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[2025-12-11]Central Administrative Tribunal Rules on Unpaid Wages

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The Central Administrative Appeals Committee of the Korea Anti-Corruption and Civil Rights Commission has ruled that the business period must be calculated from the actual start date of business operations rather than from the insurance relationship establishment report date for the Simple Wage Payment. This decision was made judging that the refusal by the Workers’ Compensation and Welfare Service to pay the Simple Wage Payment was illegal.

Worker A worked at Company B from November 1, 2023, to March 21, 2024, and did not receive 8.26 million KRW in wages upon retirement. After winning a civil lawsuit, worker A applied for the Simple Wage Payment with the compensation service, but the service refused on the grounds that the insurance relationship establishment date for Company B was October 10, 2023, which meant the business period was less than six months at the time of retirement.

The Central Administrative Appeals Committee determined that the requirement of six months for the business period should be calculated from the actual business operation date of the employer. Based on the finding that Company B had been operating since around August 2023, they concluded that the business period exceeded six months and thus the refusal of payment was deemed illegal.

Chief Commissioner of the Central Administrative Appeals Committee, Jo So-young, emphasized the need to actively utilize the compensation service’s payment system to prevent workers from facing financial difficulties due to unpaid wages and promised continued efforts to protect citizens’ rights.

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