The termination of the employment relationship
The termination of the employment relationship
- When a contractual employment period has been fixed, in the absence of extraordinary circumstances, the employment relationship between the parties to the employment contract and, therefore, the status relationship as an employee is automatically terminated with the expiry of such period without additional measures, such as the employer’s dismissal (see
Supreme Court Judgment 95Da5783, declared on August 29, 1996,
Judgment 2010Du17205, declared on October 27, 2011).
Dismissal (wrongful dismissal, etc.)
Restrictions on dismissal
- An employer may not dismiss an employee without good cause (Article 23(1) of the Labor Standards Act).
- An employer may not dismiss an employee during the period the employee was on leave to treat occupational injury or disease and 30 days thereafter, or during the period when a woman took leave before and after childbirth under the Labor Standards Act and 30 days thereafter (the main body of Article 23(2) the Labor Standards Act).
- However, the employee may exceptionally be dismissed if the employer pays a lump-sum compensation under Article 84 of the Labor Standards Act or can no longer continue the business (the proviso of Article 23(2) of the Labor Standards Act).
Retirement allowance, etc.
Payment of retirement allowance and statute of limitations
- An employer must pay a retiring employee a retirement allowance within 14 days of the date on which the grounds for payment occurred. However, the payment deadline may be extended by agreement between the parties if there are special circumstances (Article 9(1) of the Act on the Guarantee of Employees' Retirement Benefits).
※ A violation of the foregoing is subject to imprisonment of no more than three years or a fine of no more than KRW 20 million. However, the employer will not be indicted against the victim’s explicit wishes (subparagraph 1 of Article 44 of the Act on the Guarantee of Employees' Retirement Benefits).
- The right to receive retirement allowance is extinguished by the statute of limitations if not exercised within three years (Article 10 of the Act on the Guarantee of Employees' Retirement Benefits).
Unemployment benefits
The concept and types of unemployment benefits
- “Unemployment benefits” are implemented as a form of employment insurance program to promote stable livelihood and job-seeking in the event of the employee, etc., being unemployed (Articles 1 and 4 of the Employment Insurance Act).
- Unemployment benefits are distinguished into job-seeking benefits and employment promotion allowances. The types of employment promotion allowances are early reemployment allowance, vocational skills development allowance, long-distance job search allowance, and relocation allowance (Article 37 of the Employment Insurance Act).