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Photo = Coupang |
[Alpha Biz= Kim Young Taek] Coupang Fulfillment Services (CFS), the logistics subsidiary of Coupang, is facing allegations of altering its employment rules to avoid paying severance to temporary workers. This has led to a criminal investigation involving the company’s HR representative director.
On Wednesday, the Bucheon branch of the Ministry of Employment and Labor announced that it had referred Mr. A, the head of CFS’s HR division, to the prosecution with a recommendation for indictment on charges of violating the Act on the Guarantee of Workers’ Retirement Benefits.
Mr. A is accused of unfairly withholding severance payments from temporary workers by revising the company’s internal employment rules in May 2023.
Coupang CFS amended its severance payment requirements for temporary workers, adding a condition that workers must not only work for more than one year but also meet an additional requirement of working an average of 15 hours per week over any four-week period.
Under this revised rule, even if a worker had been employed for over a year, their service period would be reset if there was any four-week span where their average weekly working hours fell below 15.
Labor law experts criticized this change, stating that it is unlawful. According to labor regulations, employees are entitled to severance pay after completing at least one year of continuous service.
Democratic Party lawmaker Kim Joo-young had previously accused Coupang of altering its internal rules to avoid paying severance to temporary workers. He also criticized the Ministry of Labor for approving the changes without proper scrutiny and for failing to take appropriate action when Coupang did not comply with corrective orders, raising concerns of favoritism toward the company.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
