What is separation payment in SAP PY-KR - South Korea?

SAP Term: separation payment

• Component: PY-KR

• Component Name: South Korea

• Description: A scheme by which employers pay money to employees when or before they leave the company.

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• Key Concepts: 
  Separation payment is a type of payment made to an employee when they leave their job. It is a one-time payment that is usually based on the employee's length of service and salary. In South Korea, the separation payment is regulated by the Labor Standards Act and is known as PY-KR. 
  
  How to use it: 
  When an employee leaves their job, the employer must calculate the separation payment according to the Labor Standards Act. The amount of the payment depends on the employee's length of service and salary. The employer must then pay the employee the calculated amount within 30 days of their departure. 
  
  Tips & Tricks: 
  It is important for employers to keep accurate records of their employees' length of service and salary in order to calculate the correct amount of separation payment. Employers should also be aware that there are certain circumstances in which the separation payment may be reduced or waived, such as if the employee was dismissed for cause or if they voluntarily resigned. 
  
  Related Information: 
  The Labor Standards Act also regulates other types of payments, such as severance pay, vacation pay, and overtime pay. Employers should familiarize themselves with these regulations in order to ensure compliance with South Korean labor laws.