if you're sick and need to take time off work, should you be paid or unpaid? Here's a complete rundown of the criteria for unpaid sick leave, sick leave pay, and most importantly, how sick leave severance is calculated.
"I woke up one morning and couldn't get up."
a sudden bout of the flu, shingles, or an unexpected injury. it's bad enough to be sick, but your head quickly starts to spin: "What should I tell my manager?" "Will my paycheck be okay this month?" "Will I be penalized in my retirement plan if I take sick leave?
the 'sick pay' and 'sick pay severance' issues in particular are some of the most real and important concerns. In this one post, we'll clarify the key rights you need to know, from the 'no sick pay' controversy to whether you'll be penalized in your severance package.
table of contents
sick leave without pay, the bottom line
sick leave severance pay, just 2 things to remember
sick leave vs. annual leave, if your company forces you to take it?
(Related articles) You might also like to read
what If Your Company Only Gives Unpaid Sick Leave? Check Out 'Sick Pay'!
key FAQs about unpaid sick leave
unpaid Sick Leave: The Bottom Line, in a Nutshell
fact check: Sick leave is 'generally' unpaid
here's the most confusing part: Sick leave is not "statutory paid leave" under the Labor Standards Act.
statutory paid leave under the Labor Standards Act refers to annual leave, pre- and post-natal leave, spousal maternity leave, fertility treatment leave, etc. Sick leave does not fall under this category. In other words, legally, companies are not obligated to grant sick leave or pay employees when they take time off for personal illness or injury (not work-related). It is unpaid in principle, in accordance with the principle of "no work, no pay.
the only condition for paid sick leave: 'this paperwork'
so how do you get 'paid sick leave'?
the answer is simple: if your company's rules of employment or collective bargaining agreement provide for it. if your company policy says "sick leave is paid up to O days" or "you will be paid OO% of your salary during your sick leave", then it's a legal obligation and your company must pay you sick leave.
check your company's "Workplace Rules" on your intranet or through your HR team right now - the "Sick Leave Policy" section is the key to determining your paycheck.
sick leave severance pay: 2 things to remember
many people worry that taking sick leave will reduce their severance pay, but there are only two things to remember when it comes to sick leave severance.
1. sick leave counts towards 'continuous service'
severance pay is paid to workers who have at least one year of "continuous service. sick leave taken with the company's approval is considered a temporary 'pause' in employment, not a complete 'break' in employment.
therefore, sick leave periods are included in your 'continuous service' for severance pay purposes. if you worked for 5 years and took 3 months of sick leave, your length of service would be 5 years and 3 months.
(However, in very rare cases, if the employment rules state that 'personal leave of absence for personal reasons is excluded from the length of service', it may be excluded, so you need to check the company rules)
2. taking "unpaid sick leave" won't reduce your severance package
this is the most common misconception. "I heard that severance pay is calculated on the average wage of the last three months, so if I take three months of unpaid sick leave, will my average wage be zero and my severance pay be zero?"
absolutely not. To protect workers, our law requires that periods of sick leave that are authorized by the employer are "excluded" from the "average wage calculation period.
this means that if you were on unpaid sick leave for three months just before you left your job, we exclude that period and calculate your average wage based on your normal salary for the "three months immediately preceding" your sick leave. you won't be penalized for taking time off sick.
sick leave vs. annual leave, if your company forces you to take it?
i've been sick and asked for sick leave, only to be told, "You'll have to use up your annual leave first." is that illegal?
if your company has a policy that says, "If you take sick leave, you must use up your annual leave first," it's unlikely to be illegal per se.
however, there are some cases where it is clearly illegal. forcing you to take "accrued but unused annual leave" - that is, leave that will be earned next year - is a violation of the Labor Standards Act.
also, taking extended sick leave doesn't mean you'll be "absent" and have zero annual leave next year - the sick leave period is excluded from the calculation of the "prescribed number of working days" for annual leave accrual, so you're not penalized.
what if my company only gives unpaid sick leave? Check your 'sick pay'!
unfortunately, my company's policy doesn't provide for paid sick leave, and it's all "unpaid sick leave." Here's what you need to know about the government's "sick pay" pilot.
this is a Korean-style paid sick leave program that allows workers to focus on their treatment without worrying about their income when they are unable to work due to non-work-related illness or injury.
as of 2025, the program is in operation in a few "pilot areas," including Anyang-si and Yongin-si in Gyeonggi-do, Daegu Dalseo-gu, Iksan-si in Jeollabuk-do, and Chungju-si in Chungcheongbuk-do. you can apply if you live (and work) in these areas and are unable to work for more than 7 days (excluding the waiting period). the payment is 60% of the minimum wage.
if your company doesn't offer paid sick leave, it's worth checking to see if you're in one of the pilot areas.
key FAQs about unpaid sick leave
Q1. What is the difference between sick leave and industrial accident? A1 . "Industrial accident" is when you are injured or sick for "work-related" reasons. the Labor Welfare Corporation covers medical treatment and salary. 'Sick leave', on the other hand, is a personal illness or injury 'outside of work' and is handled in accordance with the company's company policy.
Q2. My company doesn't have a sick leave policy, is it always unpaid? A2 . Yes, it is. If there is no specific policy for sick leave, it is unpaid according to the principle of "no work, no pay." In this case, you can either use personal leave or take unpaid leave in consultation with the employee.
Q3. What happens to weekly vacation pay during unpaid sick leave? A3 . Weekly vacation pay is accrued by working a full week of scheduled work days. if you are on unpaid sick leave for an entire week, Monday through Friday, you will not accrue weekly pay (Sunday pay) for that week.
conclusion
we're sure you've had a lot of questions about 'unpaid sick leave', 'sick leave pay', and 'severance pay for sick leave', so let's summarize what we've learned in one line.
"The answer to all your sick leave rights is in our workplace rules."
it's never an employee's fault if they get sick, so we hope you'll check your company's rules now, and that you'll feel confident in your rights based on what you learned today.
did this article help ease your anxiety? Let usknowabout your experience or any additional questions you have in thecomments.