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thatgirl1985
Joined: 23 Feb 2010
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Posted: Fri Oct 29, 2010 2:01 pm Post subject: How to get full severance pay? |
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Hi everyone,
I'm six months into my contract at my hagwon. From reading about the labor laws, I've realized that my signed contract specifies only a 2 million severance payment at the completion of my contract. Problem is my salary per month is 2.7 million.
Check out my contract and how it makes things seems like "bonuses!" More like BOGUS!
a. The Employer agrees to pay the Employee a monthly salary of 2,000,000 won paid in Korean currency.
b. The Employer agrees to pay the Employee an amount of 300,000 won per month in recognition of the teacher�s certificate held by the Employee.
c. The Employer agrees to pay the Employee an amount of 200,000 won per month in recognition of the Employee�s work experience.
d. The Employer agrees to pay the Employee an amount of 200,000 won per month in recognition of the recruiter�s recommendation.
h. The Severance pay (Bonus) is 2,000,000 won will be issued upon completion of this contract.
Is there any way I can receive my full severance pay of 2.7 million instead of 2 million? Should I bring up this discrepancy to my boss?
I know for a fact that all the teachers that have left before me have left with a 2 million severance pay-out from the boss.
Last edited by thatgirl1985 on Sat Oct 30, 2010 1:21 am; edited 1 time in total |
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ChocolateStarfish
Joined: 08 Jan 2009
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Posted: Fri Oct 29, 2010 2:55 pm Post subject: |
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You signed a contract that said you will recieve 2 million in severance pay.
Nuff said. |
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thatgirl1985
Joined: 23 Feb 2010
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Posted: Fri Oct 29, 2010 3:23 pm Post subject: |
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But don't the Labor laws state that the severance pay must be equal to the average of the last three months of wages? |
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northway
Joined: 05 Jul 2010
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Posted: Fri Oct 29, 2010 3:36 pm Post subject: |
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ChocolateStarfish wrote: |
You signed a contract that said you will recieve 2 million in severance pay.
Nuff said. |
I signed a contract that specifically says I'll get one month's pay as severance after five months. Does that mean they have to give it to me? |
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Carla
Joined: 21 Nov 2008
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Posted: Fri Oct 29, 2010 4:49 pm Post subject: |
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The way your contract is set, your salary is 2 mil and the other 7 is bonus. It's like if you get a housing allowance in your paycheck, you won't get that as part of your severance.
I'm not sure if you went to the labor board what would happen, sorry I could be more helpful. |
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Sector7G
Joined: 24 May 2008
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Posted: Fri Oct 29, 2010 6:06 pm Post subject: |
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Carla wrote: |
The way your contract is set, your salary is 2 mil and the other 7 is bonus. It's like if you get a housing allowance in your paycheck, you won't get that as part of your severance.
I'm not sure if you went to the labor board what would happen, sorry I could be more helpful. |
This is correct. Your salary is technically 2 mil and that is what your severance/bonus is based on.
The 2.7 mil that you are getting each month is not bad though, I must say. Cheers! |
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lifeinkorea
Joined: 24 Jan 2009 Location: somewhere in China
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Posted: Fri Oct 29, 2010 6:26 pm Post subject: |
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Quote: |
The Employer agrees to pay the Employee an amount of 200,000 won per month in recognition of the recruiter�s recommendation. |
Nice, I wonder how often that happens. First for me to see that. |
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DosEquisXX
Joined: 04 Nov 2009
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Posted: Fri Oct 29, 2010 6:45 pm Post subject: |
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Carla wrote: |
The way your contract is set, your salary is 2 mil and the other 7 is bonus. It's like if you get a housing allowance in your paycheck, you won't get that as part of your severance.
I'm not sure if you went to the labor board what would happen, sorry I could be more helpful. |
They would probably side with the academy.
Severance is equal to one month's pay, not one month's pay + bonuses. |
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lifeinkorea
Joined: 24 Jan 2009 Location: somewhere in China
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Posted: Fri Oct 29, 2010 8:40 pm Post subject: |
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Quote: |
Severance is equal to one month's pay, not one month's pay + bonuses. |
I read a few posts before stating it's the average of the last 3 months pay (I would infer this means pay not agreed salary amount). If this still holds true the original poster may have a case on this technicality.
Also, why should certain qualifications be used to disqualify a person? |
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CentralCali
Joined: 17 May 2007
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Posted: Fri Oct 29, 2010 11:35 pm Post subject: |
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Those "recognition bonuses" aren't bonuses. They're salary based on his qualifications. Nice wording on the contract though. What other dishonest crud has that outfit been up to, OP? |
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Troglodyte

Joined: 06 Dec 2009
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Posted: Sat Oct 30, 2010 3:43 am Post subject: |
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I would NOT bring it up with the boss right now. If you really want to discuss it, do it in your last month. Doing so now, will likely cause a bad situation for you over the next half year. It might also get you fired for some made up reason.
If you were making a regular 2.2 million, it might be worth losing a job over, but for 2.7 million, I'd stick it out until the end and THEN ask. If you want to go to the labor board, do that AFTER you finish your work there. Otherwise, you're likely to get fired. |
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louiloui
Joined: 14 Oct 2008
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Posted: Sat Oct 30, 2010 3:58 am Post subject: |
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Sounds similar to the Poly School contract. |
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thatgirl1985
Joined: 23 Feb 2010
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Posted: Sat Oct 30, 2010 4:20 am Post subject: |
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I know not bring it up now. If they are in the wrong, it would mean A LOT of folks have gotten shortchanged! And no, I don't work at Poly. I'm an "international school." The quotes are meant for sarcasm. We're not REALLY an international school. No returnees here.
I will stay mum and will probably not do anything at all. I've learned a good lesson to avoid the hagwons. If I come back, I will probably go to a public school or an actual returnee international school.
To be honest, I am lucky to be making this much. I know our new teachers are being paid about 300k less. OUCH. |
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buster brown
Joined: 26 Aug 2005 Location: Seoul
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Posted: Sat Oct 30, 2010 5:51 am Post subject: |
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Here is what you have to support you when you go to the Labor Board to get your severance pay.
Quoted from the Labor Standards Act
Article 18 (Definition of Wages)
The term "wages" in this Act means wages, salary, and any other payment to a worker from an employer as remuneration for work, regardless of the designation by which such payment is called.
Article 19 (Definition of Average Wages)
(1)The term "average wages" in this Act means the amount calculated by dividing the total amount of wages paid to the relevant worker during three calender months prior to the date on which the event necessitating such calculation occurred by the total number of calender days during those three calender months. This shall also apply mutatis mutandis to the employment of less than three months.
(2)If the amount calculated pursuant to the provisions of paragraph (1) is lower than the ordinary wages of the worker concerned, the amount of the ordinary wages shall be deemed the average wages.
Article 34 (Retirement Allowances System)
(1)An employer shall establish a retirement allowance system whereby an average wage of more than 30 days shall be paid for each year of consecutive years employed as a retirement allowance to a retired worker; however, if the worker was employed for less than one year, this shall not apply.
So...even though your employer is clever enough to write the contract in a way to be confusing, they are still required to pay you severance according to the Labor Standards Act. Good luck and let us know how the process works out for you. |
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Sector7G
Joined: 24 May 2008
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Posted: Sat Oct 30, 2010 7:20 am Post subject: |
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buster brown wrote: |
Quoted from the Labor Standards Act
Article 18 (Definition of Wages)
The term "wages" in this Act means wages, salary, and any other payment to a worker from an employer as remuneration for work, regardless of the designation by which such payment is called.
So...even though your employer is clever enough to write the contract in a way to be confusing, they are still required to pay you severance according to the Labor Standards Act. Good luck and let us know how the process works out for you. |
Until I read this, I did not think the OP had a leg to stand on because of a) the contract wording, and b) because she signed it.
Still, you know the old saying about picking your battles. If you did decide to pursue this one, I would wait until both last paycheck and severance were already in hand, as others have already said.
BTW, in my second year in Korea I left the public school system to work for a hagwon that was also dangling a 2.7 salary in front of my eyes(eyes with money signs in them). While I can't really accuse them of being unfair, they certainly did get their money's worth out of me, including 30 class hours a week, and only 2 weeks of vacation instead of the 4 I had gotten with the PS(not to mention all of the other unexpected holidays I got throughout the year). I would have gladly given up the extra 500,000 a month to have my old PS job back.
Moral of the story - salary is not the only thing to consider in a contract! |
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