One of the news that often comes up is that freelancers sometimes cannot receive severance pay when they retire. Jobs that are considered freelance include hair designers at beauty salons, fitness trainers, academy instructors, delivery drivers, insurance planners and so on. Severance pay is paid when a worker who works more than 15 hours a week resigns after one year of employment (you can check it here). Also, it is important to note that the severance pay system is applied to businesses with less than five employees (you can check it here).
When paying severance pay, the criteria such as whether the employee is part-time, regular, non-egular, or enrolled in the National Pension scheme are not considered. If employees who work more than 15 hours a week resign after one year of employment, regardless of their employment status, they must receive severance pay. There are also many court rulings that recognize the payment of severance pay.
The following criteria are important for determining severance pay:
- Fixed salary (basic pay)
- Work instructions
- Commuting control
If one received a monthly salary with a fixed basic pay and performance pay, it can be considered as a worker and a standard to be considered as a worker. Receiving a fixed basic salary is a representative example of being able to judge worker status.
If you are in a dependent relationship with an employer from the perspective of work instructions, you cannot be considered as a freelancer. If there are work instructions from the employer regarding work tasks within the workspace, that fact alone can make you not a freelancer. If you cannot freely refuse work instructions, it can be considered that you have employee status even more.
If the dates (times) and places of commuting are controlled, you can be recognized as an employee. If commuting is controlled, which means practically impossible to do side jobs, then it can only be considered that you have employee status.
In addition to the above three criteria, there are various other criteria for determining employee status, such as compliance with duty regulations, supervision and control by the employer, and the position of the work. The important thing is that even if the word "freelancer" is in the employment contract and even if you received a salary with 3.3% deduction, if there was employee status based on the actual work form, there is a court decision stating that you should be paid retirement benefits.
If there is a dispute related to retirement benefits, you can receive accurate advice from the Ministry of Employment and Labor. Prior to this, joining the "Yellow Umbrella Deduction" to prepare for retirement benefits by yourself can also be a way.
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