LABOR LAW GUIDE

Chapter 2 Employment Relations

Section 3 : Rules of Employment - Ⅲ. Rules of Employment and Other Rules

1. Relations
If a labor contract includes employment conditions below the standards stipulated in the rules of employment, such nonconformity shall be null and void. In this case, the invalidated provisions shall be governed by the standards in the rules of employment(Article 97 of the LSA).

2. Rules of employment, law, and collective agreement
Even though an employer may prepare or amend the rules of employment, the amendment shall not conflict with any law or decree or collective agreement applicable to the workplace concerned(Article 96 of the LSA).
(1)        Differences between the collective agreement and the rules of employment
The collective agreement concerns working conditions and other standards on the treatment of employees, and should be in writing and signed by both parties, that is, the employer and the employee representative. Besides, the collective agreement is, in principle, effective only for unionized employees for a limited period of time. By contrast, the rules of employment are drawn up unilaterally by the employer and contain general rules and regulations on the employees’ service and working conditions applicable to all employees at the workplace.45)
(2)        ROE amendments that infringe on the collective agreement have no
legal effect, regardless of justifiable procedure in their amendment46)
As Article 96(1) of the Labor Standards Act regulates, “Rules of employment shall not conflict with any Act, subordinate statute, or a collective agreement applicable to the business or workplace concerned,” amendments to the rules of employment that infringe on the collective agreement have no legal effect, regardless if justifiable procedures were followed in their amendment. Accordingly, it is definitely unfair dismissal if the employer notifies an employee of his/her dismissal on the basis of a regulation of ‘retirement age’ as stipulated in the ineffective rules of employment.
(3)        Procedures for revision of rules of employment concerning working
conditions after a collective agreement becomes ineffective.47)
Although the collective agreement may become ineffective, portions concerning working conditions will continue to be applied as before. A revision procedure is required, as stipulated in Article 94 of the Labor Standards Act, in order to revise the rules of employment unfavorably to employees about portions related to working conditions. On the other hand, an employer shall, with regard to disadvantageous amendment of the rules, receive the consent of a labor union, if there is a labor union composed of the majority of the workers in the business or workplace concerned, or otherwise the consent of the majority of said employees. Accordingly, the sole approval of the employee representative cannot be seen to be evidence that procedures were followed prior to disadvantageous revision of the rules.
(4)        Retroactive application of the collective agreement48)
The collective agreement refers to the agreement made between the labor union and employer or employers’ association concerning the determination of terms and conditions of employment. In cases where the labor union and the employer have agreed or approved the criteria for retroactively determining working conditions such as previous wage, working hours, and retirement pay, such agreement or approval applies to the labor union members or employees who have worked after implementation of the collective agreement. Even though the payment rate for severance pay in the rules of employment are changed disadvantageously, in cases where the labor union and the employer agree on the collective agreement regarding a revised severance pay rate, such agreement applies to those existing employees to whom the collective agreement applies, regardless of whether those employees knew the disadvantageous revision to their severance pay.

For further questions, please
call (+82) 2-539-0098 or email bongsoo@k-labor.com

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