Korean Job Discussion Forums

[Carla]

[iggyb]

[Carla]

[Carla]

This was posted on the Ministry of Labor website on JUNE 4, 2009, so it is the most up to date thing I could find.

1. Pursuant to the Employee Retirement Benefit Security Act, an employer shall pay workers
who retire 30 days or more of average wages for each year of their consecutive service as
retirement pay within 14 days from the date on which there occurs a cause for the payment.

○ Calculation of retirement pay
- Statutory retirement pay = daily average wage � 30 (days) �
(total days of service/ 365)

So, for 2mil won, average daily wage is ...66,667.

So, let's say you worked 18 months. That's... 548 days.
(rounding out to whole numbers)

(66,667) x 30 x (548/365)
(66,667) x 30 x (1.5)
====== w 3,000,015

Reading this post makes me wonder how many people have been cheated because they didn't know better, or who took the severance at the 1st year because they didn't know it would continue building.

[Carla]

Oh, even better, here is the example the Ministry of Labor provided.

[Carla]

Oh, and the 3 month thing is how they calculate your "average daily wage" not your severance, but then your "average daily wage" is used for your severance.

So in effect, if you work 1 year exactly, then the average of your last 3 months is the same thing, but anything over a year, and you are being cheated out of money if all you got was 1 months salary.

[lifeinkorea]

[Carla]

[TheUrbanMyth]

Also just to be clear. You can only include OT in the severance payment if you worked OT in the last three months. So what some schools could do is load a lot of OT on in the first nine months and none for the last three, and pay you a regular month's pay for severance...and that would be totally legal.

[Carla]

[lifeinkorea]

Carla,

I am still unclear, can you give a SIMPLE SIMPLE example? Retirement pay is not the same as severance.

How much can we expect?

2.1 salary, NO overtime. Let's say everything comes out to 2.1 in theory, and I work 18 months and quit (giving proper notice and all).

So, that would be:

2.1 X A = severance

or

2.1 + A = severance

Severance equals which, and which method are you using to get severance?

[Carla]

[br_owen]

ok, color me retarded but i'm still slightly confused.

Here's my situation. Forget about overtime and all that stuff - i'll be happy just sticking to my normal contacted hours.

I completed my first year, and received my severance payment, in full, the first month i came back to start my second contract at the same school. No problems, everything was done correctly. It was basically an extra months salary in full.

In my second year, I am leaving after 6 months. Am i entitled to what would be the equivalent of half a months salary? Or have I shot myself in the foot by already collecting my severance pay for the first year, and not letting it build?

Thank you for any help.

[OculisOrbis]

no. if you took a payment after the first year, your clock resets to zero and you would have to complete another full year to eligible for another payment. if you didnt take a payment after one year, then yes, you would get approx 1.5 months worth as a severance payment.

if youre at a hagwon, dont look at it as shooting yourself in the foot. its better described as playing it safe.