Korean Job Discussion Forums

[julian_w]

Can anyone say quickly as to whether the severance pay at the end of the first year is a legal requirement, or not?

or, supply the English-speaking phone service number at the Labour Dept. ...?

or both

[plattwaz]

Yes, the severance pay is a legal requirement, not just for foreign teachers but for all full-time Korean employees.

However, it's not a requirement that they give you one month pay at the end of one year. The payment is to be paid when you finish your contract. So, if you are staying MORE than one year, they don't pay you at the end of the first 12th months, but at the end of the contract. Anything longer than one year is pro-rated and added to the payment. So, if you stay 1year and 6 months, you get 1 month plus a half month of severance.

I have had friends whose employer DID pay them their one year severance at the end of the 12 months even though they were staying another year, but it's not required.

Sorry dont know the phone number you are looking for.

[Grotto]

1350
labour board English speaking direct line

[julian_w]

LABOR STANDARDS ACT

Act No. 5309, Mar. 13, 1997


Chapter II

Labor Contract


- Page 153 -

Article 34 (Severance Pay System)

(4) In cases where an employer has enrolled in pension insurance program for retirees or a retirement lump sum payment trust as prescribed by the Presidential Decree (hereinafter referred to as "pension insurance, etc.") for workers, whereby workers, as the insured or a beneficiary, receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a severance pay scheme in accordance with paragraph (1.) The amount of lump sum by the retirement insurance, etc., however, shall not be smaller than that of severance pay persuant to paragraph (1).
<Amended by Act No. 5473, Dec. 24, 1997>

[Len8]

Grotto you seem to be in the know. Pray tell me can a university that has it`s employees on a private pension fund deny them severance in lieu of the fact that they will be getting a private pension fund lump sum instead.

[RachaelRoo]

I have heard that if the school has less than 5 employees they don't have to pay severance. Anyone know if this is true?

[mindmetoo]

It may nor may not be a legal necessity if, like most teachers, you're working less than 40 hours a week. The US embassy and the EFL Law Page seem to be at odds, however, on this claim:

US Embassy:

[Len8]

Julian where did you get that informationabout the pension and seversance.

[prosodic]

[koryo1]

The US Embassy site (info from mindmetoo's post) is rubbish.

Full time work is not strictly determined by a 40-hour work week. That is a US-biased perspective on Korean law and a misinterpretation of Korean substantial and case-law.

Severance is severance and you get it. End of story, unless you are part of a minor exempted group. Groups that are exempted from most provisions of the Labor Act are those working at corporations / companies employing fewer than 5 people. Aside from this, you are entitled to a very comprehensive benefits package under Korean labor law, including vacation, monthly paid leave, severance, certain legal protection, etc.

[prosodic]

What the National Pension Corporation told me is that the pension requirement kicks in at 18 hours per week. They said that less than that and you can be considered part-time and inelligible.

[Dawn]

Though we were already paying severance, our accountant recently informed us that the fewer-than-five-employees proviso has been eliminated. Supposedly, all private institutes are now required to participate in severance, national pension and health care schemes.

Universities, however, are allowed to go with private pension programs in lieu of paying severance or paying into the national pension fund. Unfortunately for employees, the private pension programs generally cost universities a lot less and, in turn, put a lot less money in employees' hands at the end of a contract. (Had a university offer to match my salary a couple of years back, but their "match" would have cost me nearly W5 million a year in benefits.)

[Grotto]

[SuperHero]

[Grotto]

superhero wrote: