South Korea Termination and Severance Pay

South Korea Termination and Severance Pay

Termination and Severance Pay

An employer must give 30 days written notice to end a contract unless it is due to gross misconduct. It is a requirement for an employer to pay a severance on termination of employment, regardless of whether the termination was voluntary or involuntary. This can be in the form of a corporate pension or a severance payment of 30 days average monthly pay, providing the employee has in excess of one years continuous service. Termination payments must be made within 14 days. 

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Further details can be found at Retirement Benefits Act, Article 34 of the Korean Labour Standards Act 

 

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