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  • 労働 Prompt Settlement Recommendation in Wage and Severance Case Through Delay-Damages Strategy



  • The clients who visited Taelim were workers who had not been paid wages and severance despite having worked for the defendant company for a long period. They came to the firm with anxiety and pressure on their livelihoods caused by the unpaid amounts.

    After consulting with the clients and reviewing the facts in detail, Taelim??s attorneys determined that the key issues were the calculation standard and scope of delay damages. In particular, if the 20% annual delay damages under the Labor Standards Act were applied in full, there was a possibility that the defendant would object and that the litigation would be prolonged.

    Taelim organized materials proving each plaintiff??s period of work, unpaid amounts, and the fact of wage arrears, then selected a strategy of adjusting part of the delay damages to maximize the practical benefit for the plaintiffs. The court recognized the credibility of the submitted confirmation of unpaid wages and employer-related materials. The defendant also changed position in light of the burden of prolonged litigation, and a settlement recommendation was issued quickly. This result significantly reduced the time and cost compared with a simple payment order or ordinary lawsuit.

    This case shows that even in collective wage claims involving multiple workers, early practical recovery can be achieved when strategic adjustment reflects both the workers?? interests and the opposing party??s incentives. In wage-arrears cases, delay-interest calculation, securing evidence, and the possibility of a settlement recommendation must be reviewed together for prompt and effective response.

    ** If you are facing a situation similar to the above case, please feel free to contact Law Firm Taelim at any time.

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