Korean Job Discussion Forums

[Canuckophile]

A Korean friend sent me this (now old, published 2000) discussion of SEVERANCE PAY guidelines/laws. It should still be useful to all teachers.

How to Collect Severance Pay in South Korea
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>The information presented on these pages was current as of December
>2000. There have been several unconfirmed reports that the rules and
>regulations governing Severance pay have changed since that time.
>Please use the information presented here in that context, and help
>everyone by posting any confirmable updates to this site in the
>guestbook.
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>It is an unfortunate fact that the denial of severance pay is a
>common practice among the many organizations currently employing
>foreign English instructors in South Korea. Most teachers remain
>unaware of their rights, and allow themselves to be intimidated by a
>confusing and antiquated system, leaving Korea with an underlying
>sense of hostility and far less money than they are entitled. With
>this page I hope to dispel some of the confusion surrounding
>severance pay, and give those who wish to pursue their own course of
>action the information and contacts that they need to be successful.
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>Before you begin
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>Facts and misconceptions
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>How Severance works
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>How to collect Severance pay
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>How do I find the Ministry of Labor in Seoul?
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>Conclusions
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>Links
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>Guestbook
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>Before you begin
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>It is a good idea to keep the following in mind:
>If at all possible, it is best for everyone involved to resolve your
>severance situation without entering the tangled web of the Korean
>legal system. Even if you have to compromise and give up a few
>hundred thousand won, this may be preferable to the time and hassle
>required to make this system work for you.
>
>You are a foreigner in an unfamiliar, confusing and fundamentally
>corrupt system. In order to be successful I believe it is necessary
>to have a Korean interpreter. Even if you speak Korean well, as a
>foreigner you will be seen in a better light if a Korean is with you
>and outwardly in support of your cause.
>
>Koreans can be shy speaking English with foreigners. The sad fact is
>that the person who speaks to you will have their pronunciation and
>grammar judged by everyone listening, and even though they were bold
>enough to speak to you while others cowered in the corner, any
>mistake they make will bring the derision of their peers.
>
>At the same time the fact that you are a foreigner can work in your
>favor. Most of the officials you meet, other than those from
>Immigration, will not be accustomed to seeing a foreigner in need of
>their help. This will not be an ordinary case for them, and you
>stand to gain a lot of consideration. Use this to your advantage.
>
>Be prepared to wait. Legal systems tend to be rather ponderous and
>require some time and patience. Your employer and their lawyers are
>counting on you being intimidated by the system, or simply giving up
>and going home. This ploy has been too successful in the past. Try
>to disappoint them.
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>top
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>Some little known facts and misconceptions about severance pay
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>Severance pay is not a bonus, it is required by law.
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>Severance pay is paid at a rate equal to one average month's salary
>per year worked.
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>After one year, severance pay accumulates on a month by month basis.
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>Severance pay has nothing to do with contracts. In other words, you
>do not need a contract or even legal working status to qualify for
>severance pay.
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>Severance pay is not a right that can be waived. Even if your
>contract states that you will not receive severance pay, you are
>entitled to it.
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>You must work as a "full time" employee over a period of 365 days to
>qualify.
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>You must work in a business employing at least six people (yes
>Korean staff count).
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>All workers in Korea, foreign and Korean, receive severance pay if
>they have completed one year of full time employment.
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>top
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>How severance pay works
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>Severance pay, or Twae Ji Kum in Korean, is a form of worker's
>insurance in South Korea. It began as a way to give workers some
>security, a small nest egg to fall back on if suddenly unemployed.
>It works in this way: After completing one calendar year of
>full-time employment at an establishment with more than six full
>time workers, you have earned the equivalent of one month's salary.
>This money is owed to you, but your employer is not required to pay
>you until the end of your employment. At that time, your employer is
>given 14 days to pay you all of the severance pay owed.
>
>It is important to note that you earn severance pay for every month
>of employment after completing your first year. This means that if
>you work for 14 months, you have earned severance pay for one year
>and two months.
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>top
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>How to collect severance pay
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>It is a sad reality that in most cases employers refuse to pay
>severance. This situation is by no means limited to foreign workers
>in Korea, many Koreans experience the same problems collecting Twae
>Ji Kum from their employers. In the case of language institutes, it
>is rare to receive your well earned severance pay without a fight.
>However, it is worth the fight. The law is squarely on your side,
>and you should not let anyone dissuade you from taking the necessary
>steps to collect what is rightfully yours.
>
>1. The first step is to approach your employer regarding your
>severance pay, and attempt to resolve any difficulties at an early
>stage in a friendly and professional manner. An employee armed with
>the correct information and well informed of his or her rights may
>be enough to convince an employer to pay what is owed without need
>of further difficulties.
>
>2. In the event that your employer refuses to pay you, your next
>step will be to contact the Ministry of Labor. Note that your
>employer legally has 14 days to pay you before they are in violation
>of the law, so even if your employer has stated that they will not
>pay you, you must wait 14 days before filing a complaint. Once you
>arrive at the Ministry of Labor, you will need to state your case to
>an officer of the Ministry. At this time you will need someone
>reliable to interpret for you. You will also need to have
>documentation in the form of pay stubs for at least the last three
>months, in order to calculate your correct severance amount. This is
>also proof that you have been employed as a full time worker.
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>3. A representative from the Ministry will contact your employer and
>schedule an interview. You will typically be required to attend that
>interview, which should be scheduled within two weeks. Your employer
>must attend the meeting or forfeit the case. If you meet the legal
>qualifications outlined above, you will win this hearing and the
>Ministry will "recommend" that your employer pay you. The ministry
>has no real authority and can not enforce its verdict, but a
>favorable ruling here will virtually guarantee your victory if a
>civil case is needed.
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>4. The next step, in most cases unnecessary, is to file civil
>charges against your employer in an effort to collect your
>severance. This is done by going to the Ministry of Justice and
>filing your case. You do not need a lawyer for this, although an
>interpreter is recommended, and the fee is 30,000 won. Action will
>be taken with a few weeks. Your employer will be required to attend
>a hearing, and with the recommendation of the Ministry of Labor
>against them, they will be required to pay the severance amount. The
>court can and will enforce this by seizing property from your
>employer and selling it if your employer still refuses to pay.
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>How do I find the Ministry of Labor in Seoul?
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>top
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>Conclusions
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>Severance pay is the legal right of every full time employee in
>South Korea who completes one year of employment at an establishment
>employing more than six full time workers. This right cannot be
>waived, and although difficult, it is possible to collect Severance
>pay.
>In the past, foreign teachers and other workers in South Korea have
>remained ignorant of their rights and have continually allowed
>Korean employers to take advantage of them. Although far from a
>perfect system, Korean law does protect foreign workers and can be
>made to work for you. Think of it this way, if your employer in
>Canada or the United States owed you $3000 would you simply walk
>away?
>
>Not everyone will be successful in their attempt at justice, but if
>more foreign workers in Korea continue to stand up for themselves
>the future may be brighter for all of us. Good Luck!
>

[Grotto]

I have always recieved my severance no problems.

Hypothetically...if I did not recieve my severance I would place a rather sharp hunting knife to the groin area of the hogwan owner and explain in no uncertain terms the ramifications of trying to screw me over and the loss of 'face' that could be involved!

[ryleeys]

[prosodic]

Okay, I guess it's time for somebody to make corrections. I guess that somebody is me.

First off, ������, or severance pay, is part of the Labor Standards Act.

Therefore, "more than six full time workers" is incorrect. It's actually more than 5, and it can be lower if the business usually employs more than 5.

[justagirl]

Oh man! Now here's a very important question:

My contract states I get paid a severance bonus at the end of my contract. In the meantime, the pension office has become aware of the foreigners not paying into the national pension scheme, and has required our boss (and us) to do so.

Now, is my boss going to refuse to pay my severance because he's paying into the pension scheme?

Can he legally do that? Is anyone else getting both pension AND severance?

[phaedrus]

[just because]

Anyway to the OP, thanks for the info and prosodic for clearing up some mistakes.

Always is good to be informed

[shifty]

When I arrived in the middle of January, there was the 3 day vacation and thereafter the students and Korean teachers were immersed in major tests. In short, there was no job for me until 1st Feb.

In all the negotiations per email, nothing had been said. To keep the peace I felt obliged to cede to the boss that my final (january) salary could be prorated minus the measly 5 days leave.

How will this affect severance?

[prosodic]

[shifty]

Prosodic, I'm at a hagwon with fewer than 5 employees. It is nontheless, part of a franchise. That the school is so small and me the only waygook means that I have to avoid bad feeling.

It was the bosses first outside hire and this partly accounts for the initial snafu.

As for possible overtime, I teach about 24 hours a week versus the contractual 30. However, I have to be there 9 hours a day, for which in return I get lunch and I don't really do any work in the nonteaching hours.

The job is so much easier than my previous horror year that I'm living with it. In the final month I also have to receive the 2nd half of airfare, so it's a bit delicate. Not to mention, that the boss thinks I'm gonna renew and when he gets the truth things could get topsy-turvy.

[prosodic]

Shifty, is severance in your contract? A franchise operation is independent from the larger organization. The hagwon is just renting the name and maybe the curriculum. If severance isn't in the contract, then you may have to resign yourself to the idea of not getting it.

[shifty]

It is in the contract. I'm relieved anyhow, from yr info, that its the average
of the final 3 months.

What had alarmed me and prompted my query was the 365 day question
ie if working for less than a year no entitlement..

I trust my boss and get on well with him which eases the face time. He's imbued with Korean ethics, though, of "owning me" and tendency to short-pay if leaving the family.

By the way, thanks for yr help.

[prosodic]

[shifty]

The original contract was signed early December, with a view to a 1st January start. The ad said same, but, I know, neither here nor there.

However, the hagwon had to be inspected first and this caused a delay in me getting the E2. So there I was trying to rush the consulate, only to walk into an enforced holiday once in Korea.

I would ordinarily simply extend the visa by 2 weeks, but I have a return ticket. The boss already looks aghast at that price. No ways he would have pd 2 one ways. The return ticket was about 1.8 which is a bit steep.
Unfortunately my country's currency has strengthened considerably, but I don't mind losing out on that cos it's hardly his fault.

In passing I might mention that my salary is a grand 1.8 per month.