Pre-resignation Checklist: Avoid Midnight Run Scenarios

Once you leave your job, it may become difficult to make certain requests to your former employer. If you have made the decision to leave your job, it is important to prepare for the changes that will happen after you depart. If you are still employed, you can easily prepare for what you need after you leave. Let's take a look at some important things that you should prepare for before leaving your job.

 

1. Severance pay

Severance pay is a system that applies to even businesses with less than 5 employees. For more information on this system that applies to all workplaces regardless of the number of employees (please refer here).

 

Severance pay is provided when an employee has worked for more than one year. It is also provided when an employee has worked for 15 or more hours per week (60 or more hours per month). Severance pay is calculated based on the daily wage of the last three months before the employee retires and is paid as a monthly salary. This Severance pay must be paid within 14 days after retirement. If the payment is delayed, an interest is incurred (refer to the interest rate). Even if an employee does not receive the Severance pay within 14 days after the retirement, they have the right to claim it within 3 years (refer to the claim right). You can calculate your Severance pay accurately using the Ministry of Employment and Labor's Severance pay calculator (refer to the calculation).

 

2. Weekly holiday allowance (20% of minimum wage)

Let's look at the criteria for receiving Severance pay that we discussed earlier. We said that it should be paid to workers who have worked for more than a year, regardless of the type of labor contract. Even if you have a non-regular, part-time, or temporary employment contract, if you have worked for more than a year while working for 15 hours per week (60 hours per month) or more, you can be eligible for Severance pay and weekly holiday allowance. The weekly holiday allowance accrues for one day per week. To be precise, it means that you can use one day of paid leave if you work for five days a week.

 

Most companies designate Sunday as a paid holiday and take the day off. In this case, Saturday becomes an unpaid holiday. That is, if you take Saturday off, you will not receive any pay, but if you take Sunday off, you will receive pay. Exceptions may apply depending on the work environment, such as businesses that are open on Sundays.

 

If you work for five days a week, you will have one day off with pay, which is why the weekly holiday allowance is said to be 20% of the minimum wage. If your payslip shows the weekly holiday allowance, you should be able to see the exact amount. If you are a retiree who should receive the weekly holiday allowance as well, you should calculate and receive the allowance properly. For example, if you worked until the last Friday of this month and will not work next month on Monday, and you leave your job on this month's Friday, you must receive the weekly holiday allowance for the paid holiday on Sunday.

 

3. Annual Leave Allowance

The severance pay and weekly holiday allowance are systems that apply to businesses with less than 5 employees. These are systems that must be observed in all workplaces. However, the annual leave allowance is a system that only applies to businesses with 5 or more employees. The number of annual leave days varies depending on the length of service, as follows. Employees who have worked for less than a year are entitled to 11 days of annual leave. After one year, employees are entitled to 15 days of annual leave, with an additional 1 day per 2 years of service. The maximum number of annual leave days that can be accumulated is 25 days, and the number of annual leave days does not increase for those who have worked for 21 years or more.

 

Length of Work (Years)	Annual Paid Leave (Days)
Less than 1	11
After 1	15
After 2	15
After 3	16
After 4	16
. . .
After 19	24
After 20	24
After 21	25

The validity period of annual leave is one year from the date it is earned. If you are unable to use your annual leave within a year, you can receive compensation for it. However, if the company has notified the employee in writing to use the annual leave through the "Annual Leave Promotion System", and the employee fails to use it, the annual leave may be forfeited (you can find more details here). Note that the Annual Leave Promotion System takes effect when the company gives written notice to the employee 6 months and 2 months before the end of the annual leave. If you resign, you must claim compensation for unused annual leave.

 

4. Various documents: withholding tax receipt, certificate of career, etc.

To properly file your tax return after leaving the company, you need to request and keep the withholding tax receipt. You can check if there is anything you need to pay or if there is a refundable amount by settling your income tax. Also, if you have a certificate of career with the company's seal, you can use it if necessary.

 

5. National Pension, Health Insurance (Unemployment benefits according to retirement)

When employed, the company covers half of the national pension and health insurance premiums, and when you leave the company, you have to pay 100% of the premiums. The insurance premiums can be very burdensome after leaving the company. You can apply for an exemption from national pension payments. The exemption can be made for three years. If you are eligible for unemployment benefits due to involuntary reasons for leaving, you will have to pay 25% of the national pension and receive 75% support from the government.

 

Regarding health insurance, you can use the 'Voluntary Continuation of Insurance System' after leaving the company. If the sudden increase in insurance premiums is burdensome, you can pay an affordable level of health insurance premiums through this system. You can receive benefits from this system for three years after applying.

 

If you are considering leaving the company, checking the checklist above can minimize your losses. With good preparation, you can also make a good new start.

 

 

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