Korean Job Discussion Forums

[wotsit2004]

ive just received my contract, and it looks like we get an exit allowance, but not severance pay - unless we extend the contract. maybe someone else could clarify/ confirm for me.

here is an excerpt:

If the aggregate period of extending the term of Employment pursuant to Article 10 is more than one calendar year, Employer shall pay Employee one month salary as a severance pay for Employee's continuous employment of one year; according to the severance payment regulations when the Employee leaves SMOE.

(Article 10 is about renewing the contract for a year.)

thanks

[oldfatfarang]

They can't dodge paying severance pay. It's Korean labor law that every employee that has worked 12 continuous months (not one day short) is to be paid one month's full salary.

This isn't actually a severance pay, but is a payment to make up for the way Korean employers pay employees. That is, you are paid for only 4 weeks each month - but some months have 5 weeks - and the severance pay is to compensate for that.

Re-check your contract. It will be in there somewhere.
If not, ring the Labor Board.

Good luck.

[soyoungmikey]

Actually you are both a bit off base.

1) If you work 12 continuous months you are entitled to one months pay

2) Technically it is not severence pay. Under Korean law it is stated as a retirement benefit

So OP no worries, work the full year and you'll get it.

Cheers

[kprrok]

[tigershark]

he means a pay period. some pay periods have 5 weeks... no one likes a smart ass. smart ass.

[jonpurdy]

You should get exit allowance (1.3m) plus severance (approx. one month's pay).

[kprrok]

[tigershark]

Wrong. Many people like dumb asses.

[interestedinhanguk]

I thought the bonus was only legally guaranteed if you were contracted for a full 40 hours a week (which almost all of us, including public schools, are not). That means teaching hours.

[wotsit2004]

i phoned SMOE. they confirmed for me that i will get severance pay as long as i finish the contracted period of time: 01/03/2011 - 29/02/2012.

[oldfatfarang]

[bbud656]

Whats the difference between severance and pension?

[jrwhite82]

Pension is the Korean National Pension Scheme or whatever its called. It is a monthly deduction from your paycheck. Your employer must match that deduction. So you are both paying 50/50. At the end of your contract you can go to the pension office with your exiting plane ticket and ARC and get that money sent to you when you leave the country. So it basically comes out to around a free 400,000 to 500,000 Won (your employer's half at the end). This is a major reason why you should not sign on as an independent contractor, because your employer does not have to pay this.

Severance is when your boss pays you an average of your last three months pay at the end of every contract year.

[daskalos]

[jrwhite82]

true...my bad.