Labor Law Q&A details

Chapter 5 Dismissals

Who should the employer pay the end-of-contract entitlements to in case of a termination of contract by death of the employee? Does local law provide for different end-of-contract entitlements in the case of a deceased employee?

Article 1000 (Priority of Inheritance),
Article 1003 (Order of Inheritance of Spouse),
Article 1009 (2) (Statutory Share in Inheritance), Civil Act, as last amended by Act No. 12881, Dec 30, 2014

No. there is no special provision regarding different end-of-contract entitlements in the case of a deceased employee.
Equally an employer shall pay severance to a deceased employee and according to the Civil Law on inheritance, the spouse and his/her children gets the entitlement of severance on the ratio of 1.5:1.

*Civil Act

Article 1000 (Priority of Inheritance) (1) In inheritance, persons become inheritors in the following order:

1. Lineal descendants of the inheritee;

2. Lineal ascendants of the inheritee;

3. Brothers and sisters of the inheritee;

4. Collateral blood relatives within the fourth degree of the inheritee.

(2) In the case mentioned in paragraph (1), if there are two or more inheritors standing in the same order, the closest in degree of relationship shall have the priority of inheritance. If there are two or more inheritors standing in the same degree of relationship, they become coinheritors.

(3) With respect to the order of inheritance, an unborn child shall be considered as born.

Article 1003 (Order of Inheritance of Spouse) (1) If there exist such inheritors as provided in Article 1000 (1) 1 and 2, the spouse of the inheritee becomes a co-inheritor, in the same order as the said inheritor. If there exists no inheritor, the spouse becomes the sole inheritor.

(2) In the case mentioned in Article 1001, the spouse of the deceased or the disqualified person, before the commencement of inheritance, becomes a co-inheritor in the same order as the inheritors provided in the same Article. If there exists no inheritor, the spouse becomes the sole inheritor.

Article 1009 (Legal Portions in Inheritance) (1) If there exist two or more inheritors in the same rank, their shares of the inheritance shall be equally divided.

(2) The portions inherited to an inheritee's spouse shall be increased by fifty percent over the inherited portion of his or her lineal descendant where he or she inherits jointly with his or her descendants, or fifty percent over the inherited portion of his or her lineal ascendant where he or she inherits jointly with his or her lineal ascendants.

(3) Deleted.

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call (+82) 2-539-0098 or email bongsoo@k-labor.com

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