What Happens If an Employee Refuses to Resign in Korea?

Short Answer

An employee generally cannot be forced to resign in Korea.

If an employer asks an employee to resign but the employee refuses, the employment relationship usually continues unless the employer has a lawful basis for dismissal or the parties later reach a clear mutual separation agreement.

A resignation must be voluntary.

If an employee signs a resignation letter only because of pressure, threats, misleading explanations, or coercive circumstances, the employee may later argue that the resignation was not genuine and should be treated as a dismissal.

For foreign companies, the key is to distinguish clearly between voluntary resignation, mutual separation, and unilateral dismissal.

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Is Resignation the Same as Dismissal?

No.

A resignation is generally the employee’s decision to end the employment relationship.

A dismissal is the employer’s unilateral decision to end the employment relationship.

This distinction matters because dismissals in Korea require a justifiable reason and proper legal procedures.

If the facts show that the employer effectively forced the employee to leave, the case may be treated as a dismissal even if the document says “resignation.”

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What Forms Can Resignation Take in Korea?

In practice, resignation may appear in different forms.

It may be treated as:

• an employee’s unilateral notice of resignation; or
• a mutual termination agreement, where the employee offers to resign and the employer accepts.

This distinction can matter, especially if the employee later attempts to withdraw the resignation or argues that no final agreement had been reached.

For this reason, employers should document resignation and mutual separation discussions carefully.

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Can an Employer Require an Employee to Resign?

Generally, no.

An employer may propose resignation or a mutual separation, but should not force the employee to resign.

If the employee refuses, the employer should not treat the refusal itself as misconduct.

Instead, the employer should consider whether:

• the employment relationship should continue;
• a negotiated separation remains possible; or
• there is an independent lawful basis for dismissal.

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What If the Employee Says the Resignation Was Forced?

This is a common dispute.

An employee may argue that the resignation was not voluntary if it resulted from:

• repeated pressure to resign;
• threats of dismissal;
• threats of disadvantage;
• misleading explanations;
• exclusion from work;
• humiliation;
• excessive urgency;
• lack of time to consider the proposal; or
• other coercive circumstances.

In such cases, Korean authorities may examine the actual circumstances surrounding the resignation, not only the written resignation letter.

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Can We Offer a Separation Package?

Yes.

A negotiated separation package is often a practical solution.

A separation package may include:

• additional compensation;
• agreed final payment terms;
• extended benefits;
• confidentiality obligations;
• return of company property;
• non-disparagement provisions;
• post-employment obligations, where appropriate; and
• a mutually agreed employment end date.

The agreement should be clear, voluntary, and properly documented.

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Should the Employee Be Given Time to Consider the Proposal?

Yes.

Providing reasonable time to consider a resignation or separation proposal can help reduce later disputes about voluntariness.

Employers should avoid pressuring the employee to sign immediately.

Where possible, the employee should be allowed to review the proposal, ask questions, and make a decision without coercion.

This is especially important where the separation package includes waiver, release, confidentiality, or post-employment obligations.

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Should the Resignation or Separation Agreement Be in Writing?

Yes.

Written documentation is essential.

A resignation letter or mutual separation agreement should clearly state:

• that the employee voluntarily resigns or agrees to separate;
• the agreed termination date;
• any additional compensation;
• final wage and severance treatment;
• return of company property;
• confidentiality obligations;
• post-employment obligations; and
• confirmation that the agreement was made voluntarily.

Clear documentation is often one of the strongest protections against later disputes.

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Can We Dismiss the Employee After They Refuse to Resign?

Possibly, but only if there is a separate lawful basis for dismissal.

The employee’s refusal to resign is generally not itself a valid reason for dismissal.

If the employer proceeds with dismissal, it must separately satisfy the requirements for dismissal under Korean law, including:

• a justifiable reason;
• proper written notice of the dismissal reason and effective date;
• applicable internal procedures; and
• advance notice or payment in lieu of notice where required.

Employers should avoid using dismissal merely as a response to the employee’s refusal to resign.

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What If the Company Is Restructuring?

Restructuring does not automatically allow the employer to force resignation.

If the company is considering redundancy or business-related dismissal, separate legal requirements may apply.

In Korea, redundancy dismissal generally requires careful review of issues such as business necessity, efforts to avoid dismissal, fair selection standards, and consultation procedures.

A resignation negotiation should not be used to bypass dismissal requirements.

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What Should Employers Avoid?

Foreign companies should avoid:

• repeatedly pressuring the employee to resign;
• threatening dismissal without a legal basis;
• forcing an immediate decision;
• withholding salary or benefits;
• excluding the employee from work without proper basis;
• creating unnecessary humiliation;
• documenting the separation as a resignation when the employee clearly objected;
• processing HR or payroll termination before a final agreement is reached;
• making social insurance separation filings before the resignation is final; or
• treating refusal to resign as misconduct.

These actions may significantly increase the risk that the separation will be challenged as an unlawful dismissal.

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Practical Checklist for Foreign Companies

Before asking an employee to resign in Korea, employers should consider:

• Is the resignation truly voluntary?
• Has the employee been given reasonable time to consider the proposal?
• Is the separation package clearly documented?
• Does the employee understand the proposal?
• Has the company avoided pressure or threats?
• Is there an independent lawful basis for dismissal if negotiations fail?
• Have all communications been documented?
• Has the company avoided premature HR or payroll termination processing?
• Have final wages, severance, and benefits been addressed?
• Has company property been addressed?
• Have confidentiality and post-employment obligations been considered?

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Practical Takeaway

A resignation should be a voluntary decision, not a substitute for dismissal.

If an employee refuses to resign, the employer should not pressure the employee or process termination prematurely.

The company should either continue the employment relationship, negotiate a clear mutual separation agreement, or carefully evaluate whether a lawful basis for dismissal exists.

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Conclusion

An employee’s refusal to resign does not automatically allow dismissal under Korean law.

Foreign companies should clearly distinguish between voluntary resignation, mutual separation, and unilateral dismissal.

A properly documented mutual separation agreement can be useful, but it must reflect the employee’s genuine and voluntary consent.

If resignation negotiations fail, the employer should carefully review whether the legal requirements for dismissal are independently satisfied before taking further action.

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