When firing an employee, you must follow the proper procedures. Even minor disputes when an employee leaves can lead to significant consequences that are difficult to bear. There are three basic principles to follow when dismissing an employee. First, notice of dismissal must be given at least 30 days in advance. Second, it must be in writing. Third, the reason for dismissal must be clear.
Notice of Dismissal and Termination Allowance
When dismissing an employee, you must give them time to find a new job. This is the first reason why you have to give notice of dismissal 30 days in advance. If the employer wants to dismiss without notice, they can pay a termination allowance. The termination allowance is calculated based on 30 days of the regular wage. Please refer to the calculation formula below.
Calculation example of termination allowance:
Monthly salary: 3 million won
Working hours per week: 40 hours (209 hours per month)
Termination allowance amount in the above situation:
Hourly wage: 14,354 won = 3,000,000 won / 209 hours
Daily wage: 114,833 won = 14,354 won X 8 hours
Termination allowance: 3,444,976 won = 114,833 won X 30 days
Methods of notifying termination: text message? SNS?
Termination notice must be provided in writing. Termination notice via text message or KakaoTalk or any SNS is not recognized as written notice. There are cases where termination notice is given through text message or KakaoTalk when there is emotional tension between the employer and employee. However, such methods violate the termination procedures and are considered wrongful termination.
Not only written notice, but email is also a valid method of termination notice. There are a few principles to consider when giving termination notice via email. You must have received work instructions and reports via email. Also, the reason for termination and the date of termination must be clearly stated. Finally, you must be able to confirm that the email has been received. If the email has a receipt confirmation function, you can check if it has been received.
Reasons for termination
Lastly, the valid reason for termination must be clearly stated. Cases where the employee lost work capacity due to injury or illness, lost qualifications required for work, caused damages to the company due to the employee's fault, violated work instructions, or caused assault accidents during work can be considered valid reasons. If the reason is unclear, it may be wrongful termination. Wrongful termination can lead to mediation or lawsuits.
What is wrongful termination?
According to Article 23, Paragraph 1 of the Labor Standards Act, wrongful termination means termination without valid reason. According to Article 28, Paragraph 1 of the Labor Standards Act, if an employer terminates an employee without valid reason, the employee may apply for mediation with the labor committee. If an employer violates specific prohibitions on termination under the Labor Standards Act, the Act on Equal Employment between Men and Women and Support for Work-Family Reconciliation, the Trade Union and Labor Relations Adjustment Act, and violates the requirements for termination, applies excessive disciplinary measures, violates procedures for termination, or terminates employees at times when termination is not allowed, the employee may apply for wrongful termination relief to the labor committee.
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