Korean Job Discussion Forums

[ameliekelly]

I am employed as a Visiting Professor by a university and have entered my 3rd annual contract. My previous contract (duly executed and stamped by the uni president) ended on August 29 2012. Article 13 regards severance pay, and reads: ''A' will offer 'B' severance payment after the completion of this contract according to the Korean Law concerned.' With the first contract, I received my severance in approximately 1 month, ie. September 2011 and I expected the same this year.

However, today I was told , "As of July 24th 2012, the Korean law has changed and the severance payment will not be paid on a yearly basis for visiting professors. The visiting professors will be receiving the whole amount when they are leaving x University just as the full-time teachers receive their teacher's pension. "

Is there such a new Korean law, and would it affect a contract signed a year earlier?

Thanks.

[YTMND]

Why would you want to fight it?

[ameliekelly]

It's not pension. It's severance due at the end of a contract. The contract is complete. Like most folks, I like to be paid what is due in a timely manner.

[YTMND]

[mnjetter]

Since it is severence pay and not a year-end bonus, I was under the impression that for all employees in Korea, regardless of profession, it is something you get upon leaving your place of employment. I don't know of anybody, actually, who would get their severence pay before...well, being severed from their income. That's what the meaning of the word is, after all.

In the labor laws, they just state that if you leave your job, you are entitled to a severence pay equal to 1/12th of the pay you have received during the course of your employment.

[Skippy]

Yes it is a law. Not really new. Just the government is now enforcing it.

http://forums.eslcafe.com/korea/viewtopic.php?p=2804753

[Swampfox10mm]

Am I correct in assuming this means nothing for those of us working at private universities with a private pension plan?

[ameliekelly]

1. I work at a private university and,
2. This is NOT a pension issue. This is about my year-end completion of contract BONUS, which is referred to as severance. The contract is finished and I was told I would receive my bonus - severance - at the end of that contract.

[Otherside]

[mnjetter]

Ameliekelly, look at the Korean version of your contract for the word being used for severance. If it says "대지금," then it is not a year-end performance bonus. It is severance pay, a.k.a., the money you get when you quit a job to tide you over till you get another. Whether your university is a private or public institute is immaterial. It still needs to follow Korean labor standards.

On the other hand, it is not the same as pension either. You are right about that. For most Korean employees, pension gets paid after you retire from the workforce and start claiming retirement benefits. It is only because foreigners tend to leave the country before retiring that we get it in a lump sum. For all employees, Korean or foreign, severance gets paid as a lump sum when you leave a particular job.

The best non-legalese explanation of severance pay I've been able to find has been on http://www.korea4expats.com/article-severance-pay-korea.html. The bit that would apply directly to your question would be this:

[schwa]

[mnjetter]

[schwa]

Sorry, couldnt find the official source, but this article sums it up nicely:
http://igot2shoes.blogspot.kr/2008/04/changes-to-severance-pay-laws-in-korea.html

[YTMND]

[Weigookin74]

It's Korean law and that would overrule any contract with your employer. I previously cashed mine out but will now have to leave mine in begnning next year. Foreced savings I guess though it was convenient to get it every year. But what are you going to do?