I work as an engineer at the Korean branch of a company with headquarters in the USA. However, I recently heard that the size of the Korean branch will be reduced due to financial difficulties. Before full-scale restructuring, the company said that it will accept applications for early retirement, and that if I do not apply for early retirement, I may be laid off, or worse, lose my job due to the withdrawal of business. I do not want to quit my job, but I feel like the company is keeping the employees nervous and encouraging them to resign. What should I do?
Early retirement refers to a termination of the employment relationship for accepted applicants who meet pre-established requirements as a way of adjusting employment or resolving stagnation in promotions, or to otherwise seek to overcome business difficulties. If it is offered during a dismissal process, it will be deemed an effort to avoid dismissal.
If the company has unfairly selected people for early retirement or forced them to apply for early retirement, this may amount to unfair dismissal, even if a resignation letter is submitted.
However, in general, early retirement is not a one-sided dismissal by the employer, as it is a termination of the employment relationship by mutual agreement between the two parties: the employee accepts the conditions offered by the company and consequently submits a resignation. In the process, even though the company exerted some pressure that it could be disadvantageous if the employee does not accept early retirement or the company exaggerates its business situation, it is also the attitude of the court that it is hard to see it as coercion or deceit in which a worker is forced to submit a resignation letter. Therefore, it is important to bear in mind that an employee submitting a letter of resignation will not easily be deemed a dismissal.
After all, if you are not willing to accept early retirement, you should continue to work for the company, although it will not be easy to do so. If you refuse to the end, you may actually be cut during restructuring, which is justified under strict criteria such as urgent business need. Therefore, it is important to look carefully at existing circumstances to determine whether there is a possibility that the company will actually restructure, and if so, whether it is reasonable to expect that you will retain employment.
If the company is to carry out a termination in the process of withdrawing its business from Korea, it will be considered a dismissal, not a layoff. In this case, complying with the requirements for business dismissal is not necessary.