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Questionable penalty clause...

 
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PaperTiger



Joined: 31 May 2005
Location: Ulaanbataar

PostPosted: Mon Sep 04, 2006 2:27 am    Post subject: Questionable penalty clause... Reply with quote

Okay, the class in question meets 5 days a week first thing in the morning for one hour. I've already done it for more than a month and they've asked me to sign a three month contract. I like the students, they like me, and job is just a little more sugar in the bowl for my family. I rarely, if ever, call in hungover or otherwise indiposed. Even so, agreeing to something like this seems like I'm opening myself to a bad risk, wrong in principal, and probably unsupportable by law and setting a bad precedent.

"The instructor MUST provide English lessons for the given period. Should he/she not fill the given period, Company X will deduct payment for 4 weeks of lessons.

There should be no more than 2 lesson cancellations made by the instructor per month. For every cancellation exceeding 2 per month, the instructor must pay KRW150,000 of penalty. However absences due to illness, should there be a written note from a doctor, are accepted. Absences due to official family affairs and events approved by the client company are also an exception.

If the instructor does now show up for class without prior notice, the instructor must pay Company X a penalty fee of KRW50,000."

As I said, this would probably represent more of a problem to habitual drinkers and shiftless morons, but the penalties are hella steep and it seems that contract clauses are applied selectively round here with not a little fast and loose interpretation. I'll probably go with it, since I might have a family to think about some time soon, but I'd just like some feedback just to make sure I didn't overlook any other considerations.

Thanx in advance.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Mon Sep 04, 2006 2:38 am    Post subject: Re: Questionable penalty clause... Reply with quote

PaperTiger wrote:
Okay, the class in question meets 5 days a week first thing in the morning for one hour. I've already done it for more than a month and they've asked me to sign a three month contract. I like the students, they like me, and job is just a little more sugar in the bowl for my family. I rarely, if ever, call in hungover or otherwise indiposed. Even so, agreeing to something like this seems like I'm opening myself to a bad risk, wrong in principal, and probably unsupportable by law and setting a bad precedent.

"The instructor MUST provide English lessons for the given period. Should he/she not fill the given period, Company X will deduct payment for 4 weeks of lessons.

There should be no more than 2 lesson cancellations made by the instructor per month. For every cancellation exceeding 2 per month, the instructor must pay KRW150,000 of penalty. However absences due to illness, should there be a written note from a doctor, are accepted. Absences due to official family affairs and events approved by the client company are also an exception.

If the instructor does now show up for class without prior notice, the instructor must pay Company X a penalty fee of KRW50,000."

As I said, this would probably represent more of a problem to habitual drinkers and shiftless morons, but the penalties are hella steep and it seems that contract clauses are applied selectively round here with not a little fast and loose interpretation. I'll probably go with it, since I might have a family to think about some time soon, but I'd just like some feedback just to make sure I didn't overlook any other considerations.

Thanx in advance.


Korean Labor standards act:

Article 22 (Labor Contract contrary to This Act)
(1) A labor contract which establishes conditions of employment
which do not meet the standards provided for in this Act shall
be null and void to that extent.
(2) Those conditions invalidated in accordance with the
provisions of paragraph (1) shall be governed by the standards
provided herein.

AND the one you were looking for:

Article 27 (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.

Under this article, the clause in question is illegal and if your boss tries to feed you some line of *beep* then you can point to article 22. This is for ALL employees in Korea. NO EXCEPTIONS.
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