Allegations of Demotion for IKEA Employee Returning from Parental Leave

President Lee: "Anti-Labor and Irrational Practices Are Unacceptable"

IKEA: "Organizational Restructuring Was Part of a Global Initiative"

President Lee Jaemyung has stated that he will "take strict action if the allegations are found to be true," regarding suspicions that IKEA Korea demoted an employee who returned from parental leave and pressured them to resign.


Allegations of Unfair Treatment After Parental Leave: President Lee Orders Thorough Investigation, IKEA Says "No Disadvantage to Employee" View original image

On July 10, President Lee shared an article on X (formerly Twitter) about IKEA Korea's alleged unfair treatment of an employee returning from parental leave. He commented, "There have been cases where companies considered exemplary global corporations in other countries have drawn criticism for being particularly anti-labor and non-transparent only in Korea. Just as our companies must not display anti-labor or irrational practices abroad, foreign companies should not do so here either."


The Ministry of Labor has been investigating Isabel Puig, CEO of IKEA Korea, since April on charges of violating the Gender Equality Employment Act. It is reported that the employee was demoted from an executive position to a regular staff role after returning from parental leave, was notified of recommended resignation, and subsequently filed a complaint alleging violations of the Gender Equality Employment Act, among other charges.


In response, IKEA Korea stated, "We are fully cooperating with the ongoing procedures of the relevant authorities," and added, "We respect all relevant laws and regulations of the Republic of Korea and strictly comply with them in all personnel and organizational operations."


IKEA Korea further explained that the recent organizational restructuring was part of a global initiative for operational changes, saying, "It was not targeted at any individual, and was carried out with a focus on roles and organizational structure."


IKEA Korea stated, "No disadvantageous measures have been taken against the employee mentioned in the article," and added, "The employee in question is still working at the company in the same position and with the same duties, and the employment relationship remains unchanged."


The company continued, "We apply the same standards and procedures to all employees affected by the organizational changes, providing various forms of support such as internal job opportunities, assistance in exploring new roles, and consultations with the HR team," emphasizing that "these principles have been applied equally to all employees affected by the restructuring, not just to specific individuals."



IKEA Korea also explained, "With regard to the Ministry of Labor's investigation, the company is sincerely cooperating with the procedures of the relevant authorities, and we expect that the investigation will clarify the objective facts."


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