Prosecutors Strictly Respond with Arrest and Investigation of Malicious 'Wage Arrears' Employers

Refusal to Cooperate by Employers, Arrest Warrants Requested... Persistent Offenders, Active Pursuit of 'Formal Trials'
Labor Consultants and Lawyers Form 'Specialized Wage Arrears Mediation Team'... Guidance on Mediation and Settlement Provided

[Asia Economy Reporter Heo Kyung-jun] The prosecution has decided to strengthen investigations into the property relations of employers who delay wage payments in order to recover damages for workers, and to take strict measures such as arresting and investigating those confirmed to be maliciously withholding wages despite having the ability to pay.

The Supreme Prosecutors' Office announced on the 3rd that it will improve its operations to resolve issues where workers do not receive their wages and severance pay on time and in full.

Despite the fact that there are more than 1,500 cases of high-value wage arrears exceeding 100 million won each year, the number of arrests has been declining. From 2015 to 2020, the number of people booked for wage arrears was around 50,000 to 60,000, but last year it sharply dropped to about 39,000, and as of July this year, it is only about 20,000.

In particular, due to the impact of the COVID-19 pandemic, the number of arrests related to wage arrears, which had maintained double digits annually since 2015, was 5 in 2020, 6 last year, and 3 up to July this year.

Accordingly, the prosecution will take strict measures such as arrest and investigation if it is confirmed that the employer is maliciously withholding wages, and in cases of even small wage arrears, if the employer refuses to comply with the investigative agency’s summons without justifiable reasons, a warrant for arrest will be issued in principle for prompt investigation, and in cases of malicious and habitual offenses, formal trials will be actively requested.

However, for employers who are unable to pay wages due to unavoidable reasons such as financial difficulties, the prosecution plans to guide them to national support programs and reflect their willingness to settle in sentencing.

Additionally, to resolve wage arrears issues and promote coexistence between workers and employers, the prosecution will establish and operate a ‘Specialized Wage Arrears Mediation Team’ that provides professional criminal mediation services, and expand night, holiday, and on-site (field) mediation to facilitate convenience for the parties involved.

The Specialized Wage Arrears Mediation Team will be composed of certified labor attorneys and lawyers who are wage-related experts within the prosecution’s criminal mediation committee, and will provide guidance on ▲reasonable mediation amounts and payment methods ▲national support programs such as the ‘Advance Payment System,’ ‘Loan Program for Employers Settling Wage Arrears,’ and ‘Loan Program for Wage Arrears Workers’ Living Expenses’ ▲and notarization procedures when agreeing on installment payments of wage arrears.

A representative from the Supreme Prosecutors' Office said, "We will regularly analyze the proportion of wage-arrears employers’ public trials nationwide, the settlement rate of wage arrears cases, and reflect these in our work to ensure that this improvement plan is firmly established in practical field operations."

This content was produced with the assistance of AI translation services.