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

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

The investigation follows a formal complaint alleging that CEO Queille subjected an employee to unfavorable treatment upon their return from parental leave.

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

However, A claims that immediately upon returning, they were notified of a demotion from an executive-level position to a rank-and-file staff role.

The company stated that the department A previously led was merged or abolished during the organizational restructuring that took place while A was on leave, and as a result, A's position was eliminated, leading to the reassignment to a lower rank.

A reported that when they protested the decision, CEO Queille remarked, "After spending time comfortably at home with your family, can you really handle working in a fast-paced environment like a washing machine?"

A further stated that they were pressured to resign, with the company offering one year's salary as severance pay and guaranteed unemployment benefits if they found the new personnel decision unacceptable.

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

It is understood that IKEA Korea has been conducting organizational restructuring targeting office staff since the first half of this year.

Employees perceive the restructuring, which involves merging departments and reducing existing office positions, as a de facto layoff.

Regarding the allegations, IKEA Korea maintains that many of the claims are untrue.

IKEA Korea stated, "The remarks attributed to CEO Queille are not true, and we shared relevant information with the employee in advance during the restructuring process. We have not subjected the employee to unfavorable treatment due to their use of parental leave."

Regarding the restructuring, the company explained, "This change was centered on the organization and job functions, not specific individuals, and is intended to streamline organizational operations to support faster decision-making and collaboration."

In response to the labor ministry's investigation, IKEA Korea stated, "We are cooperating faithfully with the procedures and maintain that we have complied with relevant laws and internal policies."

Reported by Jung Da-eun | Video by Kim Na-on | Graphics by Yang Hye-min | Produced by SBS Digital News