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Ray del Mundo
Joined: 16 May 2007 Location: Korea
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Posted: Sat Jul 28, 2007 10:35 pm Post subject: Director withholds $500 �housing deposit� from 1st pay |
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I�m two weeks into a year�s contract at a hogwan in Busan. Yesterday a teacher at another branch owned by the same director told me that when he was given his first month�s pay, the director had taken out US$500 as �housing deposit� to ensure he doesn�t get stiffed on utility bills incurred but unpaid when the teacher leaves. The contract says nothing about such a deposit, and I never would have signed one with such a provision. The director obviously knows this and simply unilaterally withholds the money. The teacher told me this also happened to another new teacher at the school, so presumably it will happen to me.
Since I have advance notice, what do I do when I get the �light� pay envelope? It�s my understanding that I can�t approach the Labor Board until I�ve worked six months; correct? Should I insist on a receipt or contract addendum on the spot, indicating my protest?
The school also does not pay into pension, and I didn�t care when I signed because I understand Americans don�t get their payments back. But I read that without pension payments, there�s no right to severance pay. True?
Also, the contract originally offered traveler medical insurance through a private company, not NHIC. I changed the wording to the NHIC. I have to wait for the ARC card to register, yes?
Finally, the contract says we get paid at �month�s end,� but he pays five days afterward.
I did my due diligence with this school, doing a forum search and finding nothing, posting queries on the school and getting no responses. I emailed the current native teacher, who returned convoluted replies that didn�t answer my questions. I half-suspected it was a Korean pretending to be American, but no, it�s an American crack baby who can�t answer a straight question with a straight answer.
I should mention that I like the school, the Korean teachers, the kids, the workload (about 6 teaching hours a day). It�s the contract stuff that is at issue.
Thanks for any help. |
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Tony_Balony

Joined: 12 Apr 2007
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Posted: Sat Jul 28, 2007 10:40 pm Post subject: |
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Americans get pension back always. If they take pension money, you'll get it back plus the contribution they are required to make.
The problem you should be aware of is that pension law takes effect if (I'm not certain if it is 5 full time employees or more than 5 full time employees) your business vascillates around 5 full time employees.
Last edited by Tony_Balony on Sat Jul 28, 2007 10:42 pm; edited 1 time in total |
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Tony_Balony

Joined: 12 Apr 2007
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Posted: Sat Jul 28, 2007 10:41 pm Post subject: |
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You have a bad a contract, your boss is @@$$head. Bail ASAP. He's a %ick. |
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Tony_Balony

Joined: 12 Apr 2007
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Posted: Sat Jul 28, 2007 10:45 pm Post subject: |
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Quote: |
Also, the contract originally offered traveler medical insurance through a private company, not NHIC. I changed the wording to the NHIC. |
This is wrong. You are supposed to get the NHIC regardless. It costs them money so they try to steer it away from you. Travelers ins is supplemental and optional. |
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spliff

Joined: 19 Jan 2004 Location: Khon Kaen, Thailand
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Posted: Sat Jul 28, 2007 10:46 pm Post subject: |
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If the deposit is not in the contract then it can't be deducted. And, it doesn't matter how many employees they have...labor law requires the pension for foreign workers. Call the labor board. |
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sadsac
Joined: 22 Dec 2003 Location: Gwangwang
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Posted: Sat Jul 28, 2007 10:52 pm Post subject: |
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Pension is compulsory. Canadians and Americans recieve a full refund when they leave plus the employer contributions. Health insurance is also compulsory, but it can now be done through a private insurer, not the NHIS. Housing deposit Illegal, he just can't do it. As Spliff suggested, "Go to the ;abour board." Best of luck. If you like the school and can live with the deposit, fine! Pension and health insurance, must haves.  |
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Pak Yu Man

Joined: 02 Jun 2005 Location: The Ida galaxy
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Posted: Sun Jul 29, 2007 3:34 am Post subject: |
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You do want pension. Whatever you stick in you'll get double back. |
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The Bobster

Joined: 15 Jan 2003
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Posted: Sun Jul 29, 2007 4:33 am Post subject: |
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It's a judgment call you gotta make. You like the school, like the job, then maybe you're better off waiting a month or two before making any noise, show everyone you got what it takes to be valuable to them before starting to make noises. Then, explain your gripes in a calm and reasonable way and let the management know you're not asking for anything more than what is legal and what was promised and what is written on your contract.
Thing about contracts, it works both ways, you know. I've had plenty of jobs where there were a lot of benefits that were offered and given that were not spelled out in ink beforehand. In the end, I've found that I'm usually in not such a good place if I'm getting exactly and only what is on the piece of paper. |
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boyne11

Joined: 08 Jul 2007
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Posted: Sun Jul 29, 2007 3:05 pm Post subject: |
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Tell your boss to pay your salary in advance each month and see what he says. And tell him to pay your severance now too.
If your boss doesn't trust you, you shouldn't trust him.
Jump ship! |
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ilovebdt

Joined: 03 Jun 2005 Location: Nr Seoul
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Posted: Sun Jul 29, 2007 5:32 pm Post subject: Re: Director withholds $500 �housing deposit� from 1st pay |
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You can contact the Labour Board at any time. You don't have to wait six months.
Their number is 1350 press 7 for English. When you call you will first hear Korean, but wait and then the English voice will come on and tell you to press 7.
Your contract has more holes in it than a Swiss cheese. I would definately call the Labour Board and discuss it with them.
ilovebdt |
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wylies99

Joined: 13 May 2006 Location: I'm one cool cat!
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Posted: Sun Jul 29, 2007 7:02 pm Post subject: |
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OP- You will probably have to file at Labor to get your money back. The hogwan can't legally do that. If you decide to file at Labor, PM me and I can help you. Also, keep quiet about plans to file at Labor until right after your next payday. That means don't talk to other FT's about filing, either. Many are rats.
Protect your documents- especially your passport, diploma, copies of teh contract, and any payslips.
I do hope you know that this hogwan is no good and you should make plans to resign. Even if there's a BS "meeting" and the director tries to BS you and be your friend- don't fall for it. It will only get worse. Take all of these warnings very seriously.
Honest hogwans are almost impossible to find. |
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twg

Joined: 02 Nov 2006 Location: Getting some fresh air...
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Posted: Sun Jul 29, 2007 11:27 pm Post subject: Re: Director withholds $500 �housing deposit� from 1st pay |
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Have you already gotten your E2, Ray?
If not, you walk away and you don't come back. |
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Ray del Mundo
Joined: 16 May 2007 Location: Korea
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Posted: Mon Jul 30, 2007 5:18 am Post subject: |
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Wylies 99 - Why would I resign? isn't it better to get fired? And if the director refuses to give me a release, I'm barred from Korea for the remainder of the year, right? What good does that do me? At least if I'm here earning my monthly salary, I'm ahead.
I asked the other FT if his time had overlapped with his predecessor's, to confirm she got severance and flight home. He didn't know. And he said not paying pension is no big deal because Americans can't get theirs back for a year after they leave Korea.
The whole thing sucks and I'm mad at myself for ending up at such a sleazy joint when I did so much research on Dave's and elsewhere and thought I knew too much to get suckered in. But, as you say, honest hogwans are almost nonexistent. Sigh. |
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justagirl

Joined: 17 Jan 2003 Location: Cheonan/Portland
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Posted: Mon Jul 30, 2007 7:51 am Post subject: |
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You would get your severance when you leave Korea (from your boss), and you would also get your pension (wired to your bank account in the US).
Someone really told you wrong! Americans DO pay into the pension plan (and it's required by labor law if there are 5 or more employees at your hagwon). The reason your boss does not want to do this, is because he must match what you put in. When you leave, you get what you put in, plus what he put in. You end up with over 1 million won more than what you put in yourself due to the matching payments from your boss.
You do not have to wait a year to get this--right before you leave, you go to the pension office, and give them your bank account in the U.S. and bam--it's there within 2 months (wired).
There is always a possibility of calling the pension office and explaining you're American and your boss does not want to enroll you in the pension plan. Have others on this board give you more advice on how to do this. |
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wylies99

Joined: 13 May 2006 Location: I'm one cool cat!
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Posted: Mon Jul 30, 2007 8:16 pm Post subject: |
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Ray del Mundo wrote: |
Wylies 99 - Why would I resign? isn't it better to get fired? And if the director refuses to give me a release, I'm barred from Korea for the remainder of the year, right? What good does that do me? At least if I'm here earning my monthly salary, I'm ahead.
I asked the other FT if his time had overlapped with his predecessor's, to confirm she got severance and flight home. He didn't know. And he said not paying pension is no big deal because Americans can't get theirs back for a year after they leave Korea.
The whole thing sucks and I'm mad at myself for ending up at such a sleazy joint when I did so much research on Dave's and elsewhere and thought I knew too much to get suckered in. But, as you say, honest hogwans are almost nonexistent. Sigh. |
Do what you want. If you are only venting and plan no real action then please tell us that in the original post. |
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