Even if you are sent home because there is no work, you still get 70% as a shutdown allowance
When you stop working because of the company's situation, the rule is that you get 70% of your average wage. It is not unpaid.
Quick summary
- If the company tells you "Don't work today" because there are no orders, a machine is broken, or materials did not arrive, that day is a shutdown day (ํด์ ).
- On days you stop working because of the company's situation, the rule is that you get at least 70% of your average wage (Labor Standards Act Article 46). It is not unpaid.
- This applies only to workplaces with 5 or more regular workers. It does not apply to workplaces with fewer than 5 workers.
- It does not apply to days off caused by events no one can control (force majeure), such as typhoons or earthquakes.
- If the shutdown lasts a long time or the company closes, this is a reason to change workplaces because of the employer. It does not count toward your number of workplace changes.
When does this apply?
It applies when you cannot work because of the company's situation. Even if it is not the boss's fault, it applies if the problem is something the company can control.
- When orders or work go down and the company says "Come in only 3 days this week"
- When a machine breaks down and you are told to stay home for a few days
- When materials or parts do not arrive and you cannot work
- When you are told to stay home because the factory is moving or under construction
- When the boss says "There is no work, so take unpaid leave" or "Use your annual leave"
- When you come to work but are sent home early because there is no work (for those hours)
When it does not apply
- When the company has to stop because of a natural disaster such as a typhoon, flood or earthquake
- When you take time off because you are sick or for your own personal reasons
- Your regular days off (weekly paid holiday, public holidays)
How much do you get?
The shutdown allowance is 70% of your average wage. The average wage is the total wages you received in the last 3 months, divided by the number of calendar days in that period. Overtime and night work pay are included. If 70% is more than your ordinary wage (ํต์์๊ธ, your basic regular pay), the company may pay just the ordinary wage.
Here is an example for a person who got only the 2026 minimum monthly wage (2,156,880์) and did no overtime.
- Total wages for 3 months: 2,156,880์ ร 3 = 6,470,640์
- Calendar days in 3 months: 92 days (example)
- Average wage per day: 6,470,640์ รท 92 days = about 70,333์
- Shutdown allowance per day: 70,333์ ร 70% = about 49,233์
- 5 days of shutdown: about 246,000์
If you received overtime or night work pay, your average wage goes up, so your shutdown allowance is also higher. If you are paid monthly, the usual method is to cut 100% of the pay for the days off and then pay 70% instead. If you do not understand the company's calculation, you can take your ๊ธ์ฌ๋ช ์ธ์ (pay slip) and ask at 1350.
The company can pay less than 70% only if it gets approval from the ๋ ธ๋์์ํ (Labor Relations Commission). If the boss decides alone and says "This month I will pay only 50%," that is not approval. You can ask whether there is an approval document.
Steps
- Keep a record of the shutdown order. Ask by text message or KakaoTalk: "Is it right that I should not work from (date) to (date)? What is the reason?" Save the answer. If you were only told in person, record it or take a photo of the work schedule.
- Do not sign papers for unpaid leave or annual leave. You are off because of the company's situation. If you sign an "unpaid leave request" or "annual leave request," it looks like you chose to take time off.
- Check your pay slip for that month. See if there is a shutdown allowance item, and make sure your days off were not treated as unpaid. If your base pay was cut for the days off and there is no shutdown allowance, you were not paid.
- Ask the company to pay. Send a text message or KakaoTalk message: "Please pay the shutdown allowance of โโโ์ for the shutdown period from (month) (day) to (day)."
- If they do not pay, file a complaint. Unpaid shutdown allowance is handled the same way as unpaid wages. File a complaint online on the Labor Portal (labor.moel.go.kr) or at the regional employment and labor office for your workplace. For details, see the article "How to report unpaid wages."
- If the shutdown lasts long, think about changing workplaces. If the company keeps telling you not to work or closes, you can apply to change workplaces at the ๊ณ ์ฉ์ผํฐ (Employment Center). A shutdown or closure is a "reason that is not the worker's fault," so it does not count toward your number of workplace changes. For the steps, see the article "Changing workplaces โ reasons, steps, number of times."
What to prepare
- Proof of the shutdown order: screenshots of text or KakaoTalk messages, recordings, photos of notices, work schedule
- Pay slips and bank deposit records for the last 3 months (to calculate the average wage)
- ๊ทผ๋ก๊ณ์ฝ์ (employment contract) (standard employment contract)
- Your own notes of the actual days you worked and the shutdown days
- ์ธ๊ตญ์ธ๋ฑ๋ก์ฆ (Alien Registration Card)
Be careful
- Do not follow the instruction "Go work somewhere else while we are shut down." E-9 workers must not work outside their designated workplace (Immigration Act Article 18(2)). Say no even if the boss introduces the job. If you are caught, your visa status will have problems.
- Your employment continues during the shutdown. If the company tells you to leave the dormitory or stops your 4 major social insurances, that is a separate problem. Call 1577-0071 for advice.
- Workplaces with fewer than 5 workers do not have the shutdown allowance rule. Still, the boss cannot cut your wages without your agreement, so you can ask 1350 for advice based on the workdays and wages written in your contract.
- "Unpaid leave" is something you ask for, not something the company orders. If the company orders it, it is a shutdown.
- If the company is in trouble and looks like it may close, act quickly. It may become hard to get your unpaid wages, shutdown allowance and ํด์ง๊ธ (severance pay). You can get part of your unpaid wages through the substitute payment system (๋์ง๊ธ๊ธ, the government pays part of the unpaid wages instead of the employer).
- Like wages, the shutdown allowance becomes hard to claim after 3 years.
Frequently asked questions
Q. My boss says, "There is no work, so just stay home this week. I can't pay you." A. If the workplace has 5 or more workers, the rule is that you get 70% for that period. Save the message, check that month's pay slip, and if it is not paid, ask for it.
Q. I worked only in the morning, and the boss said "There is no work this afternoon, go home." A. The afternoon hours are a shutdown. The rule is that you get pay for those hours at 70%. Write down the date and the hours.
Q. The company says it will "count it as annual leave." A. The rule is that you choose the dates when you use your annual leave. Without a written agreement with the workers' representative (Labor Standards Act Article 62), the company cannot change shutdown days into annual leave as it likes. Send a text message saying you do not agree, and ask whether there is a written agreement.
Q. The factory stopped because of a typhoon. Do I get paid for that day? A. When the company cannot do anything about it, such as a natural disaster, the shutdown allowance does not apply. But if the company keeps you off work for its own reasons after the typhoon has passed, the shutdown allowance may apply from that point.
Q. The company closed during the shutdown. A. Apply to change workplaces at the ๊ณ ์ฉ์ผํฐ within 1 month, and file a complaint for your unpaid wages. If the company cannot pay, you can apply for the substitute payment (๋์ง๊ธ๊ธ).
Where to get help
| Organization | Phone / Website | What they help with |
|---|---|---|
| ๊ณ ์ฉ๋ ธ๋๋ถ (Ministry of Employment and Labor) Customer Counseling Center | 1350 | Shutdown allowance calculation, complaint advice |
| ์ธ๊ตญ์ธ๋ ฅ์๋ด์ผํฐ (Foreign Workers Counseling Center) | 1577-0071 | Advice on shutdowns and workplace changes, 18 languages |
| ์ธ๊ตญ์ธ์ข ํฉ์๋ด์ผํฐ (Immigration Contact Center) | 1345 | Visa status questions, 20 languages |
| ๊ณ ์ฉ๋ ธ๋๋ถ Labor Portal | labor.moel.go.kr | File a complaint online |
| ๊ณ ์ฉ์ผํฐ | Your nearest ๊ณ ์ฉ์ผํฐ | Apply to change workplaces after a shutdown or closure |