A defendant shall be punished by imprisonment for not less than eight months.

Punishment of the crime

The Defendant is an employer who runs a construction business with three full-time workers under the trade name of “C” in Jinju-si.

Where an employee retires, the employer shall pay the retirement allowance within 14 days after the cause for such payment occurred, unless agreed by the parties to the extension of the due date for payment.

Nevertheless, the defendant did not pay 23,754,642 won of retirement allowance of D employed in the above workplace from March 17, 2005 to August 2, 2017 within 14 days from the date of retirement.

Summary of Evidence

1. Legal statement of the witness D;

1. Statement made by the police against D;

1. A complaint and a petition;

1. Judgment on the judgment of civil procedure and the petition of appeal concerning the defendant's assertion

1. The gist of the Defendant’s assertion is as follows: (a) the Defendant embezzled public funds; and (b) the Defendant paid retirement allowances in monthly installments under mutual agreement with D, the Defendant is not guilty.

2. Determination A. Article 8(1) of the Act on the Guarantee of Workers’ Retirement Benefits (hereinafter “Act”) provides that an employer who intends to set up a retirement allowance scheme shall set up a system by which the amount of average wages of not less than 30 days for each year of continuous service can be paid as retirement allowances to the retired employee for at least 30 days.

In the first sentence of paragraph (2), "Where an employer requests a worker for reasons prescribed by Presidential Decree, such as purchase of housing, an employer may settle and pay a retirement allowance for the period of continuous employment of the worker before his/her retirement.

"........"

The phrase “retirement allowance” under the above provision is, in essence, paid in lump sum when an employer has worked for at least one year and has worked for a worker as a basic financial resource. As such, the right to claim the payment of retirement allowance has the nature of the later-paid wage. Thus, the right to claim the payment of retirement allowance is the interim settlement of the retirement allowance.