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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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 Posted: Wed Jul 18, 2012 3:18 pm Post subject: |
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| NilesQ wrote: |
| ttompatz wrote: |
| NilesQ wrote: |
My understanding of this system is that the ammount increases after a certain numbers of years of continuous service. So one monhts's salary per year up to 5 years (for example only not sure of the increase timing) then after that 1.5 months salary per year up to another number of years.
I used to teach a guy who worked in HR for a big company in Korea. He said that this system caused a lot of people to lose their jobs around the time when the increase would be scheduled. He said it creates a lot of unemployed adjoshis. A company will send you packing before you hit 15 or 20 years so that they arent on the hook for huge lump sum payouts.
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Untrue.
http://www.moel.go.kr/english/topic/laborlaw_view.jsp?idx=260&tab=Standards
www.moel.go.kr/english/download_eng.jsp?type=&file=(39)EMPLOYEERETIREMENTBENEFITSECURITYACT-2011.pdf
I'd love to see that in writing.
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Article 15 (Level of Benefits)
The level of benefits under subparagraph 4 of Article 13 shall be
set in a way that ensures that the amount of lump-sum benefits
calculated based on the retirement date of a pension holder is
equal to or higher than 30 days of the average wages for each
year of his/her consecutive service.
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That is not this:
| NilesQ wrote: |
| My understanding of this system is that the ammount increases after a certain numbers of years of continuous service. So one monhts's salary per year up to 5 years (for example only not sure of the increase timing) then after that 1.5 months salary per year up to another number of years. |
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NilesQ
Joined: 27 Nov 2006
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| Posted: Thu Jul 19, 2012 5:06 am Post subject: |
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| ttompatz wrote: |
| NilesQ wrote: |
| ttompatz wrote: |
| NilesQ wrote: |
My understanding of this system is that the ammount increases after a certain numbers of years of continuous service. So one monhts's salary per year up to 5 years (for example only not sure of the increase timing) then after that 1.5 months salary per year up to another number of years.
I used to teach a guy who worked in HR for a big company in Korea. He said that this system caused a lot of people to lose their jobs around the time when the increase would be scheduled. He said it creates a lot of unemployed adjoshis. A company will send you packing before you hit 15 or 20 years so that they arent on the hook for huge lump sum payouts.
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Untrue.
http://www.moel.go.kr/english/topic/laborlaw_view.jsp?idx=260&tab=Standards
www.moel.go.kr/english/download_eng.jsp?type=&file=(39)EMPLOYEERETIREMENTBENEFITSECURITYACT-2011.pdf
I'd love to see that in writing.
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Article 15 (Level of Benefits)
The level of benefits under subparagraph 4 of Article 13 shall be
set in a way that ensures that the amount of lump-sum benefits
calculated based on the retirement date of a pension holder is
equal to or higher than 30 days of the average wages for each
year of his/her consecutive service.
. |
That is not this:
| NilesQ wrote: |
| My understanding of this system is that the ammount increases after a certain numbers of years of continuous service. So one monhts's salary per year up to 5 years (for example only not sure of the increase timing) then after that 1.5 months salary per year up to another number of years. |
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It is that. They give you greater than 30 days pay per year after a certain period of service. More isn't required under the law, but isn't restricted either. In practice, many companies do it as a perk. Medical plans that cover all perscription medication costs arent required by law, but many companies provide that to employees of a certain level as part of their incentive plan.
I'm just going by what my HR guy told me. He said he has to fire a lot of people around that time at his company and that he was fearful of losing his job. |
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jinju necklace
Joined: 15 Jun 2009
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| Posted: Wed Jul 25, 2012 9:42 pm Post subject: |
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I heard this week that a new law has come into effect. In the past, you could collect your severance payment at the end of each contract, even if you re-sign with the same employer.
However, under the new law, you can only collect your severance after you finish your final contract with your employer. Can anyone confirm this change? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Jul 26, 2012 2:10 am Post subject: |
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| NilesQ wrote: |
It is that. They give you greater than 30 days pay per year after a certain period of service. More isn't required under the law, but isn't restricted either. In practice, many companies do it as a perk. Medical plans that cover all perscription medication costs arent required by law, but many companies provide that to employees of a certain level as part of their incentive plan.
I'm just going by what my HR guy told me. He said he has to fire a lot of people around that time at his company and that he was fearful of losing his job. |
Nope... just because you heard that some company has that policy that you got through hearsay does not make it law or even make it standard in an industry never mind throughout the country.
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Dodge7
Joined: 21 Oct 2011
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| Posted: Thu Jul 26, 2012 2:34 am Post subject: |
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| jinju necklace wrote: |
I heard this week that a new law has come into effect. In the past, you could collect your severance payment at the end of each contract, even if you re-sign with the same employer.
However, under the new law, you can only collect your severance after you finish your final contract with your employer. Can anyone confirm this change? |
i'd also like to know. |
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motiontodismiss
Joined: 18 Dec 2011
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| Posted: Thu Jul 26, 2012 3:16 am Post subject: |
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| I think the old law allowed permanent employees to claim their severance without actually severing from the company. The new law I think stops this practice and doesn't let you do that unless you have a family emergency or something. |
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viciousdinosaur
Joined: 30 Apr 2012
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| Posted: Thu Jul 26, 2012 4:11 am Post subject: |
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| At least this should clear up some of the confusion people have out there that this is a contract completion bonus or some crap like that. Once you do a year, you are eligible for it, and you don't need to finish a second year to collect what you're owed, pro-rata. |
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NilesQ
Joined: 27 Nov 2006
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| Posted: Thu Jul 26, 2012 4:13 am Post subject: |
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| ttompatz wrote: |
| NilesQ wrote: |
It is that. They give you greater than 30 days pay per year after a certain period of service. More isn't required under the law, but isn't restricted either. In practice, many companies do it as a perk. Medical plans that cover all perscription medication costs arent required by law, but many companies provide that to employees of a certain level as part of their incentive plan.
I'm just going by what my HR guy told me. He said he has to fire a lot of people around that time at his company and that he was fearful of losing his job. |
Nope... just because you heard that some company has that policy that you got through hearsay does not make it law or even make it standard in an industry never mind throughout the country.
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The law you posted says "equal to or higher than 30 days of the average wages". If it isn't or can't be done, the higher than provision wouldn't be necessary. So offering more is within the law. It is standard practice for workers with career track jobs, not esl teachers. |
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jinju necklace
Joined: 15 Jun 2009
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| Posted: Thu Jul 26, 2012 5:06 pm Post subject: |
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| Dodge7 wrote: |
| jinju necklace wrote: |
I heard this week that a new law has come into effect. In the past, you could collect your severance payment at the end of each contract, even if you re-sign with the same employer.
However, under the new law, you can only collect your severance after you finish your final contract with your employer. Can anyone confirm this change? |
i'd also like to know. |
Is there any info about this new law online? Even if it is in Korean? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Jul 26, 2012 7:49 pm Post subject: |
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| jinju necklace wrote: |
| Dodge7 wrote: |
| jinju necklace wrote: |
I heard this week that a new law has come into effect. In the past, you could collect your severance payment at the end of each contract, even if you re-sign with the same employer.
However, under the new law, you can only collect your severance after you finish your final contract with your employer. Can anyone confirm this change? |
i'd also like to know. |
Is there any info about this new law online? Even if it is in Korean? |
There has been no change in the law as posted on the MOEL websites.
EMPLOYEE RETIREMENT BENEFIT SECURITY ACT - last amended in July 2011 (less than 1 year ago). Chapter 2 is the relevant section.
www.moel.go.kr/english/download_eng.jsp?type=&file=(39)EMPLOYEERETIREMENTBENEFITSECURITYACT-2011.pdf
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K1020
Joined: 20 Jun 2010
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| Posted: Thu Jul 26, 2012 11:19 pm Post subject: |
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In my contract this pay out is called severance however it is very clearly stated that is is to be paid on completion of the one year contract with no mention of renewal or deferment.
It is my understanding that this gets paid out at the end of the current contract regardless of my resigning which runs completely contrary, apparently, to this law.
I think my school liaison teacher is of the same understanding so I think I'm gonna keep my mouth shut and see what happens. |
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viciousdinosaur
Joined: 30 Apr 2012
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| Posted: Fri Jul 27, 2012 2:22 am Post subject: |
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| K1020 wrote: |
In my contract this pay out is called severance however it is very clearly stated that is is to be paid on completion of the one year contract with no mention of renewal or deferment.
It is my understanding that this gets paid out at the end of the current contract regardless of my resigning which runs completely contrary, apparently, to this law.
I think my school liaison teacher is of the same understanding so I think I'm gonna keep my mouth shut and see what happens. |
This is very important for you to know: Your contract doesn't mean jack. I'll say it again. Your contract doesn't mean jack. Got that?
If the contract does not correlate with the law, that part of the contract is null and void.
Anything not covered by the law is basically up to the whim of your employer. Take your contract to the labor board and they will just throw it in the trash. |
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jpe
Joined: 15 Aug 2011
Location: Seoul, SK
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| Posted: Wed Aug 01, 2012 12:21 am Post subject: |
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| I work at YBM ELS and I know the severance is based on your average monthly salary for your last 3 months ( of the year). Not sure how that would work when/if they give out a severance only after 2 or more years. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Wed Aug 01, 2012 2:28 am Post subject: |
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The change became law this july 26th.
Heres the Ministry of Labor announcement (in Korean):
http://news.molab.go.kr/newshome/mtnmain.php?mtnkey=articleview&mkey=scatelist&mkey2=25&aid=2775
The gist, as I understand it, is that you are no longer able to cash out your severance annually if you re-contract with the same employer. Previously, this has been negotiable, but not any more.
This came about to strengthen the original purpose of severance, as a benefit to help with retirement. Seems too many Koreans had come to view it as an annual benefit instead.
The problem for some hagwon teachers will lie in whether they can trust their boss to come through with a large lump sum on completion of a multi-year stint. The upside, if your boss plays by the rules, is that the pay-out is based on your final salary (last 3 months average), which means the value of your severance likely increases every year as a result of raises. They're supposed to deposit funds in a bank towards eventual severance.
Public school teachers can regard it as forced savings. |
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jinju necklace
Joined: 15 Jun 2009
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| Posted: Thu Aug 02, 2012 8:05 pm Post subject: |
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| schwa wrote: |
The change became law this july 26th.
Heres the Ministry of Labor announcement (in Korean):
http://news.molab.go.kr/newshome/mtnmain.php?mtnkey=articleview&mkey=scatelist&mkey2=25&aid=2775
The gist, as I understand it, is that you are no longer able to cash out your severance annually if you re-contract with the same employer. Previously, this has been negotiable, but not any more.
This came about to strengthen the original purpose of severance, as a benefit to help with retirement. Seems too many Koreans had come to view it as an annual benefit instead.
The problem for some hagwon teachers will lie in whether they can trust their boss to come through with a large lump sum on completion of a multi-year stint. The upside, if your boss plays by the rules, is that the pay-out is based on your final salary (last 3 months average), which means the value of your severance likely increases every year as a result of raises. They're supposed to deposit funds in a bank towards eventual severance.
Public school teachers can regard it as forced savings. |
Thanks schwa for the confirmation!
I guess the onus is on employers to be aware of this... if your employer doesn't know about the new law then you could still possibly get your severance each year. |
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