Korean Job Discussion Forums

[dreamscape]

I remember reading somewhere that if you extend your contract the severance will be paid on a pro-rated basis for the extension (ie 6 months equalls an additional 50% severance), but I can't remember if I read that in a contract or in something legally related. Is it up to the school or is it mandated by law to pay severance?

[ontheway]

When you extend your contract, you should write the extension yourself and make sure that things you want like the pro-rated, six month severance pay, are in it. You could also write in half of a round trip airplane ticket paid in cash.

Whatever you think you should get, put it in your contract before you sign. Do not rely on some government bureaucrats to bail you out later. If your employer won't agree to put it in the contract, then he probably won't pay it later when you try to force him to, using the "law".

[dreamscape]

hey, thanks. I'm going to write everything down that I want. I'm still curious though, is the severance (and a pro-rated severance for any time beyond the first year) a legally required thing? I'd like to know just so I'm clear where I stand if I need to make a stronger case (just for the record I've got a good boss but, like all hagwan bosses, he's first and foremost a businessman)

[cruisemonkey]

Under Korean law your employer is required to pay severance equal to one month's salary if you complete a one-year contract. If you extend the contract for six months, write that you will be paid severance on a pro-rated basis for the six-month extension - i.e. the equivalent of two week's salary.

Also, get your severance in two payments: the one-month equivalent at the end of the first year, and the prorated two-weeks equivalent at the end of your extension. If you let the employer pay it all in a 'lump sum' after the end of eighteen months, you have not only done yourself out of six months worth of interest (negligible), but will also end up paying more in taxes.

[thaitom]

Remember also that 50% of your severence is tax exempt