Korean Job Discussion Forums

SMKOREA · Joined: 29 Nov 2005

I have worked at my current hogwan for a year. I extended for 7 months and am now considering extending for an additional 5 months. (I would not be taking any time off between extensions.) Since both of these extensions would have me here for an additional year, am I legally entitled to full severance at the end of my second extension? The hogwan owner is saying he'll only give me 1/5th of what my full severance should be. any thoughts?

pdxsteve · Joined: 29 Sep 2004 Location: Bundang

After your first full year, you are entitled to severance on a per-month basis. Sounds like your boss will owe you the full severance for the first and second years.

IlIlNine · Joined: 15 Jun 2005 Location: Gunpo, Gyonggi, SoKo

My understanding is that you get a month's pay for each year worked. So, you should get two months of full pay.

ontheway · Posted: Tue Dec 06, 2005 8:10 am Post subject:

When you "extend" your contract, you still need to write some kind of an agreement to do it. This could be a whole new contract or an addendum to the original contract. Either way, you should spell out the terms regarding severance, bonuses, pay increases (if any), airfare, cash in lieu of airfare and payment dates for all these items.

Before you extend again, make sure your new extension agreement has additional severance in it. You should write in terms for 7/12 of a month's pay bonus to be paid immediately upon completion of the first extension. You should have already received payment of one month's pay for the completion of the first year. If not, you should ask for that before extending again. You should get an additional 5/12 of a month's pay as a final severance pay (or bonus) on your last day under the new extension. Be sure to do the math and put in a won amount for each bonus so there can be no quibbling in calculation at the end. And since your boss has no additional airfare expense, you should get some cash compensation for that too. Ask for it and put it in the contract.

plattwaz · Joined: 08 Apr 2005 Location: <Write something dumb here>

Ontheway you are a little off with that. Yes, fine you can request that your employer put that in the contract, but it's not something he has to agree to.

The law is that you get 1 month's pay for a full year of service. Anything after a full year of service is pro-rated and added to the one-month.

Example: If you work 17 months (12 + 5) you are entitled to:

one month's pay for the first full year
5/12ths of a month's pay for the extra 5 months

The employer does NOT have to pay you this until the END of the contract. Not the end of the first year, but the last day of your employemnt with him (her). So, in your case, if you have been employed by the same employer for 2 full years then you are owed 2 full months of severance on the final day of your employment.

Sure, many teachers that I know have manged to get their school to pay the one month severance at the end of the first year, even if they were extending, but that's not law, and that just means that the employer was willing to negotiate (and perhaps it was good cash flow managment on part of the employer).

SMKOREA · Joined: 29 Nov 2005

I recieved my first severance after the first year. Sorry, I didn't specify that. I'm only talking about the 2nd severance pay.

ontheway · Posted: Wed Dec 07, 2005 8:01 am Post subject:

Plattwaz,

I never said it was the law. My advice was what you should ask for in your contract or renewal agreement. People who don't get things in their contract or talk about them in advance are asking for trouble. If an employer won't put something in a contract it's because they don't like it or don't want to pay. That means you may have to use the law to get it. Sure some will put it in and try to cheat anyway, but most will honor what they know they've actually agreed to. And many people will fight things they haven't agreed to, even if it's the law.

Further, by negotiating you can do better for yourself. For example, you can get paid cash in lieu of an airplane ticket, every year. Even if you never leave Korea. You can get your severance bonus paid annually as I see SMKorea did. That's the policy where I work as well.

It is much better both financially and emotionally, as well as more honest, to negotiate up front, than to use the law as some secret weapon after the fact.