Case: Reiwa 1 (Wa) 117, Unpaid Wages and Related Claims

In 2025, South Korean national Kim Taeyong, who entered Japan under the Technical Intern Training Program, filed a lawsuit against Osaka Kensetsu Co., Ltd. at the Osaka District Court. Kim alleged that from January 2023 to December 2024, the company systematically underpaid his wages, failed to compensate for overtime work exceeding 100 hours per month, and deducted illegal "management fees" from his salary. The total claimed amount was approximately ¥4.2 million. The defense argued that Kim was not an employee but an independent contractor, and that some deductions were legitimate expenses for accommodation. The court examined payroll records, attendance data, and testimonies from other foreign workers.

The Osaka District Court ruled in favor of the plaintiff in part on August 30, 2025, recognizing an employer-employee relationship. The court ordered the defendant to pay ¥3.1 million in unpaid wages and overtime, plus statutory interest, while dismissing the claim for additional emotional distress damages. The defendant announced it would appeal the decision to the Osaka High Court.

Whether the plaintiff was an employee entitled to minimum wage and overtime protections or an independent contractor excluded from such guarantees; whether the deducted fees violated the Labor Standards Act; and the proper calculation of unpaid overtime premiums under Article 37 of the Act.

The case drew attention from labor unions and human rights organizations in both Japan and South Korea. It intensified public debate on the exploitation of foreign technical interns and prompted the Japanese Ministry of Health, Labour and Welfare to announce stricter oversight of wage payment practices in construction and manufacturing sectors. Several similar lawsuits were filed by Vietnamese and Indonesian workers in the following months, referencing this verdict. South Korean media covered the case extensively, straining perceptions of labor conditions for Korean nationals in Japan.