The CEO of London Bagel Museum, which made employees work more than 70 hours a week, has been booked on criminal charges. The Ministry of Employment and Labor (MOEL) said it referred for criminal charges five violations of the Occupational Safety and Health Act by LBM, the operator of London Bagel Museum. It also imposed fines of 8.01 billion won and ordered the company to pay 564 million won in unpaid wages to employees.
The Ministry of Employment and Labor (MOEL) said, "As a result of a planned inspection of London Bagel Museum for about three months from Oct. last year to Jan. this year, we uncovered multiple violations of the law, including breaches of working hours, unpaid wages, and workplace harassment."
According to the labor ministry, seven workers worked more than 70 hours a week just before the London Bagel Incheon branch opened. It also confirmed indications that workers were prevented from leaving the establishment during break times and that written explanations were excessively demanded for work-related mistakes. Overtime pay was provided only after prior approval from headquarters and a post-work verification process. As a result, when work arose suddenly, the structure was such that allowances were not paid, it was found.
By contrast, in the wage payment process, 15 minutes of pay was deducted for being 1 minute late. Attendance at headquarters meetings or training was also processed as annual leave. In this way, London Bagel Museum was found to have underpaid a total of 564 million won in wages, including overtime, night, and holiday work allowances.
Industrial safety management was also inadequate. Even though the number of full-time employees exceeded 50 at many business sites, safety and health managers were not appointed. Even when industrial accidents occurred, the industrial accident investigation reports were submitted late, and health checkups and safety training at hiring and on a regular basis were not conducted. Even when employees were injured while working, the company did not cover hospital treatment costs and instead asked them to leave early or use annual leave.
London Bagel Museum, which opened in Anguk-dong, Seoul, in Sept. 2021, is cited as the epicenter of the bagel craze in Korea. Private equity firm JKL Partners acquired LBM, the operator of London Bagel Museum, in July last year for a price in the mid-200 billion won range.