I’d like to clarify the ways to terminate an employment agreement. First, if both employee and employer agree that the employee resign, they may terminate the employment agreement when they want to do.
Second, if there are certain clauses on termination on the agreement or work rules, the clauses shall be applied. The clauses shall not violate the relevant laws or rules including Labor Standards Act.
Third, if the employer does not accept the employee’s resignation, the employee may leave the work at least one month after he or she informs his or her intention to resign. Please refer to the following Articles of Civil Act.
Article 660 (Notice of Rescission for Future of Contract of Employment in which No Period has been Fixed) (1) If no period for the employment has been fixed by the parties, either party may give notice to the other party of his intention to rescind the contract for the future at any time.
(2) In the case of paragraph (1), the notice of intention to rescind for the future becomes effective after one month has elapsed from the date of receipt by the other party of such notice.
(3) If remuneration has been fixed on a set and regular periodical basis, the rescission of the contract for the future shall be deemed to be effective after one full period has elapsed from the date of completion of the current period during which the other party received the notice of intention to rescind the contract for the future.
Fourth, the employer may dismiss the employee in case he or she has causes for dismissal including bad attitude in work, bad work performance, disobedience to order, violating of the order in workplace and so on. If he or she intends to dismiss the employee, the employer shall give 30 days notification to the employee in advance. If not, the employer shall pay 30 days wage at the least. However, there are exceptions for this rule as the Article of Labor Standards Act states as follows;
Article 26 (Advance Notice of Dismissal)When an employer intends to dismiss an employee (including dismissal for management reasons), he/she shall give the employee a notice of dismissal at least 30 days in advance of such dismissal, and, if the employer fails to give such advance notice, he/she shall pay such employee a 30 days’ ordinary wage at the least: Provided, That where any of the following is applicable, this shall not apply: <Amended by Act No. 10339, Jun. 4, 2010; Act No. 16270, Jan. 15, 2019>
1. Where the period during which the employee has worked continuously is less than three months;
2. Where continuation of the business is impossible due to natural disasters, incidents or other unavoidable circumstances;
3. Where the employee has intentionally caused serious damage to the business or property loss, which falls under the reasons prescribed by Ordinance of the Ministry of Employment and Labor.
Fifth, the employee may terminate the agreement, if the employer violates the agreement. If there is unpaid wage, the employee may file for petition to the labor office in the area where workplace is located.
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