[English Translations for Global Clients - Success Case]

1. Case Overview

The client, the CEO of a social welfare corporation, employed approximately 40 full-time workers while operating a senior care welfare facility.

The client was accused of violating the Labor Standards Act after allegedly failing to pay unused annual leave compensation to a retired employee within 14 days of termination, as required by law.

Under the Labor Standards Act, an employer who fails to pay wages or related benefits within the statutory period following an employee’s resignation may face criminal penalties.

2. Taelim’s Assistance

The Taelim Law Firm defense team focused on demonstrating that the client was not the actual employer legally responsible for the unpaid wages — that the payment obligation rested with another party within the organization’s structure.

Furthermore, even if the client’s status as an employer were acknowledged, the attorneys emphasized that the failure to pay was not intentional, thereby negating the element of intent, a crucial requirement for establishing criminal liability under the Labor Standards Act.

During the investigation, the full amount of unpaid compensation was promptly paid to the complainant, evidencing good faith efforts to remedy the issue and mitigate any harm.

Taelim submitted this as part of sentencing and prosecutorial review materials, underscoring the client’s cooperation and genuine remedial intent.

3. Case Outcome

After reviewing Taelim’s legal arguments, the investigative authorities accepted the defense’s reasoning.

They recognized that the client’s liability as an employer was unclear, and that there was no deliberate intent to withhold payment.

Considering also that the employee had been fully compensated during the investigation, the prosecution issued a non-prosecution (no-charge) decision, clearing the client of all allegations.

4. Significance of the Judgment

This case highlights the importance of distinguishing actual employer responsibility and proving lack of intent in Labor Standards Act violation cases involving complex corporate structures.

Through precise legal analysis, a clear separation of liability, and swift restitution efforts, Taelim Law Firm successfully protected the client from criminal penalties, securing a complete exoneration.

It stands as a model example of effective defense in corporate labor compliance cases, emphasizing the value of prompt corrective action and a well-founded legal strategy.

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If you’re facing a similar situation,

don’t hesitate to reach out to Taelim Law Firm for legal assistance.