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Any possible way for a school to wriggle out of pension?

 
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chaz47



Joined: 11 Sep 2003

PostPosted: Fri Jan 08, 2010 9:37 am    Post subject: Any possible way for a school to wriggle out of pension? Reply with quote

There's an adult hagwon in my neighborhood that sounds pretty good. The pay is decent, 2.7, but it is a huge step-down in terms of vacation (leaving a uni position). One thing that bugs me is that they don't pay into pension. Is this legitimate? I guess it wouldn't bother me terribly much to go a year without it.
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CentralCali



Joined: 17 May 2007

PostPosted: Fri Jan 08, 2010 4:10 pm    Post subject: Reply with quote

It will bother you a lot if the pension office finds out about the place. Then you, as well as your boss, will have to make back payments. If you don't happen to have that money saved up, you'll be in the hurt locker, financially speaking. And if the place is cheating on pension, you can bet your bottom dollar they'll cheat you other ways also.
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wylies99



Joined: 13 May 2006
Location: I'm one cool cat!

PostPosted: Fri Jan 08, 2010 5:28 pm    Post subject: Reply with quote

Is the hagwon legal-registered with the government? Doesn't sound like it.
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Fri Jan 08, 2010 7:46 pm    Post subject: Reply with quote

The only way they can get out of paying the national pension is to contribute to a private pension plan - so they dont really get out of paying pension. Many unis do this because they can use your private pension refund as the severance bonus and save themselves a couple million that way.
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chaz47



Joined: 11 Sep 2003

PostPosted: Fri Jan 08, 2010 8:05 pm    Post subject: Reply with quote

OculisOrbis wrote:
The only way they can get out of paying the national pension is to contribute to a private pension plan - so they dont really get out of paying pension. Many unis do this because they can use your private pension refund as the severance bonus and save themselves a couple million that way.


In their advertisement they specifically state something to the effect of "paying into health insurance proves you are legally employed...". I'll quote directly from the ad when I'm not so sleepy (in the US on vacation at present).
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goesslry



Joined: 19 Jun 2007

PostPosted: Fri Jan 08, 2010 9:05 pm    Post subject: Reply with quote

there is a certain number of employees required to have to pay into pension, i think the number is like 10 (don't remember the exact number). I had this issue a few years ago with a boss. They were able to wiggle out of it, according to the labor board, because there roster of full-time employees was under this magical number.
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Fri Jan 08, 2010 9:11 pm    Post subject: Reply with quote

the 10 employee rule doesnt apply to foreigners - we must all contribute to a pension plan.

"Registered foreign nationals living in Korea who are between the ages of 18 and 60 must join. If you have a set place of employment, subscribe to the National Pension through your place of work. The following foreign nationals are not required to join.
- Persons who have overstayed their period of sojourn.
- Persons with visa types D-1 (Culture/Art), D-2 (Student), D-3 (Industrial Trainee), D-4 (General Trainee), F-1 (Visiting and Joining Family), F-3 (Dependent Family), and G-1 (Other)
- Persons from countries where the law does not require citizens of the Republic of Korea to participate in that country's national pension system. (Status therefore changes in accordance with laws of home country.) "

http://www.eslteachersboard.com/cgi-bin/korea-info/index.pl?page=2;read=184

From the National Pension Act:

Article 126 (Application of Scheme to Foreign Nationals)
(1) Foreign nationals who are employed at a workplace covered by this Act or who
reside in the Republic of Korea, except for those as prescribed by the Presidential
Decree, shall mandatorily be Workplace-based Insured Persons or Individually
Insured Persons, notwithstanding Article 6: Provided, that this provision shall not
apply, in the case where any relevant Act of those foreign nationals' home country
does not apply to Korean nationals residing within that country with respect to a
pension scheme equivalent to the National Pension Scheme under this Act.
(2) Provisions of Articles 77 through 79 shall not apply to a foreign national who
becomes a Workplace-based or Individually Insured Person under the main text of
paragraph (1): Provided, that if the foreign national falls under one of the following
subparagraphs, provisions of Articles 77 through 79 shall apply:
1. Foreign nationals whose home country's legislation provides the payment of
benefits corresponding to the Lump-sum Refund referred to in Articles 77 through
79 for Korean nationals;
2. Foreign workers who are employed at a workplace covered under this Act and
fall under the Act on the Employment, etc. of Foreign Workers; and
3. Persons who are employed at a workplace covered under this Act having a
status of sojourn which allows them to do industrial trainee activities under
Article 10 of the Immigration Control Act and haven't deserted the designated
training places for the required training period.
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wylies99



Joined: 13 May 2006
Location: I'm one cool cat!

PostPosted: Fri Jan 08, 2010 11:06 pm    Post subject: Reply with quote

OP, don't work there. Wink
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