A well-known franchise cafe in Cheongju has come under scrutiny following allegations of coercion and intimidation against a young part-time worker. Investigations revealed that the business was operating under a "business fragmentation" model.
The Ministry of Employment and Labor conducted a focused inspection of 30 franchise coffee and food establishments in the area after a part-time worker, identified as A, was accused of embezzlement for taking three drinks, valued at 12,800 won, when leaving work. A stated that the drinks were to be discarded, and the owner later withdrew the complaint.
The inspection found that the same business owner registered two separate establishments—a coffee shop and a dessert store—thus violating labor laws that require overtime, night, and holiday pay for businesses with five or more employees. The ministry identified approximately 3 million won in unpaid wages affecting 49 workers and issued corrective orders.
Additionally, the cafe was found to have contracts that imposed penalties for non-compliance, including a clause requiring 90% of wages to be paid if an employee resigned within three months, which also contravened labor regulations. These violations have led to criminal charges against the owner.
Further inspections of over 30 cafes and restaurants in Cheongju revealed widespread deficiencies in labor contract management and wage documentation. Many establishments were found to be non-compliant with basic labor standards, including failure to observe break times, prompting corrective directives and fines.
In response to this incident, the government is enhancing its efforts to strengthen on-site responses, improve labor management guidance for industries employing many young workers, promote awareness among young laborers, and provide labor education for franchise and small business owners.
Kim Young-hoon, Minister of Labor, stated, "Franchise cafes and restaurants often employ young workers entering the job market, but many lack proper labor management. We will respond strictly to illegal activities that infringe on the rights of young workers and enhance educational and promotional activities for business owners to prevent conflicts between small businesses and young employees."
* This article has been translated by AI.
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