Ruling that a foreign industrial trainee who did the same work as Korean workers can also receive severance pay

Who this helps

This may help people looking at cases of foreign nationals who came as industrial trainees, worked at a company, and then had a severance pay issue.

Case overview

Court

Busan District Court

Date of judgment

Jul 8, 2005 (Fri)

Topic

Wages, Minimum Wage & Severance Pay

Original title (Korean)

내국인과 동일한 근로를 제공한 외국인 산업연수생에게도 퇴직금을 지급하여야 한다.

The three plaintiffs are Filipino nationals. They entered Korea as industrial trainees. For the first 2 years they worked as trainees, and from then until they left they worked as employees at the company's workplace, doing plastic injection molding and similar work. They claimed severance pay, and the first-instance court dismissed all of their severance pay claims. The plaintiffs appealed only the severance pay part.

Can someone who worked as an industrial trainee receive severance pay?

The three plaintiffs are Filipino. They worked for the first two years as trainees and then as employees, doing plastic injection work and similar tasks. The first-instance court dismissed their severance claims, and they appealed only that part. The court held that a person who works under the company's direction and supervision and receives allowances can be seen as a worker, whatever the contract is called.

How the court ruled

The court held that, regardless of the name of the contract, a person who works under the company's direction and supervision and receives allowances and the like is a worker. It found that the plaintiffs did the same work as Korean workers and that there was no substantial difference between their work during the training period and afterward. It held that an agreement to give up severance pay in advance is invalid, and it did not accept the company's remaining arguments. The court ordered the company to pay each plaintiff 3,208,330 KRW and damages for late payment.

What to check in a similar situation

How severance claims proceed and how worker status is judged can be checked with the courts or the relevant labor authorities.

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

Terms explained

severance pay

Money a company pays a worker when the worker leaves, for the work done until then.

industrial trainee

A foreign national who comes to learn skills and trains at a company. In this case, how they actually worked was what mattered.

delay damages

Extra money added when a debt is not paid on time, for the period of the delay.

More rulings on this topic

• Appeal Ruling: Two Foreign Industrial Trainees Seek Minimum Wage Difference · Seoul Western 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 filed the lawsuit?

Three Filipino nationals did. They came as industrial trainees, worked at the company, and claimed severance pay.

How did the court decide?

It found the plaintiffs were actually workers. They did the same work as Korean workers, and the court saw no real difference between the training period and the later period. It also treated a prior promise to give up severance as void.

Does this result apply as is to similar cases?

No. It is the court's decision on the facts of that case and does not apply as is to other cases.