Apr. 11, 2019
On April 11th, the Ministry of Employment and Labor (MOEL) released a list 242 employers for habitual delays in payments or delays in payments in large amounts, and imposed credit sanctions on 419 employers. According to the Articles 43-2 and 43-3 of the Labor Standards Act, a list of employers are released and credit sanctions are imposed on employers who were convicted for unpaid wages twice or more within three years before the date of the release of the list (or imposing of a credit sanction) and owed their workers a total of 30 million won or more (20 million won or more in the case of credit sanctions) in unpaid wages within one year before the reference date.
One of the employers included in the list turned out to have intentionally employed vulnerable older workers and then kept delaying payment of wages, resulting in more than 50 victims.
Meanwhile, before confirming a final list of employers to be released or subject to credit sanctions, MOEL gave employers whose names would be made public three month’s time to right their wrongs from December 24th, 2018 until March 25th, 2019.
As a result, 33 employers paid off or paid a considerable portion of the amount owed and unveiled their concrete payment and financing plans during the three-month period and were thus excluded from the list and credit sanctions.
These examples of employers having paid off overdue wages show that the release of the list and credit sanctions contribute to preventing payment delays and making employers pay off overdue wages quickly.
Information about the 242 employers on the list, including names, ages, company names, addresses and amounts of unpaid wages will be made public on MOEL website (www.moel.go.kr), the bulletin boards of the local employment and labor offices and the official gazette for three years from April 11th, 2019 until April 10th, 2022.
Information about the employers subject to credit sanctions will be provided to the comprehensive credit information collection agency (Korea Credit Information Services). Those employers will be put on the list of people subject to credit control and restricted from getting loans for seven years from April 11th, 2019 to April 10th, 2026.