LABOR LAW GUIDE

Chapter 7 Employment Adjustment

Section 1: Dismissal for Managerial Reasons. Ⅲ. Implementation of Dismissal for Managerial Reasons. Ⅳ. Obligation to Reemploy Preferentially

Ⅲ. Implementation of Dismissal for Managerial Reasons

An employer shall inform individual employees 30 days prior to dismissal or pay allowance for non-advance notice(ordinary wages for 30 days) even in the event of dismissal for managerial reasons. As a procedural condition, the employer shall report to the Minister of Employment and Labor if dismissing more than a certain number of employees. Whether the Minister of Employment and Labor is notified or not does not undermine the effect. That is, reporting to the Minister is not a requisite to justify a dismissal for managerial reasons, but a requisite for processing.


Article 24 of the LSA. Restrictions on Dismissal for Business Reasons
④ When an employer intends to dismiss workers under the provisions of paragraph ① exceeding the fixed limit prescribed by Presidential Decree, he/she shall report to the Minister of Employment and Labor pursuant to the relevant provision of the Presidential Decree.

Enforcement Decree Article10-2. Report of Dismissal Plan for Managerial Reasons
① An employer shall report to the Minister of Employment and Labor 30 days before he/she desires to dismiss for the first time, if he/she intends to dismiss the number of workers as prescribed in paragraph 4 of Article 24, which is referred to in the following subparagraphs:
1. A business or workplace which ordinarily employs fewer than 99 workers: 10 or more;
2. A business or workplace which ordinarily employs more than 100, but not exceeding 999: 10 percent or more of workers ordinarily employed; and
3. A business or a workplace which ordinarily employs more than 1,000 workers: 100 or more.
② The report as prescribed in paragraph (1) shall include the following matters:
1. Reason for dismissal;
2. Number of workers to be dismissed;
3. Items consulted on with the labor representative; and
4. Dismissal schedule.



Ⅳ. Obligation to Reemploy Preferentially

When an employer who has dismissed workers under the provisions of Article 24 of the Labor Standards Act wishes to reemploy workers within 3 years of the date of dismissal, he/she shall consider the duties of the workers prior to their dismissal and make every effort to preferentially reemploy them, if they so desire. Recently, the Supreme Court ruled, “If an employer who dismissed a worker for managerial reasons hires a new worker for the same position without confirming with the dismissed worker as to whether he or she wishes to return to work or not, this new employment can be seen as violating the obligation to re-employ. In this case, the dismissed worker can claim compensation for damages due to the employer failing to fulfill the obligation to re-employ. This compensation shall be equivalent to wages from the time when the obligation to re-employ occurred to the time the employer hires the dismissed worker.”



Article 25 of the LSA. Preferential Reemployment
① When an employer who has dismissed workers under the provisions of Article 24 wishes to reemploy workers within 3 years of the date of dismissal, he/she shall consider the duties of the workers prior to their dismissal and make every effort to preferentially reemploy them if they so desire.
② The Government shall take the necessary measures for dismissed workers under the provisions of Article 24 such as stabilization of livelihood, reemployment, and vocational training on a priority basis.

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

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