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Contract Problems & My Eikaiwa Boss Lied About Taxes

9 years ago
I work for a relatively new eikaiwa in Osaka, the owners of which are the ex-owners of GEOS, that big eikaiwa that went bankrupt in 2010 (which I didn't learn until after I was hired).

I have several problems that I need help with, but don't know where to go now that GaijinPot Forums are closed. So if anyone has any advice it will be warmly welcomed.

My first problem.
I signed a 2 year contract, which is filled with barely competent English, but at the start of my 3rd year, they never asked me to sign a new one. Written into my 2 year contract, from Feb. 2012-Feb 2014, word for word is

-The employee shall either proved the employer with written notice of termination (the "Notice of Termination) or a written request for an extension of the agreement (the "Extension Request") for an additional period of 2 years to commence after the expiration of the "Initial Term" (the "Second Term") at least four (4) months prior to the expiration of the Initial Term.

"Second Term" is never mentioned or explained anywhere in the contract.
"Initial Term" is only mentioned in earlier parts of the contract as the 3 month probationary period, which doesn't make sense, so I'm assuming is means the contract as a whole.

Since I've never signed anything despite going into my 3rd year, that means I am technically not under contract, correct? Which means I don't need to give 4 whole freaking months notice before quitting, correct? I want to get out of this school as quickly as possible, without the threat of any legal or financial problems.


My second problem and third problem are combined.

When I first started working here, I asked about paying taxes in Japan and for a slip of paper or something like a W-2 showing my income and such for the first year so as to file my taxes back in the US. I was told not to worry about my Japanese taxes, but I was also never given any papers and they seemed to have no clue what I was asking about when talking about income papers.

I did a little research on my own, and realized they were probably doing income withholding for taxes purposes, which, based on my research, means I didn't need to file anything with a tax office; they were doing it for me.

My base pay was 250000 yen each month, and I was also supposed to be getting paid 500 for each new student that signed up for my class and 300 yen for each student that renewed each month. I got my pay of 250000, but never the extra money, so I assumed (stupidly) that that was what was going towards my taxes.

Then this week, after I had been working here for almost 3 years, my boss came and told me that either

a)he hadn't been paying my taxes
or
b) he had been paying from company funds and [I]not[/I] withholding any money from my paycheck

I don't actually know which. He then said that now I would need to pay a years worth of taxes out of this months paycheck. Well, my husband is currently on sick leave, and we're living off of [I]my[/I] paycheck, so pulling almost $700 would be impossible. I told him not to bother and to pay me in full, and that I would go to the tax office myself.

When I asked him about the extra money, which I thought was going to my taxes, he said that since the school has been in the red for so long, they are unable to honor the contract and wont be paying me the extra money. Technically if I'm not under contract right now there is nothing I can do, but for the two years I [I]was[/I] under contract, I'd like my money...

And if he hasn't been paying my taxes for me, then that means I haven't payed Japanese taxes in over three years. I couldn't really understand whether he has been or not because he was trying his hardest not to claim any guilt while still explaining I would need to pay up. I'm hoping to go to the tax office on Monday with my Japanese husband to figure out what I need to do, but any advice from anyone else would be greatly appreciated.



The extra money clause is as follows:

(1) BASE SALARY
A base salary if 250,000 yen per month
During the probationary period (Initial term) A base salary is 200,000 yen per month.
(2) EXTRA PAYMENT
An extra payment, earned during the prior month, starting from the first date till the last date, base on calculation as JPY500 per fresh student and JPY 300 per renewal student every month, will be paid on the date of paying date of the posterior monthly salary.

William Russell
William Russell

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