Korean Job Discussion Forums

[prosodic]

I was recently sent a contract with the following clauses:

"5. The instructor is required to submit a housing deposit of 300,000 won. Two months after completion of the contract this deposit will be refunded less deductions for any damage to the apartment and after settlement of outstanding utility charges. The balance of the housing deposit will be remitted in accordance with the instructor's wishes.
6. The employer will reimburse the airfare to the amount of 800,000 won (300,000 won upon arrival and 500,000 won upon completion of the first year contract)."

I think it's an interesting coincidence that the first amount of reimbursable airfare happens to be the same amount as the required housing deposit. So, basically, they give you an envelope for airfare and then ask for it back immediately. Not only that, but I can't imagine why two months would be required to return the housing deposit. The only thing I can think of is that two months is long enough to come up with enough "damage" and "outstanding utility charges" to claim that there is nothing left. Also, I would imagine that by the time two months have passed, a number of teachers are so far away that trying to collect 300,000 won becomes impractical if the school should forget or something.

I'm also wondering about people's opinions about a school capping airfare reimbursement at an amount that is unlikely to cover the full roundtrip airfare from the U.S. to Korea.

Please tell me if you think I am being overly cynical.

[peppermint]

[marista99]

Most schools (or at least a lot I've seen) are willing to pay one way airfare from anywhere, up front (NOT reimbursed), and then provide a return ticket upon completion of the contract. Personally I would demand up-front airfare, and wouldn't accept a contract with reimbursement at all. If they tell you no, tell them you have many other offers that will pay your full fare, and goodbye.

The deposit makes a bit more sense--I mean they of course don't want to get burned if you pull a midnight runner or something; but ask for it to be in the contract that the deposit will be returned immediately on completion of the contract, not after 2 months. If they say no, once again, tell them lots of other schools are more reasonable and you cannot accept their offer under these conditions.

[chronicpride]

This sounds like the ECC or Wonderland contract, that the OP is talking about. They both have similar provisions like this.

It's not a scam, but as marista said, seek for deposit reimbursement at the end of the contract, preferably inclusive in your severance payment.

That airfare cap seems really low. This is peak season. Depending on where you're flying out of, you're likely going to exceed that. Flights out of the east coast US can be around 1.3-1.7 million, return. Even from the west coast, it'll likely exceed the cap. And forget about Auz, NZ, UK.

[oneiros]

The deposit is reimbursed after two months because they're waiting for the final bills to come in. Some teachers have been known to leave without paying their final bills, or run up a whole lot of long distance charges on their phone in the last month. (I had some co-workers who did this before they left. Needless to say, their roommates weren't too impressed.)

Not surprisingly, director's get upset and start putting in contract clauses that make things difficult for the rest of us. Be responsible and pay your bills, people.

[justagirl]

I don't think you're being too cynical. I wouldn't sign a contract with either of those clauses.

The airfare, for one, is way too low. My one-way ticket cost at least 800,000! It's not a good idea to buy a round-trip ticket, because most of them have a 1-year limit. Quite often in Korea, you come a day or so before you start to work, and leave a day after your contract ends. I think it would easier to have problems at the end of your job, too, with the RT ticket...they KNOW you have to leave, so the potential for stalling bonus pay would increase (my opinion).

I can understand the deposit, but I wouldn't sign a contract saying I had to pay one. Instead, I would have a verbal agreement that I would pay the average of the last 2 months' bills before I left. Not to mention that my monthly bills NEVER come to 200,000 and there are 2 people living in our apartment.

justagirl

[mindmetoo]

[Falstaff]

I don't think it's unresonable to ask for deposits; I agreed to a contract with deposits in it.

I look at it this way: in the States, many utilities require a deposit to hook up service. I had to pay one on my power bill and phone bill. This is so they aren't completely burned by people running out on their last bill. My apartment required a security deposit, it's refunded if the apartment is left in good condition. All told, I have about $1,000 US in deposits. This is fine because these companies are taking a risk on me (that I will pay my final bill), and the depostis are a way to reduce their risk.

In Korea, the employer is taking the same risk on you. If you fail to pay these final bills, the utility companies do not suffer the financial loss, the employer does. So it's as reasonable for an employer to ask for a deposit as it is for a utility company.

I think you are justified, however, in being worried about the employer screwing you over at the end. I'm frankly worried about what my utility companies are going to say about having to send my deposits overseas, especially since my apartment almost soiled herself when I told her my forwarding address would be in Korea ("Don't you have another local address? International letters cost more!). If one of them screws me over, then I can either take them to court when I get back or say the hell with it, life's too short.

[marista99]

Okay so on the deposit thing, maybe you could have an agreement that you will pay your final bills (or an approximation of what your final bills will be) before you leave, and when you do this they will immediately refund your deposit. It's not the deposit thing, it's the 2 month thing that would bother me. Better to pay back your bills and get your deposit back all while you're still in the country, since your ability to do either will be very limited once you have departed.

[prosodic]

Thanks for all the advice. I'm starting to agree with all the people who said that the clauses aren't that bad. Unfortunately, those are two of the least objectionable clauses in the contract.

By the way, the contract isn't from ECC, Wonderland, or any other kiddie hagwon. It's from a university.

[FUBAR]

[oneiros]

[Pusanpoe]

I agree with fUBAR. My university said it was to difficult to do but I did it with another gig. Still some deposit is needed but should be minimum. Admin staff has so many things to do. But I think there is sometimes a lack of creativity and energy to develop new management approaches among conservative types and those with little modern management training. And mayber theutily people do not like cutting the gas and turning it back once a year which is the best way to prevent unauthorized use. Same theme for the lectricity company. I think I am just beginning to make too many excuses now. for management. Sorry.

[Falstaff]

[prosodic]

The school won't negotiate a single word, so I have refused their offer. Just for the sake of curiousity, I've decided to post the entire contract with the school's name and my name deleted. Let me know what you think.

FOREIGN LANGUAGE INSTRUCTOR CONTRACT
The President of ------University (designated hereafter as "the employer") and Mr --------(designated as the instructor) agree to the following terms:
1. The employer will provide full-time employment to the instructor from August 23, 2004 to August 22, 2005 and will pay a monthly salary of 2,100,000 won to the instructor.
2. The first month's salary will be based on the date the instructor starts performing official duties and the number of days remaining in the pay period.
3. The instructor will teach 20 hours a week from Monday to Friday. Additional payment for additional hours will be based on the pay schedule for Korean instructors. Paid vacation time will be 5 weeks per year. The time will be divided, and arranged in accordance with the schedule of classes and at the employer's discretion.
4. The employer will provide semi-furnished housing and a telephone to the instructor and will take responsibility for property tax and apartment repairs. Utilities (gas, electricity, cable TV, water, building management fee, telephones, etc.) will be the sole responsibility of the instructor.
5. The instructor is required to submit a housing deposit of 300,000 won. Two months after completion of the contract this deposit will be refunded less deductions for any damage to the apartment and after settlement of outstanding utility charges. The balance of the housing deposit will be remitted in accordance with the instructor's wishes.
6. The employer will reimburse the airfare to the amount of 800,000 won (300,000 won upon arrival and 500,000 won upon completion of the first year contract).
7. The instructor will be required to subscribe to the Private Pension Scheme (PPS) as stipulated by Korean law, in accordance with any existing mutual agreements between Korea and the instructor's native country at the time of this contract. The monthly contribution (which is determined by the PPS and based on the instructor's salary) will be shared between the employer and the instructor. The instructor's portion (approximately 90,000 won) will be deducted from the monthly salary. The full amount paid into the fund will be returned to the instructor upon termination of employment.
8. The instructor will pay income tax at the rate specified by current Korean law, in accordance with tax agreements existing between Korea and the instructor's native country at the time of this contract. This tax will be deducted from the Instructor's monthly salary, and will be paid to the relevant Tax Office by the employer.
9. The instructor will be provided with medical insurance (contingent upon the insurers acceptance of a full medical report) for a fee of approximately 40,000 won per month. This insurance provides regular coverage in Korea.
10. The instructor is not allowed to work for any other organization including private tutoring without the employer's prior consent. Korean law stipulates that no full-time instructor may work at two or more institutions at the same time. Failure to observe this regulation will result in immediate dismissal.
11. The instructor will be required to contribute to the enhancement of English education services provided by the -------Educational Foundation which are presented in the instructor's handbook. In any cases in which the instructor neglects the stipulated regulations and duties, the contract between the employer and the instructor may be canceled at the employer's discretion.
12. Two month's notice of resignation is required from the instructor. In the case of the instructor's resignation, the employer will consider this contract null and void. The instructor's departure date will solely be determined at the employer's discretion within the two months following notification of resignation. Accordingly the final salary will be paid up to the date of the instructor's departure.
13. This contract may be renewed upon agreement between the employer and the instructor two months prior to its expiration; otherwise, the instructor will be automatically released from employment upon completion of this contract.

The undersigned agrees to the terms stated above in this contract and in the policy book. For future reference, each party is to keep a copy of this contract.