Can foreign workers also receive severance pay?

Yes, foreign workers can also receive severance pay. If you work continuously for at least 1 year and then leave the company, you receive at least 30 days of average wages for each year of work, the same as Korean workers. It is forbidden to discriminate unfairly just because you are a foreigner.

💡 E-9 workers receive it through departure guarantee insurance

• The employer must enroll in departure guarantee insurance (or a trust) within 15 days from the date the labor contract takes effect. Enrolling in this insurance is regarded as having set up a severance pay system.
• The employer pays 8.3% of your monthly ordinary wage to the insurance company every month.
• If you have worked continuously for at least 1 year, you can claim a lump sum from the insurance company when you leave Korea or your status of stay changes.
• The insurance payment is usually made within 14 days from the time you leave Korea. If you apply after a change of status of stay or after departure, it is within 14 days from the application date.
• If the insurance lump sum is less than the severance pay set by law, the employer must pay the difference.
• You can ask the insurance company for written confirmation of the lump sum amount.

⚠️ Things to watch out for

• If your continuous work period is less than 1 year, you are not eligible for severance pay. The departure guarantee insurance lump sum also goes to the employer.
• If you leave your workplace of your own will, and your continuous work before and after leaving is less than 1 year, you cannot receive severance pay or departure guarantee insurance.
• The right to claim insurance money expires if you do not use it within 3 years from the date the reason for payment arose.
• If you work less than 15 hours per week, you may also be excluded from retirement benefits.

If the insurance company or the employer delays payment, contact an Employment Center (고용센터) or 1345 (Foreigner Comprehensive Information Center, 외국인종합안내센터). You can also get advice on labor condition disputes from the Ministry of Employment and Labor (고용노동부) at moel.go.kr.