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penalty clause - fine for breaking contract before it starts

 
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thetawnyman



Joined: 25 Sep 2014

PostPosted: Wed Apr 15, 2015 6:17 pm    Post subject: penalty clause - fine for breaking contract before it starts Reply with quote

My school has recently added a clause to its new contracts, saying that if you change your mind and break the contract within two months of the start date, the school will expect you to pay a fine of several million won. (The contracts are typically signed several months before the start date.)

Has anyone encountered a clause like this before? Just curious as to how common a practice this is.
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Underwaterbob



Joined: 08 Jan 2005
Location: In Cognito

PostPosted: Wed Apr 15, 2015 6:22 pm    Post subject: Reply with quote

I haven't seen it before, but it seems completely reasonable to me.
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Drew345



Joined: 24 May 2005

PostPosted: Wed Apr 15, 2015 6:39 pm    Post subject: Reply with quote

My school has the same penalty in the contract. It is even more money and lasts the whole length of the contract.
Personally I think a school should try to retain teachers through fair working conditions, pay, and hours rather than penalties and punishments. Unfortunately, there will be 10 teachers ready to sign for any one that passes on it.
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thetawnyman



Joined: 25 Sep 2014

PostPosted: Wed Apr 15, 2015 7:10 pm    Post subject: Reply with quote

Sorry, I should have clarified "within two months of the start date." They mean two months BEFORE the contract starts. If you decide to quit during the contract you have to give 2 months' notice, but there's no fine.

I've worked at places that have penalties for leaving without giving proper notice, but I've never worked anywhere that penalizes people for leaving before the contract even starts.
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thrylos



Joined: 10 Jun 2008

PostPosted: Wed Apr 15, 2015 10:22 pm    Post subject: Reply with quote

How the f(%( is that even ENFORCEABLE? Is this for a renewal, or a first contract?

If it's a renewal, I would personally wait until the last possible minute to sign it, assuming that's what you want and haven't received a better offer.

There's no way they can enforce it if you're not in-country and already tied to their desk.
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nicwr2002



Joined: 17 Aug 2011

PostPosted: Wed Apr 15, 2015 11:34 pm    Post subject: Reply with quote

I highly doubt that it is enforceable because the law allows you to quit without any notice.
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Bongotruck



Joined: 19 Mar 2015

PostPosted: Thu Apr 16, 2015 12:16 am    Post subject: Reply with quote

Any penalty clause is unenforceable.

The law says, if someone does the work, they must be paid.
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tob55



Joined: 29 Apr 2007

PostPosted: Thu Apr 16, 2015 2:10 am    Post subject: Reply with quote

Purely scare tactics. There is no law that supports what these people are writing in as a 'clause.' Bottom line is this: anything the potential employee wants to do before the start date of the contract, EVEN IF IT HAS BEEN SIGNED, is alright because the contract is not legally binding in any way before the start date of the contract. Your wages for the contract start on a certain date, therefore, your binding contract begins on the date the contract actually begins and you are being paid wages for the job. Poor work places have taken to doing what they think they can just because no one has bothered to contact the labor board and report them. Shady and slimy employers are pulling this kind of crap all the time.

If what the employer is trying to do in this case were true, I would want a bunch of people to sign up to work for me and do nothing but wait for them to leave, then charge them the bribery fees they are talking about. What a load of hooey.
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ttompatz



Joined: 05 Sep 2005
Location: Kwangju, South Korea

PostPosted: Thu Apr 16, 2015 3:28 am    Post subject: Reply with quote

Fines and penalty clauses are illegal (labor standards act).

In Korea, under an Employment Contract the employee cannot be held responsible or liable for non-performance of the contract.

Additionally, under the same act, predetermined penalties for non compliance of an employment contract are specifically forbidden.

They would lose at a labor tribunal but the problem is that they have your money (illegal deductions from your salary) and you have to fight to get it back.

Best to just avoid employers who think such clauses are necessary in their employment contracts.

.
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Skippy



Joined: 18 Jan 2003
Location: Daejeon

PostPosted: Thu Apr 16, 2015 3:42 am    Post subject: Reply with quote

Drew345 wrote:
My school has the same penalty in the contract. It is even more money and lasts the whole length of the contract.
Personally I think a school should try to retain teachers through fair working conditions, pay, and hours rather than penalties and punishments. Unfortunately, there will be 10 teachers ready to sign for any one that passes on it.


I started smirking at this. Then I started crying. You are so right. There will be people that sign this.
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wooden nickels



Joined: 23 May 2010

PostPosted: Thu Apr 16, 2015 3:48 am    Post subject: Reply with quote

Underwaterbob wrote:
I haven't seen it before, but it seems completely reasonable to me.


It may seem reasonable to you, but it isn't, in fact it is illegal.
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thetawnyman



Joined: 25 Sep 2014

PostPosted: Mon Apr 20, 2015 4:11 pm    Post subject: Reply with quote

ttompatz wrote:
Fines and penalty clauses are illegal (labor standards act).

.

Thanks for this.
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Underwaterbob



Joined: 08 Jan 2005
Location: In Cognito

PostPosted: Mon Apr 20, 2015 5:25 pm    Post subject: Reply with quote

wooden nickels wrote:
Underwaterbob wrote:
I haven't seen it before, but it seems completely reasonable to me.


It may seem reasonable to you, but it isn't, in fact it is illegal.


I thought it was reasonable before I knew it was a fine for "breaking" the contract before it even started. The OP had yet to clarify when I made that post.
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