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EPIK (English Program In Korea)|설문조사 참여
Change in Severance Pay Distribution
Change in Severance Pay Distribution
  Date: 2012-07-24 12:13     View: 2010  

Dear EPIK Teachers,

 

We would like to make an announcement in regards to the timing of the distribution of your severance pay due to a new change in the law.

 

Starting from July 26th, 2012, under the「Employee Retirement Benefit Security Act」enacted by the Korean Ministry of Employment and Labor, premature cashing-in of severance pay will be restrained. Prior to July 26th, 2012, severance pay could be received at the end of each one (1) year contract. However, now severance pay will only be disbursed when the EPIK teacher completes all contracts and does not renew with their current employer.

 

In spite of this, there are special exceptions and distribution of severance pay can be allowed if one of the following conditions are met:

- The employee without his/her own housing purchases his/her own housing.

- The employee without his/her own housing provides proof that the severance pay will be used as a deposit or key money for his/her rented housing (Jeonse).

- The employee or his/her immediate family member needs to be in the hospital for long-term medical treatment (more than six months).

- The employee has been declared to start to restore financial stability under the「Individual Debtor Rehabilitation Act」.

- The employee has been declared bankrupt under the「Individual Debtor Rehabilitation Act」.

- The employee's salary has been reduced due to the salary peak system under the「Employment Insurance Act」.

- Other reasons and conditions as determined by the Ministry of Employment and Labor such as the occurrence of natural disasters.

 

For all reasons listed above, proof must be supplied prior to receiving the funds. These are very exceptional circumstances and most EPIK teachers will not qualify for early reimbursement and should wait for their final contract to end prior to receiving the severance pay. For more information, EPIK teachers are advised to consult with their POE/MOEs.


 

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