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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #20 on: August 29, 2017, 01:17:45 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 allowance at the start of the 2nd contract, but you retain your allowance from the first year contract.

I think you mean at the end of the 1st contract, not the second.

2016 renewal (2mil bonus, you'll get 1.3mil and 700k will be paid at the end of
                       your 2016 contract.

2017 renewal (2mil bonus, you'll get 2mil, 700k is taken and paid at the end of your   
                      2017 contract and the 700k from 2016 is returned to you)

2018 renewal (2mil bonus, you'll get 2mil, 700k is taken and paid at the end of your   
                      2018 contract and the 700k from 2016 is returned to you)

2019 leaving Korea (You'll get your 1.3mil won exit allowance as well as the 700k for
                                completing your 2018 contract)

ADVICE!
Check your payslip regularly, the folks at your MOE often forget or aren't aware that the 700k witheld from your 2016 contract must be paid to you this year.               


  • yirj17
  • The Legend

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    • September 16, 2015, 02:23:16 am
    • Korealand
Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #21 on: August 29, 2017, 01:42:47 pm »
ADVICE!
Check your payslip regularly, the folks at your MOE often forget or aren't aware that the 700k witheld from your 2016 contract must be paid to you this year.               


I second this.  It's also wise for if you have multiple schools, to make sure nobody's accidentally (or not) double dipping for lunch fees or whatever else.  (Some people I know have expressed surprise that my travel schools don't just let me have free lunches, but all 3 of my travel schools are small and probably can't do that with multiple travel teachers apiece.) 

Anyway, once early on I noticed that my lunch fee deduction was abnormally high.  There was some miscommunication about my admin office assuming it'd just deduct for all my travel schools but only one school was actually down with that plan, the other two requested payment from me directly.  Nothing nefarious though, it all got sorted out. 


  • grey
  • Hero of Waygookistan

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Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #22 on: August 29, 2017, 02:08:02 pm »
I think I found the issue. The 700k is applicable to EPIK teachers and not SMOE. I was SMOE.
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


Re: Severance, Contract Completion Leaving Korea after 2 Years
« Reply #23 on: September 20, 2017, 03:41:04 pm »
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.

Severance is separate from the completion bonus.

Severance is legally mandated by the Labor Standards Act is is basically 1 month per year worked, the amount is based upon the average wage (it is calculated based upon a 209 work hours monthly and separates bonuses from ordinary wages etc) where as the completion bonus is in addition to the minimum requirement of the Labor Standards Act, the working conditions are better for the employer is not required to pay out a completion bonus.

A Renewal Bonus would only need to be paid out in the event the contract is renewed for the next year.

I have not see the employment agreement, but we have encountered contractual wording in which the mandatory severance payment was phrased such that it appeared to be a "bonus" that the employer could choose to pay or not depending upon their satisfaction of the employees performance over the year.

Severance must be paid but it does not have to be stated in the employment contract because the Labor Standards Act is the "minimum" contract terms which are lawful in the Republic of Korea.

If the contract utilizes any term other than "Severance" then the employer is committing to pay above the Legal Minimum's of the Korean Labor Standards Act.