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Pension Question
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m3erds



Joined: 22 Feb 2010

PostPosted: Mon Jun 28, 2010 7:30 pm    Post subject: Pension Question Reply with quote

I've been reading up on this but Im confused because some of the posts are quite old. I am the only foreign teacher at my hagwon and Ive been there for a month and a half. As of right now, my employer has not paid into the pension fund(only one partial paycheck so far). Is it still illegal for him not to pay pension if I'm the only foreign teacher? If so, what should I do about it? Is it a good idea to set up the pension plan myself or should I do nothing? I dont want to get stuck with a pension bill when I leave Korea.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Jun 28, 2010 7:36 pm    Post subject: Re: Pension Question Reply with quote

m3erds wrote:
I've been reading up on this but Im confused because some of the posts are quite old. I am the only foreign teacher at my hagwon and Ive been there for a month and a half. As of right now, my employer has not paid into the pension fund(only one partial paycheck so far). Is it still illegal for him not to pay pension if I'm the only foreign teacher? If so, what should I do about it? Is it a good idea to set up the pension plan myself or should I do nothing? I dont want to get stuck with a pension bill when I leave Korea.


IF it is a really small hagwon (less than 5 non-family employees) then he is exempt from paying into it.

If it is LARGER than that then he is cheating the system (and you if you are American, Canadian or Australian). You can also expect to NOT have medical insurance if that is the case.

BE AWARE however that you cannot be registered for either the NHIC medical or the NPS (pension) until AFTER you have your ARC.

.
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m3erds



Joined: 22 Feb 2010

PostPosted: Mon Jun 28, 2010 7:44 pm    Post subject: Reply with quote

There are definitely more than 5 people. I have my arc card and I've been trying to get health insurance started but they've been resistant so far(later, later, blah blah blah). Is it wise to tell the labor board about this or can that make things worse?
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m3erds



Joined: 22 Feb 2010

PostPosted: Mon Jun 28, 2010 8:06 pm    Post subject: Reply with quote

also, what is this independent contractor thing? is that why they're not paying pension? if so, am i screwed?
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Jun 28, 2010 10:13 pm    Post subject: Reply with quote

m3erds wrote:
also, what is this independent contractor thing? is that why they're not paying pension? if so, am i screwed?


yup... sounds like you have a thief/liar/cheat for a boss. unlucky you.

2 choices:

1) take it for the year and find a better gig next year.

2)try to fight it and get fired.

.
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m3erds



Joined: 22 Feb 2010

PostPosted: Mon Jun 28, 2010 10:52 pm    Post subject: Reply with quote

my suspicions are confirmed....
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Mister



Joined: 05 Jan 2007

PostPosted: Tue Jun 29, 2010 2:40 am    Post subject: Reply with quote

ttompatz wrote:


2)try to fight it and get fired.

.


Does this mean he can get another job WITHOUT having to leave Korea?
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m3erds



Joined: 22 Feb 2010

PostPosted: Tue Jun 29, 2010 4:53 am    Post subject: Reply with quote

+1, if I get fired, how do I get a new job? I want to stay in Korea, just not at ths school.
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Goon-Yang



Joined: 28 May 2009
Location: Duh

PostPosted: Tue Jun 29, 2010 5:00 am    Post subject: Reply with quote

It's easier to get job if you get fired right? If something happens to you and you have to pay a load of $$ in hospital bills do you think your boss is going to have your back? You'll be screwed.

Go to work, but refuse to work/teach until you have insurance and pension. Tell them you might get injured working with the kids and have to sue them.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Tue Jun 29, 2010 7:13 am    Post subject: Reply with quote

Mister wrote:
ttompatz wrote:


2)try to fight it and get fired.

.


Does this mean he can get another job WITHOUT having to leave Korea?


Nope. It means he starts the whole process of a new visa application over again from the start (with a complete set of new documents) and then do a visa run to Japan for his new visa after he gets the new visa confirmation number.


Goon-Yang wrote:
It's easier to get job if you get fired right? If something happens to you and you have to pay a load of $$ in hospital bills do you think your boss is going to have your back? You'll be screwed.

Go to work, but refuse to work/teach until you have insurance and pension. Tell them you might get injured working with the kids and have to sue them.


Foreign factory workers lose limbs all the time and get screwed out of any compensation or medical care. What makes you think a hagwon will do anything other than fire him?

This is especially true if he is under the 6 month mark. Until then he has less protection from labor about being terminated. (Under 6 months they don't need to give notice or reason - after 6 months they need to have a valid reason for termination AND give 30 days notice).

.
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chojieun



Joined: 23 Jun 2010

PostPosted: Tue Jun 29, 2010 2:34 pm    Post subject: Reply with quote

what does it say in your contract?

if a pension is not mentioned in your contract, your employer probably doesn't have to and will not pay into the pension fund.
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Tue Jun 29, 2010 4:17 pm    Post subject: Reply with quote

As was said before, this person works in a school with more than 5 employees. The employer must enroll the teacher in the pension and health insurance programs whether it is mentioned in the contract or not. It is the law. It is not a choice for the employer.
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m3erds



Joined: 22 Feb 2010

PostPosted: Tue Jun 29, 2010 5:40 pm    Post subject: Reply with quote

There is no mention of the pension fund in my contract and the part about health insurance did not specify what type of health insurance.

If I get fired, will that make it difficult to get a new job? Do I need a letter of release to get a new job?
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OculisOrbis



Joined: 17 Jul 2006

PostPosted: Tue Jun 29, 2010 6:22 pm    Post subject: Reply with quote

Health and pension DO NOT need to be mentioned in your contract. Your employer is REQUIRED to provide them to you.

The organizations that control the two plans are the National Pension Service and the National Health Insurance Corporation. Their websites are here:

http://www.nps.or.kr/jsppage/english/main.jsp
http://www.nhic.or.kr/portal/site/eng/

They are the government administered programs that you MUST be enrolled in. Other health/pension plans can be added as supplemental coverage, but the two national programs are REQUIRED as a minimum.

You may have some trouble, but as long as you make sure that all your recruiters/prospective employers are made aware at the start that you quit because they were not providing pension/health insurance, it won't be too difficult to find a new job.

There probably a hundred or more threads about letter of release or changing jobs early. Look for them.
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m3erds



Joined: 22 Feb 2010

PostPosted: Tue Jun 29, 2010 7:29 pm    Post subject: Reply with quote

I just called national health insurance, they told me that employers of E-2 visa holders are not required to sign up for NHIC. She mentioned something after that about providing comparable insurance coverage, but I was a little confused abut how she explained it.
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