MSD Korea expands ERP to all departments

Raises excess severance pay amount Raises excess severance pay amount

Expanded ERP subjects to all business units

Basic severance pay 2n+10, excess severance pay amount raised to maximum KRW 120 million

MSD Korea, which had notified the closure of the General Medicine division that sold the diabetes treatment Januvia, has extended the conditions for its early retirement program (ERP).

 

With the company’s large-scale layoff raising conflicts with employees and the low rate of applications, the company seems to have changed its tactics to reshuffling.

 

According to industry sources on the 15th, MSD Korea announced introduced a broader ERP program that allows a wider range of subjects to apply for early retirement with expanded conditions.

 

The changed conditions allow employees from all departments, not only the General Medicine division but all divisions.

 

The excess severance pay was also raised to a maximum of KRW 120 million.

 

As excess severance pay, employees that served ▲ less than 5 years will receive KRW 70 million, ▲ 5 years or over will receive 100 million, and ▲ 15 years or over will receive KRW 120 million.

 

In addition, 20 early applicants will additionally receive KRW 10 million.

 

For example, if an employee who has worked for 15 years applies for ERP, he or she will receive an additional KRW 120 million as excess severance pay, equivalent to 40 months’ worth of monthly basic salary.

 

If he or she is an early applicant, he or she will receive up to KRW 130 million.

 

This is the highest amount offered in the industry.

 

The previous conditions for ERP presented by MSD Korea were ▲an employee in the GM division, ▲basic severance pay of 2n+10 (service year*2+10 months of basic monthly pay), ▲ basic severance pay limit set as 48 months, and ▲excess severance pay of KRW 200 million.

 

The conditions of being ▲an employee in the GM division and ▲excess severance pay of KRW 200 million conditions were extended significantly.

 

The application deadline is July 20th.

 

The resignation date of GM unit employees will be July 31st, and others August 31st.

 

GM employees who applied for voluntary retirement through ERP last month will also benefit from the raised standards.

 

In addition, they will be paid an additional 10 million won regardless of whether they applied early or not.

 

On the reason the background of why the ERP was expanded, MSD Korea said, "After the decision was made to close our GM business, we have been seeking the best way to support our employees.

 

Ahead of the organizational restructuring that will take place on August 1st, we carefully reviewed the opinions and suggestions of our various employees and decided to expand the ERP and severance package.

 

We have been carrying out an external career support program while offering an improved ERP package for our internal business organizations and CO (Commercial Operations) units from July 10th to 20th,”