Compensatory Leave instead of Overtime Pay?

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What You Need to Know About the Rules and Regulations

When you think about public holidays or “red days,” you might imagine a day off work to explore Korea or catch up on much-needed sleep. However, for some TEFL teachers, these public holidays might entail heading to the office rather than a scenic hike. While Korean labor laws stipulate the provision of extra pay or compensatory leave for working on holidays, the real-world application of these laws can sometimes be confusing for both educators and administrators.

For the sake of clarity, let’s delve into what compensatory leave really means and what you need to know when you’re working extra hours or on public holidays.

What is Compensatory Leave?

Compensatory leave is a system where teachers working overtime, night shifts, or on public holidays are given leave instead of a financial bonus. While the default option under Korean labor law is to pay an additional allowance for these extra hours, employers are also permitted to offer equivalent time off as a substitute.

What Should You Expect When Offered Compensatory Leave?

When you’re granted compensatory leave, you should be aware of the following:

  1. Calculation of Leave Hours: Not only should you receive leave for the actual hours worked but also additional time to reflect the extra pay you would have earned. In other words, you should get 1.5 times the leave hours corresponding to the extra hours worked.
  2. Case Scenarios:
    • Example 1: If you work four extra hours, your leave should account for the additional two hours (4 + 4 x 0.5), amounting to six hours of leave.
    • Example 2: If you work two hours of both overtime and night shifts, your leave should be four hours, reflecting both extra hours and night hours.

Essential Points to Note

  • Employers must pay an extra 50% of the regular wage for extra hours worked if they employ more than five workers.
  • A written agreement between the employer and a representative of the teachers is required to implement compensatory leave.
  • Specifics such as who is eligible for compensatory leave, how it will be allotted, and when it can be used, can be determined through mutual agreement.
  • If compensatory leave is not granted after its implementation, you are entitled to the standard extra pay for your overtime and holiday work.

Common Mistakes to Avoid

One typical misunderstanding revolves around the number of leave hours one accrues. In essence, if you’ve worked four extra hours, providing you with a half-day off isn’t sufficient—you should be getting 1.5 times the time, equaling six hours.

Legal Formalities are a Must

For compensatory leave to be valid, a written agreement with employee representatives is a prerequisite. Any attempts to apply it retroactively to previous extra hours worked are not permissible.

When Should You Use Your Compensatory Leave?

While regular leave typically has a set expiration, compensatory leave does not. However, it’s crucial to specify this clearly in any agreements to avoid accumulating too much leave, which could complicate workforce management.

Use It or Lose It? Not Quite.

If you don’t use your compensatory leave within a stipulated period, can it just vanish? No, it cannot. Contrary to some beliefs, failing to use your compensatory leave within a specified period doesn’t absolve the employer of their obligation to compensate you, either through additional leave or financially.

In summary, as a TEFL teacher in Korea, understanding the intricacies of compensatory leave is crucial for both peace of mind and for ensuring you’re fairly compensated for any extra hours or holiday work. Be informed, know your rights, and make the most of your time teaching abroad.

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