Appeal Ruling: Two Foreign Industrial Trainees Seek Minimum Wage Difference

Who this helps

This ruling may be useful for foreign industrial trainees who worked under a training contract and are looking at a claim for the gap between the minimum wage and the pay they received.

Case overview

Court

Seoul Western District Court

Date of judgment

Jun 15, 2005 (Wed)

Topic

Wages, Minimum Wage & Severance Pay

Original title (Korean)

외국인 산업연수생의 최저임금채권관련 판결

Two Chinese nationals came to work at a company in Korea as overseas-invested-enterprise industrial trainees. They sued the company, asking for 7,433,830 KRW each, plus interest, as the difference between the minimum wage set by the Minimum Wage Act and the wages already paid. The company lost in the first trial and appealed.

Can industrial trainees claim the difference between the minimum wage and the pay they received?

Two Chinese industrial trainees worked at a Korean company under training contracts. They sued for the difference between the minimum wage set by the Minimum Wage Act and the wages they had already received. The company lost at first instance and appealed. The appeal court cancelled only the part that ordered payment beyond the amount each trainee claimed, plus interest, and dismissed the rest of the appeal.

How the court ruled

The appeals court set aside the part of the first-instance judgment that ordered payment above 7,433,830 KRW each plus interest (5% per year until the date of the appellate ruling, 20% per year from the next day), and dismissed the claim for that part. It dismissed the rest of the company's appeal. It ordered the company to bear all litigation costs.

What to check in a similar situation

Details of a training contract and pay records can be checked with the immigration or foreign resident office that handles the stay status. Case procedures and records can be checked with the court that heard the case.

• Minimum wage calculator
• Severance pay calculator
• Unpaid wages and work injuries
• Contacts: Ministry of Employment and Labor helpline 1350

Terms explained

Industrial trainee

A foreign national who comes to work at a company in Korea under a training contract. In this case, the two people came to a Korean company from an overseas-investment company.

Minimum Wage Act

The law that sets the lowest wage a worker can be paid. The trainees used it to calculate the gap between that wage and what they actually received.

Appeal

A request that a higher court review a first-instance judgment. Here, the company appealed after losing at first instance.

Dismissal of a claim

A court's decision not to grant a request. The appeal court dismissed the claim for the part exceeding the amount each trainee sought, plus interest.

More rulings on this topic

• Ruling that a foreign industrial trainee who did the same work as Korean workers can also receive severance pay · Busan District Court
• Ruling recognizing severance pay only for work after the industrial trainee period ended · Busan District Court

See all 3 rulings on Wages, Minimum Wage & Severance Pay →

Frequently asked questions

Who brought the lawsuit?

Two Chinese industrial trainees sued the company. They asked for the gap between the legal minimum wage and the pay they had received.

How did the appeal court rule?

It cancelled the part of the first-instance judgment that ordered payment beyond the claimed amount plus interest, and dismissed that part of the claim. It dismissed the company's remaining appeal and ordered the company to bear all court costs.

Does this result apply to all similar cases?

No. It is the court's decision in this one case and does not apply as is to other cases.