Daegu Law Office Assistance | Helping a Client Wrongfully Suspected of Violating the Labor Standards Act, Resulting in a Successful No Prosecution

Labor Standards Act Article 7 (Prohibition of Forced Labor)

An employer shall not force a worker to perform labor against the worker's free will by means of violence, intimidation, confinement, or any other means that unjustly restricts mental or physical freedom.

Labor Standards Act Article 36 (Settlement of Money and Valuables)

Where a worker dies or retires, the employer shall pay the wages, compensation, and all other money and valuables within 14 days from the date on which the cause for payment arose. However, where there are special circumstances, the deadline may be extended by agreement between the parties.

Labor Standards Act Article 43 (Payment of Wages)

① Wages shall be paid in currency directly to the worker in full. However, where there is a special provision in statutes or a collective agreement, a portion of the wages may be deducted or paid in a form other than currency.

② Wages shall be paid at least once a month on a fixed date. However, this shall not apply to wages paid on a temporary basis, allowances, or other equivalent payments, or to wages prescribed by Presidential Decree.

The Daegu attorney office argued that the client and the complainant were not in an employment relationship falling under the Labor Standards Act.

Although the client was registered as the business operator of the convenience store, the client and the complainant had jointly invested money and operated the convenience store as a partnership.

The Daegu attorney office submitted as evidence the transfer records of the investment amounts and the fact that the two had attended the head office's store-owner training together.

In addition, on the basis of Supreme Court precedent, we presented the standard for determining whether an employment relationship existed.

In order to prove that the client and the complainant were not in an employment relationship, the Daegu attorney office argued that ‘there are no specific terms regarding an employment contract.’

An employment contract is one of the consensual and bilateral contracts, yet here there is no content of offer and acceptance between the parties.

In other words, there is no specific evidence that an employment contract was concluded.