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No pension, is this legal?

 
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corinthian



Joined: 21 Sep 2009

PostPosted: Sun Dec 13, 2009 9:35 pm    Post subject: No pension, is this legal? Reply with quote

I had an interview with a school today, and the director mentioned they don't pay pension. I asked him politely if that was legal, saying I had heard all employees had to pay pension. My understanding from what i've seen here was that it was illegal to not pay pension.

The director said it was legal with E-2 employees, and that 70-80% of ESL institutes do not pay pension. The recruiter backs him up. First of all, a lack of pension basically takes money out of my pocket in the long run. Secondly, is that legal? They claim I don't understand the system, but I'm not sure if they're full of it or not.

ETA: they also say that if I was registered full-time, and the school paid pension, I would be subject to residential taxes and other fees that I would not see otherwise. This sounds like crap to me, but I'm not sure. They ALSO claim that if you get pension and leave before a full year, the Korean government would not reimburse your pension.


Last edited by corinthian on Sun Dec 13, 2009 9:37 pm; edited 1 time in total
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jmuns



Joined: 09 Sep 2009
Location: earth

PostPosted: Sun Dec 13, 2009 9:37 pm    Post subject: Reply with quote

keep looking for a new job and recruiter
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asams



Joined: 17 Nov 2008

PostPosted: Sun Dec 13, 2009 9:44 pm    Post subject: Reply with quote

and post the name of this recruiter and school on here so we can make sure to stay away.
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corinthian



Joined: 21 Sep 2009

PostPosted: Sun Dec 13, 2009 10:00 pm    Post subject: Reply with quote

is it allowed to post names here?
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lifeinkorea



Joined: 24 Jan 2009
Location: somewhere in China

PostPosted: Sun Dec 13, 2009 10:01 pm    Post subject: Reply with quote

What exactly is the job? What is the salary and what is the school like?
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corinthian



Joined: 21 Sep 2009

PostPosted: Sun Dec 13, 2009 10:03 pm    Post subject: Reply with quote

the job is teaching English to kids 8-13, 2.2m won. I'm not sure what you mean about the school.
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TheUrbanMyth



Joined: 28 Jan 2003
Location: Retired

PostPosted: Sun Dec 13, 2009 10:10 pm    Post subject: Re: No pension, is this legal? Reply with quote

corinthian wrote:
I had an interview with a school today, and the director mentioned they don't pay pension. I asked him politely if that was legal, saying I had heard all employees had to pay pension. My understanding from what i've seen here was that it was illegal to not pay pension.

The director said it was legal with E-2 employees, and that 70-80% of ESL institutes do not pay pension. The recruiter backs him up. First of all, a lack of pension basically takes money out of my pocket in the long run. Secondly, is that legal? They claim I don't understand the system, but I'm not sure if they're full of it or not.

ETA: they also say that if I was registered full-time, and the school paid pension, I would be subject to residential taxes and other fees that I would not see otherwise. This sounds like crap to me, but I'm not sure. They ALSO claim that if you get pension and leave before a full year, the Korean government would not reimburse your pension.


This is garbage. If you are working at that school as an employee you are required to pay pension. So is the school. Yes many institutes do not pay pension but that is illegal. As for residential taxes those are about .2 of your salary (nothing to worry about) and must be paid anyway.

And yes you can get a pension refund without staying the full year.

You are being cheated, lied to, and manipulated. Drop your recruiter and find a new job.
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lifeinkorea



Joined: 24 Jan 2009
Location: somewhere in China

PostPosted: Sun Dec 13, 2009 10:54 pm    Post subject: Reply with quote

Quote:
I'm not sure what you mean about the school.


Have you visited the school? If out of Korea, did you see photos? Will you co-teach or teach by yourself? How many hours do you have to teach? etc... etc...

These are essential job details anyone should get before signing a contract. Just because there is no pension doesn't mean it's a bad job. It just means you better have something else in return. I has a 2.5 hagwon job and didn't have to pay any of the bills. I was allowed to use the computer room on weekends and any school day. So, I didn't get a computer right away. I was able to save up money and then move after 6 months without any problems.

The hagwon saved money obviously, and I was able to use it as a stepping stone. I guess I could be a jerk and try to collect on it, but the hagwon owner helped out and can be used for a reference.

It all depends on the situation. In your case, you don't have to teach the younger kids, but you still need to find out details about the school.
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corinthian



Joined: 21 Sep 2009

PostPosted: Sun Dec 13, 2009 11:02 pm    Post subject: Re: No pension, is this legal? Reply with quote

TheUrbanMyth wrote:
corinthian wrote:
I had an interview with a school today, and the director mentioned they don't pay pension. I asked him politely if that was legal, saying I had heard all employees had to pay pension. My understanding from what i've seen here was that it was illegal to not pay pension.

The director said it was legal with E-2 employees, and that 70-80% of ESL institutes do not pay pension. The recruiter backs him up. First of all, a lack of pension basically takes money out of my pocket in the long run. Secondly, is that legal? They claim I don't understand the system, but I'm not sure if they're full of it or not.

ETA: they also say that if I was registered full-time, and the school paid pension, I would be subject to residential taxes and other fees that I would not see otherwise. This sounds like crap to me, but I'm not sure. They ALSO claim that if you get pension and leave before a full year, the Korean government would not reimburse your pension.


This is garbage. If you are working at that school as an employee you are required to pay pension. So is the school. Yes many institutes do not pay pension but that is illegal. As for residential taxes those are about .2 of your salary (nothing to worry about) and must be paid anyway.

And yes you can get a pension refund without staying the full year.

You are being cheated, lied to, and manipulated. Drop your recruiter and find a new job.


Thanks for the advice! I was offered a contract with another school today anyway, and I have a couple interviews lined up for the next few days, so it sounds like it would be best to just move on from that offer.
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VanIslander



Joined: 18 Aug 2003
Location: Geoje, Hadong, Tongyeong,... now in a small coastal island town outside Gyeongsangnamdo!

PostPosted: Mon Dec 14, 2009 12:27 am    Post subject: Re: No pension, is this legal? Reply with quote

I had a good hagwon job that didn't pay pension and when they asked me to re-sign I said I would if they started paying pension. So I got it for years two and three, though not retroactively. Those two years of pension contributions I cashed in this autumn and spent a month in Thailand on it, with cash to spare. It adds up.

TheUrbanMyth wrote:
You are being cheated, lied to, and manipulated. Drop your recruiter and find a new job.

That pretty much sums it up.

corinthian wrote:
Thanks for the advice! I was offered a contract with another school today anyway, and I have a couple interviews lined up for the next few days, so it sounds like it would be best to just move on from that offer.

Great to hear.
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