MOEL Interpretation

Severance Pay Act

Miscellaneous, Administrative Interpretation Repeals


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49 Records
49.Can an employer who has prepaid the employee’s portion of health insurance premiums and national pension contributions — which accrued during periods of unpaid leave such as maternity leave or parental leave — deduct those prepaid amounts from the retirement benefits when paying them to the employee? Since retirement benefits are treated the same as wages under Supreme Court rulings, the employer may deduct the prepaid health insurance premiums and national pension contributions from the retirement benefits, pursuant to Article 43(1) of the 「Labor Standards Act」. Retirement benefits must be paid in full. The employer’s claim for the prepaid employee contributions is separate from the retirement benefit and should not be deducted therefrom.
48.Following an agreement where 12/13 of an annual salary is paid monthly and the remaining 1/13 is retained by the company as retirement benefit, interim settlements of retirement benefits were made to employees upon their request. In such cases, if the employee signed a waiver agreeing to “offset the interim settlement amount against the total retirement benefit upon resignation,” does this waiver have legal effect, and can the interim amount be deducted from the final retirement benefit?
47. In the case of a defined benefit (DB) retirement pension, what exactly does “designated repayment appropriation” mean, and how can an agreement for designated repayment appropriation be objectively verified? If there is no agreement or arrangement regarding designated repayment between the employer and the employee, can the retirement benefit received from the bank be regarded as repayment for the retirement benefit that occurred earlier in time?
46.Is there an obligation to accrue retirement allowance on a monthly and periodic basis? If not fulfilled, is there a legal basis for administrative disposition?
45.According to the internal rules/regulations of the Corporation, if mandatory retirement is applied on the last day of the year, and if a retiring employee is granted 20 days of retirement leave from December 12 to December 31 each year, when does the mandatory retirement take effect?
44.If an employer forces a currently employed worker to sign a retirement benefit waiver, ① which law is violated by obtaining such a waiver? ② which law is violated if the employer uses this to exploit the employee''s labor costs? ③ if such actions have been continuously committed over several years, which law applies?
43.● In the event that a company''s assets are subject to auction proceedings, can an employee currently in service exercise preferential payment rights with respect to their retirement (benefit) pay?
42.If retirement benefits were overpaid due to an error during an interim settlement, and the overpaid amount exceeds the final retirement benefit amount after the interim settlement, is it permissible not to pay any further retirement benefits?
41.An employee who worked at the company for three years resigned. The company intends to offset wages paid during a one-month training period two and a half years ago—originally treated as paid leave—against the retirement benefit, on the grounds that company regulations were revised and the period is now considered unpaid leave. Is such an offset permissible?
40.If an employee initially received a monthly pre-tax wage of KRW 2,000,000, but the terms of employment were later changed to provide a post-tax wage of KRW 2,000,000, can the increased wage portion be deducted from the retirement benefit upon calculation at the time of resignation? Also, when a sole proprietorship is converted into a corporation and an annual salary contract is executed, is it possible to settle the retirement benefit mid-term for the service period under the sole proprietorship and the period before the annual salary contract?
39.What matters need to be addressed regarding retirement pensions when a sole proprietorship that has established a retirement pension system is converted into a corporation?
38.When converting retirement insurance to a retirement pension, is it necessary to include the entire past service period or is it permissible to include only part of it?
37.When a retirement insurance contract is terminated, can the entire surrender value be allocated as contributions to a retirement pension plan?
36.In a workplace where employees are provided loans from the in-house workers’ welfare fund secured by their severance pay, how should such loans be addressed if the defined benefit (DB) retirement pension plan is adopted?
35.If the benefit claims of a defined benefit (DB) retirement pension plan participant are subject to seizure, is the employer obligated to pay the full amount of the severance without deducting the seized amount at the time of retirement? Additionally, in cases where the minimum funding ratio is not met and the employer transfers the amount directly to the individual retirement pension (IRP) account, is such payment also exempt from seizure?
34.In the case of a CEO of a bankrupt construction company, does the prohibition on seizure apply to severance pay that has been deposited into an individual retirement pension (IRP) account?
33.If retirement pensions can be subject to seizure, does this mean that external reserve funding of retirement pensions is not possible, or must the employer continue fulfilling the obligation to fund externally?
32.Whether the reserves held under a retirement trust qualify as entirely non-seizable claims for retirement pension purposes.
31.Inquiry 1 If a retirement pension plan is implemented and the total amount of retirement contributions annually deposited by the employer (contractor) to the pension provider is less than the statutory severance pay calculated at the time of retirement, are the project owner and the contractor jointly liable for the shortfall? Inquiry 2 If a retirement pension plan is implemented, is the project owner jointly liable with the contractor for the additional 50% progressive amount paid to employees with more than 10 years of service, apart from the total annual retirement contributions? Inquiry 3 In cases where service providers are changed repeatedly over several years in the course of operating a retirement pension plan, and workers'' employment is comprehensively succeeded accordingly, does changing the workplace name and reporting amendments to the retirement pension rules suffice for the new employer to continue accumulating contributions from the prior balance?
30.If the retirement pension benefit is not transferred to the IRP (Individual Retirement Pension) account designated by the participant and is instead paid into a general salary account, does this constitute a criminal offense under Article 44(2) of the 「Guarantee of Workers’ Retirement Benefits Act」?
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