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Crazy pay schedule... Options?

 
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tua111111



Joined: 20 Apr 2010

PostPosted: Fri Jun 18, 2010 2:36 am    Post subject: Crazy pay schedule... Options? Reply with quote

I found out today that everyone who is currently working at my hagwon gets paid a different day. Their pay is one month after their first day of work... The contract, for me at least, says I will get paid on the 10th of the following month (which I knew wasn't great, but whatever, that was good enough for me).

So, to clarify- I started May 24th. I was expecting to get paid June 24th and then on July 10th for the month of June. But I find out I have to wait until July 24th to receive my June pay. I was skeptical as to why I was waiting for the 24th of June for my first week's pay but it wasn't a big deal. Now it is a big deal because I learned it's going to be like that every month.

I am going to speak with the director Monday morning because this is completely unreasonable... What are my options? How hard is it to find a new job if the school doesn't budge and I quit? What would you do?
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SeoulNate



Joined: 04 Jun 2010
Location: Hyehwa

PostPosted: Fri Jun 18, 2010 2:55 am    Post subject: Reply with quote

I would refer to the contract and tell them that they should do one of two things:

1. Stick with the contract and pay you on the 10th of every month for the previous month

2. Pay you on 24th for the month you just finished working. As in, that day ends your pay period and on the 25th you would start a new one.

Both are reasonable and expected. I wouldn't believe they delay pay almost two months for each teacher working at the school, there must be something else doing on
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AsiaESLbound



Joined: 07 Jan 2010
Location: Truck Stop Missouri

PostPosted: Fri Jun 18, 2010 5:15 am    Post subject: Reply with quote

Shouldn't you been paid on June 10th for 1 week pay and then on July 10 for June pay? What is this getting paid on July 24th for June stuff 24 days late stuff? Sounds like rubbish. I would have a direct talk with the director on this one. You will be challenging their screwed up business practice, but it's necessary to make or break the relationship and very possibly get paid on July 10th for 5 weeks pay. Only way your valid discussion will break it is if they are dead set on screwing you over. Don't worry about coming off as crass over talking about money.
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ontheway



Joined: 24 Aug 2005
Location: Somewhere under the rainbow...

PostPosted: Fri Jun 18, 2010 5:31 am    Post subject: Reply with quote

This sounds like a system that levels the paperwork out over the month (innocent, but annoying for you), and more importantly perhaps, spreads out the payments for cash flow purposes. This could mean that things are tight financially at your hogwan and would explain the deviation and delay in everyone's pay date. If you watch and listen, you may find Korean teachers, van drivers and others being paid late, or a shortage of supplies and repairs going undone. These things will confirm the financial trouble and are warning signs for impending failure, unless someone can turnaround the situation for the school. Good luck.
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tua111111



Joined: 20 Apr 2010

PostPosted: Fri Jun 18, 2010 5:41 am    Post subject: Reply with quote

ontheway wrote:
This sounds like a system that levels the paperwork out over the month (innocent, but annoying for you), and more importantly perhaps, spreads out the payments for cash flow purposes. This could mean that things are tight financially at your hogwan and would explain the deviation and delay in everyone's pay date. If you watch and listen, you may find Korean teachers, van drivers and others being paid late, or a shortage of supplies and repairs going undone. These things will confirm the financial trouble and are warning signs for impending failure, unless someone can turnaround the situation for the school. Good luck.


No shortage of money, imo. They fired a guy and are still paying for his ticket back home. No shortage of supplies and repairs are done quickly- an air conditioning unit was broken and it was fixed the next day.

[Edit] There are 75+ kindy students and over 200 elementary students. Not sure the rates for other schools but tuition seems expensive (based on the price I was told that the parents of kindy students pay)....
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Linda868



Joined: 16 Nov 2008
Location: Korea

PostPosted: Fri Jun 18, 2010 6:30 am    Post subject: Reply with quote

I don't really see it as a big deal (unless what you are saying is that you are not getting paid for your May 24-June 23rd work until July). My contract had said that I would be paid on the 10th of each month but because I started on the 20th, my payday is the 20th of each month. I started on April 20th and got paid the following month on the 20th. It works out fine. But as I said before if they aren't paying you for the time you've worked so far until July that would be a huge problem.
Good luck and hopefully everything works out for you!
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tua111111



Joined: 20 Apr 2010

PostPosted: Fri Jun 18, 2010 6:39 am    Post subject: Reply with quote

Linda868 wrote:
I don't really see it as a big deal (unless what you are saying is that you are not getting paid for your May 24-June 23rd work until July). My contract had said that I would be paid on the 10th of each month but because I started on the 20th, my payday is the 20th of each month. I started on April 20th and got paid the following month on the 20th. It works out fine. But as I said before if they aren't paying you for the time you've worked so far until July that would be a huge problem.
Good luck and hopefully everything works out for you!


If I am getting paid on June 24th for May 24th-June 24th that would be great... I do need clarification but it seems like my May hours (May 24th-31st) are being paid on June 24th and my June hours (June 1st-30th) will be paid on July 24th, according to my co-workers... Hadn't thought about the former as an option, hopefully it turns out to be that way. Maybe I am just freaking out over nothing Smile

Contract Language:
"The Employee shall be paid ___x.x___million won per month. Pay period begins on the first day and ends on the last day of each month and the monthly salary is to be made on the 10th of the following month. The first salary shall be paid according to the workdays the Employee worked."
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hagwonnewbie



Joined: 09 Feb 2007
Location: Asia

PostPosted: Fri Jun 18, 2010 7:22 pm    Post subject: Reply with quote

My first job was like this. I was told I'd be paid on the 10th. I was once in 12 months of employment. This is not so uncommon.

Koreans are almost all paid on the 24th of the month. That is to say that the Koreans you work with are probably all getting paid an entire month earlier than you. Of course he would like to just pay everyone on the 24th. It's easier that way.

In your case you are being paid later than any other person you work with. Are you OK with that?

My advice is to sit down and think about how you can argue your point without pissing them off. You should make up some story about how you have to send all your money home on the 12th of each month or you pay a huge penalty.
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WadRUG'naDoo



Joined: 15 Jun 2010
Location: Shanghai

PostPosted: Fri Jun 18, 2010 7:41 pm    Post subject: Reply with quote

Paying you on the 24th for the previous month is ridiculous. Often, I've heard of and seen and experienced situations where you get paid for a whole month exactly one month after you start working. I'll be that's the case with this employer (not sure, though). If it isn't, ask for it and see what they say.

I had one contract in Korea (hagwon) where they started off paying exactly one month after I started even though the contract stipulated that payday was on the 5th for the time worked the previous month. There were three teachers and we all had different start dates and were paid this way. Anyway, I just told my boss that he could stick with what was in the contract and pay me on the 5th.

Another contract paid me on the 30th of the month for that month's work. That was pretty sweet for a hagwon.
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WadRUG'naDoo



Joined: 15 Jun 2010
Location: Shanghai

PostPosted: Fri Jun 18, 2010 7:44 pm    Post subject: Reply with quote

ontheway wrote:
This sounds like a system that levels the paperwork out over the month (innocent, but annoying for you), and more importantly perhaps, spreads out the payments for cash flow purposes. This could mean that things are tight financially at your hogwan and would explain the deviation and delay in everyone's pay date. If you watch and listen, you may find Korean teachers, van drivers and others being paid late, or a shortage of supplies and repairs going undone. These things will confirm the financial trouble and are warning signs for impending failure, unless someone can turnaround the situation for the school. Good luck.


You don't know this. To me, it sounds like they have good cash flow if they're able to pay teachers on different dates...
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Ramen



Joined: 15 Apr 2008

PostPosted: Sat Jun 19, 2010 6:11 pm    Post subject: Reply with quote

Not acceptable. You need to get your foot down until your boss pays you like it says in your contract or to your satisfaction.
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ontheway



Joined: 24 Aug 2005
Location: Somewhere under the rainbow...

PostPosted: Sat Jun 19, 2010 9:50 pm    Post subject: Reply with quote

WadRUG'naDoo wrote:
ontheway wrote:
This sounds like a system that levels the paperwork out over the month (innocent, but annoying for you), and more importantly perhaps, spreads out the payments for cash flow purposes. This could mean that things are tight financially at your hogwan and would explain the deviation and delay in everyone's pay date. If you watch and listen, you may find Korean teachers, van drivers and others being paid late, or a shortage of supplies and repairs going undone. These things will confirm the financial trouble and are warning signs for impending failure, unless someone can turnaround the situation for the school. Good luck.


You don't know this. To me, it sounds like they have good cash flow if they're able to pay teachers on different dates...



If all the teachers are required to be paid on the 10th, why wouldn't they be paid? Some employers are just unwilling to let go of money and so delay payments due to this mental condition. But if it's not some mental condition, it is likely that the employer does not have enough working capital to pay on the required day and then let the cash flow come in and replenish the working capital used to make the required payment date.

This lack of working capital means the the school would have to spread out its payments and make them all late ... as cash flows in. Since payments from the parents will come in on different days throughout the month, the school has to make their payments on different days throughout the month. Yes, they may have enough cash flow to make the payments late, and you might call that a good cash flow, but it's still being done, as I said, to spread "out the payments for cash flow purposes." Which means that the school is undercapitalized and therefore it is having financial trouble.

When everyone is on an onging, planned, late payment cycle it is a warning sign of possible financial failure, even if the underlying business is sound. This is especially true if there is no plan to get back on a regular payment schedule and in fact, the business could easily slip further behind. It could be a heavy debt burden and interest payments. It could be an owner sucking out too much money each month and stripping the business of needed working capital. In any case, it's a bad sign.
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