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bradshaw
Joined: 13 Feb 2007
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 Posted: Fri Apr 04, 2008 8:13 am Post subject: Severance pay pro-rated? |
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Hi all,
I'm about to complete my year contract here in Korea and will be paid out my one year severance pay. I've extended my contract 6 more months, and am wondering if I can expect to be paid a pro-rated severance bonus? Thanks in advance. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Apr 04, 2008 8:42 am Post subject: Re: Severance pay pro-rated? |
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| bradshaw wrote: |
Hi all,
I'm about to complete my year contract here in Korea and will be paid out my one year severance pay. I've extended my contract 6 more months, and am wondering if I can expect to be paid a pro-rated severance bonus? Thanks in advance. |
If you want to get a pro-rated severance payment (or anything else) in your renewal contract you should negotiate for it in advance and get it in writing in your renewal contract before you extend. Don't wait until after the fact and try to get it because "it's the law." |
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Zaria32
Joined: 04 Dec 2007
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| Posted: Fri Apr 04, 2008 4:35 pm Post subject: |
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| Severance pay is by the full year...under K law you are not entitled to any proration for part of a year. I've heard of some bosses doing it, but it's certainly not required nor should you expect it. |
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kprrok
Joined: 06 Apr 2004
Location: KC
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| Posted: Fri Apr 04, 2008 5:13 pm Post subject: |
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Severance is mandatory if you extend for a 2nd year or any part of a 2nd year, Zaria is wrong. The catch is that if he pays you severance at the end of your first year, then he doesn't have to pay anything at the end of the 6-month extension. If you want the pro-rated severance, you have to NOT get it after the full year.
example: You work 18 months (March 07 - Aug 0 . If your boss pays your severance in Feb 08, you get nothing in Aug 08 when you leave. You net 1 month salary for severance.
Same working time, but you DO NOT get paid severance in Feb 08, but get it all in Aug 08. You will get 1.5 months of salary for severance.
KPRROK |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Apr 04, 2008 5:26 pm Post subject: |
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| kprrok wrote: |
Severance is mandatory if you extend for a 2nd year or any part of a 2nd year, Zaria is wrong. The catch is that if he pays you severance at the end of your first year, then he doesn't have to pay anything at the end of the 6-month extension. If you want the pro-rated severance, you have to NOT get it after the full year.
example: You work 18 months (March 07 - Aug 0. If your boss pays your severance in Feb 08, you get nothing in Aug 08 when you leave. You net 1 month salary for severance.
Same working time, but you DO NOT get paid severance in Feb 08, but get it all in Aug 08. You will get 1.5 months of salary for severance.
KPRROK |
No, Zaria is not wrong.
Article 34 (Severance Pay System)
(1) An employer shall establish a severance pay system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a severance pay to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
There is NO allowance in Korean labor law to pro-rate severance for partial years (whether you are paid out or not).
I can tell you from experience that this is the way the act is interpreted by the labor board. One month for EACH FULL YEAR WORKED.
Negotiate it as part of your extension or you will NOT get it.
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prairieboy
Joined: 14 Sep 2003
Location: The batcave.
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| Posted: Sat Apr 05, 2008 3:58 am Post subject: |
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The Labor Standards Act was wholly amended July 27, 2007.
Article 34 has changed.
Look here: http://english.molab.go.kr/english/ for the most up-to-date version of the LSA.
There are some other very significant changes.
Cheers |
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