A significant change may be made by extending the statute of limitations for unpaid-wage claims from the current 3 years, to 5 years. Additionally, the requirements to receive government compensation for unpaid wages are to be relaxed for young workers (below 35) so that they can more easily receive unpaid-wage compensation from the government even without a final judgment or the employer entering bankruptcy.
Notes President Moon's promise to extend the statute of limitations for unpaid-wage claims from the current 3 years to 5 years will, if kept, expose companies to significantly enhanced risks because any unpaid wages for the past 5 years (an additional two years) could be claimed by employees.
Additionally, under current law employees may request that the government provide substitute pay for their back wages only in the event of the company's bankruptcy, or when there is a final and non-appealable judgment from a court awarding back pay. The government then seeks recourse from the delinquent employers.
The new proposed system, if enacted, will allow young workers to receive substitute pay from the government more easily in other situations as long as non-payment of wages is somehow confirmed. If the exact back-pay amount need not be proven before the government makes a substitute payment, however, there may later be disputes between the government and the delinquent companies over determining the amount to be reimbursed.