Expat Teacher’s Legal Victory: A Cautionary Tale About the Pitfalls of Working With Unscrupulous Agencies

This case serves as a good lesson to why you should avoid agencies at all costs. I wouldn’t say that all agencies are terrible, but most horror stories I have heard include an agency that has treated their employees very poorly

This case underscores a critical lesson on the risks of working with agencies. It’s not that all agencies are inherently bad, but many distressing experiences reported to me involve an agency mistreating its staff.

 

In this article, we spotlight Sefrah, the American teacher pictured on the left, who sought our help in September. She began her stint with the agency in April 2022. Come July, however, the agency’s payment practices became problematic—paying late, not paying the full amount, or outright failing to make complete salary payments.

 

Such payment issues are dire, as everyone has rent and utilities to pay. Failure to do so could result in eviction from your residence.

 

When Sefrah reached out to us in mid-September, we were already litigating three cases against this agency. Consequently, we recommended contract termination due to the unpaid wages. The woman on the right in the photo is another former employee who engaged our services to escape this unscrupulous agency.

 

Sefrah accepted our strategy, and we promptly began working on her case. We drafted a termination letter in Chinese, which she sent to the agency right after the National Holidays—a period when the courts would be closed anyway.

 

Three weeks after formally filing the case, we secured a hearing date. The agency, recognizing their untenable legal position and wrongdoing, was amenable to a settlement.

 

Sefrah had her work permit canceled swiftly after the trial and received her release letter immediately. She obtained her cancellation letter shortly thereafter and is now happily employed at a reputable school in Shenzhen.

In a forthcoming piece, I’ll delve deeper into the perils of working with agencies, especially during the COVID era when expats had only 30 days (the limit of their stay permit) to find new employment in China or leave the country, leaving them with few choices other than agencies. It’s important to note that as long as you’re engaged in a legal dispute, you can obtain successive stay permits until the lawsuit concludes. We secured multiple stay permits for another client until her case was won and her work permit was canceled—this experience I will share in future articles.

 

Agencies often operate on a buy-low, sell-high model. For instance, they might receive 30,000 RMB from public schools but only pay you 25,000 RMB, pocketing 5,000 RMB monthly for minimal effort.

 

This should signal to you that you’re a revenue source for these agencies, and they will try to extract every possible penny from you. We’ve encountered agencies fabricating reasons to deduct from teachers’ salaries—nonexistent parental complaints, unauthorized Starbucks visits, or fictitious government taxes, among others. These deductions could range from a few thousand to tens of thousands, occurring monthly.

 

One notorious agency in Hangzhou deceitfully promises work in the city but upon arrival, transports employees three hours away to work in a rural area or different city. One teacher recounted to me his isolation in a small town devoid of other expatriates, Western amenities, and English speakers—save for the children he taught.

 

During the COVID era, there were cases where agencies didn’t pay the teachers at all, even after receiving funds from the schools. The schools were unaware until legal action brought the issue to light, culminating in a courtroom revelation.

 

My firm advice to expatriates is to avoid agencies at all costs. If you’re uncertain whether a potential employer is an agency, feel free to contact us for assistance. We’ve encountered enough agencies to recognize one immediately. Furthermore, it’s prudent to have a lawyer review your contract before signing, as it may contain pitfalls like “breach penalty” clauses or discrepancies between the Chinese and English versions that pose significant legal risks.