The severance pay is a safety device that is prepared every month to help the worker financially when he or she leaves work. However, there are cases where you need a large sum of money right away in your life. In some cases, an interim settlement can be made. Today, we will talk about the reason and the necessary documents.
conditions for receiving severance pay
There are two conditions.
Work at least 15 hours a week
Must have worked for more than a year
In such cases, even part-time workers can receive severance pay.
7 reasons for interim settlement and necessary documents
1. When a worker who is a homeless person purchases a house,
On the day of application for settlement, the worker must be a homeless person and only applies when purchasing under his or her name. It doesn’t matter if a household member owns a house. Applications must be made within one month of the registration of ownership transfer from the date of signing the sales contract.
To check if there is no house
A copy of the resident registration of the current residence
A certified copy of the building register or a certified copy of the building management register of the current residence
a certificate of property tax
To prove that you bought a house
A building design and construction contract in the case of a new house
Real estate sales contract in case of purchasing an existing house
A copy of the sales contract in the case of sale
When applying after registration, a copy of the building registration or a copy of the building management register for the relevant house
2. When an employee who is a homeless person needs funds for a lease deposit or a monthly rent deposit,
It’s literally an interim settlement to pay the deposit. In this case, it doesn’t matter if you sign a contract under your spouse’s name. You can apply up to one month after the balance payment date from the date of signing the housing lease contract.
To check if there is no house
A copy of the resident registration of the current residence
A certified copy of the building register or a certified copy of the building management register of the current residence
a certificate of property tax
To prove that a deposit is needed
a copy of the charter and lease agreement
If you pay the balance, you must have a payment receipt within one month.
3. When a medical treatment is required for at least 6 months due to a disease or injury
The targets are workers themselves, spouses, and dependents. Nursing does not only mean hospitalization, but includes outpatient treatment, and the dependents referred to here are as follows.
A lineal ascendant of at least 60 years of age or a lineal descendant of at least 20 years of age and a cohabitant adoptee;
siblings who are under 20 or 60 years of age
If you’re curious about direct dependence or direct descendant?
You can apply within a month if you are recuperating at the time of application or are just about to start and have finished.
To prove that you need medical attention,
A doctor’s medical certificate, opinion, or long-term care confirmation from the Health Insurance Corporation, etc
If the medical treatment is completed, a receipt to prove that the date and treatment cost were paid, or a detailed medical expense statement, etc
documentation to prove one’s relationship with one’s dependents
Documents such as a family relationship certificate that can prove that they are spouses or dependents who share a living
4. When retirement benefits are expected to decrease due to the introduction of the wage peak system or the 52-hour workweek,
The severance pay is based on the average of the three-month salary before retirement. Salaries are sometimes reduced for policy reasons such as wage peak systems and shorter working hours. In that case, of course, the severance pay that you will receive later will be reduced. For example, my salary is 3 million won now, but if I quit now, I will receive a severance pay equivalent to my current salary. However, if my salary is 2.8 million won due to shorter working hours in two months, I will also give you the money to receive. It is to protect workers in this situation.
Documents confirming the implementation of the wage peak system, such as collective agreements on employment rules, etc
Documents that can confirm that they are workers who fall under the wage peak system or shorter working hours, such as labor contracts and salary specifications
5. If an employee is declared bankrupt within five years before the interim settlement date or if he/she has received a decision to commence an individual rehabilitation procedure
It is possible under the Debtor Rehabilitation and Bankruptcy Act. In both cases, it is only meaningful if bankruptcy or rehabilitation procedures are currently in effect.
documents on the declaration of bankruptcy
the court’s bankruptcy sentence of bankruptcy
documents on personal rehabilitation
Decisions on the commencement of individual rehabilitation procedures or the final certification of approval for repayment of individual rehabilitation procedures
6. In the event of damage caused by a natural disaster
It is a case of damage caused by natural disasters such as typhoons and floods. More than 50% of residential facilities have been damaged, so it takes a long time to restore them or it has become unusable at all. People can get hurt, too. If you have to be hospitalized for more than 15 days due to a natural disaster or if you are dead or missing, you can apply for an interim settlement within three months.
Required documents
Damage investigation data of administrative agencies according to the confirmation of damage facts or natural disaster damage report human damage data
In the event of injury or death, a certificate of hospitalization, death or disappearance, or a certificate of family relationship
After the interim settlement of the severance pay?
Of course, you can receive severance pay even after the interim settlement. However, the accumulated amount will be reset from that day. If your salary is a job that keeps increasing over time, this is a disadvantage. I can get a bigger amount later, but I’m giving up.
Today, we’ve looked at six reasons for interim settlement of severance pay and the necessary documents.