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Severance, Contract Completion Leaving Korea after 2 Years
« on: August 28, 2017, 09:39:54 am »
My contract will be ending soon and the information for my questions I've found little answers in the forum, or its simply too scattered to find it all. So hopefully someone who worked 2 years in Korea and then left can help to answer this.

You severance I read is supposed to be paid at the end of a 12 month contract. After I completed my 1st year I received the renewal bonus and everything, was the severance or just the completion and renewal bonus? If it wasn't the severance does that mean that when I leave after being here for two years that I will receive severance for this past year and this current year?

Contraction completion, I know that I get flight money (1,300,000) home but then I also saw that if you complete your contract you should also get a remaining 700,000 for completing your contract. Will I get this as well or is the 700,000 only given to those who renew their contracts, not those leaving the country after finishing their contract.

Thanks in advanced.


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #1 on: August 28, 2017, 10:13:39 am »
For some dodgy reason they started holding on to the contract completion "bonus". While it seems a bit dodgy at least people that do more than one year walk away with something if they haven't been able to save money them self for some reason.

So if you are finishing your contract you would get 1,300,00 for the air fare, your normal pay, two years contract completion bonus, and of course don't forget to apply for your pension refund as well at the NPS office if you are eligible.


  • kriztee
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #2 on: August 28, 2017, 11:43:57 am »
I assume you're EPIK? If so this is the run down:
Contract completion isn't the same as renewal bonus. They recently changed the renewal bonus. It used to be 1,300,000 right away then 700,000 6 months into the new contract. Now you have to wait til the end of the second contract to get to 700,000. Depending on when you signed the contract, you either got that 700,000 half way through your second contract, or you'll get it when you leave. The total renewing bonus should be 2,000,000won but they split it up into 2 payments (1,300,000+700,000)

Contract completion is an extra months pay (average of what your salary has been in the last few months) for each completed contract. So at the end of your second contract, you'll get 2 months more pay.

The flight reimbursement will also be paid on top of those other amounts.

If you qualify for your pension back (only some countries) you'll be getting a buttload more money too. You pay about 100,000 a month, the school matches that, so you'll get about 4.8mil after 2 years.

Basically, you'll have a decent amount of money just for leaving the country :)


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #3 on: August 28, 2017, 12:09:58 pm »
I assume you're EPIK? If so this is the run down:
Contract completion isn't the same as renewal bonus. They recently changed the renewal bonus. It used to be 1,300,000 right away then 700,000 6 months into the new contract. Now you have to wait til the end of the second contract to get to 700,000. Depending on when you signed the contract, you either got that 700,000 half way through your second contract, or you'll get it when you leave. The total renewing bonus should be 2,000,000won but they split it up into 2 payments (1,300,000+700,000)

Contract completion is an extra months pay (average of what your salary has been in the last few months) for each completed contract. So at the end of your second contract, you'll get 2 months more pay.

The flight reimbursement will also be paid on top of those other amounts.

If you qualify for your pension back (only some countries) you'll be getting a buttload more money too. You pay about 100,000 a month, the school matches that, so you'll get about 4.8mil after 2 years.

Basically, you'll have a decent amount of money just for leaving the country :)


I am with EPIK, sorry should of said that. I also signed my contract in October. I'm a little lost by your response.

In my contract I'm seeing that 700,000 will be given to me after the successful completion of a renewed contract.

"Contract completion is an extra months pay (average of what your salary has been in the last few months) for each completed contract. So at the end of your second contract, you'll get 2 months more pay. "

-I don't see anything like this in the contract unless this is the severance pay that you are talking about. Since severance is the total of one months pay, and I didn't get it last year so It would be 2016 year and 2017 year worth of severance... is this right?


  • kriztee
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    • December 18, 2015, 01:33:06 am
Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #4 on: August 28, 2017, 12:29:14 pm »
I assume you're EPIK? If so this is the run down:
Contract completion isn't the same as renewal bonus. They recently changed the renewal bonus. It used to be 1,300,000 right away then 700,000 6 months into the new contract. Now you have to wait til the end of the second contract to get to 700,000. Depending on when you signed the contract, you either got that 700,000 half way through your second contract, or you'll get it when you leave. The total renewing bonus should be 2,000,000won but they split it up into 2 payments (1,300,000+700,000)

Contract completion is an extra months pay (average of what your salary has been in the last few months) for each completed contract. So at the end of your second contract, you'll get 2 months more pay.

The flight reimbursement will also be paid on top of those other amounts.

If you qualify for your pension back (only some countries) you'll be getting a buttload more money too. You pay about 100,000 a month, the school matches that, so you'll get about 4.8mil after 2 years.

Basically, you'll have a decent amount of money just for leaving the country :)


I am with EPIK, sorry should of said that. I also signed my contract in October. I'm a little lost by your response.

In my contract I'm seeing that 700,000 will be given to me after the successful completion of a renewed contract.

"Contract completion is an extra months pay (average of what your salary has been in the last few months) for each completed contract. So at the end of your second contract, you'll get 2 months more pay. "

-I don't see anything like this in the contract unless this is the severance pay that you are talking about. Since severance is the total of one months pay, and I didn't get it last year so It would be 2016 year and 2017 year worth of severance... is this right?

The Renewal bonus is 2mil won. It comes in 2 payments. The first payment is at the start of the 2nd contract (this is the 1.3mil you already were paid). The contract you currently have signed will tell you about when you would receive the 700,000. Some contracts say that the remaining 700,000 for renewal will be paid when the contract is completed. Meaning that if you renew then leave after 4 months you don't get that last 700,000. Some contracts, however, say that the remaining 700,000 will be paid 6 months in to the 2nd contract. In that case if you signed in October, you would have already received that 700,000 around April. In either case you will get that 700,000, but double check your bank statements to see if you already got it. My POE changed their payment date as of Aug 2017. Now you wait until you finish the second contract to get the 700,000. But when I renewed in February, my contract said I got the 700,000won after 6 months. You don't need to renew again to get that 700,000. It's the second payment owed to you for the initial renewal.

The contract completion aka severance will be paid out in total at the end. You did 2 years so you get 2 months pay. Most schools wait until you leave the country to pay out the severance. Your school is one of the ones that wait.


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #5 on: August 28, 2017, 12:41:51 pm »
In addition to what others have said. It might be worth adding that your school might only give you your completion bonus/severance and/or flight reimbursement after you are in your home country. My school wouldn't or couldn't give it to me until after I left.

When I left I had to send my co teacher a picture of my exit stamp, and my flight ticket then she was able to apply for it and it was deposited into my US bank account. I originally thought that I'd get it before I got on a plane, so I didn't budget as well as I should have for my last week in Korea and it wasn't fun. I still got all of my money in the end though.


  • shostager
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #6 on: August 28, 2017, 12:45:03 pm »
In addition to what others have said. It might be worth adding that your school might only give you your completion bonus/severance and/or flight reimbursement after you are in your home country. My school wouldn't or couldn't give it to me until after I left.

When I left I had to send my co teacher a picture of my exit stamp, and my flight ticket then she was able to apply for it and it was deposited into my US bank account. I originally thought that I'd get it before I got on a plane, so I didn't budget as well as I should have for my last week in Korea and it wasn't fun. I still got all of my money in the end though.

Wait, so you can't get severance until you leave the country? What if you're moving to work in another district in Korea? Or, for that matter, never leave Korea? I understand not giving the flight allowance if you don't actually leave, but surely severance should be paid out no matter what?


  • thunderlips
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #7 on: August 28, 2017, 12:58:15 pm »
In addition to what others have said. It might be worth adding that your school might only give you your completion bonus/severance and/or flight reimbursement after you are in your home country. My school wouldn't or couldn't give it to me until after I left.

When I left I had to send my co teacher a picture of my exit stamp, and my flight ticket then she was able to apply for it and it was deposited into my US bank account. I originally thought that I'd get it before I got on a plane, so I didn't budget as well as I should have for my last week in Korea and it wasn't fun. I still got all of my money in the end though.

Wait, so you can't get severance until you leave the country? What if you're moving to work in another district in Korea? Or, for that matter, never leave Korea? I understand not giving the flight allowance if you don't actually leave, but surely severance should be paid out no matter what?

Many schools just don't know the legal requirements for each benefit we are entitled to.

 
Quote
Severance is to be paid within two week of termination of employment*
http://www.korea4expats.com/article-severance-pay-korea.html

Pension refund, if eligible, requires a person to be out of country, but NOT severance. They are just ignorant of their duties here.

So for finishing a second contract you should be paid your last month wages, severance pay (2 X your current monthly salary, including housing if applicable), pension refund (if applicable), security deposit, 700,000 won remaining bonus from your first year contract and a contract completion bonus for the final contract. Completion bonus and severance are NOT the same thing.

Example: 2,200,000 last month's pay + 4,400,000 severance + about 4,500,000 pension + 600k deposit + 700k 1st contract completed + 1.3k 2nd contract completed bonus =
13,700,000 total (I think) but read your contract to confirm


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #8 on: August 28, 2017, 01:05:33 pm »
In addition to what others have said. It might be worth adding that your school might only give you your completion bonus/severance and/or flight reimbursement after you are in your home country. My school wouldn't or couldn't give it to me until after I left.

When I left I had to send my co teacher a picture of my exit stamp, and my flight ticket then she was able to apply for it and it was deposited into my US bank account. I originally thought that I'd get it before I got on a plane, so I didn't budget as well as I should have for my last week in Korea and it wasn't fun. I still got all of my money in the end though.

Wait, so you can't get severance until you leave the country? What if you're moving to work in another district in Korea? Or, for that matter, never leave Korea? I understand not giving the flight allowance if you don't actually leave, but surely severance should be paid out no matter what?

I know I've heard other people being able to get theirs before then or people who bought plane tickets out of Korea just to collect it. I don't have my old contract on me at the moment, or even my current one now that I've returned. But what it turned out with my old (GEPIK) contract was that it was worded in a way that you had to leave the country in order to collect it. If I was home I could look up the original on my computer, but I'm at work.

Extra note: my experience doesn't equal everyone's experience, nor does it mean it's the norm. Just mentioning what could happen. Always expect the unexpected the best you can, plan for things not going how they should.
« Last Edit: August 28, 2017, 01:35:41 pm by traversing »


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #9 on: August 28, 2017, 01:51:04 pm »
Okay thank you everyone for your responses and clearing everything up. I just wanted to have a full understanding before my cot talks with me about this.


  • Elegy
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    • February 29, 2016, 09:01:47 am
    • South Korea
Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #10 on: August 28, 2017, 02:20:32 pm »
In addition to what others have said. It might be worth adding that your school might only give you your completion bonus/severance and/or flight reimbursement after you are in your home country. My school wouldn't or couldn't give it to me until after I left.

When I left I had to send my co teacher a picture of my exit stamp, and my flight ticket then she was able to apply for it and it was deposited into my US bank account. I originally thought that I'd get it before I got on a plane, so I didn't budget as well as I should have for my last week in Korea and it wasn't fun. I still got all of my money in the end though.

Wait, so you can't get severance until you leave the country? What if you're moving to work in another district in Korea? Or, for that matter, never leave Korea? I understand not giving the flight allowance if you don't actually leave, but surely severance should be paid out no matter what?

Many schools just don't know the legal requirements for each benefit we are entitled to.

 
Quote
Severance is to be paid within two week of termination of employment*
http://www.korea4expats.com/article-severance-pay-korea.html

Pension refund, if eligible, requires a person to be out of country, but NOT severance. They are just ignorant of their duties here.

So for finishing a second contract you should be paid your last month wages, severance pay (2 X your current monthly salary, including housing if applicable), pension refund (if applicable), security deposit, 700,000 won remaining bonus from your first year contract and a contract completion bonus for the final contract. Completion bonus and severance are NOT the same thing.

Example: 2,200,000 last month's pay + 4,400,000 severance + about 4,500,000 pension + 600k deposit + 700k 1st contract completed + 1.3k 2nd contract completed bonus =
13,700,000 total (I think) but read your contract to confirm

I thought it would be:

2,200,000 last month's pay + 4,400,000 severance + about 4,500,000 pension + 600k deposit + 1,300,000 exit allowance (from the first contract) + 700,000 (2nd chunk of the 2,000,000 contract renewal bonus). Still comes out to 13,700,000, but the phrasing on the last two items is different.

Is the "completion bonus" you're referring to the exit allowance from the first contract?

EPIK gets:

Entrance allowance (1.3 million)
Settlement/moving bonus (300k)
Severance pay (~1 month salary per year)
Pension (~1 month salary per year)
Renewal bonus (2 million, paid out in two installments of 1.3 million at the start of the 2nd contract and 700k at the end of the 2nd contract)
Exit allowance (1.3 million).


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #11 on: August 28, 2017, 02:34:19 pm »
If you have an EPIK contract in SMOE, you do not get a renewal bonus.  I started in March, 2016 and they cut it out by then. 


  • thunderlips
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #12 on: August 28, 2017, 02:36:34 pm »
Yeah the 700k is the remaining bonus for the first completed contract. It wouldn't be called an exit allowance if you are renewing, it would be the renewing bonus. ( I think)

Not sure the exact phrasing, also I am not technically EPIK but our contracts are nearly identical for this portion.


If you have an EPIK contract in SMOE, you do not get a renewal bonus.  I started in March, 2016 and they cut it out by then. 
 

The problem is they can and will erode the benefits as long as people take those jobs for less. The bonuses and refunds are really what make this job worthwhile monetarily. I wouldn't be surprised to see the public school jobs going to people with English experience but not from one of the 7 official countries; i.e. Philippines. Not that I have a problem with those folks taking the jobs, but the fact that the wages are stagnant and the benefits are being taken away.
« Last Edit: August 28, 2017, 02:55:18 pm by thunderlips »


  • kobayashi
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #13 on: August 28, 2017, 03:32:11 pm »

The problem is they can and will erode the benefits as long as people take those jobs for less.

and then they will also complain about the 'unqualified' and inexperienced native english teachers in korea, as if it's some kind of giant mystery as to why.


  • Elegy
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #14 on: August 28, 2017, 05:30:16 pm »
Yeah the 700k is the remaining bonus for the first completed contract. It wouldn't be called an exit allowance if you are renewing, it would be the renewing bonus. ( I think)

Not sure the exact phrasing, also I am not technically EPIK but our contracts are nearly identical for this portion.


If you have an EPIK contract in SMOE, you do not get a renewal bonus.  I started in March, 2016 and they cut it out by then. 
 

The problem is they can and will erode the benefits as long as people take those jobs for less. The bonuses and refunds are really what make this job worthwhile monetarily. I wouldn't be surprised to see the public school jobs going to people with English experience but not from one of the 7 official countries; i.e. Philippines. Not that I have a problem with those folks taking the jobs, but the fact that the wages are stagnant and the benefits are being taken away.

Yeah, the OP gets the remaining 700k from the 2 million bonus (1.3 was paid within 30 days of the start of the new contract, the rest is paid upon the end of the contract). The OP also gets the 1.3 million exit allowance from the first year contract as well

Edit: Okay so the OP will get:

Last month's salary (2.2)
Two years pension (~4.4)
Two years severance (~4.4)
Exit Allowance (from first year contract, 1.3)
Renewal Remainder (700k)

The OP would have already been paid the other 1.3 million (the first installment of her renewal bonus) sometime near the start of her current contract.
« Last Edit: August 28, 2017, 05:36:49 pm by Elegy »


  • grey
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #15 on: August 28, 2017, 06:32:23 pm »
Are you positive there is 700k given?

I thought it was final pay, severance, 1.3M exit, and pension.
Ko fills half his luggage with instant noodles for his international business travels, a lesson he learned after assuming on his first trip that three packages would suffice for six days. “Man, was I wrong. Since then, I always make sure I pack enough.”
-AP


  • Elegy
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #16 on: August 29, 2017, 07:30:13 am »
Are you positive there is 700k given?

I thought it was final pay, severance, 1.3M exit, and pension.

Yes, because the 700k is the second part of the 2 million renewal bonus she earned from year one to year two.


  • Aristocrat
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #17 on: August 29, 2017, 08:36:22 am »
Are you positive there is 700k given?

I thought it was final pay, severance, 1.3M exit, and pension.

Yes, because the 700k is the second part of the 2 million renewal bonus she earned from year one to year two.

Apparently, they split the 2mil won renewal bonus into 2 parts to discourage NETs from pulling midnight runners. According to the lady at my POE, some NETs were pulling midnight runs right after receiving their bonus... This seems pretty dumb to me as you stand to lose far more in the form of your exit allowance and a potentially whopping severance pay. It's also pretty frustrating as the guy in charge of my paysilp, at the MOE, is a complete moron. He constantly screws up my paycheque, especially during renewal and vacation time, asnd if it wasn't for me being totally aware of how much I'm entitled to, I would've lost out on quite a bit of cash.



  • grey
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #18 on: August 29, 2017, 11:51:48 am »
I thought the renewal bonus was eliminated a couple of years ago.

I'm pretty confused. Is the 700k given at any time/ specific time?

I just finished my contract.

I got:

-final monthly pay
-1.3M exit
-severance
-pension is on its way
Ko fills half his luggage with instant noodles for his international business travels, a lesson he learned after assuming on his first trip that three packages would suffice for six days. “Man, was I wrong. Since then, I always make sure I pack enough.”
-AP


  • Elegy
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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #19 on: August 29, 2017, 01:07:09 pm »
I thought the renewal bonus was eliminated a couple of years ago.

I'm pretty confused. Is the 700k given at any time/ specific time?

I just finished my contract.

I got:

-final monthly pay
-1.3M exit
-severance
-pension is on its way

It's in the 2017 EPIK contract.

When you finish year 1 and renew for year 2, you get a 2 million won renewal bonus. 1.3 is paid out within 30 days of the start of the new contract, the remaining 700k is paid out at the end of the 2nd contract.

I don't have mine with me right now, but it's 110% there. Definitely check yours!

edit: Article 10, clause 3.

2 million total, 1.3 within 1 month and 700k at the end of the 2nd contract.

It also says:

"In the case of Contract Renewal (and the payment of the allowance), the Employee shall not receive an Exit Allowance for the completion of the Current Term of Employment nor shall the Employee receive an Entrance Allowance for the renewal Term of Employment".

I assume that means that you don't get another entrance/exit allowance at the start of the 2nd contract, but you retain your allowance from the first year contract.
« Last Edit: August 29, 2017, 01:12:38 pm by Elegy »