If a Company Illegally Pressures Employees to Resign Using Unlawful Audit Authority, It Is Illegal

Changwon District Court. (Photo by Changwon District Court)

[Asia Economy Yeongnam Reporting Headquarters Reporter Ju Cheol-in] A ruling has been made that if a company conducts excessive audits based solely on anonymous misconduct reports, causing an employee to resign, the company must pay compensation to the employee.

The Changwon District Court 2nd Civil Division (Presiding Judge Lee Bong-su) overturned the original ruling on the 10th in the appeal case filed by Mr. A (57) against a shipyard in Geoje, Gyeongnam, and ordered the company to pay 30 million KRW.

Mr. A was audited for about eight months from October 2015 to June 2016 on suspicion of receiving entertainment and other benefits from related companies.

Due to suffering from depression and other issues, Mr. A took sick leave and leave of absence in June 2016, then submitted his resignation letter and left the company the following month.

The court stated, "If the employer conducts a long-term audit demanding confessions from employees without objective investigation procedures, it constitutes an abuse of audit rights and an illegal act against the employee, thus obligating the payment of compensation."

Previously, on November 20 last year, the Tongyeong Branch of the Changwon District Court dismissed the plaintiff's claim, stating, "There is no evidence to recognize that unfair audits were conducted to induce resignation or dismissal, or that resignation was coerced."

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