When an Unfair Employer Must Pay Compensation

Employers are required not to discriminate among their employees on any grounds. Employers who discriminate between employees for any reason, or who make unequal distinctions regarding pay, are obliged to pay compensation equivalent to four months’ wages.

The Employer Must Treat All Workers Fairly

The principle of equality is also protected under the constitution in working life. Accordingly, the rules on how the equality principle should be applied at work are set out in Article 5 of the Labor Law. Employers may not discriminate against employees based on language, race, color, sex, disability, political opinion, religion, sect, or similar characteristics. Unless there is a substantial reason, an employer cannot treat a full-time worker differently from a part-time worker, nor can they discriminate between a permanent employee and a fixed-term employee. Except where the nature of the work requires it or in cases of necessity, employers cannot make distinctions based on gender.

For work of the same or equivalent value, men and women must not be paid different wages, and no discrimination may be made in social benefits. The application of special protective provisions due to an employee’s gender, or the heavy nature of a job description, does not justify paying a lower wage.

Compensation Equal to Four Months’ Pay Is Payable

When an employer treats employees unequally, the law provides significant sanctions. The law prohibits employers from treating employees at the workplace differently or making arbitrary distinctions between workers. If an employer acts contrary to the principle of equal treatment during employment or when the employment relationship ends, the affected employee may claim appropriate compensation equal to four months’ wages. The court determines the amount of compensation, which in no case may exceed four months’ pay.

The obligation to treat employees equally does not mean forcing all employees into identical conditions regardless of their differences. Rather, it prevents subjecting employees who are in the same situation to different measures. In other words, the equality principle applies equally to employees who are in the same situation. Therefore, employers are not required to treat employees in different positions identically. Although this can lead to unfair outcomes in many cases, there is no further legal provision addressing that issue here.

A Smaller Raise Can Be Considered Discrimination

Differences in raise amounts among employees in the same position are also regarded as inequality. Accordingly, an employer not increasing wages or staying below the minimum wage does not necessarily justify a resignation for a valid reason, but if discrimination occurs, the employment contract may be terminated. In other words, if an employer discriminates in raises among employees doing the same job—giving a higher raise to one and a lower raise to another—this can constitute just cause for the employee to resign. A resigning employee may claim severance pay and may also demand compensation from the employer equivalent to four months’ wages for discrimination.

There are many higher-court rulings on this subject, so employees who face such issues often have valid claims. However, inequality claims brought to court require proof. The employee must demonstrate the discrimination with evidence or witnesses. If the inequality is convincingly proven, the court will rule in favor of the employee and order the employer to pay discrimination compensation. These matters are subject to a five-year statute of limitations: claims not brought within five years are time-barred and employees cannot assert those rights later.