“(Retirement Allowance System)
(1) The employer will establish a retirement allowance system so that not less than thirty days average wages for each consecutive year of employment will be paid as a retirement allowance to a worker who has retired. This shall not apply to a worker who was employed less than a period of one year. (Penal Provisions, Chapter XII, Article 110: Violators shall be punished by imprisonment for not more than two years or a fine not exceeding ten million won.)”
Thus, if you sign a one year contract your employer is required to give you one month of pay as a at the end of your year of employment. Many schools call this a ‘bonus’- but this is really a misnomer- schools are required by law to do so. In effect, the school is paying you 13 months salary for 12 months of work- having an extra paycheck in your pocket to put towards your student loans certainly isn’t a bad thing. Periods beyond one year of employment, are pro-rated. Eighteen months employment = a bonus of 1.5 x monthly salary. No severance payment is required for periods of employment less than one year. Teachers are often worried about not receiving severance pay. In an event that your employer does not, you can contact the local immigration department and they will contact your school directly and will force this payment. If you are fired before completing your 1 year contract and you feel you were unjustly dismissed you can also contact the local immigration department and they will look into matters. No school director in his or her right mind would want to create a situation with immigration. Random checks at schools and delayed visa checks are a nightmare for school directors.
