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schmoove
Joined: 31 Oct 2008
Location: Seoul
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 Posted: Thu Oct 20, 2011 3:07 am Post subject: Breaking contract early - now must pay 1 mil recruiter's fee |
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Hi,
I have given my notice to my current hagwon and resigned.
I started working there in July.
My boss and I are on very good terms, it's just that she takes too long to get things like pension and health insurance organised. Also I am not a great fit with their curriculum.
Here is the relevant clause in my contract that I signed:
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3. In any case of dismissal or voluntary resignation, the Employer will not provide a return ticket and will not give the severance pay. In addition, if the Employee voluntarily terminates he/she will have to reimburse to the Employer the initial airfare and other expenses that the Employer has incurred in the process of hiring of the Employee, such as recruiter�s fee, housing utilities deposit and other expenses (if applicable). |
The recruiter's fee is 1,000,000 won.
Is there any form of labour law that makes this part of my contract null and void?
Obviously I don't want to pay that if it can be helped.
Please don't advise me to do a runner, as I'm not that sort of person, and my boss is a good person, just disorganised.
Thanks for reading, and for any replies that are offered.
Edit for clarification:
Just to clear up for those below who have joined the dots without enough information present; my boss has not broken any laws (as far as I am aware).
90 days are allowed by immigration to register for the ARC.
I kept asking her about medical/ARC/NHIC health insurance/NPS pension, but she didn't act quickly enough for my liking.
The medical was done about 50 days after starting work.
The trip to the immigration office was done about 80 days after starting work.
She told me she can't register me for insurance and pension until the ARC number comes through.
I gave notice on Monday. She said she would go to immigration the next day.
She went to immigration on Tuesday and collected the card. Immigration didn't send it out, and she didn't chase it up. They had previously told her to follow up by a certain date, which she didn't do.
She contacted NHIC insurance today, after I asked her twice, and she tells me I am now registered, so I will wait for the little insurance booklet.
So just to confirm, my boss has not broken any laws (as far as I am aware).
UPDATE:
I contacted the Korean Labor Board today.
Labor Law Counselling for Foreign Workers
Ph: 031 345 5000
http://www.moel.go.kr/english/about/contact_us.jsp
They stated that Korean labor law is the following in this situation:
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| Your wage is protected. They cannot deduct the recruiter's fee from your wage without your consent. If they do so without your consent, you are entitled to file a claim with the Labor board. |
They also said:
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| The contract you signed is a legal contract between you and the school. It is a matter of civil law. If you do not pay back the recruiter's fee to the school, then that is against the contract that you signed and so they could take civil action against you. |
Last edited by schmoove on Fri Oct 21, 2011 2:03 am; edited 2 times in total |
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jamesd
Joined: 15 Aug 2011
Location: Korea
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| Posted: Thu Oct 20, 2011 3:11 am Post subject: |
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| It's called pre-determined penalty in employment contract. It is illegal. |
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Koharski
Mod Team
Joined: 20 Jul 2009
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| Posted: Thu Oct 20, 2011 3:25 am Post subject: |
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To my knowledge, a pre-determined penalty must be a set amount (such as $1000 or half a month salary). Since it just names the potential penalties (costs incurred by the school) and does not place a value on them, I believe this is legal. However, the Labor Board would be your best bet for the answer to this question.
Koharski |
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morningsoju
Joined: 20 Aug 2011
Location: Seoul, Korea
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| Posted: Thu Oct 20, 2011 3:54 pm Post subject: |
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these contracts are made to favor the school, so you have to check it carefully BEFORE you sign. IMHO, i think the labor board will favor the school on this one  |
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koreatimes
Joined: 07 Jun 2011
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| Posted: Thu Oct 20, 2011 4:09 pm Post subject: |
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| Please don't advise me to do a runner, as I'm not that sort of person, and my boss is a good person, just disorganised. |
If you are fully convinced he is a good person, pay the fee and move on. If you aren't, get your last pay and leave. I don't know what "sort of person" means, but 6 months would be the technical period of time. So, you want to leave now?
Let's look at the numbers.
July 15 to October 15 (ball park estimates) is 3 months. You should just pay him 1/2 then, 500. This is a fair compromise I feel. If he doesn't accept that, then he isn't a "good person", and I wouldn't care what "sort of person" he thinks I was for leaving a job after pay day and after I came to him to sort out his problems. |
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hogwonguy1979
Joined: 22 Dec 2003
Location: the racoon den
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| Posted: Thu Oct 20, 2011 5:30 pm Post subject: |
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a "good" person wouldn't be screwing you out of pension and health insurance while you were working there, they know the laws about that
tell them they broke the labor laws regarding that and that they can take the recruiters fee and stick where the sun dont shine |
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CentralCali
Joined: 17 May 2007
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| Posted: Thu Oct 20, 2011 5:47 pm Post subject: |
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OP: You may be on good terms with your boss; however, it's quite evident from the outset your boss was never on good terms with you. On the other hand, she's seems to be on quite cordial terms with money. It's not a lack of organizational ability preventing the national health, pension, and tax issues; it's intentional. It's always intentional.
Don Koharski: I'm sure you meant the penalty is illegal, not legal.
hagwonguy1979: Exactly!
koreatimes: Are you a hagweon owner, recruiter, or Korean employee? "That sort of person" has an obvious meaning to anyone proficient in English. In addition, so much of your so-called advice here tends to favor the hagweon owner regardless of the legal issues involved. |
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The Floating World
Joined: 01 Oct 2011
Location: Here
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| Posted: Thu Oct 20, 2011 5:49 pm Post subject: |
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| Had that clause written in my latest contract also but had it removed before signing it. |
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Koharski
Mod Team
Joined: 20 Jul 2009
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| Posted: Thu Oct 20, 2011 5:52 pm Post subject: |
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Incorrect, CentralCali. My post reflects my intended meaning.
To my knowledge, the contract may state what loses can be recovered, it cannot place a value on those loses in advance. For example, a contract can say that you must pay back a recruiter's fee, it cannot say you must pay back $1000 for the recruiter's fee. The loses cannot be pre-determined with a monetary value.
Again, this is based on my knowledge of the law and is not concrete. I would contact the Labor Board for a more concrete definition of the law.
Koharski |
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WadRUG'naDoo
Joined: 15 Jun 2010
Location: Shanghai
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| Posted: Thu Oct 20, 2011 5:56 pm Post subject: |
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| Yeah, yeah, yeah, do the hagwon shuffle. |
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koreatimes
Joined: 07 Jun 2011
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| Posted: Thu Oct 20, 2011 6:13 pm Post subject: |
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| "That sort of person" has an obvious meaning to anyone proficient in English. |
I am a native English speaker, and I teach English. No, I don't see it as obvious.
Let me explain. If someone said, "If you are the sort of person who goes drinking and drives home, then I don't want to be in the car." I understand what "sort of person" means because I can see the context.
In this situation, I don't see a context to put "sort of person" in. The sentence wasn't finished. "Please don't advise me to do a runner, as I'm not that sort of person" was the sentence, but it didn't state in what situation they wouldn't do a runner in. It simply gives me the impression they would never do a runner.
So, I don't understand why they need to use the word "sort" or the expression "sort of person" if they aren't going to give us context. I hope I have explained this clearly for you. |
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cj1976
Joined: 26 Oct 2005
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| Posted: Thu Oct 20, 2011 6:58 pm Post subject: |
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| I had a nightmare hagwon job that I quit after 4 months. I was desperate to move on and get a PS job, that I let the boss take his recruiter fee and airfare, rent deposit etc. I figured it would be esier just to cut my losses and put it behind me. |
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Skippy
Joined: 18 Jan 2003
Location: Daejeon
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| Posted: Thu Oct 20, 2011 7:19 pm Post subject: |
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| What I always consider fair is pro rata. SO if you worked 4 months. Then you own 8/12 or 2/3 or the recruiters fee. Same with plane tickets and other things. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Oct 20, 2011 7:28 pm Post subject: |
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| Skippy wrote: |
| What I always consider fair is pro rata. SO if you worked 4 months. Then you own 8/12 or 2/3 or the recruiters fee. Same with plane tickets and other things. |
I can see the logic with plane tickets because those are part of your salary/perks.
But the recruiter fee is not. That is between two people, the director and recruiter.
Furthermore unless you were physically there and saw money change hands...you have no idea of what was really paid for you. Let's say the director paid 700,000 but claimed it was 1.4 million and that you have worked there six months. So you agree to say pay half. So you not only end up paying more than twice as much as you should, but he also recoups his entire loss as far as the recruiter fee goes.
No. The recruiter fee should be a cost of doing business. And the employer should have some sort of agreement with the recruiter beforehand...he has to supply another teacher at a reduced or no cost...depending on how long the former teacher was there.
Never sign a contract with this clause in it...you are opening the door to possible fraud/extortion. |
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schmoove
Joined: 31 Oct 2008
Location: Seoul
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| Posted: Fri Oct 21, 2011 1:45 am Post subject: |
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Hello all,
I'm the original poster. Thanks for all the replies.
I contacted the Korean Labor Board today.
Labor Law Counselling for Foreign Workers
Ph: 031 345 5000
http://www.moel.go.kr/english/about/contact_us.jsp
They stated that Korean labor law is the following in this situation:
| Quote: |
| Your wage is protected. They cannot deduct the recruiter's fee from your wage without your consent. If they do so without your consent, you are entitled to file a claim with the Labor board. |
They also said:
| Quote: |
| The contract you signed is a legal contract between you and the school. It is a matter of civil law. If you do not pay back the recruiter's fee to the school, then that is against the contract that you signed and so they could take civil action against you. |
Thanks again all those who read and posted.
I will update the original post with this information.
Further opinions/advice/insults/bon mottes are welcome! ^-^ |
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