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Severance Pay VS A 364 Day Contract

 
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UncleAlex



Joined: 04 Apr 2003

PostPosted: Wed Jun 01, 2005 2:09 am    Post subject: Severance Pay VS A 364 Day Contract Reply with quote

Regarding my post of April, I finally contacted the Korea Labor Board in
Incheon and learned that an employer is under no legal obligation to pay
severance or bonus at the end of the contract period, if it's under 365 days.
A contract period of 364 days makes one just as ineligible for severance pay
as one who has a 6 month contract. Talk about being rigid! Cool
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Kimchieluver



Joined: 02 Mar 2005

PostPosted: Wed Jun 01, 2005 2:14 am    Post subject: Reply with quote

No, you are elligible for severance pay at your 11 month. They pro-rate it as 11/12 of your severance pay. This is to keep both foriegners and Koreans protected. However, if your contract is less than a year, which is less than immigration would allow, they are not bind to paying serverance pay.???
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dulouz



Joined: 04 Feb 2003
Location: Uranus

PostPosted: Wed Jun 01, 2005 3:29 am    Post subject: Reply with quote

Ask immy about your contract. If they don't allow contracts under one year and you have a contract of less than one year, you may have an invalid contract which means you are free to leave. I would not want to hang around someone like your boss because you don't know what is going to happen next.
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prosodic



Joined: 21 Jun 2004
Location: ����

PostPosted: Wed Jun 01, 2005 1:34 pm    Post subject: Reply with quote

Kimchieluver wrote:
No, you are elligible for severance pay at your 11 month. They pro-rate it as 11/12 of your severance pay. This is to keep both foriegners and Koreans protected. However, if your contract is less than a year, which is less than immigration would allow, they are not bind to paying serverance pay.???


Actually, the OP is correct. Kimchieluver's statement is true for subsequent years, but not true for the first year.
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turtlepi1



Joined: 15 Jun 2004
Location: Abu Dhabi, UAE

PostPosted: Wed Jun 01, 2005 3:50 pm    Post subject: Reply with quote

prosodic wrote:
Kimchieluver wrote:
No, you are elligible for severance pay at your 11 month. They pro-rate it as 11/12 of your severance pay. This is to keep both foriegners and Koreans protected. However, if your contract is less than a year, which is less than immigration would allow, they are not bind to paying serverance pay.???


Actually, the OP is correct. Kimchieluver's statement is true for subsequent years, but not true for the first year.


Nice to try to "sound" smart. but assuming the OP is talking about an E2 visa you are off base. one year contract so it is a non issue. Either immy said screw the waygookin or the OP is a troll.
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dreamscape



Joined: 05 Aug 2004

PostPosted: Wed Jun 01, 2005 4:59 pm    Post subject: Reply with quote

The first year of your contract must be fully completed to receive severance. If you extend for any length of time after that then you will be paid on a pro-rated basis (ie 1/4 severance for 3 months etc.).
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prosodic



Joined: 21 Jun 2004
Location: ����

PostPosted: Wed Jun 01, 2005 5:48 pm    Post subject: Reply with quote

turtlepi1 wrote:
prosodic wrote:
Kimchieluver wrote:
No, you are elligible for severance pay at your 11 month. They pro-rate it as 11/12 of your severance pay. This is to keep both foriegners and Koreans protected. However, if your contract is less than a year, which is less than immigration would allow, they are not bind to paying serverance pay.???


Actually, the OP is correct. Kimchieluver's statement is true for subsequent years, but not true for the first year.


Nice to try to "sound" smart. but assuming the OP is talking about an E2 visa you are off base. one year contract so it is a non issue. Either immy said screw the waygookin or the OP is a troll.


Immigration tends not to read contracts very carefully and can be persuaded to bend the rules. Sogang University's language institute managed to get several 6-month initial contracts approved for E2 visas.

You listed two options. I'll suggest a third. Maybe the immigration officer didn't read the contract carefully and simply didn't notice that the contract says 364 days rather than 365.
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hellofaniceguy



Joined: 10 Jan 2003
Location: On your computer screen!

PostPosted: Wed Jun 01, 2005 8:34 pm    Post subject: Reply with quote

Let's talk about this for a few....
All E2 visas start...START...when the issuing office stamps the Visa in your passport. It has nothing to do with the local immigration office. So...you fly to Japan....get your Visa stamped into your passport and you decide to spend an extra day or two in Japan.....your 365 days...one year visa has already started its countdown.
The visa DOES NOT start the day you start work. Look at your alien ID card and the immigration stamp in your passport when you entered korea...same date.
Some school owners can be real jerks about paying severance..."you did not work one full year."
You need to keep a close eye on that and get an extension to make your contract one year or you need to have it in writing from the school that they will still pay you even if you are 3/4 days short a year.
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turtlepi1



Joined: 15 Jun 2004
Location: Abu Dhabi, UAE

PostPosted: Wed Jun 01, 2005 10:47 pm    Post subject: Reply with quote

turtlepi1 wrote:

Nice to try to "sound" smart. but assuming the OP is talking about an E2 visa you are off base. one year contract so it is a non issue. Either immy said screw the waygookin or the OP is a troll.


Embarassed Friends don't let friends post drunk Embarassed
(Sorry it was my B-day last night)

I still don't think that they will get away with the shortened contract scam.
Has anyone successfully or unsuccessfully dealt with this issue. If it really is a problem it should be put up as a red flag somewhere for everyone signing contracts. (FAQ?)

Same as "they" don't generally allow the 11th hour firings, I think this would end up in the same category.
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UncleAlex



Joined: 04 Apr 2003

PostPosted: Wed Jun 01, 2005 11:52 pm    Post subject: Replies Reply with quote

Thanks for your replies. It could be that the contract is illegal being 1 day
shy of a year while I hold an E2 visa. I'll definitely look into it. And I intend
to ask my employer to give me a signed and stamped promissory letter to
the effect he will pay me my severance money. If he refuses, I'll submit my
resignation. Cool
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prosodic



Joined: 21 Jun 2004
Location: ����

PostPosted: Thu Jun 02, 2005 1:19 am    Post subject: Reply with quote

turtlepi1 wrote:
Embarassed Friends don't let friends post drunk Embarassed
(Sorry it was my B-day last night)


It's ok. I figured that it was probably something like that. Normally, you're one of the friendliest posters and I don't think I had ever seen you attack anybody before.

That's why I ignored the rude comment and just addressed the issue.

Everything's cool.
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