Gangnam dental clinic may be in legal trouble after demanding compensation from resigning employee

A major dental clinic in Gangnam District, southern Seoul, has come under fire for demanding 1.8 million won ($1,200) in compensation from an employee who quit after just two days on the job.

A dentist, left, operates on a patient. Photo is not related to the story. [JOONGANG ILBO]

A major dental clinic in Gangnam District, southern Seoul, has come under fire for demanding 1.8 million won ($1,200) in compensation from an employee who quit after just two days on the job.

The Ministry of Employment and Labor recently received a petition from a former employee of the clinic, according to Yonhap News Agency on Friday.

The employee said that after joining the clinic, they discovered that the duties assigned to them were entirely different from what had been described during the interview. They were also told they would have to work early-morning shifts and that their pay could be reduced if they made mistakes.

They ultimately decided to resign after two days.

The clinic then claimed they had violated its rule requiring employees to give at least one month’s notice before resigning and demanded compensation, insisting they pay about 1.8 million won — half the monthly salary they had been offered. The employee’s wages for the two days they worked amounted to 250,000 won, far less than the sum the clinic was demanding.

On their first day, the clinic had the employee sign a confirmation form agreeing to the one-month notice requirement, which stated that employees may be held liable for damages if they fail to provide such notice.

When the employee asked what damages their resignation had caused, the clinic responded that it had “wasted time and money recruiting a new worker” and sent them a certified letter through a lawyer.

The employee then filed a petition with the Labor Ministry.

Under Article 20 of the Labor Standards Act, employers are prohibited from including “contracts that impose penalty fees or predetermined damages” for failing to fulfill a labor contract.

This means clauses such as “pay damages for failing to give advance notice before resignation” or “deductions for tardiness” are unlawful. Employers who violate the provision may face fines of up to 5 million won.

“Forcing workers to sign advance compensation agreements is itself a crime,” said labor attorney Park Sung-woo, adding that the Labor Ministry “must strengthen its oversight and enforcement.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY SHIN HYE-YEON [kim.minyoung5@joongang.co.kr]