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Tram204
Joined: 25 Jun 2010
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Posted: Mon Feb 10, 2014 5:57 am Post subject: Hagwon shut down and unpaid wages |
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I had been working at a Hagwon for just over 11 months when it suddenly shut down. Apparently my director had not paid rent for the building for nearly a year and a half. She was taken to court by the building manager on November 8, 2013 and lost the case on November 28, 2013. She was ordered to pay or leave the building. (This all happened without the knowledge of the employees). In the following months, she chose to ignore the court order. On February 5, 2014 I came to work at the usual time to see 20 Korean men dismantling and hauling away what was left of the former school. The staff were then informed that the school was shut down indefinitely and the reason behind it.
Aside from the gross negligence and irresponsibility of my director, this incident triggered obvious outrage from the parents, students, and employees affected. She is now claiming she is broke and cannot afford to pay employees what was agreed to in our contracts, or to reimburse parents for their tuition fees. I believe some of the parents have already taken legal action.
After recalling the troves of horror stories that I have heard about shady hagwons, I know that because I did not complete 12 months of my contract, I am not entitled to severance pay or a plane ticket. However, I do feel entitled to be paid in full for the month of January that I worked in it's entirety.
As today (February 10, 2014) is technically pay day, I waited until today to give my director a chance to do the right thing. She decided that paying employees 60% of January's wage, and 70% of parents tuition was doing the right thing. Granted, this is better than nothing, but I am still not satisfied with this decision.
For reasons beyond my control I am now unemployed and homeless in Korea. Even with my savings, 60% of last months wage doesn't quite keep me afloat in Korea for the next two months (assuming that I can secure full time employment and housing for March 1st), or cover a plane ticket home.
I guess my question is: Do we have a case to claim 40% of our wages or are we just another statistic in another nightmare hagwon story? |
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YTMND
Joined: 16 Jan 2012 Location: You're the man now dog!!
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Posted: Mon Feb 10, 2014 6:15 am Post subject: |
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However, I do feel entitled to be paid in full for the month of January that I worked in it's entirety. |
And where will this magical pot of gold appear from?
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She decided that paying employees 60% of January's wage, and 70% of parents tuition was doing the right thing. Granted, this is better than nothing, but I am still not satisfied with this decision. |
If there is paperwork showing her school is in fact closing and that she is not just selling it to a new owner with their own staff, then you are not going to get anything else. I would prepare exit plans in November 2013.
Even though you may not have been told, you can still monitor the students coming and going to the school. If you are saying that there was no change in the number of students and that you have 5 or more native English teachers, then I would question the truth behind her not being able to afford the business. In that case she would have some money that is already transferred to other investments, out of her name, which she could use for another venture. This is how they operate in the big leagues.
If it is a small school, then the owner is probably telling the truth and the result is the same. You won't get anything.
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For reasons beyond my control I am now unemployed and homeless in Korea. |
You need to find another school. That simple. Get the transfer letters from her. Move on.
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60% of last months wage doesn't quite keep me afloat in Korea for the next two months |
You worked 11 months and you have no money saved up? I guess you are learning your lesson now. ALWAYS HAVE 10,000 SMACKAROOS IN THE BANK.
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Do we have a case to claim 40% of our wages or are we just another statistic in another nightmare hagwon story? |
Well, considering your lame sob story I would say you are not in the position to play legal beagle.
1. Get a credit card, it should give you more than enough money. Pay it back the second month of work with your new job. When you get paid in May, put half in the bank and DON'T TOUCH IT!! This concept is called "saving". Do the same for the next month. Eventually, you will be able to save 75% of your income and maybe 90% in months you don't spend much.
2. After you have 10,000 saved up then you can sue. When you have financial backing, then you can wave a magic wand around. Until then, own up to the truth. You messed up. You need to build a nest egg to function. |
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Tram204
Joined: 25 Jun 2010
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Posted: Mon Feb 10, 2014 8:13 am Post subject: |
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I am simply asking if I have a case by presenting the facts. Not looking for sympathy. I do understand the concept of saving, which is why I have paid off a significant portion of my student loan over the last 11 months and do have a small cushion for as well as a credit card as a safety net.
I commend you for being debt free and being able to save 75-90% of your income, but your condescending tone toward those of us who are not yet in that position is coming off a tad douchey.
I appreciate your concern by giving me hindsight advice and believe you when you say I probably won't get anything. Despite my enormous blunder, I will take your sage advice and move on. Unfortunately, until I build my nest egg I will continue to be a sub-functioning member of Korean society. |
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YTMND
Joined: 16 Jan 2012 Location: You're the man now dog!!
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Posted: Mon Feb 10, 2014 12:31 pm Post subject: |
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have a small cushion for as well as a credit card as a safety net |
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I am now unemployed and homeless in Korea |
I will let you sort that one out.
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60% of last months wage doesn't quite keep me afloat in Korea |
.6 X 2,200.00 = 1320/4 weeks per month = 330 per week/7 days a week = 47/day
What are you spending more than 47 for per day? 3 per meal, 3 times is 9. Where is the other 38 dollars going to?
I went to Korea with 300 USD in the bank. I made a big mistake in Japan because I didn't save money. I ate nothing but noodles my first month. I got paid at least 2,000,000 won. I met with a Korean guy who bought me meals in exchange for English and visiting his family. I did this for 6 months before I considered anything else. All the money was saved. NO CLOTHES, NO ELECTRONIC GADGETS, NO FLIGHTS TO THAILAND, NO OUTINGS WITH FRIENDS. Save up. You do not understand the concept of saving up and then refer to being "homeless."
What are you doing that money is falling through the hole in your bucket? I cannot conceive of this stupidity after realizing you made a mistake.
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until I build my nest egg |
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have a small cushion for as well as a credit card as a safety net |
I will let you sort that one out.
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I will continue to be a sub-functioning member of Korean society. |
You will not be anything else. Get used to it in Korea.
These are the cold hard facts. You need to learn that when these schools are ready to kick you out, it is not a relationship. It is just one school among a chain of schools. Instead of starting threads begging for solutions, you should be excited and wondering what you will do next.
Learn to make friends who are from the country you are from. Rent from them. Find a new school. Don't let any previous school control you. |
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Keeper
Joined: 11 Jun 2012
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Posted: Mon Feb 10, 2014 2:17 pm Post subject: |
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It is not worth the trouble in getting any money from this litigious owner. She will fight it for as long as possible. You need a solution now. Get the letter of release. Go to immigration and transfer to a D-10 visa. You will have 6 months to get another job.
You do have 2 months to get a new job according to your post so start searching for a cheap housing solution. That would be a hostel. Do you know Korean or have a Korean friend who can help you with it? If not go to TripAdvisor's website and ask on their forum for help finding one or ask here.
You should find work within the next month if you focus on that as a priority. First things first - get the letter of release for immigration. |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Mon Feb 10, 2014 3:38 pm Post subject: |
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See the PM I sent.
Quick rehash:
-You don't need a LOR from your (ex-)boss. The LB can give you their equivalent. In situations like this, they'll give you one right away.
-Find a friend who will store your stuff for a few weeks in case you get booted (illegally) from your apartment.
-Find cheap places in your area to stay a few nights if necessary.
-Since you can transfer your visa to a new employer, you should be able to find a job within a week or two. (Within a week if you're not picky.)
-If the owner really has gone bankrupt, you're probably not going to get any more money but you should at least try to get it. You can file a class action suit with the other employees. If nothing else it will at least go on the owner's record and make it harder for her to start up a new business in the immediate future. If you're lucky, you might actually get something out of it eventually. (You don't know what assets the school had on paper and whether the owner has other funds which the court might award you and your colleagues.) |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Mon Feb 10, 2014 3:43 pm Post subject: |
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By the way, from your original post, it looks like you can stay at your current apartment until 1 March. If so, then your situation is not so dire. It won't take you that long to find something new.
Bottom line: Don't worry about it. Take a breath. Relax. |
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Rockhard
Joined: 11 Dec 2013
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Posted: Mon Feb 10, 2014 4:17 pm Post subject: |
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They could make the argument that you accepted the settlement by accepting 60% of your pay.
Even still, you won't get anything because
a) you don't even have money to hire a lawyer
b) you are at a huge disadvantage as a guest worker
c) clearly she likes to ignore judgements, so good luck trying to get anything even if you win the case, which you won't
My advice: you got burned. consider your initiation complete. everyone. EVERYONE who's been here longer than a few years has gotten burned at some point. I've been had for at least $8,000. that's the cost of doing business in Korea. When you go fishing you accept the risk you might not catch anything. When you work in Korea you accept the risk that your boss will screw you for money and the government won't do crap about it. Lesson learned. Move on,. |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Mon Feb 10, 2014 6:09 pm Post subject: |
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Rockhard wrote: |
They could make the argument that you accepted the settlement by accepting 60% of your pay.
Even still, you won't get anything because
a) you don't even have money to hire a lawyer
b) you are at a huge disadvantage as a guest worker
c) clearly she likes to ignore judgements, so good luck trying to get anything even if you win the case, which you won't
My advice: you got burned. consider your initiation complete. everyone. EVERYONE who's been here longer than a few years has gotten burned at some point. I've been had for at least $8,000. that's the cost of doing business in Korea. When you go fishing you accept the risk you might not catch anything. When you work in Korea you accept the risk that your boss will screw you for money and the government won't do crap about it. Lesson learned. Move on,. |
a.
For extremely simple cases, you don't need a lawyer. Plus, if you're filing a class action suit along with a group then the lawyer might work for a percentage of what you win instead of being paid a flat fee. If his co-workers DO work together on it, then they'll have a better chance of winning, so it's in their interest to get as many people on board as possible. They don't care if he's a foreigner or not. It's to their advantage to bring him in.
b.
No he isn't. The courts in Korea highly favor employees regardless of whether they're citizens or not.
c.
If it goes to court then it won't matter whether the woman cares about judgments or not. The court will order her to pay up and if she doesn't then the money will simply be taken from her bank account.
Accepting the 60% pay is in no way a sign that the employee agrees to only be paid 60% of what he's owed. Even if he signed an agreement that says that he's ok with it then it can easily be challenged in court. If there is no quid pro quo then even a written agreement is considered invalid. There's also the matter of such an agreement being made under duress, which would also nullify the agreement.
His biggest problem for getting the money is that he's probably not going to be in Korea for very long. A court case would probably take months to produce any payoff. There's also the distinct possibility that the school's owner squandered the money and that it simply doesn't exist, even if the court goes after her personal accounts and possessions. Still, if his co-workers go after the woman for their salaries as a group then he has nothing to lose and it really doesn't waste much of his time. |
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Tram204
Joined: 25 Jun 2010
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Posted: Mon Feb 10, 2014 8:58 pm Post subject: |
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After talking with the labor board I was told that we are not only entitled to the remaining 40% of January's wages, but because we were dismissed without just cause, we are entitled to one months salary and a one-way air ticket.
This was written into our contracts under the heading: Rights upon Termination - Section 9 (Vii)(vi). It states:
If the employee is dismissed by the Company without Just Cause during the term of the Agreement, for example due to the financial difficulty that the employer faces, the Employee will be provided, upon dismissal, with a lump sum payment equivalent to one (1) months' base salary, less applicable deductions and withholdings required by law. The employee will also be provided with a one-way air ticket from Incheon, South Korea to the airport that is closest to the employee's hometown. These payments will represent the Employee's full entitlement from the Company, under, without limitation, statute and by the common law. Any balance left in the Utilities deposit will be returned to the employees as per Section 6 (V) iv).
For those who do not require a one-way air ticket, they are still entitled to the remaining 40% plus one month's base salary.
That is all I know for now. |
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YTMND
Joined: 16 Jan 2012 Location: You're the man now dog!!
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Posted: Mon Feb 10, 2014 10:18 pm Post subject: |
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Well, running out of money is just cause. If the school has paperwork showing they are going out of business and that there are no funds, you might have some rights to money, but only if it is available. In addition, there might be other people owed money. So, it's possible you are not first in line to collect.
Do you really want to go through this when your irresponsible acts are what brought you to your situation by relying so heavily on a hagwon owner to keep you employed? |
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Tram204
Joined: 25 Jun 2010
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Posted: Tue Feb 11, 2014 12:06 am Post subject: |
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Okay buddy, I'm sorry to inform you that your misguided rhetoric is falling on deaf ears. Perhaps our discrepancy lies in our differing views of the word homeless. You seem to believe that because I used this term that I have been financially irresponsible and am hopelessly dependent on handouts from my former employer. Nothing could be further from the truth. And to take a quote from The Big Lebowski "You're out of your element Donny!"
Much like the word unemployed does not mean I am unemployable, being homeless does not mean that I am unable to obtain a home. I merely used this term to accurately define my current living situation.
As I mentioned, in addition to paying off a large portion of my student loan, I have managed to save a small cushion and have a credit card as a safety net. So don't fret your pretty little head, I am going to be just fine.
I stand behind my statement about 60% not being enough for two months in Korea. After minimum student loan payments and security deposits for two months there is not much left even if one were to eat for $9 a day. Fortunately, I do have my safety net, but I don't know if I can say the same for some of the other employees.
I created this thread to see if others have been through similar situations and what their outcomes were. I have been to the labor board representing myself as well as nine other employees, not to look for handouts, but to stand up against unjust dismissal of employment. If we are being screwed, at least we can say that we explored all of our options and did not just sit around and take it.
Now for some reason you feel it is necessary to take this thread and shine the spotlight on yourself highlighting your bank account and your other financial achievements since you've been in Korea. And I'm sorry, but if you think that living with no clothes, no electronic gadgets, no flights to Thailand, no outings with friends is "functioning", well then there is another term that I think we disagree on. I have built a very comfortable life for myself in Korea and have no regrets about the decisions that I have made.
In the future if you do feel the need to further pat yourself on the back while simultaneously shitting on those in less fortunate situations, I suggest you go down to the labor board and spew your rags to riches story to all the financially irresponsible people in line. Don't forget to tell them that all you need to do to build a nest egg is to sacrifice all of your physical, mental, and social well being. Now if you will please excuse me I have bigger fish to fry this week. |
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miiooan

Joined: 07 Dec 2007 Location: Osan Station, GyeongGi
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Posted: Tue Feb 11, 2014 12:41 am Post subject: |
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Tram204 wrote: |
"You're out of your element Donny!" |
In 2009 I had a similar situation. Not quite as extreme as yours, but the boss fired everyone and claimed having no money. Some morons on this board suggested that it was all my fault and that I should jump off a bridge, basically. Eventually, I got full payment for the last month I worked, plus part of the next month and an airplane ticket.
Sounds from your story like it's going to be a long fight. Good luck. |
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YTMND
Joined: 16 Jan 2012 Location: You're the man now dog!!
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Posted: Tue Feb 11, 2014 4:14 am Post subject: |
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You seem to believe that because I used this term that I have been financially irresponsible and am hopelessly dependent on handouts from my former employer. |
I see, so you use the word "homeless" not to get sympathy but rather to show your fantastic status in life. I see. Well, I hope this homeless thing works out for you.
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unemployed does not mean I am unemployable |
Yes, but if you are homeless do you keep going back to your previous home? Move on, find a new employer is all I am saying.
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Now for some reason you feel it is necessary to take this thread and shine the spotlight on yourself highlighting your bank account and your other financial achievements since you've been in Korea. |
I honestly don't have financial achievements to be proud of. I brought it up to show the disappointing financial status I was in and how I got out of it by taking responsibility. I replied to your post as it was projected on the screen. You don't like the fact I am not getting the petition signs out and supporting you. You don't like the fact I am presenting an alternative and not marching in sync with your roar.
If you are down 2,200,000 X .4 = 880,000 won, you could easily get it back by doing 220,000 won/week for a month or about 100,000 won/week in 2 months and be done. Instead you want to put up a glorious fight and spend months trying to collect on it.
If it is in the name of principal and money is not the issue, then I advised you do that when you have 10,000 USD worth in the bank.
If you can get 800,000 within a month then I will retract my stance and support your position on this. I doubt you can. I think you will waste your time trying to collect. Now I have said it, there is nothing more I can do to help you.
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shitting on those in less fortunate situations |
People cannot see themselves in the situation they are in. It takes people on the outside looking in to say, YOU ARE IN QUICKSAND. GET OUT BEFORE YOU SINK TOO DEEP!!!
Less fortunate? YES, you aren't in the least fortunate of situations though. That's what I am trying to help you avoid. Again, you can take the horse to water but you can't make it drink it. If you continue to fight and not earn money elsewhere, you will go deeper in debt. I hope this sinks in before the quicksand does.
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Don't forget to tell them that all you need to do to build a nest egg is to sacrifice all of your physical, mental, and social well being. |
I didn't sacrifice it, I just traded English time with Koreans for food I needed, the information to get things done, and to travel. Anyone can do this, even you. |
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Cacille
Joined: 05 Oct 2011
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Posted: Tue Feb 11, 2014 5:17 am Post subject: |
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Some people don't come here to save all their money and do nothing else. Some people weren't born with silver spoons in their mouths and mommy and daddy paid for their college education. Some people put it all on student loans because they had no other option but knew they had to get their degree for a chance of a better future.
I 100% fall into the third category. I have no savings. I throw all of my money (keeping no more than 1/4th of my paycheck for myself for internet, phone, food, ondol oil, and electricity), except for travel on the holidays, into my American account to pay my college loans. I'm down from 75k to 55k in two years. To those who are bad at math, that is not just "20k in 2 years". That's 20k plus 6.8% monthly interest in two years!
Why am I posting this? To remind people who might need the reminder that many people don't come over here to save, they may not have the luxury when they have debts like, or even over, my own. There's a teacher near me who literally scoffed at me when I said I had 75k debt. He was like "That's all? That's NOTHING compared to mine!" I can pretty much surmise that he has nothing in savings either. One thing I'm glad of - we are public school. Our risk of our jobs being pulled out from under us last minute is nil. End of contract, maybe. But 11th month? No way.
Not everyone can save, not everyone can plan for every emergency. I hope the OP has good luck finding a decent school to work in, and if he has to move, that it won't be too stressful. (I'll help you move if you promise to help me move next year, lol!) |
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