Page 45 - 2018 MSC HR Policy

Chapter 12

Termination of Employment

Termination of employment takes effect in the following cases:

1. Resignation
When an employee wants to resign from the Company, he/she must submit the resignation letter to his/her
supervisor at least 30 days in advance (some certain positions require 60 days advance.) Employee can

stop reporting to work from the day stated on the resignation letter only after the Company approves the
resignation in writing.

2. Retirement

Retirement refers to the termination of employment when an employee reaches a full 60 years old. The
retirement will take effect on the first day of the following year and the retired employee will receive the
severance payment as specified by Labor Law.

3. Death

Employee status ceases effectiveness from the date of death for whatever reasons.

4. Termination of Employment with Severance Pay

Employment of a permanent full-time employee will be terminated with severance pay in various situations,
for example:
4.1 In the opinion of the physician, the employee is physically or mentally unfit for his present position

and that no other suitable position is available or he/she is having an infection that may be harmful
to other employees or to the Company’s properties.
4.2 When the Company faces a decrease in business volume, overstaffing, or in a situations that the
Company finds it necessary to close down certain work units or certain positions and that no other
suitable position available.

4.3 The employee’s performance does not meet the acceptable standards, and does not improve after
the supervisor has issued the warning

4.4 The employee behaves inappropriately, is untrustworthy, or commits an offence that the Company
deem serious to justify the termination of employment. However, such offence is not serious enough

to justify the termination of employment without severance pay.
4.5 Termination caused from reorganization, adoption of machinery or the change of machinery or

technology by the Company which causes a reduction of the number of employees.

4.6 Termination caused from retirement as stated in item 2.

HUMAN RESOURCES POLICY Page 45 of 49
VERSION: HR001-2018, JANUARY 1, 2018