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bondjimbond
Joined: 29 Dec 2007
Location: Seoul
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 Posted: Wed Feb 06, 2008 4:43 am Post subject: Pension/severance - mandatory, or no? |
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Hello, all. I posted this at efl-law, but had no answers (and many things on that forum seem to be going unanswered), so I'm hoping perhaps someone here might have some input. I read the "your hagwon can get out of paying pension" thread, and I'm wondering how this might work for me.
I've been offered (at my request) a change in status from a salaried employee with 30 hours teaching per week to an hourly employee at a guaranteed 24 hours teaching per week with possibly up to 30.
This new contract I've been offered states the following:
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1.14 The Instructor agrees and understands that he/she will be paid on an hourly basis with limited hours, duties, and responsibilities which do not qualify him/her as a full-time employee, and shall not receive any benefits available to full-time employees including but not limited to severance pay, health insurance, and pension payments, all of which are the sole responsibility of the Instructor.
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From what I've gathered, this is a very questionable clause, so I'm hoping someone with a keener sense of Korean law than mine could help clarify whether this is legal and if it would be a wise or really stupid decision to take this changed contract. If pension and severance were paid, this would be an attractive offer... otherwise, much less so. (I'm Canadian, so pension gets paid back... bonus money that I definitely want to claim.)
Thanks in advance for any answers. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Feb 06, 2008 5:06 am Post subject: |
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Ah, the joys of getting screwed by CDI.
It is illegal but they have deeper pockets than you do when it comes time to fight it out. |
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bondjimbond
Joined: 29 Dec 2007
Location: Seoul
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| Posted: Wed Feb 06, 2008 8:07 am Post subject: |
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| ttompatz wrote: |
Ah, the joys of getting screwed by CDI.
It is illegal but they have deeper pockets than you do when it comes time to fight it out. |
I will not say either way who my current employer is. 
Having read the other thread, apparently you can get your pension... what about severance? What exactly does the law say about that? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Feb 06, 2008 4:46 pm Post subject: |
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| bondjimbond wrote: |
I will not say either way who my current employer is.
Having read the other thread, apparently you can get your pension... what about severance? What exactly does the law say about that? |
It exactly says:
Article 34 (Severance Pay System)
(1) An employer shall establish a severance pay system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a severance pay to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
from:
LABOR STANDARDS ACT
Act No. 5309, Mar. 13, 1997
Amended by Act No. 5473, Dec. 24, 1997
Act No. 5510, Feb. 20, 1998
Act No. 5885, Feb. 8, 1999
Act No. 6507, Aug. 14, 2001
Act No. 6974, Sep. 15, 2003 |
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CentralCali
Joined: 17 May 2007
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| Posted: Wed Feb 06, 2008 5:35 pm Post subject: |
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| You asked to be part time? So, what's your full time gig and status then? That will affect the legitimacy of part timing. |
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bondjimbond
Joined: 29 Dec 2007
Location: Seoul
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| Posted: Wed Feb 06, 2008 6:48 pm Post subject: |
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It's not really "part time", just whatever hours they decide they can dish out to me.
I'm currently at 30 hours per week, 2.2 million per month, free apartment.
If I switch, I'll be at a minimum 24 hours with the possibility of 30, 27,000 per hour, which would, after my apartment costs are deducted, lower my pay by about 50,000 per month at the lowest hours (pretty nice). I was all set to do this until I saw the new contract where it said I would not get severance and pension as an hourly employee.
So, if I make the switch, how likely will I be to acquire my pension and severance if I make enough noise to the right people? Who would I make noise to? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Feb 07, 2008 1:40 am Post subject: |
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| bondjimbond wrote: |
It's not really "part time", just whatever hours they decide they can dish out to me.
I'm currently at 30 hours per week, 2.2 million per month, free apartment.
If I switch, I'll be at a minimum 24 hours with the possibility of 30, 27,000 per hour, which would, after my apartment costs are deducted, lower my pay by about 50,000 per month at the lowest hours (pretty nice). I was all set to do this until I saw the new contract where it said I would not get severance and pension as an hourly employee.
So, if I make the switch, how likely will I be to acquire my pension and severance if I make enough noise to the right people? Who would I make noise to? |
JUST A FYI - 88 (or more) hours per month makes you full time.
Like I said in my first response. CDI has deeper pockets that you do and they can fight it out longer than you could afford to stay here. They can't afford to let you win. They would be on the hook for billions of won in unpaid premiums and contributions.
Would you win? Eventually, yes.
Could you afford to spend the time and money to win? Probably not.
Even when you do end up winning, the cost would have exceeded the month you would have recovered.
You lose or you lose or you lose.
Gotta love getting screwed by CDI.
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xanderspuppy
Joined: 01 Dec 2006
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| Posted: Thu Feb 07, 2008 2:15 am Post subject: |
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I have read severance pay does not have to be paid if there are less than 6 employees at a school - is this definitely still the case? Is it advisable to steer clear of these kinds of schools, just in case or is there some way they can be made to pay you?
As well as still in doubt about my contract with the 5% tax rate and the housing deposit, I have just clicked that if the other teacher who is working there is asking to be a freelancer than that just would just leave my boyfriend and I, the hagwon owner and two admin staff (as far as I'm led to believe by the current teachers out there), so now I'm thinking I've got one more thing to be concerned about. |
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bondjimbond
Joined: 29 Dec 2007
Location: Seoul
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| Posted: Tue Feb 12, 2008 6:12 am Post subject: |
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So there are about 9 teachers at my school, plus several Korean secretaries and a manager... the school is therefore definitely big enough.
I'm still thinking about this hourly thing.
What procedures would I have to go through to ensure I can get my pension and severance? I believe I have to go to the pension office, and they should take care of things themselves... what about severance? And should I go to the tax office to make sure my status is "employee" rather than "self-employed businessperson"? Would I contact Labour when it comes to within a couple of months of needing my severance? Would I have a case in the first place?
Advice, as always, = appreciated. |
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bondjimbond
Joined: 29 Dec 2007
Location: Seoul
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| Posted: Tue Feb 12, 2008 5:21 pm Post subject: |
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| Bumped, for I have dire need of answers. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Feb 12, 2008 6:42 pm Post subject: |
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| bondjimbond wrote: |
| Bumped, for I have dire need of answers. |
You need to fight with the labor board and get confirmation with/from immigration that you CANNOT under current laws be considered a "part-time or self employed contractor" and you are in fact a full-time employee.
Then you need to take that to the pension office and file a complaint and follow it through to it's conclusion that you are full time and not subcontracted and that you are entitled to pension.
Then you go back to labor at the end of your employment and fight for your severance using the precedents listed to back your claim.
You will need lots of time and deep pockets because as soon as you start your claim you will get fired and be without a job or residence.
The alternative is pick a new employer who is not so willing to cheat you out of your legally entitled benefits.
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