South KoreaIf I can't use annual leave, can I receive pay in lieu?
Yes, if you cannot use your annual leave due to employer reasons or termination, you are entitled to payment in lieu of unused days under South Korean law.
What the Law Says
South Korean labor law guarantees paid annual leave and requires employers to compensate employees for unused days under specific conditions.
Under the Labor Standards Act, workers who have worked at least 80% of working days in a year are entitled to at least 15 days of paid annual leave. Employers must allow employees to use this leave, and if they fail to do so — especially due to operational reasons or upon employment termination — the unused days must be compensated in cash.
The law specifies that unused annual leave days expire after two years unless the employee was prevented from taking them due to employer-related reasons (e.g., denial of leave requests, excessive workload, or termination before usage). In such cases, the employer must pay the full wage equivalent for each unused day.
Payment must be made within 30 days of the employee’s request or termination date, and the amount is calculated based on the average wage over the preceding three months.
Statutory TextIf a worker has not taken all of his or her annual leave days, the employer shall pay the worker wages for the number of unused annual leave days.
— Labor Standards Act, s. 60 — Annual Leave
Statutory TextAnnual leave days not taken by a worker shall lapse after the expiration of one year from the date on which the right to take such leave arises; provided that this shall not apply where the worker was unable to take the leave due to reasons attributable to the employer.
— Labor Standards Act, s. 61 — Lapse of Annual Leave
What to Do
Confirm your unused annual leave balance with HR or payroll records.
Submit a written request for payment in lieu if leave was denied or unused due to employer reasons.
If terminated, ensure payout is included in your final settlement — verify it covers all accrued but unused days.
File a complaint with the local Labor Office (via www.work.go.kr) if unpaid within 30 days of request or termination.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.