1. The Client's Situation
The client needed a legal determination as to whether an employee who had taken parental leave was entitled to annual paid leave and able to use it, as well as whether various allowances such as a lunch subsidy should be included in the calculation of severance pay. In particular, the obligation to pay an allowance for unused annual leave and the scope of average wage calculation were at issue.
2. Your Legal Team's Advice
Your Legal Team reviewed the relevant statutes and precedents and confirmed that, since the period of parental leave is deemed as attendance, the employee accrued annual leave normally. Accordingly, we advised that upon return to work the employee could use the annual leave, and that for any unused portion an obligation to pay an allowance arises. We also pointed out that the annual leave use promotion system cannot be applied to an employee on leave, so the company could not be relieved of its liability for monetary compensation. Regarding the calculation of severance pay, we advised that the lunch subsidy paid by the company on a fixed basis constitutes consideration for labor and therefore must be included in average wages.
3. Outcome
The client was able to clearly grasp its legal obligations regarding the calculation of annual leave and severance pay, and to prevent unnecessary disputes and the risk of criminal penalties. Through this, the client secured standards enabling it to conduct reasonable HR and labor management for similar matters in the future.