A coffee shop owner in Cheongju, South Korea, who accused a part-time worker of embezzling three beverages worth 12,800 won, has been found to have underpaid 49 employees by approximately 3 million won. This revelation has sparked controversy.
On June 9, the Ministry of Employment and Labor reported that the owner, identified as A, along with another owner, B, operated two businesses, including a coffee shop and a dessert store. Over the past year, they failed to pay over 40 employees for overtime and night work, totaling 3 million won.
The ministry determined that A exploited a loophole in the Labor Standards Act, which exempts businesses with fewer than five employees from certain regulations regarding overtime, night, and holiday pay, by operating the businesses separately.
Additionally, it was revealed that they included an unfair clause in the part-time employment contracts, stating that if an employee resigned within three months, they would only receive 90% of their wages.
The controversy began on October 2 of last year when A filed a complaint against part-time worker C, alleging that C had unlawfully taken three beverages worth 12,800 won while leaving work. C claimed that the beverages were meant to be discarded due to manufacturing errors and that employees had routinely disposed of such items, a practice that A had tolerated.
Despite C's defense, police referred the case without detention. When the prosecution requested further investigation for evidence, it was revealed that C had given away 350,000 won worth of beverages to acquaintances during their five months of employment, leading A to demand a settlement of 5.5 million won, which incited public outrage.
In response to the backlash, A withdrew the complaint against C, but the incident raised awareness about the rights of young part-time workers, prompting the labor ministry to conduct an audit.
Currently, the ministry has filed criminal charges against A for violating the prohibition against penalty clauses in the Labor Standards Act.
The ministry is also investigating 30 additional franchise locations in the Cheongju area for wage arrears and other violations, issuing fines where necessary.
Koo Jae-cheon, head of the Labor Standards Inspection Division at the Daejeon Regional Employment and Labor Office, stated in an interview with KBS, "Numerous violations of the Labor Standards Act regarding wage arrears have been confirmed, and corrective actions and legal proceedings are currently underway."
* This article has been translated by AI.
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