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mzizzle
Joined: 05 Jul 2009
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Posted: Thu Dec 09, 2010 3:37 am Post subject: Why no pension nowadays? |
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Hi there, I have worked in Korea for two years now and am heading back for a third. It seems like this time though, most of the job offers are stipulating "no pension". I was under the understanding that it's part of labor law for E-2's for the employer to split that. What is going on? These are chain hagwon's too that are saying this. I never imagined that in my third year in Korea, I would have to settle for less than I did as a newbie. I find it hard to kid myself into working for a place that won't even provide pension. If they are going to skimp on that, what else? Any thoughts or similar experiences out there? |
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[email protected]
Joined: 28 Nov 2010
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Posted: Thu Dec 09, 2010 4:14 am Post subject: |
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I worked at 2 different chain hagwons and wasn't paid pension at either of them....I think that you'll find that when a hagwon pays into your pension it is an exception and not the rule. |
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lifeinkorea
Joined: 24 Jan 2009 Location: somewhere in China
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Posted: Thu Dec 09, 2010 4:32 am Post subject: |
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It's still a law as far as I see. You probably don't know where your pension office is. So, tell us where you are living, and then we can help you more.
Then, make sure you have enough money to live on in case you get fired for doing to next steps. Take your contract to the pension office, and let them know. They should be able to put pressure on them to pay pension.
The contract doesn't override the pension responsibilities, but it does show you are employed. |
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northway
Joined: 05 Jul 2010
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Posted: Thu Dec 09, 2010 5:15 am Post subject: |
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My buddy kept all his pay-stubs and had his place of work sign them, saying that he needed them for proof of employment to get his wife a US visa. He then brought them to immigration with his contract. He got his money. |
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some waygug-in
Joined: 25 Jan 2003
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Posted: Thu Dec 09, 2010 5:31 am Post subject: |
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Isn't there some stipulation regarding businesses of less than 5 employees?
I'm not sure if this has changed, but it used to be a way for hagwans to not pay pension.
By the way, I would be very careful about a place that doesn't pay pension.
If that's the case, it is a good indication that they have money problems or
soon will. |
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northway
Joined: 05 Jul 2010
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Posted: Thu Dec 09, 2010 5:50 am Post subject: |
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some waygug-in wrote: |
Isn't there some stipulation regarding businesses of less than 5 employees?
I'm not sure if this has changed, but it used to be a way for hagwans to not pay pension.
By the way, I would be very careful about a place that doesn't pay pension.
If that's the case, it is a good indication that they have money problems or
soon will. |
I think the way they get around it is by classifying you as an hourly contractor rather than an employee, or something to that effect. |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Thu Dec 09, 2010 7:54 am Post subject: |
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If you're going to go to the pension office to force the owner to pay you, I'd recommend waiting until you've finished at least 6 months. It makes it harder for the boss to fire you without cause. Go to the pension office now and ask for information but be aware that if you force a situation now, you'll just get fired. In fact, if the pension office confirms that you and the boss should be paying pension, then wait until the end of the contract in order to force them to pay. |
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mzizzle
Joined: 05 Jul 2009
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Posted: Thu Dec 09, 2010 2:31 pm Post subject: |
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yeah, I am not in Korea yet, just getting ready to head back there again. I do know where the pension office is in the city I would be going to, but since the director was clear about not paying pension in the contract, I am not sure what I could do. It must be legal considering what the previous posters said about being an hourly contractor rather than an employee. I am just shocked at how many places nowadays are not offering pension straight up. I sure hope this does not become the norm. |
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TheUrbanMyth
Joined: 28 Jan 2003 Location: Retired
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Posted: Thu Dec 09, 2010 2:45 pm Post subject: |
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mzizzle wrote: |
yeah, I am not in Korea yet, just getting ready to head back there again. I do know where the pension office is in the city I would be going to, but since the director was clear about not paying pension in the contract, I am not sure what I could do. It must be legal considering what the previous posters said about being an hourly contractor rather than an employee. I am just shocked at how many places nowadays are not offering pension straight up. I sure hope this does not become the norm. |
If your contract states that you are an employee, then they can not avoid paying pension regardless of whether your employer tries to claim you are an independent contractor. |
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decolyon
Joined: 24 Jul 2010
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Posted: Thu Dec 09, 2010 4:29 pm Post subject: |
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My first hagwon tried to get around this by claiming us all as contractors. We went to immigration and they totally fought for us. In the end, the school had to start paying us when we became aware of us. They didn't have to pay those first 6 months we were contractors. So no, the school doesn't have to pay if you've been filled as an hourly worker instead of salary.
And contrary to what others say, if the contract says they will not pay pension and it's written in Korean and English to that affect, and you sign it, then they are under no legal obligation to pay you pension. Under contract law this is called something like "mutual exclusion" where both parties agree to exclude something at the onset of the contract that would normally apply. You both could agree that they wouldn't pay you salary or health insurance even. If you both are aware of what's in the contract and you willingly sign it, the contract holds. |
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jurassic82
Joined: 21 Jun 2006 Location: Somewhere!!!!
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Posted: Thu Dec 09, 2010 5:09 pm Post subject: |
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I would stay away from any hogwan that doesn't pay into pension. It is not a good sign. My first hogwan didn't pay into the pension. They also didn't give me my health insurance and paid me my severence three months after my contract. Later I worked at a bigger hogwan (Avalon) and they paid into the pension and also gave me everything else that is required by law for us waygooks. Word of advice stay away from the mom and pop hogwans and small chains. If you are going to work for a hogwan stick with the big chains. They have there problems but more than likely you will get what you are owed. If you have two years experience get a Public School gig. That way you don't have to deal with the BS of pension and you are guaranteed to get everything you are owed.  |
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superNET
Joined: 08 Dec 2010
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Posted: Thu Dec 09, 2010 5:12 pm Post subject: |
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I would prefer that the school or hagwon would NOT take out pension, now when I go to leave the country I have a big hassle to get my money. Though I am sure some people need help in saving theirs. |
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lifeinkorea
Joined: 24 Jan 2009 Location: somewhere in China
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Posted: Thu Dec 09, 2010 5:41 pm Post subject: |
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superNET wrote: |
I would prefer that the school or hagwon would NOT take out pension, now when I go to leave the country I have a big hassle to get my money. Though I am sure some people need help in saving theirs. |
The school is supposed to match your payments. So, teachers aren't saving their money, they are getting twice as much when they leave.
If your hagwon pays you a higher salary because they don't want to pay into pension, you are still going to lose some money. However, this is closer to what you are saying.
It might not be worth it if the salary is high enough. |
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TheUrbanMyth
Joined: 28 Jan 2003 Location: Retired
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Posted: Thu Dec 09, 2010 5:43 pm Post subject: |
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decolyon wrote: |
And contrary to what others say, if the contract says they will not pay pension and it's written in Korean and English to that affect, and you sign it, then they are under no legal obligation to pay you pension. Under contract law this is called something like "mutual exclusion" where both parties agree to exclude something at the onset of the contract that would normally apply. You both could agree that they wouldn't pay you salary or health insurance even. If you both are aware of what's in the contract and you willingly sign it, the contract holds. |
No, that is simply not true. It is illegal to not pay pension if you are an employee and you are from a country that has a pension agreement with Korea. Illegal clauses have no legal standing
Article 15 (Labor Contract contrary to this Act)
(1) A labor contract which establishes conditions of labor which do not met the standards provided in this Act shall be null and void to that extent.
(2) Those conditions invalidated in accordance with the provisions of paragraph (1) shall be governed by the standards in this Act.
What all that means in regards to pension is this. If you are an employee and you are from a country that has a pension agreement with Korea you and the employer MUST both pay pension.
Here is what a Korean labor law firm says.
http://www.k-labor.com/tiki-index.php?page=Korean+Labor+Law+for+E-2+Visa+Holders
"Pension contributions are required by the Korean Labor Standards Act"
We've already seen that the KLSA trumps contract (see article 15). And the KLSA (as stated by a Korean labor law firm) requires pension.
Now if you are legally an "independent contractor" things are a bit different.
Last edited by TheUrbanMyth on Thu Dec 09, 2010 6:03 pm; edited 3 times in total |
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superNET
Joined: 08 Dec 2010
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Posted: Thu Dec 09, 2010 5:50 pm Post subject: |
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The school is supposed to match your payments. So, teachers aren't saving their money, they are getting twice as much when they leave.
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What if i do not care for matching funds? Money isn't the only thing in life
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If your hagwon pays you a higher salary because they don't want to pay into pension, you are still going to lose some money. However, this is closer to what you are saying.
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I am not here to make money hand over fist. The salary and pension stuff to me is secondary. I will look at what I am offered and if I can live on the amount and meet myresponsibilities then I will accept the offer, if not then I look at others till I find one.
If not having matching funds allows me to teach, and meet my personal requirements then I would forgo pension and work. A salary coming in is better than none at all.
There is no guarantee that I will be alive to collect the pension and I could have used the money elsewhere. |
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