퇴직금 중간정산 단점 Retirement allowance, retirement allowance for workplaces with less than five employees, interim settlement of retirement allowance, retirement pension

​퇴직금 중간정산 단점

under the Workers Retirement Benefit Guarantee Act, workers who retire from the average wage for at least 30 days for one year of continuous work period

We are setting up a system that can be paid as severance pay.

The reason for retirement, such as resignation by free will, disciplinary dismissal, and criminal act, continues for at least one year without distinguishing the reasons for retirement

It applies to all workers who work and end their working relationship.

퇴직금 중간정산 단점

Provided, That super-short-term workers who have not worked continuously for more than one year or less than 15 hours of prescribed working hours per week on average for four weeks shall not be eligible for severance pay

*Separation of retirement benefit plans*

Retirement benefits: Retirement allowances (separately accumulated in-house) / Retirement pension (strengthening the guarantee of beneficiary rights by accumulating severance pay outside the company)

– The number of retirement benefits to be received by defined benefit type (DB type) workers is determined in advance

– The level of user contribution (DC type) is determined in advance, and retirement benefits are determined according to investment performance

– Additional charges can be paid by setting up an IRP account in addition to personal (IRP) user charges

*Form of retirement benefit payments*

severance pay

User – (Retirement lump sum) – Worker

A company accumulates workers’ severance pay in-house and pays them as lump sum when workers retire

a retirement pension

User – (Retirement Pension Service) – Workers

Retirement allowances shall be accumulated and operated outside the company (retirement pension business operator) and the severance pay accumulated at the time of employee retirement shall be paid in the form of a pension or lump sum

Retirement allowance for workplaces with fewer than five employees

– The Labor Standards Act applies in principle to workplaces with more than five full-time workers, but most regulations apply to workplaces with less than five employees

– The retirement allowance system is gradually expanded based on the number of regular workers in consideration of the size of the workplace and the ability to bear expenses

– Applicable to workplaces with less than 5 employees from December 01, 2010

– The number of regular workers is calculated by dividing the total number of workers within a certain business period by the number of working days of the same business period

– Even if the number of regular workers is sometimes less than five, if there are more than five workers, it is judged that there are always more than five workers

*Continued working years for calculating severance pay*

Repeated and renewed labor contracts

If the work contract with a fixed period is repeatedly renewed formally and continues to work, it is difficult to say that there has been a break in the labor relationship

You should calculate the number of years of work for the entire period.

probationary period

If the probationary period or the period of use is actually provided in the use-dependent relationship, it is included in the number of years of work continuously

a merger

Calculated by adding up the total period of labor relations, such as severance pay bonds, and continuing work for the calculation of severance pay

corporate division

A company that maintains identity without abolishing the business of the enterprise itself and is newly established upon division of an employee belonging to the former company or the former enterprise organization;

If you are working for a company that is being transferred, the labor relationship will be maintained as succession as before, so the total period of time will be added up in calculating the number of years of work

Business transfer

Even if all or part of the project is transferred, as long as the homogeneity of the project is recognized, the labor relationship is to the transferee regardless of the intention of the parties

It’s a rule to be transferred. Total duration before and after transfer

Moving out, moving out

In principle, labor relations are cut off, unlike personnel transfers within companies.

Provided, That where a mobile company succeeds to a labor authority by means of practices, implied agreements, employment rules, etc., it is calculated by summing it up

Promotion of executives

If an executive is not an employee, the right to claim severance pay occurs on the date of appointment as an executive, and the extinctive prescription proceeds.

In cases where only the name is an executive but is actually an employee, the right to claim severance pay occurs based on the date of retirement from the position of the executive

a period of military service

Unless there is a separate agreement, it is not a violation of the law even if it is not included in the number of years of continuous work, which is the basis for calculating severance pay.

the term of absence, leave, and suspension

The term of suspension or suspension is included in the continuing number of years of work if the labor contract exists

Even if it is a leave of absence due to reasons attributable to workers, in principle, it is included in the continuous working years for calculating severance pay as long as the dependency on use is maintained

There is also an administrative interpretation that if there are regulations that exclude them in collective agreements and employment rules, they can be excluded.

Re-use after retirement

The additional date of continuous work years for calculating the severance pay and annual paid leave of workers re-employed based on the employment rules may be the date of re-employment after retirement.

Interim retirement allowance settlement

The interim settlement of severance pay does not necessarily require the employer to use it even if the employee applies with legal requirements.

It is also possible for users not to accept requests for interim settlement of severance pay.

*If interim retirement allowance is available*

01) When a worker who is a homeless person purchases a house in his or her name

02) Where a worker who is a homeless person pays a lease or deposit for the purpose of residence

03) You or your spouse and your spouse’s dependents need medical care for at least 6 months and pay annual medical expenses

Where an employee bears the burden in excess of 12.5% of the total amount of wages;

04) When an employee is declared bankrupt or decides to commence an individual rehabilitation procedure within five years from the date of filing an application for interim settlement

05) Through collective agreements, employment rules, etc. on the condition that the employer extends or guarantees the retirement age of the standard

A system that reduces wages based on a certain age, time of service, or wage

06) The employer changes the prescribed working hours to one hour a day or more than five hours a week according to an agreement with the worker

Where an employee decides to work for at least three months according to the changed prescribed working hours;

07) In the case of a reduction in severance pay as the maximum working hours per week is reduced from 68 hours to 52 hours

*Proof of severance pay interim settlement*

Purchase of a house by a homeless person: an application for interim settlement of severance pay, a certificate of resident registration of a homeless person, a copy of the property tax tax certificate, a copy of the real estate sales contract,

A copy of the building register or a copy of the building management register

Provision of lease funds for homeless persons: Application for interim settlement of severance pay, confirmation of homelessness, and copies of lease and lease contracts

In the case of medical treatment due to illness or injury: an application for interim settlement of severance pay, a hospital certificate and a doctor’s note, and a family relationship certificate

Commencement of bankruptcy or individual rehabilitation procedures: A document determining the bankruptcy document or a document determining the commencement of rehabilitation procedures by the court

Implementation of the wage peak system: employment rules, collective agreements, work commitments, and related data

The Employee Retirement Benefit Guarantee Act requires employers to establish one or more of the retirement benefit plans to pay retired workers

Accordingly, users can maintain the existing lump sum retirement payment system and subscribe to the retirement pension.

New workplaces established after July 26, 2012 must subscribe to a retirement pension within one year.

There are no restrictions on non-subscription of retirement pensions at new workplaces

It is highly likely that the retirement lump sum system will be abolished in the future and converted into a retirement pension.

*Type of retirement pension*

Defined benefit type (DB): The amount of retirement benefits to be received by workers is determined in advance, and the user’s burden varies according to the operating income of the reserves

If the retirement pension amount is insufficient due to wage increase and return on fund management, the employer shall bear the difference

Defined contribution type (DC): The employer’s burden is determined in advance, and the retirement benefit to be received by the employee changes according to the operating income of the reserve

Even if the operating profit is insufficient, the user does not bear the additional difference.

Individual Retirement Pension System (IRP): Retirement allowances and personal payments received when workers retire or change jobs in their retirement accounts

A system that is accumulated and used as retirement funds, such as pensions;

*Education on the operation status of the retirement pension system for the relevant project is provided to subscribers at least once a year*

– Tax savings as it is recognized as an expense

– Wage bond charges under the Wage Bond Guarantee Act may be reduced or exempted

*Employee advantages*

– Safely protect retirement benefits even in the event of closure or bankruptcy of the workplace

– Tax is paid when receiving a lump sum retirement allowance, so the amount of tax received increases due to the effect of tax deferral

– Receive retirement benefits as a pension if legal requirements are met

-Additional accumulation is possible. Apart from the employer’s payment, additional retirement pension can be accumulated by workers, and income can be deducted for additional accumulation

*Disadvantages of retirement pensions*

– Do not allow lump-sum retirement allowance even if interim settlement is limited. Retirement pension is not recognized as interim settlement, withdrawal is limited, and interest is imposed

– Costs incurred for retirement pension operation

– Workers or employers bear the risk of retirement pension benefits

– From the user’s point of view, the pension amount will be accumulated outside the company, resulting in a decrease in reserves. (current assets)

*Select Retirement Pension*

Defined benefit type (DB)

If you are a long-term worker or have little movement to work, if you do not withdraw in the middle and maintain it until retirement, or if you are unable to pay attention to the rate of return,

Where the risk of bankruptcy of a company is low, where the wage increase rate is greater than or equal to the inflation rate, and where the wage increase based on the number of years of service is high;

Defined Contribution Type (DC)

In the case of maintaining it until retirement without withdrawal in the middle, where a certain level of return or higher is desired, and where withdrawal of retirement pension is required.