Relatives of CEOs Also Face a 10 Million KRW Fine if Found Guilty of 'Workplace Harassment'

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[Sejong=Asia Economy Reporter Moon Chaeseok] From now on, if an employer or their relatives are caught engaging in workplace harassment, they will be fined up to 10 million KRW. If they evade investigation, a fine of 3 million KRW will be imposed. With the strengthening of the Industrial Safety and Health Act, not only customer service workers but also others who may suffer verbal abuse, such as security guards, will have their mental and physical health rights protected.

On the 6th, the Ministry of Employment and Labor announced that four legislative ordinances, including the Enforcement Decree of the Labor Standards Act and the Enforcement Decree of the Industrial Safety and Health Act, were deliberated and approved at the Cabinet meeting. All four ordinances will take effect from the 14th.

First, the Enforcement Decree of the Labor Standards Act related to fines for workplace harassment, which was announced for legislative notice at the end of July, was approved. From the 14th, if harassment is confirmed by the employer’s spouse, relatives within the fourth degree of kinship, or relatives within the fourth degree of affinity, a fine of up to 10 million KRW will be imposed. Here, affinity refers to kinship established through marriage. This includes the spouse’s close blood relatives (such as father-in-law, mother-in-law) or the spouses of close blood relatives (such as daughter-in-law, son-in-law). Violations of obligations such as conducting objective investigations, taking necessary measures like changing the workplace, and prohibiting disclosure of secrets will result in fines up to 5 million KRW. Evading investigation will incur a fine of up to 3 million KRW.

Additionally, the subordinate ordinances of the Industrial Safety and Health Act, revised in April, will be applied from the 14th. The core change is the expansion of the employer’s health hazard protection measures target from "customer service workers" exposed to "verbal abuse by customers, etc." to "all workers" exposed to "verbal abuse by customers or other third parties." As a result, workers who are not customer service workers, such as security guards, but are exposed to verbal abuse by customers or other third parties, will also be included in the legal protection scope. Violations under Article 175 of the Industrial Safety and Health Act will result in fines up to 10 million KRW.

Other measures approved at the Cabinet meeting include the establishment of a wage advance payment system for current and former employees, and the mandatory training by the Human Resources Development Service of Korea for employers who hire foreign workers for the first time (with a fine of 3 million KRW for non-compliance), as outlined in the Enforcement Decree of the Wage Claim Guarantee Act and the Enforcement Decree of the Act on the Employment, etc. of Foreign Workers.

Among these, the wage advance payment under the Enforcement Decree of the Wage Claim Guarantee Act replaces the existing wage claim fund. The reward and upper limit for reporting fraudulent claims of wage advance payments have been doubled. For current employees who are eligible under the system, they must meet the following conditions: ▲ the employment contract was not terminated at the time of filing a lawsuit or complaint, ▲ the wage amount is below the amount announced by the Minister of Employment and Labor, and ▲ the lawsuit or complaint was filed within two years or one year, respectively, from the day after the last unpaid wage date.

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