"Department Head Leaving, So 600,000 Won Bluetooth Earphones"... Year-End 'Farewell Fund Notices' Leave Office Workers Frustrated

Labor Attorney: "May Constitute Workplace Harassment"

Park, a 29-year-old office worker in her fourth year on the job, sighed when she was told to contribute money for a farewell gift for her department head, who was leaving due to a personnel transfer a few days ago. The cost was requested by a senior colleague in charge of general affairs, and the details were specific. To commemorate the department head’s transfer, they planned to give Bluetooth earphones worth 600,000 won and flowers, asking each person to transfer 80,000 won. Park said, “Last time, we collected 50,000 won for someone who was retiring. It’s not just 10,000 or 20,000 won-every time, it feels excessive. But when a senior colleague asks you to join in, you can’t refuse, so I had no other choice but to send the money.”

An office worker being asked to send congratulatory gift money due to a department head's personnel transfer. Generative AI

As the year-end personnel season approaches, a “farewell gift collection” warning has been issued in workplaces. While the public sector has become more cautious since the implementation of the Improper Solicitation and Graft Act (Kim Young-ran Act), some private companies that are not subject to the law continue the practice of passing these costs onto junior employees under the guise of tradition.

On December 31, social networking services (SNS) and office worker communities were filled with complaints about farewell gift collections. The reasons for these collections vary, including promotions and retirements.

The main issue is that these costs fall squarely on junior employees. For younger office workers whose real income has decreased due to high inflation and high interest rates, even amounts of just tens of thousands of won can be a significant burden.

Choi, a 32-year-old employee at a distribution company, said, “Every time we exchange gifts among employees, there’s a notice reminding us to comply with the code of ethics, but when personnel transfers or holiday seasons come around, the bill still arrives. I think it’s fine to exchange gifts with good intentions, but it’s more important to express those feelings within a reasonable price range.”

Employees of ordinary private companies are not subject to the Kim Young-ran Act, as they are neither public officials nor journalists. However, fundraising activities that involve coercion may constitute workplace harassment under the Labor Standards Act. Article 76-2 of the Labor Standards Act prohibits “acts that use a superior position in the workplace to cause physical or mental suffering beyond the appropriate scope of work, or to worsen the working environment.”

Jang Jonghun, Senior Labor Attorney at Majung Law Firm, said, “If someone uses their superior position to forcibly collect money and psychologically pressures others by implying disadvantages for non-compliance, this may be considered workplace harassment. The more an issue is dismissed as tradition, the more important it is to take a preventive approach through education and cultural improvement.”