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Dismissal Notice Pay Calculator

Calculate dismissal notice pay and obligation status.

Overview

The Dismissal Notice Pay Calculator computes the dismissal notice allowance required under Article 26 of Korea's Labor Standards Act. When an employer dismisses a worker without giving at least 30 days' advance notice, they must pay 30 days' worth of ordinary wages. If partial notice is given, the employer pays ordinary wages for the shortfall days. This tool helps both employers and employees accurately calculate the required payment amount.

Formula

Dismissal Notice Pay = Daily Average Wage × 30 days (if dismissed without notice)
Partial notice: Dismissal Notice Pay = Daily Average Wage × (30 - Notice Days Given)

• Daily Average Wage = Total wages for last 3 months ÷ Total calendar days in that period
• If average wage is lower than ordinary wage, ordinary wage applies

Example: Daily average wage KRW 120,000, dismissed without notice
Dismissal Notice Pay = 120,000 × 30 = KRW 3,600,000

Example: Daily average wage KRW 120,000, 10 days' notice given
Dismissal Notice Pay = 120,000 × (30 - 10) = KRW 2,400,000

How to Use

  1. 1Enter the total wages for the last 3 months (base salary + allowances + pro-rated bonuses) to calculate the average wage.
  2. 2Enter the number of advance notice days given (0 if dismissed without notice).
  3. 3Select the length of service and reason for dismissal.
  4. 4Click calculate to see the dismissal notice pay amount and payment obligation status.

Tips

  • Workers with less than 3 months of service, daily workers, fixed-term workers employed for 2 months or less, and probationary workers with irregular pay are exempt from the advance notice requirement.
  • Disciplinary dismissal (for serious employee misconduct) still requires advance notice, but an exemption may be granted with Labor Relations Commission approval.
  • If you believe the dismissal is unfair, you can file an unfair dismissal remedy petition with the Labor Relations Commission within 3 months of the dismissal date.

FAQ

Q. When is dismissal notice pay required?

Dismissal notice pay must be provided when an employer dismisses a worker without giving 30 days' advance notice. The amount equal to 30 days' ordinary wages (or average wages, whichever is higher) must be paid at the time of dismissal.

Q. Who is exempt from the dismissal notice requirement?

Workers with less than 3 months of continuous service, daily workers, workers employed for a fixed term of 2 months or less, and probationary workers within 6 months whose monthly pay is not fixed. Natural disasters or serious employee misconduct (requiring Labor Relations Commission approval) are also exempt.

Q. How should I respond to an unfair dismissal?

If you believe the dismissal is unfair, you can file a remedy petition with the Regional Labor Relations Commission within 3 months of the dismissal date. If the remedy order is confirmed, you may receive reinstatement and back pay for the dismissal period. Seek assistance from a labor attorney or legal professional if needed.

Q. Are dismissal notice pay and severance pay separate?

Yes, they are separate systems. Workers with one or more years of service are entitled to severance pay in addition to dismissal notice pay. Dismissal notice pay compensates for failure to provide advance notice, regardless of severance entitlement.

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