K&L Gates LLP (JD Supra South Korea)
Asia-Pacific Signals Strong Commitment to Economic Integration and Cooperation with RCEP Signing
After eight years of negotiations, the Regional Comprehensive Economic Partnership (RCEP)—covering 15 economies in the Asia-Pacific region, accounting for 30 percent of the global population, 30 percent of global GDP, and 34 percent of global investment flows—was finally signed on November 15, 2020. The RCEP is expected to enter into force in 2021.
Average Wages as a Basis for Calculating Severance Pay: Definitions and Interpretation
Under the applicable laws of Korea, an employer must pay its employees severance pay in the amount of at least 30 days’ average wages for each year of the employee’s continuous service for the employer. For example, an employee who has worked at the same job for 10 years, upon leaving that employer would be entitled to at least 10 months’ wages as statutory severance pay.
The Impact of Ordinary Wage Determinations on an Employer's Labour Costs in Korea
Ordinary wages in Korea are made up of base salary and other compensation given to workers for the work they perform, which are given regularly, consistently and in a fixed manner. Calculation of ordinary wages in Korea is important because the amount of ordinary wages serves as a basis for the payment to workers of other benefits and compensation such as overtime and severance payments.