 |
Photo courtesy of Yonhap News |
[Alpha Biz= Lee Joonhyun] A franchise cafe owner in Cheongju, who sparked public outrage for demanding a 5.5 million won settlement from a part-time worker over the alleged unauthorized consumption of three drinks, has been found to have withheld wages from dozens of employees and signed illegal labor contracts.
The Ministry of Employment and Labor announced on June 8 the results of a targeted inspection of 30 franchise cafes and restaurants in the Cheongju area.
According to the investigation, the owner of a Paik’s Coffee branch operated a coffee shop and a dessert store separately under different business registrations. This arrangement was used to disguise the businesses as having fewer than five full-time employees, thereby avoiding legal obligations to pay additional wages for overtime, night, and holiday work.
Through this scheme, the owner was found to have withheld approximately 3 million won in wages from 49 part-time workers.
Authorities also uncovered evidence of so-called “abusive contracts” that directly violate the Labor Standards Act. The ministry stated that employment contracts required workers to compensate the business for alleged sales losses in case of contract breaches, and stipulated that employees who resigned within three months would receive only 90% of their wages.
The ministry determined that these practices constituted clear violations of the prohibition against predetermined damages and filed criminal charges against the owner.
The inspection was expanded to around 30 nearby establishments over a two-month period following a controversy in March involving alleged coercion and threats against a young part-time worker at the same franchise.
Among the small cafes and restaurants inspected, authorities found that 87 workers were collectively owed about 4 million won in unpaid wages, including unpaid paid-leave allowances and underpaid severance.
Numerous violations of basic labor standards were also identified, such as failing to provide at least 30 minutes of rest time for shifts exceeding four hours, prompting the ministry to impose fines and issue corrective orders.
An anonymous survey of 123 young workers further revealed widespread poor labor practices, including unpaid night shift allowances, lack of guaranteed breaks, and forced work on holidays.
The ministry held a meeting with representatives from seven major franchise headquarters, urging them to implement internal reforms. It also stated that it will step up monitoring efforts, including online surveillance, and take action if signs of legal violations are detected.
Kim Young-hoon said the government will respond firmly to illegal practices that infringe on the rights of young workers and will strengthen education and outreach efforts to prevent violations stemming from lack of awareness, while reducing conflicts between small business owners and young employees.
Alphabiz 이준현 기자(wtcloud83@alphabiz.co.kr)
