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fezmond
Joined: 27 Oct 2008
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 Posted: Fri Jan 04, 2013 5:24 am Post subject: Forced Severance Payment |
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My co-worker is extending her contract for 6 months. The people over at HQ said that she'd get her severance for the completed year but not for the 6 months, even on a pro-rata basis.
Can an employer force you to take your severance after a year or is it the employee who has the option of when to take it? |
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YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
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| Posted: Fri Jan 04, 2013 5:32 am Post subject: |
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| I think the employer has the choice. They want to restart the clock. If it matters, find another school. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Fri Jan 04, 2013 5:42 am Post subject: |
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| YTMND wrote: |
| I think the employer has the choice. |
No, not anymore. The law changed last year & you cant receive severance after each year if you renew at the same job. But whether employers are now required to pay pro rata severance for partial extra years is an interesting question. Anyone with a definitive answer? |
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figshdg
Joined: 01 May 2012
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| Posted: Fri Jan 04, 2013 6:46 am Post subject: |
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| No idea about Schwa's question. I am about to sign on for 6 more months so would be interested in finding out..... |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Jan 04, 2013 7:52 am Post subject: |
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| schwa wrote: |
| YTMND wrote: |
| I think the employer has the choice. |
No, not anymore. The law changed last year & you cant receive severance after each year if you renew at the same job. But whether employers are now required to pay pro rata severance for partial extra years is an interesting question. Anyone with a definitive answer? |
The law has changed. It used to be that employees could request or employers could suggest that employees take their severance early - at the end of each year for E2 teachers was a common practice. This was a good system.
Although this money was really intended to be for retirement, individuals withdrawing money early could spend the money instead of investing it, leaving less for eventual retirement, hence the change. OTOH, individuals who withdrew this money and invested wisely could have a far better retirement, which is why the law should not have been changed. The change was an attempt by government to regulate Korean citizens and had nothing to do with E2 teachers.
The law has not changed with regard to pro-rata payouts for partial years. After your first year you essentially earn 1/12 of your monthly pay, each month, to be paid out at the end of your employment. However, you must wait until you have finished working to collect.
Since your payout is supposed to be based on your final three months' pay, you should get slightly more by waiting, but far less than if you had withdrawn the money and invested it. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Jan 04, 2013 7:56 am Post subject: |
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| figshdg wrote: |
| No idea about Schwa's question. I am about to sign on for 6 more months so would be interested in finding out..... |
No matter that the law is on your side, you should get your severance for the six months spelled out in your renewal contract before you sign on for the extra time. |
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mandrews1985
Joined: 12 Sep 2011
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| Posted: Fri Jan 04, 2013 8:02 am Post subject: |
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Ontheway, do you mind having a look at the thread i posted called severance pay. I'd like your input on this matter.
Thank you in advance! |
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fezmond
Joined: 27 Oct 2008
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| Posted: Fri Jan 04, 2013 9:07 pm Post subject: |
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Thanks for the replies folks.
She's re-signing for 6 months so she can get her life in order before moving back home. I understand why the company are saying what they're saying but I hope she challenges them with it in writing. |
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