Korean Job Discussion Forums

[Hamlet]

I work in publishing, and I have never been paid severance. This seemed normal to me...I thought severance was only mandatory as some sort of e-2 requirement. I'm on an e-7.

Now, though, my Korean girlfriend has told me that all Korean employers are required to pay severance after the completion of a contract, to foreigners and Koreans (unless you are an independent contractor).

So, if you are on an e-7 would you mind letting me know if your company pays you severance?

Also, if you are Korean would you mind telling me if what my girlfriend has told me is correct?

Thanks

[broken76]

Severance pay is mandatory regardless of Visa if you've worked as a full time employee for a minimum of 1 year.
I believe that the new labor laws actually state that illegal workers are also entitled to severance may which would make the your Visa status moot.
Now the companies you've worked for may try to avoid severance pay and other benefits by listing you as a freelance worker or contractor instead of a full time employee.

[Hamlet]

Thanks,
I'm definitely not listed as a freelance or contract worker--my company pays taxes, severance, and pension. Do you know if the labor law says that severance must be one month's pay. I assume it does.

[broken76]

Last time I checked severance is based one month's pay per year. The one month is calculated as an average of your last 3 month's pay.
Again a minimum of 1 year is required.

[Hamlet]

Just found this on the labor board website...

[Hamlet]

Also interesting...

This is the National Labor Consultation Center.

We would like to inform a foreign worker under the EPS of requirement and calculation of retirement pay.



1. Under the Employment Permit System, Departure Gurantee Insurance is an insurance an employer who hires a foreign worker must take out within 15 days of the effective date of the labor contract to secure retirement pay for the foreign worker. Any employer who has five workers or more is required to subscribe this insurance. An employer who has joined departure guarantee insurance is deemed to have set up the retirement pay scheme under the Employee Retirement Benefit Security Act.


2. According to the Employee Retirement Benefit Security Act, when a worker who has worked one year or more retires from the workplace with five or more workers employed ordinarily, the employer who adopts a retirement pay scheme shall provide the retiring employee with 30 days or more average wage for every year of consecutive service. Here, average wage means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calendar months prior to the date on which the event necessitating such calculation occurred by the total number of calendar days during those three calendar months.


3. Given that a foreigner are a worker who came to Korea under the ployment Permit System and have worked, without deserting your job, at a workplace with five or more workers for one year or more, He/She can obtain confirmation of scheduled departure from the competent Job Center under the Ministry of Labor at the time of your departure from Korea and apply for insurance benefits to Samsung Fire & Maritime Insurance (telephone number 02-2119-2400). The insurer will directly send insurance benefits to the bank account opened by the name of the foreign worker. (In cases when a worker had to go to another workplace due to unavoidable reason after working at least one year at a workplace employing Minimum five workers, such worker may apply for insurance benefit to Samsung by obtaining confirmation of retirement from the Job Center having jurisdiction over the place of his/her previous workplace.)

[oskinny1]

Before you get too angry at your boss, ask him about it. As far as I know you don't get the severance until you LEAVE your job. So if you keep re-signing, you don't get the severance until you are finished with the job. This is great if you are getting raises every year since it will calculate that rate for the years you have been working there... I hope that makes sense.

[Hamlet]

Yeah, it makes perfect sense, but, unfortunately, I don't think that's the case because...

every job I've seen has the severance mentioned in the contract...it's quite a nice carrot! It's also a good way for an employer to negotiate a lower monthly wage, but it was never mentioned when I negotiated my salary here.

and...

my first paycheck here didn't have pension taken out. After I mentioned it, it was, and has since been, taken out (and paid). If I hadn't mentioned it...probably would not have been paid.

Anyway, I don't plan on getting angry. At this point, having a good reference for the last 3 years of work is worth more than the cash (but don't tell my employer that).

[broken76]

Good point by oskinny.

[fustiancorduroy]

Writing and editing jobs are supposed to pay severance and yes, even if you re-sign with the same employer, you are supposed to get your year-end bonus. I've never come across a writing job where this is not the case.

[JJJ]

And the severence is pro-rated...correct? Meaning, I was hired in April (2 years ago) and have been at my school for 1 year and 11 months.

This morning my school tells me they only have to pay 1 month severence because "sorry, you haven't been here for 2 years". I said something to the effect that I get approximately 1.9 months of severence according to the Korean Labor Laws.

Could anyone confirm this please? Its worth about 2 million won that I get or won't get from them.

Thanks in advance for your help.

[Hamlet]

JJJ

This is from the Ministry of Labor link I posted above...

How to calculate legal retirement pay(as an example)
� Legal retirement pay = daily average wages � 30 days �
( total number of days in service/365)
� (e.g.) A period in service : Aug.20,2000 ~ Jul.16,2003(1,060 days),
daily average wages = 50,000 won.
Retirement pay= 50,000won �30days�1,060days/365days=4,356,160 won.