Job Discussion Forums

chengdu619 · Joined: 16 Mar 2009 Posts: 76

In my contract it states that I cannot convert any of my monthly earned RMB to foreign currency on a monthly basis. There is a slash mark in the space of the foreign currency amount, which I assume means none can be converted. What have you all done in this type of situation? When I eventually leave China will I be able to take my money out of the bank and convert it to dollars or euros?

Thanks

killian · Posted: Wed Sep 16, 2009 5:36 am Post subject:

have you signed the contract? negotiate.

but then either way, convert RMB on your own w/out their knowledge/assent.

mike w · Posted: Wed Sep 16, 2009 6:01 am Post subject:

I suspect from this that the school are taking tax from your salary and keeping it for themselves.

The school has no jurisdiction as to how much of your salary can be converted into foreign currency. It's none of there business.

BUT - to go to a Bank of China and convert your RMB to a foreign currency, you have to provide a document from the school stating that you have paid all necessary taxes due on your salary. This, methinks, is the real reason.

They cannot / will not provide such a document because they are not paying the taxes to the relevant authority, so to mask this situation, they are trying to introduce a clause to prevent you from trying.

Don't negotiate - just tell them to remove the clause completely. If they refuse to do this, find another school. The alarm bells are already ringing.

happigur1 · Joined: 25 Jul 2009 Posts: 228 Location: USA

If you do decide to stay at the school until the end of your contract and want to convert your RMB, find a Chinese person with an I.D. and ask them to help you convert it. Or, you could always wire money home as well...

China.Pete · Joined: 27 Apr 2006 Posts: 547

Change the slash mark to 100 percent before you sign the contract. This is the maximum amount allowed more recently by the bank authorities. No school has objected to this change in my case to date, although there may be easier ways to change money in China than using the method implied by this thread. That one only starts with your contract, and continues with proof of tax payments, etc. Figure out what works best for you later, but keep your options open by changing the percentage.

chengdu619 · Joined: 16 Mar 2009 Posts: 76

Thanks. I'm still debating which way to go. I think I will just wire it eventually. Seems like the simplest way, as my goal is to have it in my bank account back home.

Teatime of Soul · Joined: 12 Apr 2007 Posts: 905

Agree with above poster.

The school doesn't care how much of your salary you convert. Somebody just didn't know what they were doing.

Write in 100%.

The school doesn't lose or gain either way.

Jayray · Joined: 28 Feb 2009 Posts: 373 Location: Back East

I was confronted with this same situation after I arrived at my school. I was told that the term was non-negotiable. I informed the FAO liaison that CHINESE LAW allows me to convert 70% of my pay. I signed the form (which was NOT part of my contract) and added below my signature "My signature does not constitute agreement". The addendum- to -the -addendum- to- the -addendum- to -the- contract was never mentioned after that.

I found out later that this was a new move on the part of the FAO (or, perhaps ,as I suspect, a new move on the part of the liaison whose ethics were often questionable, even by Chinese bureaucratic standards as PERCEIVED BY many westerners).

Strangely, the FAO liaison continually asked me if I had money to exchange and told me that she'd help me. I told her that I did, but I wanted to wait until after a certain date.

By the time That date arrived, I had already changed my money with the help of a friend. The BOC told me that I could change the equivalent of $500.00 per month without anyone's permission, but since I had considerably more than that, I enlisted my friend's help.

Shortly before I left the school, the FAO liaison and I went to to the BOC. I didn't go in with her. I gave her my RMB (my last month's pay) and waited outside for her to give me my money. I knew the exchange rate, and I knew what to expect, give or take a few fen.

When the FAO liaison handed me my money, I was short about ninety dollars. She asked me if everything was alright. I said that it was perfect.(I saw no point in confronting her when I was leaving the next day. I was also reluctant to engage in further battle with her , as my anger over my situation at the school was barely in check. One more thing might have pushed me well over the edge). Strangely, she couldn't produce a receipt of the transaction. She said that she was not given one.

I am relating this to you because the no-conversion clause or addendum to the contract is a scam, and it may be just be the tip of the iceberg of problems awaiting you at the school.

I couldn't believe that this sort of thing happened, or COULD happen, despite the many stories I've read about others' experiences teaching in China. I'd never had any sort of problem with any school in China or with any Chinese person in any position of authority until I arrived at that awful place.

DON'T SIGN THE AGREEMENT, AND BE SURE THAT EVERYTHING ON THE CONTRACT IS CONSISTENT AND FAIR. QUESTION ANY CONFLICT OR CONTRADICTION.

IF IT WALKS LIKE A DUCK, QUACKS LIKE A DUCK AND LOOKS LIKE A DUCK...

China.Pete · Joined: 27 Apr 2006 Posts: 547

"I found out later that this was a new move on the part of the FAO." -- Jayray

Using your FAO to change money at a disadvantageous rate and the contract provision about how much of your salary you are allowed to change are two separate issues. The contract percentage only becomes an issue if you decide to convert some of your earnings to another currency using one method of conversion available to foreigners. In that case, the bank may limit you to the percentage stated in the contract. But nowadays any Chinese national can change up to US$50,000 (or its equivalent) per year, whether you use a friend or your corrupt FAO makes no difference. The bank will not even ask to see your contract, because you are not technically changing money.

Jayray · Joined: 28 Feb 2009 Posts: 373 Location: Back East

The Great Wall of Whiner · Joined: 29 Jan 2003 Posts: 4946 Location: Blabbing

Sounds dodgy at best.

I agree with the majority here that advise to have a friend convert it for you.

chengdu619 · Joined: 16 Mar 2009 Posts: 76

Thanks everyone. As always, everyone's replies are helpful. It is nice to have people so quickly come to offer their suggestions. I appreciate it.

nobleignoramus · Joined: 17 Jul 2009 Posts: 208 Location: On the road

I know my wife can convert yuan into a number of foreign currencies any time she wishes, so the problem does not exist for me. Then again, in another thread two posters mentioned owning ATM cards they can use outside of the Chinese Mainland.

One poster said he could withdraw 'dollars' (he didn't specify their nationality) from an ATM in New Zealand.

Two banks were listed as opening up this possibility, namely the ICBC and the China Merchants Bank. Maybe the Agricultural Bank of China affords you the same advantage.

spunkmonkey · Joined: 16 Jun 2009 Posts: 93

China.Pete · Joined: 27 Apr 2006 Posts: 547

"Considering the fact that neither of my FT colleagues were required to sign such an agreement [regarding the percentage of salary that may be exchanged for foreign currency], I consider the two related." -- Jayray

The FAO may have wanted you to think the two were related, and that you therefore had to rely on him to change money for you, but we both agree that you do not. Nevertheless, I can well understand why, after resisting his overtures for the better part of a year, you may have felt you had to give him something that he wanted just to get away from a bad situation gracefully.