Supreme Court: "No More Women Hired" Sexual Harassment Secondary Harm Company and CEO Liability for Compensation

[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] The Supreme Court has ruled that if follow-up measures such as preventive education were insufficient after an internal sexual harassment incident, the company or its representative must also bear compensation liability.

On the 5th, the Supreme Court's 3rd Division (Presiding Justice Kim Jaehyung) announced that it upheld the appellate court's ruling in favor of female bus drivers A and B in their damages claim lawsuit against the company.

Previously, an employee of the company was fined for defamation after spreading false rumors in July 2015 that A had sexual relations with a colleague. However, it was investigated that the company representative made secondary victimization remarks during the response process, such as "From now on, widows will no longer be hired as bus drivers" and "One thing is clear: women will never be employed again."

Additionally, it was revealed that B, who joined a different labor union, was transferred to drive buses in a distant location from her home.

The first and second trials ruled in favor of the plaintiffs. The first trial court stated, "Although the employer has an obligation to prevent sexual harassment in the workplace, they did not conduct preventive education," and ordered the company to pay approximately 15 million won to A. Regarding B, the court recognized responsibility for changing her workplace due to union membership and ordered payment of 7 million won. The second trial court also acknowledged the compensation liability of the company and its representative but reduced the representative's damages by 2 million won.

The Supreme Court also agreed with this judgment. The court stated, "The appellate court did not err in recognizing the substantial causal relationship between the breach of duty and the occurrence of sexual harassment in the workplace."