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fine for breach of contract?
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naturegirl321



Joined: 04 May 2003
Posts: 9041
Location: home sweet home

PostPosted: Mon Mar 30, 2009 12:57 pm    Post subject: fine for breach of contract? Reply with quote

Is this the norm for CHina?

When either of the two parties fails to fulfill the contract or fails to fulfill the contract obligations according to the terms stipulated, that is, breaks the contract, it must pay a penalty of up to 2000 USD

I've asked if there's anyway around it and they have said no, even if you provide written info ahead of time.
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Hansen



Joined: 13 Oct 2008
Posts: 737
Location: central China

PostPosted: Mon Mar 30, 2009 1:30 pm    Post subject: Reply with quote

This is a feature which your employers use to control you; they, however, will laugh in your face if you point out the numerous times they have broken the contract.
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sui jin



Joined: 08 Feb 2008
Posts: 184
Location: near the yangtze

PostPosted: Mon Mar 30, 2009 1:40 pm    Post subject: Reply with quote

This seems to be a standard term in most contracts, I guess it's why so many FTs cut and run if they have problems, rather than try to negotiate a way out.
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naturegirl321



Joined: 04 May 2003
Posts: 9041
Location: home sweet home

PostPosted: Mon Mar 30, 2009 1:45 pm    Post subject: Reply with quote

so I guess that there's nothing that can be done.
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Totemic



Joined: 05 Feb 2009
Posts: 118
Location: Nanjing

PostPosted: Mon Mar 30, 2009 1:46 pm    Post subject: Reply with quote

Hansen wrote:
This is a feature which your employers use to control you; they, however, will laugh in your face if you point out the numerous times they have broken the contract.

Well said.

Contracts are worthless in China, because Chinese people seem culturally unable to honor what they agree to in advance (I think it has to do with their lack of cognitive foresight, more than anything malicious).

Thus, breaking-the-contract 'penalties' may likely only be levied on those poor laowai saps gullible enough to fall for the dupe.

If you don't push, expect to be pushed.
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suanlatudousi



Joined: 10 Oct 2008
Posts: 384

PostPosted: Mon Mar 30, 2009 2:07 pm    Post subject: Reply with quote

It's not the standard for "most contracts" ... in fact it is part of the SAFEA contract - thus it's part of "all contracts"
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kev7161



Joined: 06 Feb 2004
Posts: 5880
Location: Suzhou, China

PostPosted: Mon Mar 30, 2009 2:16 pm    Post subject: Reply with quote

It is part of SAFEA and while I won't make a blanket statement condemning all foreign teachers (because I know there are viable exceptions to every rule), I'm sure there are many, MANY FTs that just can't bear to finish a 6 or 10 month contract because the life is so HARSH! Rolling Eyes I've worked at a total of two schools in six years time. I've had disagreements with both schools, apartment problems, fed-up-with-China days (weeks!), and all sorts of other things, but have never found it necessary to break a contract. But I take most of the stories I read here at Dave's (about why so-and-so wants to pull a runner or break their contract) with a grain of salt. Sure there are lousy schools, but I think ofttimes the situation is more of a 50/50 as to who is at fault.
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naturegirl321



Joined: 04 May 2003
Posts: 9041
Location: home sweet home

PostPosted: Mon Mar 30, 2009 2:28 pm    Post subject: Reply with quote

It seems to me, that with all the contracts I've been sent, that the employer can easily fire an employee and not have to pay a fine. BUt if an employee quits, even with notice, they have to pay a fine.
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LongShiKong



Joined: 28 May 2007
Posts: 1082
Location: China

PostPosted: Mon Mar 30, 2009 4:13 pm    Post subject: Reply with quote

Along with 9 others, I signed a 16 hr contract with an agency to teach at a Beijing primary 3 yrs ago. Just before the Sept holidays, they informed us they'd reduce our hours to 8 and hire 10 more FTs because they weren't supposed to have us teach before 3pm. I proved to my colleagues that they knew this even before we signed because when compared to the contracts they'd originally emailed us, the breach penalty was missing among other suspicious changes. I guess they reasoned, hiring 20 FTs for 8 hours before Sept would be next to impossible considering the travel time to and from the school.

Before I quit I went to SAFEA for help. They verified that the breach clause is an integral part of the contract that still stands...provided you're working for a legitimate employer of course. Needless to say, their lack of interest in helping me or in investigating the agency is further evidence the kind of corruption that led to Tiananmen 20 years ago is still rampant.

I felt like throwing a lit roll of firecrackers into the posh office of the agency to celebrate the holidays and my resignation.
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LongShiKong



Joined: 28 May 2007
Posts: 1082
Location: China

PostPosted: Mon Mar 30, 2009 4:15 pm    Post subject: Reply with quote

Along with 9 others, I signed a 16 hr contract with an agency to teach at a Beijing primary 3 yrs ago. Just before the Sept holidays, they informed us they'd reduce our hours to 8 and hire 10 more FTs because they weren't supposed to have us teach before 3pm. I proved to my colleagues that they knew this even before we signed because when compared to the contracts they'd originally emailed us, the breach penalty was missing among other suspicious changes. I guess they reasoned, hiring 20 FTs for 8 hours before Sept would be next to impossible considering the travel time to and from the school.

Before I quit I went to SAFEA for help. They verified that the breach clause is an integral part of the contract that still stands...provided you're working for a legitimate employer of course. Needless to say, their lack of interest in helping me or in investigating the agency is further evidence the kind of corruption that led to Tiananmen 20 years ago is still rampant.

I felt like throwing a lit roll of firecrackers into the posh office of the agency to celebrate the holidays and my resignation.
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englishgibson



Joined: 09 Mar 2005
Posts: 4345

PostPosted: Mon Mar 30, 2009 4:25 pm    Post subject: Reply with quote

nature girl, that's exactly how it seems. chinese employers love that feeling of owning their employees...seems to be an old tradition. what's changed is that you have the right to "negotiate" Wink

Quote:
It's not the standard for "most contracts" ... in fact it is part of the SAFEA contract - thus it's part of "all contracts"
yes, SAFEA contract. however, i don't think all schools/centers are with SAFEA thus they make their own rules, which might be more risky too.

in any case, this fine's designed to protect the employers, not us..although there is a wording that employers' breach of contracts would obligated them to pay us Rolling Eyes

cheers and beers to all fts that can keep their tolerance levels up Smile
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Laurence



Joined: 26 Apr 2005
Posts: 401

PostPosted: Mon Mar 30, 2009 4:43 pm    Post subject: Reply with quote

@EG

Quote:
you have the right to "negotiate" Wink


What's with the quotation marks and the wink?
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suanlatudousi



Joined: 10 Oct 2008
Posts: 384

PostPosted: Tue Mar 31, 2009 12:16 am    Post subject: Reply with quote

englishgibson wrote:
i don't think all schools/centers are with SAFEA thus they make their own rules, which might be more risky too.


Well, those folks, clearly without legal employment are all on their own.
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China.Pete



Joined: 27 Apr 2006
Posts: 547

PostPosted: Tue Mar 31, 2009 8:19 am    Post subject: Breach of Contract Penalty Reply with quote

"So I guess that there's nothing that can be done [about the penalty]." -- Naturegirl

Posters are correct in saying that this is a standard provision of the SAFEA contract, which is required for your work visa. Some schools may do little more than supplement this with a one page addendum; others will have a complete standalone contract of their own which may barely be consistent with the SAFEA contract. Personally, I would not sweat this too much. If your school is in the latter category, the SAFEA contract is mostly a formality anyway (though it does afford you a measure of protection).

But even so, if you find yourself in a situation where, in spite of your best efforts, you need to leave early, you should go ahead and inform the employer according to the contract notice requirements, or, if that is impractical, give sufficient notice to allow them to find a replacement, say, for the next term. At this point, it is really in both parties' interest to achieve a separation as cleanly as possible. Few legitimate employers in my experience will quibble about a breach penalty.
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LanGuTou



Joined: 23 Mar 2009
Posts: 621
Location: Shandong

PostPosted: Tue Mar 31, 2009 11:10 am    Post subject: Reply with quote

I have never been put in the position where paying this so called "Breach Penalty" has been necessary. However, it has always made me wonder.

500 USD to 2000 USD (or the equivalent in RMB) is quite a range.

What constitutes a 500 USD penalty and what constitutes a 2000 RMB? Who decides? On what criteria is it decided?

In China, I can only assume it's 2000 USD every time. Someone enlighten me please. I can't sleep at night worrying about it! Wink
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