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Labor Standards Act — Article 46 (Shutdown Allowances)

근로기준법 제46조

This English translation is based on the Korean text effective 2025-10-23. The Korean law has since been amended (current version effective 2026-10-02) — check the Korean original.

(1) When a business shuts down due to a cause attributable to the employer, he or she shall pay the employees concerned allowances of not less than 70/100 of their average wages during the period of shutdown: Provided, That if the amount equivalent to 70/100 of their average wages exceeds that of their ordinary wages, their ordinary wages may be paid as their shutdown allowances.

(2) Notwithstanding paragraph (1), the employer who is unable to continue to carry on the business for any unavoidable reason may, with the approval of the Labor Relations Commission concerned, pay the employees shutdown allowances lower than the standards as prescribed in paragraph (1).

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