The Ministry of Employment and Labor (MOEL) raided a well-known dental hospital in Seoul's Gangnam district that stirred controversy after demanding 1.8 million won in damages from an employee who quit two days after joining. The dental hospital is suspected of violating the Labor Standards Act on the grounds that it "prohibits the act itself of pre-setting damages related to resignation."
The Seoul Gangnam District Office of the ministry conducted a raid on Hospital A around 8:30 a.m. on the 1st, deploying 18 labor inspectors.
Hospital A is suspected of forcing employees, at the time of hiring, to agree that "if they do not give one month's notice before resigning, they will compensate half of their monthly salary." An employee who quit two days after joining was reportedly asked to pay 1.8 million won, half of one month's salary (3.6 million won), based on a confirmation document containing this clause.
The Labor Standards Act prohibits the act itself of pre-setting penalties or damages for stopping work, including resignation. An employer who violates this can be punished with a fine of up to 5 million won.
The ministry conducted a labor inspection of Hospital A starting on the 20th. This followed the receipt of a petition over the damages demand.
During the labor inspection, the ministry reportedly detected additional indications of legal violations such as verbal abuse or harsh treatment of employees. There was said to be "workplace bullying," including a punishment of facing a wall and standing for hours, or writing self-reflection letters listing mistakes on A4 paper. In response, the ministry switched to a special labor inspection from the 24th, deploying a dedicated team of seven inspectors.
A ministry official said, "We launched the raid to secure specific and objective materials on legal violations such as the additionally confirmed workplace bullying."