The requirement of legal retirement pay (severance pay)
본문
According to Article 4 of the Employee Retirement Benefit Security Act,
an employer shall set up at least one retirement benefit scheme (retirement pay, retirement pension) in order to pay benefits to workers after they retire:
- Provided, That this shall not apply to workers whose consecutive service period is less than one year and workers whose average weekly working hours over a four-week period is less than 15 hours.
At this time, “consecutive service period” means the period an employment contract is in effect after its conclusion.
Since an employment relations has been effectively terminated by expiration of contract, submission of resignation letter by him/herself,
adjustment of severance pay and four major social securities etc., if a worker has joined the workplace with new recruitment process and made a fixed-term contract,
each contract shall not be deemed the duration of consecutive service.
- In case a contract of employment is repeatedly renewed at the same time of maturity of the immediately preceding contract or a contract
with the same working conditions is concluded time and again for the same employee,
all the periods of such repeated or renewed contract may be counted as the duration of consecutive service for the purpose of computing severance.
- Who retire 30 days or more of average wages for each year of their consecutive service as retirement pay
within 14 days from the date on which there occurs a cause for the payment.
- Statutory retirement pay = daily average wage × 30 (days) × (total days of service/ 365)
- For your information, provisions of retirement pay are not applied to the workplace with less than 5 full workers,
the worker with less than one year of service, and the worker with less than 15 hours workweek.
If you are subject to private school teachers’ pension, you shall be paid benefits pursuant to Article 33 of the Pension for Private School Teachers and Staff Act.
- Meanwhile, in cases where you are not applied to the Pension for Private School Teachers and Staff Act but if you are a worker under the Labor Standards Act (one year or more of consecutive service year) and meet the requirement of severance pay, you shall be paid legal retirement pay (severance pay) pursuant to Article 8 of the Employee Retirement.
* Employees need to apply in order to receive their severance pay. Check this with your employer.
For further inquiries with regards to labor-related laws, please contact Ministry of Employment and Labor Counseling Center at 1350 (press 4 and 1 for English).
an employer shall set up at least one retirement benefit scheme (retirement pay, retirement pension) in order to pay benefits to workers after they retire:
- Provided, That this shall not apply to workers whose consecutive service period is less than one year and workers whose average weekly working hours over a four-week period is less than 15 hours.
At this time, “consecutive service period” means the period an employment contract is in effect after its conclusion.
Since an employment relations has been effectively terminated by expiration of contract, submission of resignation letter by him/herself,
adjustment of severance pay and four major social securities etc., if a worker has joined the workplace with new recruitment process and made a fixed-term contract,
each contract shall not be deemed the duration of consecutive service.
- In case a contract of employment is repeatedly renewed at the same time of maturity of the immediately preceding contract or a contract
with the same working conditions is concluded time and again for the same employee,
all the periods of such repeated or renewed contract may be counted as the duration of consecutive service for the purpose of computing severance.
- Who retire 30 days or more of average wages for each year of their consecutive service as retirement pay
within 14 days from the date on which there occurs a cause for the payment.
- Statutory retirement pay = daily average wage × 30 (days) × (total days of service/ 365)
- For your information, provisions of retirement pay are not applied to the workplace with less than 5 full workers,
the worker with less than one year of service, and the worker with less than 15 hours workweek.
If you are subject to private school teachers’ pension, you shall be paid benefits pursuant to Article 33 of the Pension for Private School Teachers and Staff Act.
- Meanwhile, in cases where you are not applied to the Pension for Private School Teachers and Staff Act but if you are a worker under the Labor Standards Act (one year or more of consecutive service year) and meet the requirement of severance pay, you shall be paid legal retirement pay (severance pay) pursuant to Article 8 of the Employee Retirement.
* Employees need to apply in order to receive their severance pay. Check this with your employer.
For further inquiries with regards to labor-related laws, please contact Ministry of Employment and Labor Counseling Center at 1350 (press 4 and 1 for English).