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Unpaid Wages and Severance Pay Claim Lawsuit
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The client worked for six years but did not receive part of the wages and severance pay after resignation, leading to a lawsuit.
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The client’s employment status was altered mid-term due to a change in employers, leading to a loss of employee status.
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Deputy Chief Attorney Wi-jung Kim
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Mediation decision to pay approximately 20 million KRW.
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1. Client Situation and Facts
The client worked at a clothing logistics center for approximately six years. Initially employed by a corporation, the client had employee status and was covered under employment insurance. Midway through employment, the client was transferred to a position under a private contractor, changing the client’s status to that of an individual contractor without realizing the implications.
Upon resignation, the client claimed unpaid wages and severance pay, but the company denied the employment relationship and refused payment. As a foreign national, the client faced challenges not only with unpaid wages but also with the loss of employment status, leading to seeking expert help from Ma-Jung.
2. Case Issues and Resolution Process
1) Filing a Complaint with the Labor Office
The client argued that continuous employment over a long period at the same workplace established the continuity of employment. Despite the change in contractual status, the actual dependency on the original employer remained, validating the claim for unpaid wages and severance.
2) Wage Claim Lawsuit
Simultaneously with the complaint to the Labor Office, Ma-Jung filed a wage claim lawsuit against the employer. While pursuing recognition of employee status through the Labor Office, Ma-Jung prepared an alternative claim through the contractual relationship with the private contractor, ensuring the client could receive the owed amount regardless of the Labor Office’s decision.
3. Case Outcome and Client Benefit
Although the Labor Office did not recognize the client’s employee status, the wage claim lawsuit resulted in a favorable mediation decision. The client
received approximately 20 million KRW, equivalent to the claimed unpaid wages and severance pay.
4. Significance of the Judgment (Explanation of the Disposition)
Wage and severance disputes can often be resolved through simple complaints to the Labor Office, but complex cases with unclear employment relationships require thorough legal action. This case highlights the challenges foreign workers face, especially when unaware of changes in their contractual status.
Ma-Jung’s expertise in labor disputes ensured that the client could receive the owed wages and severance pay despite the complexities. Accurately assessing employment contracts, work details, and employment duration is crucial in such cases. Ma-Jung’s experience in handling numerous labor cases provides reliable solutions for clients facing similar issues.