[Reporter’s Notebook] Unpaid Retirement Pay Is 'Workplace Harassment'

A man in his early 30s who worked at the Korea Technology Finance Corporation under the Ministry of SMEs and Startups resigned last December. Unable to endure 'workplace harassment,' he sought employment elsewhere, got accepted, and decided to transfer. He planned to use his remaining leave, including annual leave and compensatory leave for overtime, and resign on December 31, exactly one year after joining, to align with the retirement pay eligibility period.

However, unexpected 'harassment' came his way. The company accused him of double employment, refused to pay his retirement allowance, and forced him to leave on December 21. Additionally, they deleted his compensatory leave for overtime and reclaimed welfare points. Ultimately, he ended up not receiving his retirement pay and was even forced to pay money.

This case remains unresolved. The company claims that, according to employment regulations, this constitutes a legitimate reason for dismissal due to double employment. However, labor experts have a different perspective. The double employment rule aims to prevent substantial interference with the duties of the current employer, and in this case, it can be judged as inappropriate. The problem is that refusal to pay retirement allowance is used as a kind of 'weapon' in this process.

Workplace harassment using retirement pay as leverage is more common than expected. Four employees at a nursing hospital in Seoul collectively resigned due to wage arrears but did not receive their retirement pay without just cause. Two of them eventually gave up their retirement pay due to the time and financial burdens of legal disputes.

According to the Ministry of Employment and Labor, the Wage Claim Guarantee Fund, which pays retirement allowances on behalf of employers who delay payment, disbursed 205.7 billion KRW last year. This amount may be just the tip of the iceberg. There are numerous cases where workers did not receive retirement pay but gave up due to the time and cost of legal battles or lack of knowledge about procedures. The Ministry of Employment and Labor does not have precise statistics on unpaid retirement allowances.

If employers fail to fulfill their legal obligations regarding retirement pay, workers face immediate threats to their livelihoods. The government must undertake more thorough labor supervision administration.