Korean Job Discussion Forums

[jurassic5]

whats up..im planning on extending my contract for an 4 months. i am here in korea on a f-4 visa, but the contract i originally signed said that im am eligible for severance pay at the end of 12 months (which will be this sept.). i am wondering if i am able to obtain severance for the next 4 months that i will be working....if so, what laws do i have in my favor...especially since my school said that they only pay severance to 1 year contracts and not extensions. i felt that i should at least be paid 1/3 of what my yearly contract will be for the next 4 months...is this unreasonable?

[prosodic]

Completely reasonable and also what the law says you are entitled to.

[justagirl]

The law says your entitiled to severance if you sign a new contract (ie: extend) at your current job, but only work there for 4 months?

I was about 98% sure that severance is based on a yearly schedule...let me know if otherwise (links, please), cause I re-signed on for 6 months more at my school and am not getting an additional severance.

[prosodic]

This question is complicated because most foreign English teachers in Korea take their severance pay at the end of each year whereas Koreans usually wait until they leave a company. For example, if a Korean works for a company and leaves after 9 years, then that Korean gets 9 months pay as severance. My understanding is that this includes a prorated amount for partial years.

If you take your severance pay at the end of the first contract, then you start back at zero in terms of qualifying for severance. So, once again, my understanding is that you get a prorated amount for the extra partial year as long as you don't take your severance in annual installments.

By the way, it is often a good idea to wait until you leave a company for good anyways. Assuming you got a raise each year, your average wages will be higher at the end of your last contract than at the end of your first contract.

The OP may want to post a question on the Ministry of Labor's Q&A site:

http://www.molab.go.kr:8787/board/qna_list.jsp?pageNum=0

Let us know what they say.

[Gord]

f you cash out at the end of a year, then you are basically quitting and starting again so you are not legally entitled to 4 months of severance pay.

If you do not cash out with your severance and simply sign another contract for four months, you employment is considered continuous and you would be entitled to the increased severance package you speak of that is to be given to you when you quit finally.

[hellofaniceguy]

Geesh!! Most of the responses are wrong....and from old timers!
If you complete a years contract....you get the average of the last three months pay. If you sign for one additional month or 6 additional months...severence IS to be prorated!
That's the law. Schools are hoping that the teacher is not hip on korean law! Or the school is really ignorant!
Call the labor office for yourself.
It's also on the labor office WEB site...but you have to read through a bunch of mumble jumbo to find it.
Relevant provisions : Articles 19 and 34 of the Labor Standards Act concerning the calculation of average wages and severance pay


From the labor department WEB site: http://www.molab.go.kr:8787/English/faq/sub_Content1.jsp

Calculation method in the case of severance pay given to a retiring worker : Three twelveths of the amount of compensation that will be paid for unused leave during the year in which a retiring worker asks for severance pay should be included in the calculation of average wages.

Reason : Average wage is usually calculated by dividing the total wages paid during final three months by the number of days during the same period. However, given that compensation for unused annual leave is not a wage regularly paid every month, its monthly amount should be calculated by evenly dividing one-year compensation by 12 months.

Example : If a worker who had joined a company on January 1, 1994 retired on October 1, 1999, the amount of compensation for his/her unused leave to be used for the calculation of his/her average wages would be calculated based on the number of unused leave days out of the total annual paid leave that had been granted as a reward for his/her work during January 1, 1998 – December 31, 1998 and could be taken during January 1, 1999 – December 31, 1999.

Calculation method in the case of severance pay given in advance to a worker before his/her retirement : Three twelveths of the amount of compensation that was paid for unused leave during a year prior to the year in which a worker asks for severance pay in advance before his/her retirement should be included in the calculation of average wages.

Reason : Because whether annual paid leave unused at the time of calculating this severance pay will be taken in future is not certain, using it to calculate average wages is unreasonable.

Example : If a worker who had joined a company on January 1, 1994 asked for severance pay corresponding to his/her employment period until December 31, 1998 before his/her retirement on October 1, 1999, the amount of compensation for his/her unused leave to be used for his/her average wages would be calculated based on the number of leave days that remained unused after January 1, 1999 out of the total annual paid leave that had been granted as a reward for his/her work during January 1, 1997 – December 31, 1997 and could be taken during January 1, 1998 – December 31, 1998.

[prosodic]

Hellofaniceguy,

It would be nice if you referred to something beyond Article 34 of the Labor Standards Act. You're certainly right about Article 19 and calculation of average wages, but I'm not sure about the part where you say that you get the prorated amount even if you cash out the first year. I'm specifically thinking of Article 34, paragraph 3, where it says

[howie2424]

hellofaniceguy is right, it doesn't matter if you've been paid the severance at the end of the first year. If you have worked continuously for more than 12 months the severance for the period beyond the 12th month is prorated. I just went through this with my last school where I had extended for 6 additional months. They also tried to say 'sorry you didn't work a full twelve months', don't let them screw you!

[hellofaniceguy]

After doing the hakwon gig a few years back and getting burnt on severence...I got educated real quick like.
In both cases in two different cities, I filed a complaint with the labor department. One contract was for 14 months and the other was for 19 months. (both were extended after the one year period for the additional months) The labor department "told" the schools that "the employee (me) is to be paid for the total time worked," proated.
Just a few years back, I had a university that tried to cheat me out of 4 months severence above the 12 months that they paid. Complaint filed, university was told to pay me 1/3 severence.
I have a buddy who worked at a university...contract does not include air fare. In fact a few universities in korea do not pay air fare...anyway...
he filed a law suit against the university for failing to provide airfare according to the rules under the immigration sponsor form and he won.
I suppose if you get burnt and you take a stand and you KNOW you are right according to the law...you'll get your money. But, it, the law, is subject to intrepretation.

[prosodic]

This is good news. Thank you for the information.

Given these clarifications, I think that the OP should take the first year's severance in September. The last three months are then July, August, and September. If Jurassic's hagwon is like most, I assume July and August were busy months with some significant overtime. It's best to get that in the average wages calculation.

[jurassic5]

well, i'm still fighting with my school about this. they told me they talked to other hagwon owners and were told that they only pay severance after each completed year. they said it's what most hogwons do...so i replied, what most hogwons do is illegal.


anyways, i talked to the MOL hotline and was informed that i am due 16 months of severance pay....now if i can only make my school understand this. I already told them that if a worker works for X amount of months past 1 year. they are required to calculate the severance.

we shall see....

[jazblanc77]

Is the extra couple hundred thousand won worth the stress and losing a job recommendation? If it is, just collect your severance as they would have you take it and then take them to the Labour Board and sue them for the rest. Otherwise, just let it slide. It's just not worth it!

[jurassic5]

it's more than a few hundred..closer to 3/4 of a million.

i already got a job recommendation for this job from my old director..so not too worried about that.

but yeah...you're right. it's not worth the stress...but hogwons gotta learn to stop screwing people (whether it be money etc.)

[jazblanc77]

It is the job recommendation that I would personally be worried about, however, since you already got it, you should just play it cool with them until you leave and then file a claim with the Labour Board after you get your final pay and severence.

I know this is a little off-topic but I think all hogwan teachers should be required to read Sun Tzu's The Art of War, to get a work visa in Korea. It speaks a lot about diplomacy in terms of the application of war, spies, deception, and tactics. It is from The Art of War that the quote, "keep your friends close but your enemies closer", comes. In other words, keep the perception of friendly relations up with your director until the very end of your employment and then when he is least expecting it, launch a surprise attack on him by taking your claim to the Labour Board.

[Real Reality]

jurassic5 wrote,
"but yeah...you're right. it's not worth the stress...but hogwons gotta learn to stop screwing people (whether it be money etc.)"

Please contact your embassy or send an e-mail message to your government representative in Korea.

Send a Message to the U.S. State Department
http://contact-us.state.gov/

U.S. Embassy
American Citizen Services:
E-mail inquiries at: [email protected]
Main Switchboard: 02-397-4114
International Mailing Address:
Embassy of the United States Seoul
32 Sejongno, Jongno-gu
Seoul 110-710
Republic of Korea
http://usembassy.state.gov/seoul/wwwhecontact.html

Foreigners Experience Difficulties in Living in Korea
An official in the International Cooperation Division of Seoul City admitted, "The same complaints regarding visas, transportation, education, and environment are raised every year without being solved, due to the lack of cooperation from government agencies involved and their passive attitudes." http://english.donga.com/srv/service.php3?biid=2004070522448