When the 「Labour Standards Act」 was amended on January 26, 2007, the monetary compensation system was regulated in Article 33-3, paragraph 3 of the 「Labour Standards Act」(current Article 30, paragraph 3. Previously, if the Labor Relations Commission determined that the employer"s dismissal was dismissed without justifiable reason, the employer was obligated to reinstate the employee in his former office. However, there was a problem that this remedy was not an effective measure if employee did not want to reinstatement. Accordingly, through the introduction of the monetary compensation system, if an employee who was dismissed without justifiable reason did not want to be reinstated, instead of reinstatement, the Labor Relations Commission could order the employer to pay more than the amount equivalent to the wages the employee could receive during the dismissal period. However, until now, not only the specific calculation criteria for monetary compensation, but also the factors to be considered when calculating the amount of compensation, and the criteria for the upper and lower limits of the amount of compensation are not yet established concretely. These points of dispute are interpretive problems, and that becomes difficult in practice. For this reason, it has been more than a decade since the monetary compensation system was implemented in Korea, but the utilization rate of the system is still low. In the total number of requests for remedy for unfair dismissal, the number of requests for monetary compensation was only 8.6% on 2020. Such low utilization rates show that the system is not sufficiently compensated for employee who have been unfairly dismissed. In many developed countries, the monetary compensation is already established as a system to resolve disputes caused by dismissal, and is particularly used as a remedy for unfair dismissal. This article compared and examined foreign legislation and suggested improvement measures on the criteria for calculating monetary compensation amount and factors to be considered, so that the monetary compensation system can be implemented in accordance with the purpose in Korea. In particular, in order to further revitalize the monetary compensation system, it is necessary to more concretely stipulate the currently simplified standards for calculating the amount of compensation.