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Breaking contract early - now must pay 1 mil recruiter's fee
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BigBuds



Joined: 15 Sep 2005
Location: Changwon

PostPosted: Fri Oct 21, 2011 2:49 am    Post subject: Reply with quote

Penalty clauses (paying of housing deposits, paying back recruiters fees, etc) are 100% ILLEGAL under Korean labor laws, even if it is written into your contract and signed by both you and your employer.

Contracts to NOT trump Korean law.
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schmoove



Joined: 31 Oct 2008
Location: Seoul

PostPosted: Fri Oct 21, 2011 3:05 am    Post subject: Reply with quote

BigBuds wrote:
Penalty clauses (paying of housing deposits, paying back recruiters fees, etc) are 100% ILLEGAL under Korean labor laws, even if it is written into your contract and signed by both you and your employer.

Contracts to NOT trump Korean law.


Could you give me a source for that information? Or is this from personal experience regarding this particular issue?
I would be very happy if you could tell me more.

As I stated earlier, the Korean Labor Board has advised me that it is illegal for any deductions to be made from my wages without my consent. The wages are protected by Korean labor law.
They did not advise that the clause itself is illegal under Korean labor law.

They advised me that the contract signed is a civil law matter between myself and my employer. The clause in the contract falls under the jurisdiction of civil law, and so my employer would have to take civil action against me to recoup the recruiter's fee, if I did not pay it back.
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koreatimes



Joined: 07 Jun 2011

PostPosted: Fri Oct 21, 2011 4:18 am    Post subject: Reply with quote

Quote:
my employer would have to take civil action against me to recoup the recruiter's fee, if I did not pay it back


You actually think the hagwon owner will pay you and then take legal action to "recoup" the recruiter's fee? Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked Shocked


HELLO!!!!! HELLO MCFLY!!!!!!!
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schmoove



Joined: 31 Oct 2008
Location: Seoul

PostPosted: Fri Oct 21, 2011 5:04 am    Post subject: Reply with quote

koreatimes wrote:
Quote:
my employer would have to take civil action against me to recoup the recruiter's fee, if I did not pay it back


You actually think the hagwon owner will pay you and then take legal action to "recoup" the recruiter's fee? :shock: ..................
HELLO!!!!! HELLO MCFLY!!!!!!!


Hello, and thanks for the reply.
I'm not quite sure why you have drawn that conclusion. Perhaps you didn't read the relevant posts in the thread, but that's ok, I will say it again for clarity.
Thanks again for replying.

From what the labor board advised me today, if the fee is deducted from my wages without my consent, then that is illegal and I can file a claim with the labor board.

So....yes...I do think they will pay me if I do not consent to the deduction, or possibly they will not pay me and then have a labor board claim filed against them.

I have no idea whether the school would take recourse via civil action or not.

Granted it is an odd situation, that the school could withhold wages illegally, which I can then claim back via a labor board claim, with the school then claiming back against me via civil action.
That does seem to be the law however.

Regarding my particular situation, negotiations are still ongoing, mostly with myself on what I feel is fair and right.
Please keep the replies coming in.
I welcome every one of them.
Thanks.
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koreatimes



Joined: 07 Jun 2011

PostPosted: Fri Oct 21, 2011 5:09 am    Post subject: Reply with quote

Quote:
So....yes...I do think they will pay me if I do not consent to the deduction, or possibly they will not pay me and then have a labor board claim filed against them.


Lots of luck on that.

For your other part of the sentence, why go to labor board if you could just collect your last pay and do a runner? It would SURE save a lot of time. What do you think?

Take it slow, think it out.
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Pa Jan Jo A Hamnida



Joined: 27 Oct 2006
Location: Not Korea

PostPosted: Fri Oct 21, 2011 2:21 pm    Post subject: Reply with quote

I suspect the op is trolling..
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plchron



Joined: 26 Feb 2011
Location: Korea

PostPosted: Fri Oct 21, 2011 2:47 pm    Post subject: Reply with quote

not like I'm a hater of the original poster, but I would like to point out that this is a perfect example of why pulling a runner might be a better option in most cases. OP, good luck with the labor board.
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some waygug-in



Joined: 25 Jan 2003

PostPosted: Fri Oct 21, 2011 3:08 pm    Post subject: Reply with quote

From what the labor board advised me today, if the fee is deducted from my wages without my consent, then that is illegal and I can file a claim with the labor board.



Confused

Technically you gave your consent when you signed the contract.

(at least that's the way I see it)

I would never have signed a contract like that.
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ontheway



Joined: 24 Aug 2005
Location: Somewhere under the rainbow...

PostPosted: Fri Oct 21, 2011 3:14 pm    Post subject: Reply with quote

schmoove wrote:
Hello all,
I'm the original poster. Thanks for all the replies.

I contacted the Korean Labor Board today.

Labor Law Counselling for Foreign Workers
Ph: 031 345 5000
http://www.moel.go.kr/english/about/contact_us.jsp

They stated that Korean labor law is the following in this situation:
Quote:
Your wage is protected. They cannot deduct the recruiter's fee from your wage without your consent. If they do so without your consent, you are entitled to file a claim with the Labor board.


They also said:
Quote:
The contract you signed is a legal contract between you and the school. It is a matter of civil law. If you do not pay back the recruiter's fee to the school, then that is against the contract that you signed and so they could take civil action against you.


Thanks again all those who read and posted.
I will update the original post with this information.
Further opinions/advice/insults/bon mottes are welcome! ^-^



The labor board has given you the best information.

Your boss cannot legally withhold the recruiter's fee from your pay, but he can sue you and win based on that clause since you signed the contract. However, you may have defenses to raise at any hearing or trial that results from any legal action your employer might file against you.

It is important to remember that the Penalty clauses are legal and proper and allowed under labor law. However, your employer may not withhold the penalty directly from your wages. He must sue to recover damages. However, the use of an escrow account to hold your unpaid wages until penalties are determined could be legal, so don't tell your boss. By using an escrow account, your wages are no longer in the posession of your employer, so they have technically been "paid" but the money is held by a third party until legal matters pending are resolved.

If you are leaving Korea, your boss will not likely sue for small amounts such as yours. If you plan to work in Korea again, he could pursue you.
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jamesd



Joined: 15 Aug 2011
Location: Korea

PostPosted: Fri Oct 21, 2011 3:21 pm    Post subject: Reply with quote

The labor board case is a CRIMINAL case: Jail sentence + fine for employer. And permanent criminal record as a little bonus.

The employer's case against you is a CIVIL case: No jail or fine for you. Only the money you may or you may not owe.
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schmoove



Joined: 31 Oct 2008
Location: Seoul

PostPosted: Tue Jan 31, 2012 7:13 am    Post subject: Reply with quote

Totally forgot about all this ^-^

Boss paid pension, healthcare and all wages in full,
minus deduction of my airfare to Korea, which we discussed and I agreed to pay for, as I personally felt that was the correct thing to do.

Everything turned out very well and I'm now happily working elsewhere.
As an addendum, the school has subsequently closed.

All of the above seems to confirm my initial assessment of my former employer, that she is a decent person, but unfortunately for myself, and indeed for her business, was incompetent in her chosen field.
I'm still in touch with her and we are on good terms.

Thanks to all those who read, and all those that replied.
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