[Consultation] Legal advice regarding wage error payment
Article posted in 2021-01-22 10:45:28 | VEAT
A Corporation agreed with Mr. Kim, who was on unpaid leave, to pay wages due to an error, and notified the employee of this fact. As a result, Mr. Kim expressed, orally, his intention to return the mistakenly paid wages, but A Corporation consulted with Law Firm Veat regarding any potential issues under the Labor Standards Act that may arise during the return process.
According to the Supreme Court’s decision of December 21, 1995 (Case No. 94da26721), if wages are overpaid due to calculation errors, etc., the timing of the overpayment, the settlement and adjustment of the wages, should be reasonably close to the overpaid period, and there should be no risk of harming the employee’s financial stability, such as prior notice of the amount and method, then it is permissible to offset the claim for the return of the overpaid wages.
Law Firm Veat conducted a legal review regarding the possibility of returning the mistakenly paid wages in relation to the above case law and provided a comprehensive opinion.
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