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  • Nzbub
  • Newgookin

    • 1

    • August 16, 2017, 04:47:09 pm
    • Korea
Severance Pay Question - Any Tips?
« on: August 16, 2017, 04:54:46 pm »
I am currently approaching the end of my contract in Korea. I work for a hagwon. My contract states that my severance payment will be made by bank transfer no later than 45 days after the teacher (me) has left employment.

However, I've seen lots of advice online which states that the law mandates a severance payment in no more than 14 days.

Could someone provide me with a legitimate source about severance payments? Also, any tips if my boss is less than happy about this information? I'm new to this whole process, but I'm not afraid to contact the labor board.


Re: Severance Pay Question - Any Tips?
« Reply #1 on: September 19, 2017, 05:11:37 pm »
The employer is legally obligated to pay you all monies owed in your final payment.  They cannot delay the payment of Severance if they do then it is unpaid wages which then creates a Legal Claim with the Ministry of Labor.

The basic principal is that the working relationship has ended and the financial obligation your employer has should be resolved at that time.  If they cannot afford to pay you severance on your last day then they really cannot afford to pay you two weeks, or three weeks in the future.

Claiming your Pension is from the Korean National Pension program and that will take up to two weeks due to the Government Paper work that has to be completed and the notifications they must complete with your home country.

Your employer has all the paperwork and there is no additional filings required, so they know how much they owe you on the last day of your employment.

Really, after two weeks you can file claim of unpaid wages with the MOL.


  • m.corless
  • Super Waygook

    • 260

    • August 30, 2011, 02:55:14 pm
    • Toronto, ON, Canada
Re: Severance Pay Question - Any Tips?
« Reply #2 on: September 19, 2017, 10:18:37 pm »
This info is about a year old:

http://www.korea4expats.com/article-severance-pay-korea.html

But says "within two weeks after termination of contract" and provides a hotline number you can call for up to date information


  • weirdgirlinkorea
  • Moderator - LVL 2

    • 2045

    • September 09, 2010, 06:00:18 pm
    • Seoul
    more
Re: Severance Pay Question - Any Tips?
« Reply #3 on: September 20, 2017, 11:14:37 am »
And if you have any problems getting your money in a timely manner, you would have a case for the labor board.
Ignoranţa este adesea o boală fatal şi cretin nu poate fi vindecata.


Re: Severance Pay Question - Any Tips?
« Reply #4 on: September 22, 2017, 10:14:22 am »
I have confirmed with a Korean Labor Attorney, you last check for salary should also have your severance i.e. there should not be two payments but one.

If you have not received your severance in you last check then you really can file for unpaid wages at that time.


Re: Severance Pay Question - Any Tips?
« Reply #5 on: September 22, 2017, 01:27:17 pm »
National Pension and National Health care contributions.

The mandatory employee National Pension contribution is 4.5% of the Standard Monthly Income and that is required to be paid if the Pension contribution requirement is not waived by International Treaty or by exemptions contained within some international treaties.

As for Health Insurance, the contribution to be made by the employee is 3.06% of the Standard Monthly Income.   It is possible for the Employer to have the employee registered with an equivalent Health Insurance provider but the alternative provider has to be Government Approved really approved by NHIS.

The English Consulting Call Center phone number for NHIS is +82-33-811-2000.  For National Pension Service service is available in multiple languages and they have multiple call centers and offices, the link follows: http://english.nps.or.kr/jsppage/english/main.jsp

The following link to NPS is for Foreigners Lump Sum refunds:
http://english.nps.or.kr/jsppage/english/scheme/scheme_04.jsp

For Taxes, NTS has a very good interactive URL that enables you to calculate online the taxes owed for the last fiscal year (i.e. 2016), the contributions for Pension and Health are not stated but the dollar value can be entered.  The reason being is that any rate increase in Pension or Health is in immediate effect where as Taxes are based upon Historical information.

The link for NTS is: http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3#none

the above will (with luck) be ale to provide enough insight (in addition to the Labor Law Bible reference) to determine if you have unpaid wages owed to you or if your employer has paid you up to date.

With Holiday Pay, that is not covered by any of the NTS, NHIS or NPS websites and has to be verified manually and it will not be able to help you with overtime or other such items.

Really, for amounts of 500,000 KRW or less then using the MOL online filing for unpaid wages is the most practical and cost effective mechanism but there is a chance that Holiday Pay and O.T. adjustments may be missed and the O.T. can add up to 260 hours (if your contract has "10 minute break" language it is a red flag and it should be checked carefully) and the link to the MOL online e-filing system is:

http://www.moel.go.kr/english/sai/saiEappOnpeti.jsp

From a very practical point of view,  if the amount owed is small and the efilling results in the amount being awarded to you is small then there are usually no problems with payment by the Company.  On the other hand, if the amount is larger than 500,000 KRW then the company will contest the amount usually because they will have a Labor Law Firm (or Law Firm) on retainer and are paying the retainer to have the claims challenged.

If you use the above information and websites, please ensure that you verify with National Pension that the contributions have actually been paid, that you have been truly registered with National Health and keep in mind the NTS data is really for the calculations of taxes for last year and will not have the current rates for Pension or Health.

 If you use the efiling system, please remember that determination of Ordinary Wage is the first step and guidance on how to "translate" your contract to isolate the ordinary wage can be found in the Korean Labor Law Bible which can be found here: https://play.google.com/store/apps/details?id=com.kLabor.mhybrid

With luck the above can provide some basic insight for you.