Ray del Mundo
Joined: 16 May 2007
Location: Korea
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 Posted: Tue May 22, 2007 6:27 am Post subject: severance pay annually or one-time? contract question |
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There�s a clause in a contract I�ve been sent that I haven�t seen discussed before. Basically, is severance pay paid only at the end of my time in Korea�even if I stay five years�or is it an annual payment regardless of whether you stay? Here�s the language:
�Should an Employee renew for another term, payment of the additional one/twelfth of annual salary shall be carried over until the Employee severs ties with Institute.�
Thanks. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue May 22, 2007 6:31 am Post subject: Re: severance pay annually or one-time? contract question |
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| Ray del Mundo wrote: |
There�s a clause in a contract I�ve been sent that I haven�t seen discussed before. Basically, is severance pay paid only at the end of my time in Korea�even if I stay five years�or is it an annual payment regardless of whether you stay? Here�s the language:
�Should an Employee renew for another term, payment of the additional one/twelfth of annual salary shall be carried over until the Employee severs ties with Institute.�
Thanks. |
The appropriate section of the labor standards act reads as follows:
Article 34 (Severance Pay System)
(1) An employer shall establish a severance pay system whereby
an average wage of more than 30 days shall be paid for each
year of consecutive years employed as a severance pay to a
retired worker; however, if the worker was employed for less
than one year, this shall not apply.
(2) In establishing the severance pay system stipulated in
paragraph (1), a differential severance pay system shall not be
permitted within one business.
(3) An employer may, at the request of workers, pay severance
pay in advance for the period of continuous employment of the
worker concerned by adjusting the balances of remunerations
before his retirement, irrespective of the provisions of paragraph
(1). In this case, the number of years of continuous employment
for the computation of severance pay shall be counted anew
from the moment the latest adjustment of balances has been
made.
(4) In cases where an employer has enrolled in pension
insurance program for retirees or a retirement lump sum payment
trust as prescribed by the Presidential Decree(hereinafter referred
to as �pension insurance, etc.�) for workers, whereby workers,
as the insured or a beneficiary, receive lump sum payment at
the time of retirement, or draw their pensions, it shall be
deemed that the employer has set up a severance pay scheme
in accordance with paragraph (1). The amount of lump sum by
the retirement insurance, etc., however, shall not be smaller
than that of severance pay pursuant to paragraph (1).
<Amended by Act No. 5473, Dec. 24, 1997>
You CAN request it be paid out and the end of each contract or you can let it accumulate.
Personally, I would NOT trust any hakwon enough to let it accumulate.
Policy in most public schools is to pay it out each year. |
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