Will Wall Street English Do Right By Its Students and Teachers?

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Between the pandemic and China’s continued reforms of its private tutoring industry, some of the companies that once seemed too big to fail have all but crumbled under the weight of mounting pressures. In June of last year, Disney English called it quits, followed by VIP Kid announcing an end to foreign-based tutoring in China and, most recently, the news that Wall Street English (WSE) filed for bankruptcy and abruptly closed its doors, leaving educators, students, and families out in the cold.

A former WSE instructor who wishes to be identified as Grey told us she hasn’t been paid for four months, explaining that each month “we get an email saying why we can’t pay you or this salary has been delayed.” She goes on to say, “A few of us joked in our WSE WeChat group last month that if we don’t get paid soon we will have to become waimai deliverymen in between classes because we don’t have any money.”

The notice translates to: Dear Customer: Wall Street English Shimao store is closed. If you have unused courses, please consult with WSE as soon as possible.

Likewise, former student Judy Zhao says the company has halted all classes and she’s been unable to get any response to her requests for a refund.

“My Course Consultant has resigned since a half year ago,” says Zhao. “The only WSE staff I can connect with is the girl who always reminds me to book the encounter. She told me the company owed her salary and social security fee for July. She has called the police.”

According to Edgar Choi of Law In A Minute, Chinese laws stipulate that in the case of bankruptcy, employees get paid first and that they must be paid all back wages in full and in cash before any other debts are paid. Incidentally, the last people entitled to compensation are students, even if they’ve pre-paid for classes and services they never received.

When asked what she will do now, Zhao says “Accept the bad luck. It is impossible to get my money back because the refund priority is the staff salary, rent, and other suppliers’ payments according to Chinese law. It is impossible there is any money left after the priority debts are paid.”

Teachers may have more options if they act quickly but Grey is not hopeful. According to her, WSE has not said anything to the staff about severance or back wages. What’s more, there isn’t much legal recourse she can take. As Grey explains, “it’s not a criminal case. Just a civil case…Although the company was going down they were still selling classes and telling workers that we are looking for investors. Highly unethical but unfortunately not criminal. Some of my students are looking to go to arbitration but I don’t think it’s worth my time.”

If things continue down this path, WSE, Disney English, and VIP Kid probably won’t be the last tutoring programs to fold, so what are the lessons to be learned? For teachers, if your paycheck stops, contact a lawyer or employee advocacy organization such as Reliant Services before bankruptcy is declared. As for students, Zhao put it best when she says, “I will remind all my friends, don’t spend too much on pre-payment for any company no matter how long the company’s history is or how much of a discount they provide. The money in your pocket is yours.”

Images: Judy Zhao and Unsplash

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