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3DR
Joined: 24 May 2009
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 Posted: Thu Nov 25, 2010 9:42 pm Post subject: What if an employer doesn't pay pension? |
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| Is that a bad sign even though the school seems like a good one? |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Nov 25, 2010 10:18 pm Post subject: Re: What if an employer doesn't pay pension? |
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| 3DR wrote: |
| Is that a bad sign even though the school seems like a good one? |
If the employer doesn't pay pension that is not a good school.
Pension and medical insurance are linked, so if he's not paying pension he's not paying medical insurance either (despite what the contract says).
It's also a bad sign because pension isn't that huge of an expense as it is only 4.5% of the monthly salary. So if said school is that much of a cheapskate....you can expect it to skimp on other things as well including but not limited to curriculum, A/C?heating and salary.
With all the horror stories on here why put yourself at risk before you even sign? You haven't signed yet have you? |
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3DR
Joined: 24 May 2009
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| Posted: Thu Nov 25, 2010 10:23 pm Post subject: Re: What if an employer doesn't pay pension? |
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| TheUrbanMyth wrote: |
| 3DR wrote: |
| Is that a bad sign even though the school seems like a good one? |
If the employer doesn't pay pension that is not a good school.
Pension and medical insurance are linked, so if he's not paying pension he's not paying medical insurance either (despite what the contract says).
It's also a bad sign because pension isn't that huge of an expense as it is only 4.5% of the monthly salary. So if said school is that much of a cheapskate....you can expect it to skimp on other things as well including but not limited to curriculum, A/C?heating and salary.
With all the horror stories on here why put yourself at risk before you even sign? You haven't signed yet have you? |
Actually I was deciding between this one and another one. I accepted the other one precisely because they had pension in the contract (and other detailed things).
This current school that I'm talking about here has actually now been trying to negotiate a higher salary to get me to reconsider. (It is a large chain hagwon) |
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sojusucks
Joined: 31 May 2008
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| Posted: Sat Nov 27, 2010 2:59 am Post subject: |
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| If your school doesn't pay the pension, go to the Korean pension office and show them a copy of your contract. Push the issue. It is part of your legally required benefits and you can make a big deal about it. |
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CentralCali
Joined: 17 May 2007
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| Posted: Sat Nov 27, 2010 5:20 am Post subject: |
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It doesn't matter how big the chain is. Franchising in Korea is not like franchising in our home countries--the franchise headquarters has zero authority over the local franchises; all the headquarters is doing, essentially, is renting their name out.
Although pension, health insurance, etc. may be mentioned in your contract and may even be taken out of your pay, that does not mean that any of those funds have actually made their way to the appropriate government offices (pension, insurance, tax). You, not your coteacher or someone else from your school and certainly not your boss, must check with said government entities to discover if your contributions have, in fact, been contributed. |
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Seon-bee
Joined: 24 Jan 2003
Location: ROK
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| Posted: Sat Nov 27, 2010 8:11 am Post subject: |
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Korean Labor Standards Act 34 (4). Pension = severance.
Who here gets year-end severance + pension payments? |
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AsiaESLbound
Joined: 07 Jan 2010
Location: Truck Stop Missouri
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| Posted: Sat Nov 27, 2010 8:20 pm Post subject: |
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| Seon-bee wrote: |
Korean Labor Standards Act 34 (4). Pension = severance.
Who here gets year-end severance + pension payments? |
Everyone finishing a year should get a 1 month pay severance for each year worked which is Korea's unemployment pay and the employer matched pension. These are 2 very different money matters; not the same thing. |
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Seon-bee
Joined: 24 Jan 2003
Location: ROK
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| Posted: Sat Nov 27, 2010 10:03 pm Post subject: |
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Explain Article 34, carefully noting (1) and (4).
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.
(2) In establishing the severance pay system stipulated in paragraph (1), a differential severance pay system shall not be permitted within one business.
(3) An employer may, at the request of workers, pay severance pay in advance for the period of continuous employment of the worker concerned by adjusting the balances of remunerations before his retirement, irrespective of the provisions of paragraph (1). In this case, the number of years of continuous employment for the computation of severance pay shall be counted anew from the moment the latest adjustment of balances has been made.
(4) In cases where an employer has enrolled in pension insurance program for retirees or a retirement lump sum payment trust as prescribed by the Presidential Decree (hereinafter referred to as �pension insurance, etc.�) for workers, whereby workers, as the insured or a beneficiary, receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a severance pay scheme in accordance with paragraph (1). The amount of lump sum by the retirement insurance, etc., however, shall not be smaller than that of severance pay pursuant to paragraph (1). <Amended by Act No. 5473, Dec. 24, 1997> |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Sun Nov 28, 2010 9:11 pm Post subject: |
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| Seon-bee wrote: |
Explain Article 34, carefully noting (1) and (4).
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.
(2) In establishing the severance pay system stipulated in paragraph (1), a differential severance pay system shall not be permitted within one business.
(3) An employer may, at the request of workers, pay severance pay in advance for the period of continuous employment of the worker concerned by adjusting the balances of remunerations before his retirement, irrespective of the provisions of paragraph (1). In this case, the number of years of continuous employment for the computation of severance pay shall be counted anew from the moment the latest adjustment of balances has been made.
(4) In cases where an employer has enrolled in pension insurance program for retirees or a retirement lump sum payment trust as prescribed by the Presidential Decree (hereinafter referred to as �pension insurance, etc.�) for workers, whereby workers, as the insured or a beneficiary, receive lump sum payment at the time of retirement, or draw their pensions, it shall be deemed that the employer has set up a severance pay scheme in accordance with paragraph (1). The amount of lump sum by the retirement insurance, etc., however, shall not be smaller than that of severance pay pursuant to paragraph (1). <Amended by Act No. 5473, Dec. 24, 1997> |
This is an old copy of the labor laws and no longer applies. Note the date (1997)
Severance has been hived off into a separate act called the Employee Retirement Benefit Security Act.
Nevertheless it is quite easy to determine that the two are different entities.
Let's say your base monthly salary is X amount. X therefore represents
100% (I'll explain why I'm not deducting the pension sum of 4.5% in a moment) of your monthly salary. X also represents your severance (assuming no OT in the last three months).
Pension is 9% of your salary (half contributed by you and half by the employer). At the end of the year you get back what you have paid into it thus making X equate to 100% and not 95.5%
With me so far? Good. But you also get the employer's contribution which equates to about 54% of X. 4.5%*12=54%.
Whichever way you slice it, it is obvious that pension and severance are not the same amount. |
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lifeinkorea
Joined: 24 Jan 2009
Location: somewhere in China
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| Posted: Mon Nov 29, 2010 5:28 pm Post subject: |
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I received severance on my last day. I received pension a month after leaving Korea.
They are 2 different things. |
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TheresaTheresa
Joined: 24 Feb 2010
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| Posted: Tue Nov 30, 2010 4:20 pm Post subject: Re: What if an employer doesn't pay pension? |
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| 3DR wrote: |
| TheUrbanMyth wrote: |
| 3DR wrote: |
| Is that a bad sign even though the school seems like a good one? |
If the employer doesn't pay pension that is not a good school.
Pension and medical insurance are linked, so if he's not paying pension he's not paying medical insurance either (despite what the contract says).
It's also a bad sign because pension isn't that huge of an expense as it is only 4.5% of the monthly salary. So if said school is that much of a cheapskate....you can expect it to skimp on other things as well including but not limited to curriculum, A/C?heating and salary.
With all the horror stories on here why put yourself at risk before you even sign? You haven't signed yet have you? |
Actually I was deciding between this one and another one. I accepted the other one precisely because they had pension in the contract (and other detailed things).
This current school that I'm talking about here has actually now been trying to negotiate a higher salary to get me to reconsider. (It is a large chain hagwon) |
Pension was in my contract but you know what Korean contracts are like ...
The Korean slag that ran the place did not pay pension or medical. |
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