Korean Job Discussion Forums

huck · Joined: 19 Jan 2003

My school took 200,000 won from each of our first 3 paychecks as a deposit in case we skipped out on bills or did a runner. I didn't like it very much, but I understand where they're coming from.

The problem now is that teachers who are finishing up their contracts are discovering that we won't be reimbursed the 600,000 won for 2-3 months after our contract is finished. I finish in little over a month, and I was actually planning on spending that money on something.

Is this normal for other schools? We've tried discussing it and explaining how we can call the companies and get all of our bills on the last day, but they said no....Any other ideas for getting this money back before March?

Hater Depot · Joined: 29 Mar 2005

I got my money back from a public school, minus 200,000 to pay bills I'd left behind. But they want you to wait 2 - 3 months? Shady.

Kimchi Cha Cha · Joined: 15 May 2003 Location: was Suncheon, now Brisbane

My first hagwon had a similar system where they paid for your airfare but over the first three months of your contract they'd remove from your pay the amount of money equivalent to your airfare and then fully reimburse you of your airfare once you completed your contract. Myself, and all the others, didn't particularly like the idea and it did leave us pretty short on cash when we need it the most - when we had just arrived - but, thankfully, we all were fully reimbursed in the end. I was pretty naive back then and just went with the flow, not suspecting that what they were doing may in fact be illegal under Korean law.

But, I'm pretty certain, and maybe someone else can back this up, that demanding deposits or taking any pay (besides taxes, health insurance, etc.) from the agreed upon basic salary is actually illegal under Korean law. It might be a good idea to check out www.efl-law.com to try to find out for sure.

But, if it is actually illegal to withhold any money from the contracted employee, your school with have no legs to stand on and I suggest - if it actually is illegal - that you let your school know that it is and that you're not willing to leave without your deposit returned in full. I'm pretty confident that you should get your money off them once they realise that you know it is actually illegal to withhold money off employees.

Ekuboko · Joined: 22 Dec 2004 Location: ex-Gyeonggi

Call the Labour Board on 1350# and then 7 for English-speaking help.

joe_doufu · Joined: 09 May 2005 Location: Elsewhere

Well obviously if it's in the contract it's legal.
But... does the contract state that they have to repay it upon completion of the contract? If so, then they do. My contract states "the employer will hold the full amount of the deposit until all outstanding monthly service, utility, and telephone charges have been paid" and later says "The employer agrees that payment of remaining amount of the deposit will be made to the employee within 60 days of the end of the contract period by international bank transfer".

plato's republic · Joined: 07 Dec 2004 Location: Ancient Greece

HaHaHa..good luck getting that one back Joe when your out of the country Laughing

Just because something is written on a contract doesn't mean it's legal. Most Korean bosses don't give a s.hit about what's written in a contract and they don't always follow them strictly. To the OP, I'd get on their case if I were you about getting your deposit back before you leave.

joe_doufu · Joined: 09 May 2005 Location: Elsewhere

Homer · Guest

denverdeath · Joined: 21 May 2005 Location: Boo-sahn

Sounds very similar to the big "P," or Pagoda. If so, they are good for it, regardless of the other crap you have to deal with from them.

Grotto · Joined: 21 Mar 2004

Joe wrote

Dispatched · Joined: 08 May 2004

joe_doufu · Joined: 09 May 2005 Location: Elsewhere

Grotto · Joined: 21 Mar 2004

Joe....the labour board is quite clear on this. They can ask for the money but they cannot deduct it from your cheque.

Its forced as you do not recieve the money that you are entitled to.

Pay 2.2...pension, tax, health care deductions =7.5%
Thats it...thats all that they are legally allowed to deduct from your cheque.

When they add on another 5% deduction...thats illegal.

If they want the money they should ask you for it....not take it from you. If they ask for it...and you give it to them then fine and dandy. If they illegaly steal it from you...then problem.

Also this crap of...we will give it back to you 2-3 months after your contract is over is bullcrap with a capital B.

To avoid this illegal clause simply request that the employee produce reciepts for his monthly bills....then the deposit is not required...bills are paid...everyone is happy. Do a walkthrough the apartment a week before they leave to ensure that it is in decent condition and no problems.

joe_doufu · Joined: 09 May 2005 Location: Elsewhere

Big Mac · Joined: 17 Sep 2005

Joe, listen to Grotto....he knows what he's talking about. He probably knows Korean ESL contract law better than anyone out there. He's never steered me wrong. If it wasn't for Grotto, I wouldn't have known about a lot of things my boss was screwing me out of. Cheers Grotto!