The Supreme Court ruled Tuesday that major English school Nova Corp.’s method of settling early cancellations of its courses by using a higher unit price than when the contract was signed is illegal and violated the Specified Commercial Transaction Law.
The ruling followed a case brought by a 39-year-old man from Kita Ward, Tokyo, who tried to cancel a contract and demanded the company refund the 310,000 yen he said he was owed for classes he had not taken.
Presiding Justice Kohei Nasu ruled it is illegal to settle a contract by charging more for each unit taken than was agreed on when the contract was signed. He dismissed the appeal by Nova, and upheld and finalized the first and second rulings ordering the return of all the money demanded.
Eikaiwa
Top court: Nova’s refund tactic illegal
The Supreme Court on Tuesday rejected an appeal filed by Nova Corp., saying the refund system of the nation’s largest English conversation school is invalid and violates the specified commercial transaction law.
The decision finalized the rulings of two lower courts that ordered Nova to refund about 310,000 yen to a former student, the full amount he was seeking.
http://www.asahi.com/english/Herald-asahi/TKY200704040097.html
NOVA ordered to repay English tuition fees to man who cancelled contract
The top court on Tuesday dismissed an appeal by prominent English language school NOVA and ordered the group to return about 300,000 yen in prepaid tuition fees to a student who cancelled a contract.
NOVA’s tuition policy of selling classes on a point basis, with lessons becoming cheaper the more students buy, was at the center of the lawsuit.
The school had a policy of raising the price of lessons above the previously agreed fee should a student cancel a contract, thus reducing the amount it had to repay.
The Supreme Court ruled that NOVA should calculate the price of its classes on its initial rates.
The man, whose name is being withheld, paid 750,000 yen to NOVA in advance to buy points for 600 classes in 2001. The tuition fee per class was 1,200 yen.
He cancelled the contract in 2004 after finishing 386 classes. NOVA officials then said that the price of one class would come to 1,700 yen. The student claimed that NOVA should repay some 300,000 yen by calculating the price of the 386 classes at the rate set when he signed the contract.
The Supreme Court cited a law regulating commercial practices. The law provides that companies must not demand customers pay higher fees than previously agreed on if their clients cancel contracts midterm.
The National Consumer Affairs Center of Japan says it received some 7,600 complaints or inquiries about NOVA’s contract and cancellation policies from 1996 to March this year.
http://mdn.mainichi-msn.co.jp/national/news/20070403p2a00m0na018000c.html
Bigger is not always better for Japan’s English teachers
Different-sized schools pose varied challenges for foreign employees
While exact figures are unavailable, but it is fair to assume that a large number of foreigners who work in Japan will spend at least some of their time teaching in a language school.
But should you lose yourself in the facelessness of a large company, or take a job in what may be little more than a family-run operation where you are the only teacher?
The average salary for language teachers has dropped substantially in the past 10 years, mirroring the downturn in the Japanese economy. A quick scan of the classified ads in newspapers or on one of the many Internet recruitment sites now operating shows that there isn’t a huge variation in the salaries paid at large and small schools.
Full-time teachers can expect to earn between 240,000 yen and 280,000 yen, while part-timers will be looking at an hourly wage of between 2,000 yen and 4,000 yen yen. So if money isn’t the key, what is?
Louis Carlet, deputy general secretary of the National Union of General Workers, ys his organization receives around 600 complaints annually relating to conversation schools, divided equally between large and small companies.
Very few are about the level of pay. Instead, most of the problems are with job and income security, contracts, harassment and evaluations.
“The bigger conversation schools are generally better places to work in terms of job and income security,” says Carlet. So, although the wage levels might not differ between small and large schools, your chances of getting paid might.
The competition among smaller schools is even fiercer than between the big four, meaning they are more likely to have financial problems which may ultimately lead to them going out of business.
None of the teachers I spoke to for this article had ever not been paid, or had worked for a small company which had gone out of business. However bankruptcy is not the only potential pitfall of working in a small school.
One teacher lost her job when she was told it was no longer financially viable to keep her on. This is very unlikely to happen at one of the large language schools. Individual branches may close due to a lack of profitability, but the teachers will simply be transferred to another school rather than being made redundant.
Contracts are another source of dispute between teachers and employers. In most cases, teachers are given one-year contracts which may be renewed depending on the needs of the company and the teacher’s performance over the course of the year.
By doing this, schools are able to categorize teachers as temporary employees, regardless of how long they actually stay with the company. As a result, teachers don’t receive the benefits that they would be eligible for as permanent employees.
The companies claim that this is done because they can’t offer permanent contracts to employees who may only have one year visas, but both the NUGW and teachers feel that this isn’t the case.
In their view, these contracts make it easier for the company to get rid of people if there is a dispute, or if they simply become too expensive to keep on.
Carlet also suggests that the large schools are particularly adept at writing contracts which protect themselves. None of the four biggest schools operating in Japan — Nova, ECC, GEOS and Aeon — would provide comment for this article.
Despite the titles which some companies adopt — “language/culture school,” “academy,” “institute,” “college” — ultimately they are businesses whose main objective is to make a profit.
This is true regardless of the size of the company, the good intentions outlined in its mission statement or the proclamations of educational excellence on its Web site.
As one experienced TEFL professional wearily said, “most places . . . are run by businessmen not language administrators.” All the teachers interviewed for this article viewed the big schools in a similar light to other major companies in the service industry.
“Faceless” was probably the most commonly used adjective in their comments, and more than one person spoke of being little more than a cog in a machine. Given that a recent Japanese magazine article referred to Nova as “the McDonald’s of English language conversation chains,” this attitude is hardly surprising.
On the other hand, smaller schools were generally categorized as having something akin to a family or community atmosphere. One teacher with experience working in both types of school said: “In a small school you play a bigger role . . . You get more say in things like choosing textbooks, deciding what to teach. There are fewer students so you tend to know all of them.”
It would seem that small schools are more convivial places in which to work — you are appreciated, your opinion carries more weight and you have a much larger degree of control over what and how you teach.
But there is a downside. Teachers who worked in small schools often spoke of feeling under more pressure there than in big schools. If a tiny cog in a huge machine breaks down it’s unlikely the whole thing will come to a shuddering halt. That’s not the case when the teacher is the machine.
Another common sentiment was the difficulty in leaving work behind in a small school. Teachers spoke of receiving e-mails and telephone calls from their bosses at unsociable hours and on days off. This rarely happens at large schools unless you are in a management position.
Finally, the family/community atmosphere is great as long as it lasts, but of course that isn’t guaranteed. Disputes, whether professional or personal, can easily crop up in the language teaching industry and in the experience of the teachers I spoke to, these problems were much easier to deal with in large schools.
As one teacher said when talking about small schools, “It’s much harder when you’re working more closely with the person who’s causing you the problem.”
There are many good places to find English-language teaching work in Japan, but unfortunately they seem to be becoming fewer in number.
Louis Carlet says the best thing for teachers to do is to educate themselves as to the minimum standards a contract ought to offer, the limits on what companies can reasonably expect them to do and the legal recourse they have under Japanese law. This is true regardless of the size of the company.
Students at ‘McEnglish’ schools taste the spit in the burger
“We’re supposed to have 10 minutes between classes, but get none. We’re not allowed to talk to students away from the classroom. We have to move around our building via the emergency exit stairwell,” one former English teacher tells Weekly Playboy. “The pay is 250,000 yen a month. At first I thought it wasn’t bad, but we don’t get a raise or a bonus or paid vacation. There’s a teacher turnover of about 90 percent a year.”
http://mdn.mainichi-msn.co.jp/waiwai/news/20070227p2g00m0dm005000c.html
Nova searched in contract row
Offices of English-conversation school operator Nova were searched over allegations the company was cheating students who canceled their lesson contracts, sources said. The searches at Nova’s head office in Osaka and some of its schools were conducted by the Ministry of Economy, Trade and Industry and the Tokyo metropolitan government, the sources said Thursday.Nova is suspected of refusing to refund a reasonable amount to students and deceiving them about the cancellation process.
http://www.asahi.com/english/Herald-asahi/TKY200702170164.html
Nova probed over refunds, deception
Big English school faces sales ban
Government authorities have rapped the knuckles of private English school chain Nova Corp. for allegedly shortchanging students on refunds and providing false accounts of its cancellation policy.
The Ministry of Economy, Trade and Industry and the Tokyo Metropolitan Government inspected Nova’s headquarters in Osaka and several schools Wednesday. The company may get a directive forbidding it from enrolling new students if clear evidence of legal violations is found in further investigations, officials said Friday.
According to the officials, several Nova schools failed to give full refunds to students who canceled their remaining lessons after paying in advance.
Other clients have complained that Nova refused to accept their unconditional cancellation, claiming the cooling-off period had expired.
By law, clients of private language schools have an eight-day cooling-off period, during which they are entitled to a full refund if they cancel their contract.
But Nova claimed the cooling-off periods began on the days the applicants registered their names and addresses, and not when they actually signed the contract.
Economy, Trade and Industry Minister Akira Amari said at a press conference Friday, “I think there are problems (with Nova) because the number of reported cases of trouble and complaints exceeded 1,000 cases in fiscal 2005 alone.”
A Nova spokesman at its head office in Osaka said the company was not engaged in any unlawful activities.
“How we calculate the refund in case of a cancellation is spelled out in our brochure. We are doing business according to rules,” the spokesman claimed.
Founded in 1981, Nova has grown rapidly since the 1990s by charging less for lessons than other English schools, and opening outlets in convenient locations, often near railway stations.
The company was listed in 1996 on the Jasdaq Securities Exchange for startups and now boasts the largest number of students in the industry, with about 480,000 as of September 2005.
NOVA raided after complaints over missing tuition fees
This is not the first time the eikaiwa giant has been pulled up for dishonest business practices. A court ruled against NOVA in a lawsuit filed by a student seeking the return of 700,000 yen in lesson fees in May 2003, and the National Consumer Affairs Center of Japan said that it has received 7,750 complaints and inquiries about the compant since 1996.
http://mdn.mainichi-msn.co.jp/national/news/20070216p2a00m0na017000c.html
Nova offices searched over contract disputes
Nova is suspected of refusing to refund the correct amount to students and lying to them about the cancellation process, sources said.If Nova is found to have violated the law on certain business transactions, the industry ministry could impose disciplinary measures, including a temporary ban on collecting new students, they added.
A public relations official at Nova acknowledged the offices were inspected by the ministry.
http://www.asahi.com/english/Herald-asahi/TKY200702160266.html
English school chain operator Nova inspected over class cancellation trouble
Private English school chain operator Nova Corp has been inspected by government authorities for allegedly requiring high cancellation costs from students and having provided them with false accounts on its cancellation policy, government officials said Friday.
Several schools of the chain featuring outlets located near railway stations have refunded canceling students the remaining value from their lesson fees paid in advance in smaller amounts than expected, the officials said.
Headquartered in Osaka, the leading English school business in Japan has also caused trouble with their clients by refusing unconditional cancellations with the argument that the cooling-off period had expired.
The law governing businesses offering private language courses ban the firms from providing false or insufficient accounts of their services and require them to accept cancellation unconditionally during an eight-day cooling-off period.
But Nova claimed that the cooling-off periods for the clients concerned were over as they had begun on the days the applicants registered their names and addresses with it.
In refunding for midterm cancellation, the Nova schools in question used a payment structure different from the one applied for the students’ enrollment, according to the officials.
The Ministry of Economy, Trade and Industry and the Tokyo metropolitan government have jointly conducted an on-site inspection and will slap an administrative sanction on Nova after confirming evidence of its violation of the law, they said.
Economy, Trade and Industry Minister Akira Amari said at a press conference Friday, “I think there are problems as the number of reported cases of trouble and complaints with Nova is outstanding.”
The authorities are questioning people involved and analyzing results of their inspection with an eye toward actions against the firm including that of ordering Nova to suspend activities to solicit new subscribers, the officials said.
The company has responded to the government probe that it was engaged in no wrongdoing, they said.
Founded in 1981, Nova has grown rapidly since the 1990s by selling its lesson fees cheaper than other English schools as well as accessible locations of its outlets.
It was listed in 1996 on the Jasdaq Securities Exchange for start-ups and now boasts to be the largest player in the industry with about 480,000 students as of September 2005.