint online

1577-0071 runs with on-duty staff on Saturdays and public holidays.
If the company address changed, call first to check which 고용센터 you should go to.
More contacts: List of places to get help

💬 Have a question? Ask here

Legal basis

대법원 2012. 5. 10. 선고 2011다45217 판결 — 영업양도 시 근로관계는 원칙적으로 양수 기업에 포괄 승계, 근로자는 상당한 기간 내 반대 의사 표시 가능 (Supreme Court ruling 2011다45217, May 10, 2012: when a business is transferred, employment usually passes in full to the new company; the worker may object within a reasonable time)
대법원 2002. 3. 29. 선고 2000두8455 판결 — 근로관계 일부를 승계에서 빼는 특약은 해고와 같아 정당한 이유 필요, 영업양도 자체는 정당한 이유 아님, 근로자가 반대하면 양도기업 잔류 또는 두 기업 모두에서 퇴직 가능 (Supreme Court ruling 2000두8455, March 29, 2002: an agreement to leave some workers out of the transfer is the same as dismissal and needs a fair reason; the business transfer itself is not a fair reason; if the worker objects, they may stay with the old company or leave both companies)
대법원 2020. 11. 5. 선고 2018두54705 판결 — 영업양도 전에 부당해고된 근로자를 승계에서 빼는 특약도 정당한 이유 필요 (Supreme Court ruling 2018두54705, November 5, 2020: an agreement to leave out a worker who was unfairly dismissed before the transfer also needs a fair reason)
근로기준법 제23조제1항, 시행령 제7조·별표 1 — 해고의 정당한 이유 규정은 상시 4명 이하 사업장에 적용되지 않음 (Labor Standards Act Article 23(1), Enforcement Decree Article 7 and Table 1: the rule that dismissal needs a fair reason does not apply to workplaces with 4 or fewer regular workers)
대법원 1992. 7. 14. 선고 91다40276 판결 — 사업 양도 시 계속근로 유지, 회사 결정에 따른 형식적 퇴직·재입사는 근속 단절 아님 (Supreme Court ruling 91다40276, July 14, 1992: when a business is transferred, the work period continues; a formal resignation and re-hiring decided by the companies does not break the work period)
대법원 1995. 7. 14. 선고 94다20198 판결 — 영업양도 인정 요건(인적·물적 조직이 동일성을 유지하며 일체로 이전) (Supreme Court ruling 94다20198, July 14, 1995: requirements for a business transfer — the people and the equipment move together as one unit, keeping the same form)
외국인근로자의 고용 등에 관한 법률 제17조, 시행령 제23조제1항(제3호 5일 이상 결근, 제8호 사용자·근무처 명칭 변경), 시행규칙 제14조·별지 제12호의2서식(외국인근로자 고용사업장 정보변동 신고서: 사업장정보·지사 간 이동·고용 승계) — 사유 발생 또는 안 날부터 15일 이내 신고 (Act on the Employment of Foreign Workers Article 17, Enforcement Decree Article 23(1) (item 3: absent 5 days or more; item 8: change of employer or workplace name), Enforcement Rule Article 14 and Form 12-2 (report of change in workplace information for foreign workers: workplace information, move between branches, employment transfer): report within 15 days from when the reason happens or becomes known)
외국인근로자의 고용 등에 관한 법률 제25조 — 사업장 변경 신청 1개월, 근무처 변경허가 3개월 (Act on the Employment of Foreign Workers Article 25: 1 month to apply for workplace change, 3 months to get permission to change workplace)
외국인근로자의 고용 등에 관한 법률 시행규칙 제5조제1항·제14조·제16조제1항 — 고용변동·정보변동 신고서와 사업장 변경신청서는 사업장 소재지를 관할하는 직업안정기관(고용센터)에 제출 (Enforcement Rule of the Act on the Employment of Foreign Workers Articles 5(1), 14 and 16(1): employment change reports, information change reports and workplace change applications go to the job center in charge of the workplace address)
고용노동부 고시 「외국인근로자의 책임이 아닌 사업장변경 사유」 제2조(폐업, 사업 양도·양수·합병) · 제4조(임금체불) (Ministry of Employment and Labor notice 'Reasons for workplace change that are not the foreign worker's fault', Article 2 (closure, business transfer/takeover/merger) and Article 4 (unpaid wages))
임금채권보장법 제7조·제7조의2, 시행령 제5조·제7조·제8조·제9조 — 간이대지급금·도산대지급금, 도산대지급금 대상(신청일 1년 전이 되는 날 이후 3년 이내 퇴직자), 판결등 경로(퇴직 다음 날부터 2년 이내 소송, 판결등부터 1년 이내 청구) (Wage Claim Guarantee Act Articles 7 and 7-2, Enforcement Decree Articles 5, 7, 8 and 9: simple substitute payment and insolvency substitute payment; insolvency payment covers workers who left within 3 years from the day 1 year before the application date; court route: lawsuit within 2 years from the day after leaving, claim within 1 year from the court decision)
임금채권보장법 부칙(법률 제21376호, 2026. 2. 19.) 제2조 — 도산대지급금 최종 6개월분 임금은 2026-08-20 이후 회생·파산 결정 또는 도산등사실인정이 있는 경우부터 적용 (Wage Claim Guarantee Act Addenda (Act No. 21376, February 19, 2026) Article 2: insolvency substitute payment for the last 6 months of wages applies when the rehabilitation/bankruptcy decision or insolvency recognition is on or after 2026-08-20)
근로기준법 제36조(금품 청산 14일)·제49조(임금 시효 3년), 근로자퇴직급여 보장법 제9조(14일)·제10조(시효 3년) (Labor Standards Act Article 36 (final payment within 14 days) and Article 49 (wage claims expire after 3 years); Employee Retirement Benefit Security Act Article 9 (14 days) and Article 10 (expires after 3 years))

Sources

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