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Korean Job Discussion Forums "The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
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Hollywoodaction
Joined: 02 Jul 2004
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Posted: Fri Aug 12, 2005 1:12 pm Post subject: |
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| itaewonguy wrote: |
damn another victim of the 11th hour firing squad!
dude this happens often! take it the labour board you will the case!
hakwons try this tactic all the time.. they think why pay you 2million and a return flight which is like another 1;5-2 million when they could just fire you and hire someone else and keep doing this and saving themselves 4 million won every year! |
Right. The labor board sees this scam all the time. They don't like it anymore than we do. |
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jlb
Joined: 18 Sep 2003
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Posted: Fri Aug 12, 2005 1:21 pm Post subject: |
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I think there is a clause of some sort that says if the place has less than (6????-not so sure) then there's nothing the labor board can do. Crappy but just the way it works in Korea. I have a feeling you might be screwed  |
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bucheon bum
Joined: 16 Jan 2003
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Posted: Fri Aug 12, 2005 2:12 pm Post subject: Re: THE POSTER |
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| thewhat wrote: |
I an the only forign teacher.
My contract states that I will recieve pension and severance.
BUT they are saying that the school has under 6 employees and they have not payed any pension or taxes on my behalfe.
Shoul I not still get the pension/severance even if its not legally required? The contract says yes, but its "flexible". I have not payed taxes, will I have to pay back taxes?
Will the labour board still help me?
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1) They are stating the truth re: pension. You won't get any pension, but you should get severance.
2) I believe they are lying about taxes. They should have taken that out of your paycheck. The 6 employee thing just applies to pension I believe. Did you get the full amount that was in your contract? (ie it says you get 1.9 mil/month and that is what they deposit in your account each month, as opposed to say, 1.8 million due to "deductions" of one kind or another).
3) yes, the labour board will still help you out for the reasons others have given you. |
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prosodic

Joined: 21 Jun 2004 Location: ����
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Posted: Sat Aug 13, 2005 5:02 pm Post subject: |
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no, it actually isn't legit for them not to have paid into the pension system. There are only two ways around pension. 1) claim that you are a contract/freelance employee, which is almost impossible to do when sponsoring an E2 visa. Or 2) claim that you are part-time working fewer than eighteen hours a week, again very difficult to do when sponsoring an E2 visa.
There are certain clauses of the Labor Standards Act that a school is exempt from if there are fewer than five full-time employees and family members of the owner do not count in that number. Still, pension is not one of those clauses. Pension is under a separate law.
I would report them to the Labor Board, the National Pension Corporation, and the Tax Office. Depending on where you live, it's not that much running around to report them to all three offices. In central Seoul, both the Labor Board and the National Pension Corporation have offices next to Kongdeok subway station.
It might affect your pocket book a little bit. The tax office isn't that big a deal. You have to pay taxes no matter what. Reporting them to the National Pension Corporation means that both you and the employer will have to pay the back contributions of 4.5% each. So, you would take a hit to your pocket book now but get back both your and the employer's contributions when you leave. You end up ahead. |
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prosodic

Joined: 21 Jun 2004 Location: ����
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Posted: Sat Aug 13, 2005 5:09 pm Post subject: |
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Just to clarify, you should report them to the Labor Board regarding the illegal firing only.
You should report them to the National Pension Corporation regarding pension only.
You should report them to the Tax Office for tax evasion. If they're not submitting taxes for you, that probably means that they are not submitting accurate revenue records. |
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Yu_Bum_suk

Joined: 25 Dec 2004
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Posted: Sat Aug 13, 2005 6:13 pm Post subject: |
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| Qinella wrote: |
| If I got screwed over like that, I'd print out a flyer in Korean that explains exactly what happened, and then distribute it to all the students' parents, as well as posting it up all over town. |
This is what I was thinking of doing when I was planning how best to extort my way out of my old contract. In the end, all it took was one phone call hope to a parent with a Korean friend before wongjongnim-babo realised that I could put a gun to his head if need be. If you can get a list of phone numbers I'd try that approach first.
This approach is much more efficient than dealing with government agencies. |
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thewhat
Joined: 03 Jun 2005 Location: Seoul suburbs
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Posted: Sat Aug 13, 2005 6:25 pm Post subject: |
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I still not clear on 2 things.
If i have not paid taxes, will i have to pay back taxes. i get cash, the whole 2 milliion. of course no one can prove what i get because its cash. i thought i scared them into paying all that when they were late twice and tried to deduct a whole bunch of bills etc.
now i think they dont pay tax at all, i do have an alien card and im the only forigner.
1- will the gov't help me if i have not payed or force me to pay up if i show up and start asking questions?
2- if i pay back contributions to the pension and the hagwon does too will i get the refund without completeing twelve month s?
i would love to call parents, i do have the numbers but no korean friend really, especially out here (2hrs from seoul) |
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thewhat
Joined: 03 Jun 2005 Location: Seoul suburbs
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Posted: Sat Aug 13, 2005 6:26 pm Post subject: |
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I still not clear on 2 things.
If i have not paid taxes, will i have to pay back taxes. i get cash, the whole 2 milliion. of course no one can prove what i get because its cash. i thought i scared them into paying all that when they were late twice and tried to deduct a whole bunch of bills etc.
now i think they dont pay tax at all, i do have an alien card and im the only forigner.
1- will the gov't help me if i have not payed or force me to pay up if i show up and start asking questions?
2- if i pay back contributions to the pension and the hagwon does too will i get the refund without completeing twelve month s?
i would love to call parents, i do have the numbers but no korean friend really, especially out here (2hrs from seoul) |
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prosodic

Joined: 21 Jun 2004 Location: ����
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Posted: Sat Aug 13, 2005 6:58 pm Post subject: |
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| thewhat wrote: |
I still not clear on 2 things.
If i have not paid taxes, will i have to pay back taxes. i get cash, the whole 2 milliion. of course no one can prove what i get because its cash. i thought i scared them into paying all that when they were late twice and tried to deduct a whole bunch of bills etc.
now i think they dont pay tax at all, i do have an alien card and im the only forigner.
1- will the gov't help me if i have not payed or force me to pay up if i show up and start asking questions?
2- if i pay back contributions to the pension and the hagwon does too will i get the refund without completeing twelve month s?
i would love to call parents, i do have the numbers but no korean friend really, especially out here (2hrs from seoul) |
1. If the hagwon has been paying you completely under the table, then you could probably walk away with no tax obligation but it would be completely illegal. If you're planning to stay in Korea long-term, it could come back to bite you if you ever get audited (unlikely). Just like back home, taxes are technically due once a year. In Korea, it's the beginning of May. Payroll deductions are an interest free-loan to the government to be used as a credit toward owed taxes. Also, payroll deductions mean that the annual payment of taxes seems less burdensome since you've already paid most of it. Reporting the hagwon to the tax office won't negatively affect your relationship to the Korean government. Rather, the government will be thankful to you for bringing in a much bigger tax evader (the hagwon). You would be responsible for paying your taxes (right now for all income through the end of 2004 and next year for 2005's income). I don't know if there are any rewards for turning in tax evaders (the hagwon), but I would expect that there are.
2. Refund of pension contributions is in no way related to length of employment. As a Canadian, you get it back when you leave the country for good. If you plan to return to Korea, the refund is deferred until your final departure.
I'm guessing that tax evasion is also part of their plan to keep you off the government's radar screen so that they can also avoid pension, health insurance etc. Government agencies don't communicate with each other very well in Korea, so you could probably report them to the Labor Board and the Pension Corporation without reporting them to the tax office. Still, the fact that you were paid in cash without a payroll receipt means that it will be difficult if not impossible for you to provide documentation to the Labor Board and the Pension Corporation. An investigation by the tax office might help you out because the investigation would try to determine your actual earnings and would hurt the hagwon's credibility.
Overall, reporting to all three agencies means that you're ahead in the long run. The income tax rate at 2million won a month is around 3% and the employer's portion of the pension contribution is 4.5% of your salary. If reporting them to the tax office will help you win at the Pension Corporation and at the Labor Board, you net a big gain.
You pay 3% of 11 months salary
2mil*11 months=22million
22million * 3%=660,000 won
you get 4.5% of 11 months salary in because of the employer's portion of the pension contribution
22 mil * 4.5%=990,000 won
After arbitration with the Labor Board (which might be hostile to the hagwon if the hagwon is being investigated for tax evasion), you get severance or the 30 days pay that you're supposed to get in lieu of 30 days advance notice of termination=2,000,000 won
Admittedly, you have to pay your taxes and your portion of the pension contribution up front, but by the time you leave the country, you end up ahead 2.33 million won. |
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No L
Joined: 17 May 2004
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Posted: Sun Aug 14, 2005 12:05 am Post subject: |
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| If you're going back home and don't plan to come back to Korea, forget the taxes and pension. Go to the Labour Board and see what you can get them to get you in terms of last month's pay, severance and plane ticket money. Don't forget to go to immigration and fix your visa status after you file the labour board complaint. Your boss firing you cancels your visa, but immigration should extend it based on your labour board complaint. |
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buymybook
Joined: 21 Feb 2005 Location: Telluride
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Posted: Sun Aug 14, 2005 7:47 am Post subject: |
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| You get no pension but if you win at the labor office depending on what your contract says you could get the severance. Where did you get the word pension? Does it say that on your contract, if it does they fooled you because the labor law does not require them to pay because of the size of the Hakwon(I understand it is 5 full-time employees or less). The tax office is a good place to lodge a complaint if they happen to give a rats ARS? They told me that Hakwons do this all the time and they didn't seem to give a hoot. They told me they would set up my tax account information their internet site(you will need a Korean if you can't read or write Hangul) so that I can check my tax information online. I went their and the password didn't work. I will have to go back to the tax office again and complain! Did your employer give you a signed paper stating the reasons for firing youn with a 30 day notice? That is important because if they didn't they can invent/create/dream about new reasons for firing you each day. Take the first step, but don't say I told you so because you could be in for the fight of your life. Be ready to go the distance, if your not then quit the fussing and go cry to your mother/father like most other foreign teachers. I forgot to tell you something very important. If you win at the labor office they can't help you because of the size of the hakwon. You will have to obtain there final decision and submit it to the Civil Court/Judge as evidence. It's really a long process, decide what you want to do and do it! Find a Korean friend to help you. They might help for awhile but will probably quit so you will have to find another Korean friend, and another, and another, and another because that is the way it is. They quit, and will advise you to do the same just like other foreigners/teachers. You could feel like an outcast of society and may find it difficult to find a job. To fight the thing and work(you most likely can't tell your new employer of your court process) at the same time is difficult. Your alone buddy! |
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prosodic

Joined: 21 Jun 2004 Location: ����
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Posted: Sun Aug 14, 2005 2:41 pm Post subject: |
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| buymybook wrote: |
| Does it say that on your contract, if it does they fooled you because the labor law does not require them to pay because of the size of the Hakwon(I understand it is 5 full-time employees or less). |
Labor law is the minimum level of benefits that you are entitled to. If they signed a contract that gives you benefits above and beyond the minimum, then that contract is a legally binding agreement enforceable in court. |
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prosodic

Joined: 21 Jun 2004 Location: ����
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Posted: Sun Aug 14, 2005 2:42 pm Post subject: |
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| I agree that the legal process is long and frustrating. |
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spidey112233
Joined: 21 Jul 2005
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Posted: Mon Aug 15, 2005 1:17 am Post subject: |
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long process, runnig a thousand times to tax offices etc., getting people to help.. screw all that crap. by the sounds of these threads, looks like it'll takes you many months to solve. do it my way: steal everytihng you can, including cell phones then hawk it off  |
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Wishmaster
Joined: 06 Feb 2003
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Posted: Mon Aug 15, 2005 1:37 am Post subject: |
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| It just bugs me to no end about Korea. These organizations that are supposedly to help you are just as corrupt as anything. EVERYTHING is in the employer's favor. They can pull your visa and you have to get out of their country as quickly as possible(although Koreans overstay their visas abroad and get a slap on the wrist). You don't have time to fight the legalities and who the hell would want to stay here for such a long time to do it. Frankly, I'm surprised that people still come here to teach. The system is completely pitted against you and all you apologists who say that the same thing happens at home...please...people employed legitimately have recourse. Here in Korea, we have the mythical Labor board(which, by the way, you must wait for three-four weeks...and keep working for the nutjob that is screwing you...otherwise, you have to leave the country...the labor board can only give an extension for two weeks). It is a joke and I think that our countries should be reciprocal with Korea. Tighten visa regulations and make sure they get punished for overstaying...Koreans need to wake up. |
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