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주영재 변호사A law office in Dunsan-dong, Daejeon, handling criminal and civil cases

Unpaid wages and severance pay (Labor Standards Act violation)

The client runs a transport company and had left a former employee unpaid for a year, owing about 1.8 million won in wages and 1.5 million won in severance. The worker complained to the labour office and went to court, and in mediation the two sides settled on a balance of 1.07 million won, after which the complaint would be dropped. The client was slow to pay and was prosecuted over the unpaid wages.

EmployerTransport companyUnpaid wagesSeverance payWorker's complaint

Prosecution dismissed (공소기각)Criminal

This image is for illustrative purposes and is not a photo of an actual case.

Violation of the Labor Standards Act and the Guarantee of Retirement Benefits Act

Unless there is a separate agreement on the payment date, an employer must pay wages and retirement benefits within 14 days from the date on which the reason for payment (e.g., death or retirement of the worker) occurs. Violating this is a criminal offense.

However, the crimes under the Labor Standards Act and the Guarantee of Retirement Benefits Act are offenses that cannot be punished against the victim's will. Therefore, if the worker who is the victim expresses their intention not to have the offender punished before the judgment is rendered, the court must issue a dismissal of prosecution. In practice, the prosecutor withdraws the indictment, so a dismissal of prosecution is ordered.

Meanwhile, dismissal of prosecution means terminating the criminal proceedings without a judgment on guilt or innocence due to a defect in the requirements for instituting prosecution.

Recently, attorney Joo Youngjae handled a case of violating the Labor Standards Act and the Guarantee of Retirement Benefits Act and obtained a dismissal of prosecution. We will introduce this case.

Facts of the case

The defendant (client) operated a transportation business with 30 regular workers. About one year after the victim retired, the defendant had not paid wages of 1,835,820 Korean won and retirement benefits of 1,467,485 Korean won.

The victim filed a complaint with the local labor office and also applied for a payment order for the wages and retirement benefits.

In the subsequent civil mediation procedure, a settlement was established under which the defendant would set off his loan claim against the victim and pay the remaining 1,070,000 Korean won, and the victim would withdraw the criminal complaint. However, the indictment was filed while the defendant delayed the payment.

After that, before the first trial hearing, the defendant paid 1,070,000 Korean won to the victim.

Attorney Joo Youngjae's assistance

Attorney Joo Youngjae, who took the case, argued that the victim had expressed a conditional intention not to have the offender punished, and that the condition had been fulfilled. He submitted the civil mediation document and the financial transaction records showing the payment of 1,070,000 Korean won to the victim as evidence and sought dismissal of prosecution.

Court's decision

At the first trial hearing, after confirming the evidence submitted by attorney Joo Youngjae, the prosecutor withdrew the indictment, and the court issued a dismissal of prosecution against the defendant.

Before you read

The results shown here depend on the facts and evidence of each case and the laws in force at the time. Every case is different, so the outcome of one case does not predict or guarantee the outcome of another. This page is not legal advice. For your own case, please confirm through a consultation.

If your situation is similar, ask by phone.

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