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Ministry of Employment and Labor Concludes E-Land Special Labor Inspection, but ‘Controversy’ Persists

[비즈한국] The Ministry of Employment and Labor has reached a conclusion regarding the special labor inspection of E-Land after 13 months. According to BizHankook, the Ministry has decided to wrap up the investigation into allegations of workplace bullying and non-payment of holiday work allowances at E-Land with the imposition of "fines." On the key issue of "unpaid holiday work allowances," the Ministry sided with E-Land.

The Ministry of Employment and Labor launched a special labor inspection of E-Land World in December 2023. This was due to allegations of workplace bullying, specifically that E-Land World forced employees to participate in "dance rehearsals" for a year-end event. In January of the following year, an inspection was also launched into its affiliate, E-Land Retail, due to allegations of non-payment of holiday work allowances (Related article: "Dance Rehearsals and Unpaid Holiday Pay," Why the Ministry of Labor is Deep in Thought over the E-Land Special Inspection).

Normally, the Ministry of Employment and Labor concludes special labor inspections within three to four months, but it failed to reach a conclusion for E-Land for over a year. The reason for the Ministry's prolonged deliberation was the need to determine the validity of the "holiday substitution agreement" drafted by labor and management.

According to BizHankook, the Ministry of Employment and Labor decided to impose fines and issue corrective orders for workplace bullying, such as forced dance rehearsals and religious activities. However, it found no issues regarding the disputed non-payment of holiday work allowances, concluding that the labor-management agreement at the time was valid.

In December 2019, E-Land Retail and the employee representative signed a holiday substitution agreement stating that "holiday work allowances will not be paid even if work is performed on public holidays." Based on this agreement, E-Land Retail ceased paying holiday premium wages starting January 1, 2020. The point of contention was the "representativeness" of the employee representative who agreed to the document. At the time, the heads of the NewCore and E-Land labor unions participated as employee representatives, but the members of these unions did not constitute a majority of the total workforce. Consequently, the E-Land labor union has argued that the agreement was invalid.

Significant repercussions are expected as the Ministry of Employment and Labor accepted E-Land's position in this investigation, as it contradicts the legal interpretation provided by the Ministry of Government Legislation. Historically, the Ministry of Government Legislation has only recognized labor unions organized by a majority of employees under the Labor Standards Act as representatives of the entire workforce.

Regarding the inspection results, an official from the Ministry of Employment and Labor explained, "We recognized the validity of the agreement after comprehensively reviewing the facts, legal principles, and relevant precedents. Even if individual unions formally do not reach a majority, we must look at the substance where the two unions have reached agreements on employment rules for a long period. There are several recent precedents that align with this. Furthermore, the content of the agreement was not about withholding holiday pay, but rather the concept of shifting holiday dates."

An E-Land official stated, "We will use this investigation as an opportunity to build a corporate culture where employees can enjoy working."