Labor Office: "Other branches violated regulations, so support funds cannot be provided"... Anti-Corruption Commission: "Illegal"

Haengsimwi: "Withholding Employment Retention Subsidy Without Considering Independence of Corporate Branches Is Illegal"

On March 4th, the travel agency counters at Terminal 2 departure hall of Incheon International Airport. It is quiet due to the impact of COVID-19. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Moon Chaeseok] An administrative adjudication decision has been made that withholding government subsidies from other branches of the same corporation on the grounds that a specific branch violated the principles of subsidy payment is illegal.

The Anti-Corruption and Civil Rights Commission announced on the 30th that its affiliated agency, the Central Administrative Adjudication Committee, made this decision.

The committee judged that even if it is the same corporation, if each branch is separately enrolled in employment insurance and operates independently in personnel, labor, and accounting, it should be regarded as a separate workplace.

The Labor Office rejected the application for employment retention support funds from Branch A of a corporation operating six branches domestically. The reason was that since another branch violated employment retention measures, subsidies could not be provided to Branch A of the same corporation. The corporation opposed the Labor Office’s disposition and filed an administrative adjudication request with the committee.

The committee explained that Branch A is separately enrolled in employment insurance, is located separately, and operates independently from other branches of the corporation in personnel, labor, and accounting. It concluded that Branch A should be recognized as a separate workplace from the branch that violated employment retention measures. Accordingly, it decided that the Labor Office’s refusal to provide subsidies was illegal.

Min Seongsim, Director of the Administrative Adjudication Bureau of the Anti-Corruption and Civil Rights Commission, said, "The scope of rights relief for small and medium-sized enterprises facing many difficulties due to COVID-19 has been expanded, and it is expected to provide practical help for employment stability in SMEs."