Korean Job Discussion Forums

jcd · Joined: 13 Mar 2012

I have been working at the same academy for over a year and a half now. I didn't collect my severance at the end of the first year. I am considering leaving before the second year is finished. Does anyone know if I should get a "prorated"severance for 1 year and 7 months or just one year?

Aine1979 · Joined: 20 Jan 2013 Location: Incheon

It should be pro-rated for 1 year and 7 months.

PRagic · Joined: 24 Feb 2006

You'll need to provide notice to your employer and leave on good terms to make it as painless a process as possible. Word to the wise.

PRagic · Joined: 24 Feb 2006

http://english.nps.or.kr/jsppage/english/scheme/scheme_04.jsp

jcd · Joined: 13 Mar 2012

Thanks for your replies.
I have read that it is prorated .
But it's not very reassuring when you guys say it "should be". And leave on good terms.
If it were up to our employers I am pretty sure that none of them would give it unless they had to.
So there has to be some law right?

denverdeath · Joined: 21 May 2005 Location: Boo-sahn

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

Pension and severance, although governed under the same Act are different things.

Canuks and Americans (and now Aussies) were and still are able to get a pension refund on your departure at the end of a contract. Safers were always exempt from the NPS under a bilateral treaty. It is held by the NPS and not the employer and the refunds come from the government so getting your money is not an issue PROVIDED the employer actually paid into the NPS and didn't either ignore the law or simply pocket your portion of the contributions.

They are NOT prorated. You are supposed to get 100% of your contributions AND 100% of the employer's contributions regardless of how long you have worked.

Severance on the other hand is NOT based on your nationality. Everyone who works for more than 1 calendar year is entitled but the payout comes from the employer. The problem exists in that employers often flout the law knowing that the beneficiary is leaving and usually unable to stay and fight it out at the labor board.

Back in the old days we usually received our severance at the end of every contract. NOW this is no longer the case and severance is paid out upon termination of employment and this causes problems like the one the OP is having.

By LAW the severance is prorated for any length of employment greater than 1 calendar year rounded down to the last full month of employment.
In practical terms employers will often cheat and only pay out to the last full year of employment hoping that the employee will simply take the cash and run rather than fight it out for a partial year's payment.

.