권고사직 위로금Recommended resignation compensation
Recommended resignation. Although it is a familiar word, it is not a legal term, but a term commonly used in human resources management. This means that the company recommends the employee to resign, and the employee accepts the offer and resigns by submitting a letter of resignation. Usually, because the employee submits a letter of resignation, it is considered a resignation rather than a dismissal. However, recommended resignation is treated similarly to a dismissal because the employment relationship is terminated against the employee’s will, and the final decision on whether or not to make the decision rests with the employee.
However, I think it will not be easy to continue working at the company after receiving a recommendation to resign. It may not be happening now, but you’ve heard of things like moving desks to a warehouse. Nowadays, if something like this happens, you can file a lawsuit for workplace harassment, so there will be other pressures that are not legally problematic. Moreover, in Korea, it is almost impossible for a company to unilaterally dismiss an employee unless there is a serious reason for dismissal, so there are many cases where the company agrees to pay a few months’ salary and then let the employee go, rather than continuing to pay the salary. The settlement amount that accrues at this time is the recommended resignation compensation.
Retirement and recommended resignation compensation based on labor-management agreement are included in retirement income, not earned income. Because of this, taxes are calculated differently than for earned income. Therefore, if you receive compensation for recommended resignation, the specific details of tax treatment may vary depending on the details, so it is recommended that workers consult with a tax expert or contact the National Tax Service to obtain accurate information.
● Because it is not specified in the Labor Standards Act, there is no legal obligation to provide compensation in case of recommended resignation. This is simply achieved by agreement between the company and the worker. It is common to provide a monthly salary of 1 to 3 months.
● The recommended resignation compensation is calculated in a similar way to calculating retirement income tax. Because retirement income tax calculation is complicated, it is recommended to use the National Tax Service’s retirement income tax calculator to check the exact amount.
● Although it is not directly related to recommended resignation, the Labor Standards Act provides for notice of dismissal allowance related to unfair dismissal. If an employer wants to fire an employee, he or she must give at least 30 days’ notice or, if no notice is given, pay at least 30 days’ worth of regular wages.
● Since recommended resignation is made with the consent of the worker, there is no obligation to pay ordinary wages if the worker has continued to work for less than 3 months or if it is impossible to continue the business due to unavoidable reasons.
Even if you receive consolation money, you are still eligible to receive unemployment benefits. However, if the company reports the reason for job separation, such as voluntary resignation, you will not be able to receive unemployment benefits, so it is a good idea to prepare an agreement on the recommended resignation process and have the data on hand. Above we have learned about the ‘compensation for recommended resignation’.
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