Large Dental Clinic in Seoul Demands Damages from Resigned Employee
"Pre-Determined Damages Clauses for Breach of Employment Contract Are Illegal"
A dental clinic in Gangnam, Seoul has sparked controversy after it was revealed that the clinic demanded 1.8 million won in damages from an employee who worked for just two days, citing a clause requiring one month's notice before resignation.
According to Yonhap News on November 14, an employee identified as A began working at a large dental clinic in Gangnam District, Seoul, only to discover on the first day that the assigned duties were completely different from those described during the interview. The employee was also informed of additional conditions, such as having to work early morning shifts and facing salary deductions for mistakes. Despite being a top-tier large dental clinic in the industry, A decided to quit after just two days.
However, the clinic demanded 1.8 million won in damages from A, claiming that the employee had violated a separate agreement requiring at least one month's notice before resignation. A's total wages for the two days worked amounted to 250,000 won.
The clinic cited a "one-month resignation notice confirmation form" that A had signed on the first day of work. This document included a clause stating that failure to comply could result in compensation for damages incurred by the clinic. A stated, "I signed it because I was told that everyone else does."
When A asked, "How could working for just two days have caused any damages?" the clinic responded by citing "the time and costs required to hire a new employee" and even sent a certified letter through a lawyer.
In response, A filed a complaint with the Ministry of Employment and Labor.
Forcing employees to sign such confirmation forms is illegal under labor law. Article 20 of the Labor Standards Act prohibits employers from pre-determining penalties or damages in the event of non-fulfillment of an employment contract. Including clauses in employment contracts that require payment of damages for failing to give advance resignation notice or deducting wages for tardiness is itself illegal.
Employers who violate this law may be fined up to 5 million won.
Meanwhile, the dental clinic did not respond to Yonhap News' requests for comment via phone or text message.
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