IKEA Korea Under Investigation Over Allegations of Demoting Employee Returning from Parental Leave

The Ministry of Employment and Labor has launched an investigation into IKEA Korea following allegations that the global furniture retailer demoted an employee who returned from parental leave and pressured them to resign.

The Anyang branch of the Ministry of Employment and Labor has been investigating IKEA Korea CEO Isabelle Pucci since April for alleged violations of the Equal Employment Opportunity and Work-Family Balance Assistance Act.

The investigation follows a complaint filed by an employee alleging that CEO Pucci subjected them to unfavorable treatment after returning from parental leave.

The employee, identified as A, claims that before returning from leave, they received assurances from CEO Pucci that while there might be organizational changes, they would be able to return to their original position.

However, upon returning to work, A was notified of a demotion from an executive-level position to a regular staff role.

The company stated that A's department had been merged or abolished during the parental leave period due to organizational restructuring, and as a result, the employee was being reassigned to a lower-level position because their previous role no longer existed.

When A protested the decision, CEO Pucci reportedly asked, "After spending time comfortably at home with your family, do you think you can handle working in a fast-paced environment like a washing machine?"

The CEO also reportedly recommended that the employee resign, offering one year's salary as severance pay and guaranteed unemployment benefits if they found the new personnel decision difficult to accept.

A claims that after refusing to accept the personnel change, they faced further disadvantages, such as being excluded from regular work reports.

Allegations have also surfaced that ahead of negotiations with the labor union, CEO Pucci remarked that "Korean unions are much easier to deal with than those in Europe," and while discussing business plans, stated that "Korean employees are stupid, but it is difficult to fire them."

IKEA Korea is reportedly undergoing organizational restructuring targeting office staff since the first half of this year.

Employees view the restructuring, which involves merging and abolishing departments to reduce existing office positions, as a de facto layoff.

Regarding the labor ministry's investigation, IKEA Korea stated, "It is difficult to confirm details related to internal documents or individual personnel matters," adding that "relevant procedures are being operated in accordance with legal standards and internal policies."

On the organizational restructuring, the company stated, "These changes were made based on the organization and job functions, not specific individuals, and are intended to streamline organizational operations to support faster decision-making and collaboration."

Reported by Jung Da-eun | Video by | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.