Employment · Guide
Asked to Resign in Korea (권고사직): What to Check Before You Sign
What a recommended resignation means under Korean law, what you are owed either way, and how what you sign affects later claims, benefits and immigration.
Being asked to resign is not the same as being dismissed
In Korea, an employer that wants an employee to leave often proposes a “recommended resignation” (권고사직) instead of a dismissal. Legally, it is a proposal to end the employment by agreement. You can accept it, negotiate it or decline it. Because the employment ends by agreement, the rules that restrict a dismissal, such as the need for just cause and written notice of the reasons, do not decide whether it is valid.
The Supreme Court draws the line by asking how the resignation came about. If the employer made an employee who had no intention of resigning write and submit a resignation, the termination is in substance a dismissal (Supreme Court 2000Da51919; 2001Da76229). If the employee concluded that, in the circumstances, resigning was the best option and chose it, the court treats it as a termination by agreement, even if the choice was reluctant (2000Da51919; 2015Da211630). The documents you sign and the messages around them are the main evidence of which it was.
This guide concerns employees. Directors, heads of a Korean branch, investor-managers and secondees need an assessment of their actual duties and employment relationship; registration as a director or a senior title is not decisive either way.
In the first meeting
- Ask for the proposal in writing: the end date, each payment and its amount, and the deadline for your answer.
- Say that you will review it and reply. You do not have to sign anything in the meeting.
- Note the date, who attended and what was said, and keep the emails and messages. Do not delete work records; before your system access ends, keep copies only of material you are entitled to hold, such as your own contract, payslips and evaluations.
- Ask for the documents the offer depends on: your employment contract, the rules of employment, the bonus or equity plan and your annual-leave balance.
- If your visa depends on this job, do not agree an end date until you have checked your immigration options (see below).
If you decline
Declining the proposal, or letting it expire, does not by itself end your employment. If the company later takes another step, that step is judged on its own terms. In a business that ordinarily employs five or more workers, a dismissal needs just cause, must state its reasons and date in writing to take effect, and can be challenged before the Labor Relations Commission within three months (Labor Standards Act, Articles 23(1), 27, 28). Suspension, transfer, disciplinary pay cuts and other sanctions also require just cause and can be challenged in the same way; the written-notice rule in Article 27 is specific to dismissal. A redundancy dismissal must meet separate requirements, including urgent managerial necessity, efforts to avoid dismissals, fair selection and 50 days’ notice to and consultation with the employee representative (Article 24). Keeping an employee on standby without duties can become invalid if it is maintained for an unreasonably long period (Supreme Court 2005Da3991).
Some periods carry specific protection: dismissal is prohibited during leave for a work-related injury or illness and maternity leave and for 30 days afterwards, subject to limited exceptions (Article 23(2)), and during parental leave except where the business cannot continue (Equal Employment Opportunity and Work-Family Balance Assistance Act, Article 19(3)).
Where the business ordinarily employs fewer than five workers, the just-cause rule, the written-notice rule and the Commission remedy do not apply. Other statutory rights continue, including the protected periods above, notice or notice pay, payment of final wages within 14 days and severance pay where you qualify.
What is owed either way, and what is negotiated
Qualifying unpaid wages and lump-sum retirement benefits carry statutory interest of 20% a year from the day after the 14-day period; the statutory rate does not apply during certain excepted periods (Labor Standards Act, Article 37; Enforcement Decree, Articles 17 and 18). The rule is tied to the 14-day date, so an agreement to pay later does not by itself remove the interest.
There is no legal benchmark for a separation payment. Figures quoted online as “the usual number of months” have no basis in the statute; compare the offer with your statutory entitlements, your contract, any company plan and what the agreement asks you to give up.
| Item | Rule | What to check |
|---|---|---|
| Final wages and other money due | Paid within 14 days after the employment ends; the date can be extended by agreement only where there are special circumstances (Labor Standards Act, Article 36) | Pay to the end date, overtime, allowances |
| Statutory severance pay | At least 30 days’ average wages per year of continuous service, if you have one year or more of service and contractual hours averaging 15 or more a week; due within 14 days (Employee Retirement Benefit Security Act, Articles 4, 8, 9) | Calculation base, bonuses included, payment route |
| Unused annual leave | For accrued leave that is payable, at the ordinary wage or average wage as the rules of employment provide; if they say nothing, the ordinary wage (Article 60(5); Supreme Court 2018Da239110) | Days accrued and remaining, the daily rate |
| Notice of dismissal | A dismissal requires 30 days’ notice or at least 30 days’ ordinary wages instead, with exceptions including service of less than three months (Article 26). It does not apply to a termination by agreement | Whether the company is in fact dismissing you |
| Separation payment (위로금) | No statutory amount; it exists only if agreed | Amount, payment date, conditions |
| Bonus and equity | Governed by the plan, contract and rules | Vesting and payment dates, conditions on leaving, who is promising what |
Check the agreement before signing
The separation agreement usually records that the employment ended by agreement and often contains a release of claims, confidentiality and non-disparagement terms and sometimes a non-compete. The Supreme Court has upheld a confirmation, signed when a separation payment was received, that the employee would raise no objection to the termination (2000Da51919). Have the statutory items listed separately from the separation payment, and decide before signing which issues you want to keep open.
A signed resignation letter can sometimes be withdrawn, but only in limited circumstances that depend on its wording and on whether the employer has already communicated its acceptance (Supreme Court 99Du8657). Act quickly and in writing if you want to withdraw.
Unemployment benefits depend on the facts, not the label
Job-seeking benefits require, among other things, at least 180 insured days in the 18 months before leaving and a reason for leaving that the law does not exclude (Employment Insurance Act, Articles 40 and 58). Being asked to resign because of a reorganisation, a merger or a deteriorating business is a recognised justified reason (Enforcement Rule, Annex 2, item 5); a recommendation to resign given to someone who would otherwise have been dismissed for serious misconduct is excluded (Article 58, item 2). The Employment Center decides on the facts. Foreign employees are covered only in the statuses, and on the terms, set by the Enforcement Decree.
Your visa
If your status depends on your job, such as E-7, plan the immigration steps before you agree an end date. For employment covered by Article 19 of the Immigration Act, including ordinary E-7 employment, the employer must report a dismissal or resignation to the immigration office within 15 days; that is the employer’s deadline, not a grace period for you. Holders of E-7 and other statuses permitting employment may also have to report changes to their own registered employment information, such as occupation, industry or income bracket, within 15 days (Immigration Act, Article 35; Enforcement Rule, Article 49-2); this can be done online through HiKorea. Moving to a new employer requires prior permission or, for qualifying professionals, a report within 15 days (Article 21). A job-seeking status (D-10) covers qualifying job seeking in the E-1 to E-7 fields, subject to exclusions and the Ministry of Justice’s criteria. Permanent residents (F-5), marriage migrants (F-6) and most F-2 holders are not tied to one employer. Confirm your own options with the immigration office or the Immigration Contact Center (1345). This office’s employment work does not include immigration applications or filings.
From the first meeting to the legal deadlines
| When | What | Note |
|---|---|---|
| Day of the meeting | Ask for the proposal in writing and a deadline | Record who said what |
| Reviewing the offer | Compare the offer with your contract, payslips, leave balance and plan rules | List the statutory amounts separately |
| Responding to the offer | Send written questions or proposed changes | Keep every draft |
| Before signing | Check end date, payment dates, release scope, non-compete, reason for leaving, visa timing | Read the final version in full |
| 14 days after the employment ends | Final wages, severance and other money due | 20% statutory interest on qualifying wages and lump-sum retirement benefits after that, subject to exceptions |
| 15 days after the employment ends | Employer’s report to immigration (statuses covered by Immigration Act Article 19, such as E-7) | Not a grace period for you |
| 3 months after a dismissal | Deadline to apply to the Labor Relations Commission (five or more workers) | Applies if it was in fact a dismissal |
| 12 months after leaving | Period within which job-seeking benefits are paid | Applying late can reduce the days you receive |
| Limitation periods | Wage claims: 3 years from each payday; severance: 3 years from leaving | Leaving does not restart older wage claims (Labor Standards Act, Article 49; Employee Retirement Benefit Security Act, Article 10) |
Frequently asked questions
Can my employer make me resign?
No. A recommended resignation needs your agreement. If you decline, any further step by the employer needs its own lawful ground and procedure and can be reviewed. If you were made to sign a resignation you did not intend, the termination can be treated as a dismissal, but you would need to show how it happened.
HR gave me until tomorrow to sign. What should I do?
A deadline for an offer is not a legal requirement for you. Ask in writing for the documents and a reasonable review period and identify the changes you need. If the company will not extend, decide on the written terms, not on oral assurances.
How much separation pay is normal in Korea?
There is no statutory amount or standard number of months. Compare the offer with your statutory entitlements, any company plan or past programme, your contract and what the agreement asks you to give up, such as claims or a non-compete.
I am still on probation, or have worked less than three months. Is anything different?
In a business with five or more workers, ending employment under a genuine probation arrangement that reserves a right to assess suitability is judged by a less strict standard than an ordinary dismissal, but still needs an objectively reasonable ground that is acceptable by ordinary social standards, and specific written reasons. Separately, the 30-day notice rule does not apply to employees with less than three months’ service. A recommended resignation still needs your agreement.
My employer is a foreign company. Does its head-office policy apply instead of Korean law?
Where you habitually work in Korea and the contract chooses no other law, Korean law governs. Even if a contract chooses another law, that choice cannot remove the protection given by the mandatory rules of the law that would otherwise apply (Act on Private International Law, Article 48). A global policy can add benefits but cannot reduce statutory ones.
How do I know whether the business has five or more workers?
It is the number of workers ordinarily employed, calculated under the Enforcement Decree (Article 7-2): total worker-days in the month before the event divided by the operating days. Then check the daily counts: an average below five still qualifies if the days with fewer than five workers were less than half the operating days, and an average of five or more does not qualify if those days were half or more. Fixed-term and part-time workers count; workers dispatched to the business by an agency are not counted there. The relevant business unit also has to be identified, which can matter for a small Korean office of a foreign group.
How the initial review works
- Send a short description, your current country and time zone, and any deadline. Please wait for document-transfer instructions before sending identity documents.
- The attorney checks the requested scope and any conflict of interest, then proposes the review, fee and expected delivery date by email. A video consultation in English can be arranged by appointment.
- The agreed initial review includes an English summary of the issues, missing documents and recommended next steps. Depending on the scope, it may also include a document checklist or a list of steps to take with each authority.
- Fees depend on the records and questions to be reviewed. Any filing, translation, certification, government charges or continuing work is identified separately in the proposal. Sending an inquiry does not start a paid engagement.
Scope and sources
This guide gives general information on Korean law in force on 1 October 2026 and the Supreme Court decisions cited. It is not legal advice on your situation and does not predict the outcome of a negotiation or claim. Tax advice and immigration applications are outside its scope.
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General information on Korean law. Advice for a particular matter requires a separate review and agreed engagement.