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Penalty for early termination of 1 year contract

 
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Rejam



Joined: 28 Aug 2006
Location: Toronto

PostPosted: Tue Aug 29, 2006 10:14 am    Post subject: Penalty for early termination of 1 year contract Reply with quote

Hi everyone,

I'm a newbie teacher who is looking to teach in S.Korea. There is one school located in Pohang by the name of YMA foreign language institute that is interested in hiring me. Now, I've read through some of the earlier posts in this forum and I've found the advice to be quite helpful. Could someone please comment on this one point that is written in the contract offered to me?

"If the instructor seeks release from the contract for personal reasons, the instructor will report to the institute and will receive 70% of the monthly salary from that time until a replacement instructor is placed (app. 2 months) and the instructor agrees to work until the new instructor arrives."

I'm not planning on breaking the contract, but I havn't seen this 70% penalty written in other contracts, so what's the deal? Should I address this point with the school?

Thank you for your advice.
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daz1979



Joined: 29 Apr 2006
Location: Gangwon-Do

PostPosted: Tue Aug 29, 2006 10:33 am    Post subject: Reply with quote

It sounds like if you want to leave you have to give 2 months notice and whilst working this 2 months notice you will only receive 70% of your monthly salary!

Sounds a bit suspect, I suggest you post your full contract up for contract guru's such as Grotto to have a look at!!

Good luck
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Grotto



Joined: 21 Mar 2004

PostPosted: Tue Aug 29, 2006 11:07 am    Post subject: Reply with quote

Its an illegal penalty clause! The sad fact is that many hogwans have illegal clauses in them either because they dont know the law.....OR....they do know the law but put it in anyway.

IF you were to leave your contract early AND were kind enough to give them notice then they MUST pay you your full salary until you leave!

Its clauses like this that make me not question midnight runs!
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alabamaman



Joined: 25 Apr 2006

PostPosted: Wed Aug 30, 2006 1:25 am    Post subject: Re: Penalty for early termination of 1 year contract Reply with quote

Rejam wrote:
Hi everyone,

I'm a newbie teacher who is looking to teach in S.Korea. There is one school located in Pohang by the name of YMA foreign language institute that is interested in hiring me. Now, I've read through some of the earlier posts in this forum and I've found the advice to be quite helpful. Could someone please comment on this one point that is written in the contract offered to me?

"If the instructor seeks release from the contract for personal reasons, the instructor will report to the institute and will receive 70% of the monthly salary from that time until a replacement instructor is placed (app. 2 months) and the instructor agrees to work until the new instructor arrives."

I'm not planning on breaking the contract, but I havn't seen this 70% penalty written in other contracts, so what's the deal? Should I address this point with the school?

Thank you for your advice.


Article 27 of the Labor Standards Act (Prohibition of Predetermination of Nonobservance)

An employer shall not enter into any contract by which a penalty
or indemnity for possible damages incurred from nonobservance
of a labor contract is predetermined.
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Rejam



Joined: 28 Aug 2006
Location: Toronto

PostPosted: Wed Aug 30, 2006 12:35 pm    Post subject: please help out a new teacher Reply with quote

I am grateful for the responses I have received re: teacher penalty for early termination of contract. If the penalty is illegal, should I demand that clause be withdrawn in order to protect myself? I fear the school may think that I intend to break the contract.

I know it is tedious work to read through a contract but if anyone could take the time to have a look at it, I would really appreciate it.

The details of the job are:
Quote:

About School:

* located in pohang, which is a beautiful coastal city near busan
* has a good reputation over 25years
* two native speakers and five korean teachers
* class size is maximum 16

Qualification:
* BA/BS degree or higher
* strong commitment and great understanding

Working Conditions:
* teaching level: 4th ~ 10th grade
* 23 hours a week
* work schedule: 3-9pm, no split shift
* Salary: 2 million

Benefits:
* free furnished spacious apartment with A/C, within walking distance to the school
* air ticket
* half medical insurance
* severance pay (one month) at the end of one year contract
* two week paid vacation in addition to all national holidays


CONTRACT
Quote:

Conditions:
Salary: A monthly salary of 2,000,000 won will be paid for 120 teaching hours per month. An hourly wage of 15,000 won will be paid for each additional hour exceeding the contract hours.

Severance Pay: Upon completion of the contract, if all duties and obligations have been fulfilled, the instructor is entitled to one month�s salary severance pay.

Work Days: Monday through Friday.

Holidays: National and Traditional Holidays, plus 5 days vacation in summer and winter, respectively designated by the employer.

Pay Day: Compensation will be paid monthly. Payday will be the last day of the month. Any errors in compensation should be reported to both parties affected within a week. New instructors should attend an unpaid training period (3 days) to orientate themselves.

Class Size: Each class ranges up to 16 students.

Insurance: A medical and accident insurance plan from an insurance company will be offered to the instructor. The annual premium will be split equally between the instructor and the institute.

Tax: Korean income tax will be deducted from the monthly salary according to Korean tax law (app. 3%). In addition, income tax will be assessed at the end of the year or the next year according to the whole year�s income.

Economy Class Airfare: The budget for the round trip airfare provided by the institute is 1,000,000 won. The instructor will be reimbursed 500,000 won upon completion of the above contract first half period. However, if she/he fails to complete the above contract period for any reason, the instructor should repay the money to the employer and consequently the remaining amount (500,000 won) will not be given to the instructor.

Accommodation: The institute will provide a rent-free apartment with the other instructor. The instructor will pay the fair share of the utilities.

4. Instructor's duties

a. The instructor will set a good positive example at all times.

b. The instructor will follow class schedules and will not cancel classes or start classes late without the approval of the director.

c. The instructor will use textbooks provided by the institute and is encouraged to supplement these with other materials. All materials given to the instructor by the institute will be returned after they are no longer needed.

d. The instructor will not partake in the following activities since they may damage the reputation of the institute:

- Conducting class under the influence of alcohol, smoking, or illegal drugs.

- Making sexual advances towards, or relationships with students or employees of the institute.

- Conducting any private classes or accepting any funds.

- Borrowing or lending funds to students or conducting any sales of items to students.


Any damages that are the direct result of negligence on the behalf of the instructor, either at the institute or residence, will be paid for by the instructor.


If the instructor seeks release from the contract for personal reasons, the instructor will report to the institute and will receive 70% of the monthly salary from that time until a replacement instructor is placed (app. 2 months) and the instructor agrees to work until the new instructor arrives.


If the instructor fails to conduct him/herself in a professional manner, resulting in damage to the image of the institute, or fails to follow the director�s orders, the institute has the right to terminate this contract immediately. However, if the institute has to terminate the contract due to internal problems, the institute will provide one month notice. And, if the institute violates the contract, the instructor also has the right to terminate the contract, but one month notice must be provided as well.


Both parties have read the above conditions and agree to the terms in good faith and will agree to resolve any disputes in a reasonable manner through the arbitrator.


I realize this contract isn't one of the better ones out there. I forsee that it will be hard to discuss contract details with the employer because of the language barrier, so if anyone reading this can just point out the most important errors, that would really help me out a lot. I don't want to be too nitpicky because I don't want it to cost me the job.

To the people on Dave's ESL Cafe, you do good work. Thank you!
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dimnd



Joined: 19 May 2005
Location: Western USA

PostPosted: Wed Aug 30, 2006 1:02 pm    Post subject: terrible contract Reply with quote

pass on this....120 hrs...2 mil won.....70% salary after giving notice..why...you will be working full-time....full salary...look elsewhere
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Rejam



Joined: 28 Aug 2006
Location: Toronto

PostPosted: Wed Aug 30, 2006 1:13 pm    Post subject: Reply with quote

Correct me if I'm wrong, but from what I've been seeing, 2.0 million won for 120 contract hours is pretty standard.

Thanks.
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Grotto



Joined: 21 Mar 2004

PostPosted: Wed Aug 30, 2006 1:20 pm    Post subject: Reply with quote

About School:

* located in pohang, which is a beautiful coastal city near busan
* has a good reputation over 25years
* two native speakers and five korean teachers
* class size is maximum 16

Qualification:
* BA/BS degree or higher
* strong commitment and great understanding

Working Conditions:
* teaching level: 4th ~ 10th grade
* 23 hours a week
* work schedule: 3-9pm, no split shift
* Salary: 2 million

Benefits:
* free furnished spacious apartment with A/C, within walking distance to the school
* air ticket
* half medical insurance
* severance pay (one month) at the end of one year contract
* two week paid vacation in addition to all national holidays


Contract
Conditions:
Salary: A monthly salary of 2,000,000 won will be paid for 120 teaching hours per month. An hourly wage of 15,000 won will be paid for each additional hour exceeding the contract hours.

Dont settle for less than 25,000 won an hour OT! You also want the Working Conditions:
* teaching level: 4th ~ 10th grade
* 23 hours a week
* work schedule: 3-9pm, no split shift
Clearly stated in the contract....23 hours a week is not 120 a month and you definately want the 3-9 no split shift in the contract! How many classed a day?


Severance Pay: Upon completion of the contract, if all duties and obligations have been fulfilled, the instructor is entitled to one month’s salary severance pay.

Delete bolded...severance is due upon completion....PERIOD!

Work Days: Monday through Friday.

Holidays: National and Traditional Holidays, plus 5 days vacation in summer and winter, respectively designated by the employer.

is that two 5 day holidays?* two week paid vacation in addition to all national holidays

Pay Day: Compensation will be paid monthly. Payday will be the last day of the month. Any errors in compensation should be reported to both parties affected within a week. New instructors should attend an unpaid training period (3 days) to orientate themselves.

Class Size: Each class ranges up to 16 students.

Insurance: A medical and accident insurance plan from an insurance company will be offered to the instructor. The annual premium will be split equally between the instructor and the institute.

Tax: Korean income tax will be deducted from the monthly salary according to Korean tax law (app. 3%). In addition, income tax will be assessed at the end of the year or the next year according to the whole year’s income.

Tax is not 3% have it taken off according to the monthly withholding tax at the government website!(about 1.4% on 2 mil!)

Economy Class Airfare: The budget for the round trip airfare provided by the institute is 1,000,000 won. The instructor will be reimbursed 500,000 won upon completion of the above contract first half period. However, if she/he fails to complete the above contract period for any reason, the instructor should repay the money to the employer and consequently the remaining amount (500,000 won) will not be given to the instructor.

They should supply the ticket...no amount should be tied to it! You should also not have to repay the money for the ticket to Korea after 6 months!

Accommodation: The institute will provide a rent-free apartment with the other instructor. The instructor will pay the fair share of the utilities.

Say no to shared accomodations! You also want to know what furnishings are included!

4. Instructor's duties

a. The instructor will set a good positive example at all times.

b. The instructor will follow class schedules and will not cancel classes or start classes late without the approval of the director.

c. The instructor will use textbooks provided by the institute and is encouraged to supplement these with other materials. All materials given to the instructor by the institute will be returned after they are no longer needed.

d. The instructor will not partake in the following activities since they may damage the reputation of the institute:

- Conducting class under the influence of alcohol, smoking, or illegal drugs.

- Making sexual advances towards, or relationships with students or employees of the institute.

- Conducting any private classes or accepting any funds.

- Borrowing or lending funds to students or conducting any sales of items to students.


Any damages that are the direct result of negligence on the behalf of the instructor, either at the institute or residence, will be paid for by the instructor.

Dumb clause....they are free to pursue you legally if they can prove in a court that you caused damage to the school...but they cannot state the above claim!


If the instructor seeks release from the contract for personal reasons, the instructor will report to the institute and will receive 70% of the monthly salary from that time until a replacement instructor is placed (app. 2 months) and the instructor agrees to work until the new instructor arrives.


Illegal penalty clause....why would agree to work for less money? Have that nonsense removed!


If the instructor fails to conduct him/herself in a professional manner, resulting in damage to the image of the institute, or fails to follow the director’s orders, the institute has the right to terminate this contract immediately. However, if the institute has to terminate the contract due to internal problems, the institute will provide one month notice. And, if the institute violates the contract, the instructor also has the right to terminate the contract, but one month notice must be provided as well.

They have to give you one months notice or pay in lue of regardless!


Both parties have read the above conditions and agree to the terms in good faith and will agree to resolve any disputes in a reasonable manner through the arbitrator.

Pension?

You need this in the contract!

Working Conditions:
* teaching level: 4th ~ 10th grade
* 23 hours a week
* work schedule: 3-9pm, no split shift
* Salary: 2 million

Benefits:
* free furnished spacious apartment with A/C, within walking distance to the school
* air ticket
* half medical insurance
* severance pay (one month) at the end of one year contract
* two week paid vacation in addition to all national holidays
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Son Deureo!



Joined: 30 Apr 2003

PostPosted: Thu Aug 31, 2006 1:06 am    Post subject: Reply with quote

Grotto wrote:

Dont settle for less than 25,000 won an hour OT!


Agreed. OT at 15,000 per hour means you'd be getting paid less for OT than you would for your standard working hours. Plus, never sign a contract where OT isn't optional, that's just asking to be worked like a dog.



Grotto wrote:
Holidays: National and Traditional Holidays, plus 5 days vacation in summer and winter, respectively designated by the employer.

[color=red]is that two 5 day holidays?* two week paid vacation in addition to all national holidays


I think Grotto may be overreacting here. Double check the wording in the contract, but I'd read this as 5 days in summer AND 5 days in winter. I'd chalk any ambiguity in the ad up to Konglishy.

Quote:
Pay Day: Compensation will be paid monthly. Payday will be the last day of the month. Any errors in compensation should be reported to both parties affected within a week. New instructors should attend an unpaid training period (3 days) to orientate themselves.


You should be paid for this.

Quote:
Class Size: Each class ranges up to 16 students.


Crappy for a hogwon, it's hard enough to manage 12 kids in that kind of environment.

Quote:
Insurance: A medical and accident insurance plan from an insurance company will be offered to the instructor. The annual premium will be split equally between the instructor and the institute.


This is a red flag, it sounds like he's trying to keep you out of the national insurance scheme and in a private travelers' insurance plan. This is not only illegal, but detrimental to your health and financial well-being as there is a lot those plans will simply refuse to cover. I was stuck on one of those plans and it wasn't worth the paper it was printed on.

Mention of pension is also noticeably absent. If you're American or Canadian this is a bad deal, as it's an extra million won per year (from the employer's contribution) when you leave Korea. It's like a forced savings plan where you make a 100% return on your investment. Don't work for a school that keeps you out of the pension scheme.


Quote:
- Making sexual advances towards, or relationships with students or employees of the institute.


Relationships between you and your coworkers after hours is none of your boss' business.



Quote:
If the instructor seeks release from the contract for personal reasons, the instructor will report to the institute and will receive 70% of the monthly salary from that time until a replacement instructor is placed (app. 2 months) and the instructor agrees to work until the new instructor arrives.



Grotto wrote:
Illegal penalty clause....why would agree to work for less money? Have that nonsense removed!


Can't agree highly enough. You should consider this clause to be a dealbreaker in and of itself.
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oldfatfarang



Joined: 19 May 2005
Location: On the road to somewhere.

PostPosted: Thu Aug 31, 2006 3:10 am    Post subject: Reply with quote

Pass on this job. There are much better offers around - even in Pohang.
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Rejam



Joined: 28 Aug 2006
Location: Toronto

PostPosted: Wed Sep 06, 2006 5:38 pm    Post subject: Said yes to this contract Reply with quote

Hi everybody,

I just wanted to provide you with an update on my first post. My friend and I have accepted the contract that we posted for review. I have given serious consideration to the points that have been raised (btw, thank you all for your help) and after discussing these with the school, I am feeling pretty good about working there. The school put me in touch with a teacher who is currently teaching at the school, as well as with a former teacher. According to the both of them, the school treats its teachers very well.

At the moment, my friend and I are in the process of applying for our work visa. We will be starting work in October.

Once again, thank you kindly everyone.

Sincerely,
Jammie
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