Job Discussion Forums

gastropod · Joined: 12 Jun 2010 Posts: 18 Location: New Zealand

I'm new to the China job search and I've just been communicating with a recruiter who has sent me a number of contracts to evaluate. Every one of them has some kind of breach clause with penalties ranging from 4,000 Yuan to an incredible 10 months salary. Is this kind of thing normal? I realise that the schools are probably justified in imposing reasonable penalties but these seem completely over the top. Any thoughts?

The Ever-changing Cleric · Joined: 19 Feb 2009 Posts: 1523

a standard breach clause is in every contract. usually ranges from $500-2000. I've never heard of anyone ever paying one, but then again I've never met every person in China either.

ooragnakkangaroo · Joined: 28 Jan 2011 Posts: 33

Never agree to breach clauses that exceed the SAFEA contract.

dog backwards · Joined: 27 Jan 2011 Posts: 178

I agree. Breach clauses are standard. Like the others have said, I've never known anyone who was paid one when he breached his contract, nor have I ever known anyone who was paid the penalty when the school breached its contract.

Beware of any school whose breach-of-contract clause exceeds more than a month's salary. Even then, that's extravagant.

wangdaning · Joined: 22 Jan 2008 Posts: 3154

A month's notice and a month's pay would be the most fair route. This is assuming the employer is not doing anything to drive you out.

If you think about it, it takes a few weeks to find a replacement, and then a few weeks to get the paperwork done for the new employee (a month's notice and a fee of one month salary). If things were to run fairly that would be the way it works.

Unfortunately, in China, many employers want to get as much as they can from you. If you run then you have no real issue. If you are honest with your employer, it depends on how they react to it. The breach can go both ways, and make that a clear thing in the contract. A month or two at most is acceptable.

Release letters are not something I have dealt with...Maybe others have clear info as to not having one and working again.

Just to be clear, my breach is less than one month's pay.

vikeologist · Joined: 07 Sep 2009 Posts: 600

Unfortunately breach clauses are counter-productive because if you are having problems with your job, or are just plain unhappy, they're a disincentive to discuss the problems with the employer. I'm sure some FTs do a midnight run because of the clauses, when problems could have been resolved, and of course that just makes schools more determined to have the breach clauses so they don't get screwed over by an FT again..

This is why it's important to find an employer that values you, and will work with you to make the deal work for both sides.

Non Sequitur · Joined: 23 May 2010 Posts: 4724 Location: China

I started a gig in 2009 on a contract that had the normal SAFEA breach.
Once on board the school tried to increase it to about 10 months salary.

gastropod · Joined: 12 Jun 2010 Posts: 18 Location: New Zealand

Wow! I never thought I'd get so many helpful replies so quickly. Thanks so much everyone! Things are much clearer now.

ooragnakkangaroo · Joined: 28 Jan 2011 Posts: 33

The Ever-changing Cleric · Joined: 19 Feb 2009 Posts: 1523

We (sincerely) bow to you O All Knowing Marsupial.

wesharris · Joined: 26 Oct 2008 Posts: 177

dog backwards · Joined: 27 Jan 2011 Posts: 178

sharonariel · Joined: 06 Jan 2011 Posts: 54 Location: Changzhou, Jiangsu

The first place that an employer would go to get the breach penalty would be the State Bureau of Foreign Experts. In my experience, the people at the SBFEA have been as close as anyone could be to being retarded and still live alone (and that seems to be true of people in 4 or 5 branches to whom I've spoken-- one was likely to get a straight, unequivocal answer out of them as one might be the POTUS).

So, the net benefit of the breach penalty is zero. When I had an employer who was welshing on some of the terms of the contract, the SBFEA was not willing to consider charging them the breach penalty (and I did ask for it).

If I had welshed on some of the terms of the contract, and they wanted to charge me money then I would have had a chance to dispute it with the Labor Bureau. When I did go to the Labor Bureau to press for what was owed me, they told me that "This agency is mainly for workers who work at factories. We can make sure you get your salary and 30 days severance and NOTHING ELSE." The whole meeting lasted something like 15 minutes, and that includes the time that it took to get the paperwork drawn up that we had to sign.

The SBFEA serves the function of MEDIATION and the documents that are signed there are not legally enforceable. Documents that are signed at the Labor Bureau are, but they take the better part of a month to schedule a hearing. If some school wanted to get the breach penalty out of you, they'd have to go through the trouble of trying to get you at the SBFEA first, and then going over the the Labor Bureau to set up a hearing. By that time, you could have gotten your last salary and been at work in another town with a forged recommendation letter. (They have a standard form that they use nowadays.)

mat chen · Joined: 01 Nov 2009 Posts: 494 Location: xiangtan hunan

It is not so complicated. You get your air ticket home and the overtime at the end of the contract. The simply don't pay you this, because you breached the contract. It's a win win situation.

Alexis009 · Joined: 10 Jan 2011 Posts: 15 Location: Nanjing

Yes breach clauses are standard. What I'm wondering is, if one were to breach a one year contract at say, 6 months, and claim to not like it or something, while starting a better job... Would one get the required release letter/recommendation letter etc from that school?

I'm thinking about taking a contract with a reasonable Breach clause, say one month's salary, in the city of my choice- while pursuing a lax Uni job across the street after 6 months! The school won't offer me a 6 month contract either so... I might as well cut a month's salary and get a better job. This is of course, unless the contract were to randomly have like a two thousand dollar fine...