Legal Aid Corporation Provides Relief for Health Trainer Subjected to 'Workplace Harassment and Dismissal'

False Retaliation Report for 'Quarantine Pass Violation'
Gym Owner Loses Lawsuit to Return Unjust Profits

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] A gym trainer who was effectively dismissed for reporting workplace harassment and faced a civil lawsuit demanding the return of personal training (PT) tuition distribution fees has been rescued with the help of the Korea Legal Aid Corporation (hereafter referred to as the Corporation).

The gym owner, who even made false reports of quarantine pass violations out of retaliation against the trainer, is now facing criminal charges as well as a lawsuit for damages.

Seoul Seocho-dong Korea Legal Aid Corporation. / Image source: Corporation website

According to the Corporation on the 14th, Judge Jeong Seon-oh of Jeonju District Court ruled on the 12th of last month that gym owner A lost the unjust enrichment claim lawsuit demanding trainer B to pay back distribution fees of approximately 2.42 million won plus interest.

Judge Jeong stated, "Article 538, Paragraph 1 of the Civil Act stipulates that 'when one party to a bilateral contract cannot perform their obligation due to the fault of the creditor, the debtor may demand performance from the other party.'"

He continued, "In this case, it is recognized that the plaintiff made false statements to the administrative authorities, causing the defendant to be unable to provide training to members midway, leading to members canceling their registrations," and added, "Considering the above facts in light of the legal principles, despite the members' cancellations, the defendant does not lose the right to claim distribution fees for the registration fees of the members who canceled."

Judge Jeong concluded, "Therefore, the defendant is not obligated to return the distribution fees received in advance," and "The plaintiff's claim is dismissed. The litigation costs shall be borne by the plaintiff."

Ms. B, a woman in her late 20s, began working as a trainer and PT instructor at a gym in Jeonju city, Jeollabuk-do, starting January 2021.

Ms. B signed a contract under the condition that when gym customers registered, owner A would take 40% of the registration fee and the trainer herself would receive 60%.

However, in August 2021, C, an acquaintance of owner A, came as the administrative manager and strengthened supervision and management of the instructors' working conditions, which caused problems.

C began to engage in power harassment by reprimanding Ms. B in a KakaoTalk group chat with other instructors, saying things like, "If you keep talking back and whining, go somewhere else."

Unable to endure this, Ms. B reported C to the local labor office in early November of that year for workplace harassment. Following an investigation, the labor office acknowledged C's workplace harassment and ordered gym owner A to conduct preventive education.

In retaliation, A and C targeted Ms. B. C reported Ms. B three times to the local district office for alleged 'quarantine guideline violations.'

At that time, due to the COVID-19 pandemic, the 'quarantine pass' system was in effect, which prohibited unvaccinated individuals from entering multi-use facilities. For gyms, 'users' had to be vaccinated to use the facility, but 'employees' could enter without vaccination.

Despite knowing this, C reported to the district office that an unvaccinated person was entering the gym, prompting COVID-19 quarantine officials to conduct on-site inspections at the gym.

During the first inspection, fellow trainers confirmed that Ms. B was an employee, so despite being unvaccinated, there was no issue. However, during the second inspection, a district office employee called owner A, who was outside, and A responded, "Ms. B resigned a few days ago and is no longer an employee," resulting in Ms. B being asked to leave the gym while she was conducting a class.

After being expelled from the gym, when Ms. B filed a complaint with the labor office to claim unpaid wages and severance pay, owner A instead filed a lawsuit demanding the return of unjust enrichment. The claim was that since Ms. B suddenly quit, some customers requested refunds, so Ms. B must return 60% of the membership registration fees she received, amounting to 2,424,817 won.

Cornered, Ms. B sought help from the Korea Legal Aid Corporation.

The Corporation requested a fact-finding inquiry from the local district office and revealed that the person who made the false report to the district office was C, the administrative manager and the perpetrator of workplace harassment. They also confirmed that owner A made false statements.

Currently, owner A has appealed the first-instance loss ruling.

Meanwhile, the Corporation stated that Ms. B is preparing a lawsuit to claim not only unpaid wages but also dismissal notice pay with their assistance.

Dismissal notice pay is a system that requires payment of at least 30 days' worth of ordinary wages if dismissal is not notified 30 days in advance.

Additionally, Ms. B plans to file criminal charges against owner A for violating the Labor Standards Act and also file a civil lawsuit for damages.

Under the current Labor Standards Act, employees who report workplace harassment are protected from dismissal or other unfavorable treatment, and violators face imprisonment of up to three years or fines up to 30 million won.

Attorney Kim Geon-woo of the Corporation, who handled the lawsuit, said, "This is a case where a young female worker who just started her social life suffered workplace harassment and was expelled from her job due to false retaliatory reports abusing the COVID-19 quarantine pass," adding, "More attention is needed to protect socially vulnerable individuals."