Can Workers at Businesses with Fewer Than 5 Employees Receive Advance Notice Pay? 2026 Complete Guide

Can Workers at Businesses with Fewer Than 5 Employees Receive Advance Notice Pay?

"Our company has only 4 employees, and I was suddenly told not to come in starting tomorrow. Can I receive advance notice pay?"

Many people have this question. To state the conclusion upfront: businesses with fewer than 5 employees are also obligated to pay advance notice pay (해고예고수당). However, there are several exceptions, so it is important to check carefully.

Article 26 of the Labor Standards Act Applies to Businesses with Fewer Than 5 Employees

Article 26 of the Labor Standards Act (근로기준법 제26조) requires that an employer who intends to dismiss a worker must give at least 30 days' advance notice, and if no such notice is given, must pay at least 30 days' ordinary wages (통상임금) as advance notice pay. This provision applies to all workplaces, regardless of the number of regular employees.

In the past, certain provisions of the Labor Standards Act did not apply to businesses with fewer than 5 employees. However, according to an administrative interpretation issued on March 19, 1999, the advance notice of dismissal provisions have applied to businesses with fewer than 5 employees since January 1, 1999, and the length of service is calculated from the date the law became applicable.

Exceptions: When Advance Notice Pay Is Not Required

Under the proviso of Article 26 and Article 35 of the Labor Standards Act (근로기준법 제35조), the obligation to give advance notice of dismissal is waived in the following cases:

• A daily worker who has not worked continuously for 3 months
• A worker employed for a fixed term of 2 months or less
• A monthly-paid worker who has been employed for less than 6 months
• A worker on probation within 3 months from the start of the probationary period
• Cases where it is impossible to continue the business due to unavoidable circumstances such as a natural disaster or other force majeure (requires approval from the Minister of Employment and Labor)
• Cases where the worker has deliberately caused serious disruption to the business or inflicted property damage (requires approval from the Minister of Employment and Labor)

If you do not fall under any of the above exceptions, you have the right to claim advance notice pay if you were dismissed without 30 days' advance notice.

Violating the Advance Notice Requirement Does Not Automatically Void the Dismissal

One important legal principle to note: the Supreme Court held in case no. 93누4199 that even if the advance notice procedure is violated, the dismissal itself remains valid as long as there are legitimate grounds for it. In other words, failure to pay advance notice pay is a separate monetary obligation on the employer — it does not automatically render the dismissal void.

Conversely, even if the advance notice procedure was followed, if the grounds for dismissal are not legitimate, the dismissal can still be challenged as an unfair dismissal (부당해고). The two issues are judged independently.

How Much Advance Notice Pay Can You Receive?

Advance notice pay equals 30 days' ordinary wages. Ordinary wages include not only base pay but also allowances paid on a regular and uniform basis.

For example, based on the 2026 minimum wage (hourly rate of 10,320 won) with an 8-hour workday, one day's ordinary wages amount to 82,560 won, making 30 days' worth approximately 2,476,800 won. If your actual ordinary wages are higher than the minimum wage, the calculation must reflect that higher amount.

Advance notice pay can be claimed separately from severance pay (퇴직금). If the employer refuses to pay, you may file a complaint with the Ministry of Employment and Labor or pursue the claim through civil litigation.

What Should You Do If You Feel Wronged?

1. Gather evidence: Save and screenshot any dismissal notices sent via text message, KakaoTalk, email, or other means.
2. File a complaint with the Ministry of Employment and Labor: You can file a complaint at your nearest Regional Employment and Labor Office for unpaid wages or failure to pay advance notice pay.
3. Apply for relief with the Labor Relations Commission: If you believe the dismissal was unfair, you may apply for relief at the Regional Labor Relations Commission within 3 months of the date of dismissal under Article 28 of the Labor Standards Act (근로기준법 제28조).

You can use the unemployment benefit eligibility checker and severance pay calculator at Workbear (workbear.kr) to quickly estimate the amounts you may be entitled to after dismissal. If you are unsure how to write a complaint, try the AI complaint drafting feature as well.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.