1. Basic Principles for Disciplinary Action

An employer can exercise the right to disciplinary action concerning an employee's violation of service regulations to maintain order within the company, provided, however, that it is justified when the authorized organization of the Collective Agreement or Rules of Employment implements it fairly.
The employer shall observe the following basic principles for disciplinary action:

(1) Principle of equal treatment
A different application of disciplinary punishment shall not be given for the same violation of the same regulation. The previous disciplinary judgment restricts the following disciplinary actions.

(2) Principle of no retroactivity for disciplinary punishment
Disciplinary action cannot be taken retroactively. Once a considerable time has passed after an employer has become aware that an employee acted in a way that justifies disciplinary action, the employer can no longer take such action, as it would, in effect, be retroactive discipline.

(3)Prohibition of double punishment
The employee shall not be punished twice for the same violation.

(4) Observation of Disciplinary Process
An employer shall observe the disciplinary process described in the Collective Agreement and Rules of Employment to guarantee fair implementation of disciplinary action and to promote rational operation of the disciplinary system.


2. Types of Disciplinary Punishment

(1) Verbal Warning
A warning is given to point out the employee's violation, to ask for self-correction, and to prevent any further violations. It is called a verbal warning, because it does not require a written explanation.

(2) Written Warning
Reprimand means scolding someone for a mistake and is used as a type of disciplinary measure. This method demands that the employee submits a written explanation and asks for self-correction. In some cases, an additional consequence may follow the reprimand. Accordingly, a detailed explanation of the reprimand shall not be necessarily prescribed.

(3) Wage reduction
If a wage reduction is allowed without limit, the employee may easily be taken advantage of. Thus, Article 95 of the Labor Standards Act regulates that the amount of reduced wage for each infraction shall not exceed 50% of one day's average wage of the relevant worker and the total amount of reduction shall not exceed one-tenth of the total amount of wages.
However, if the employee arrives late or leaves early for personal reasons, wage reduction in this case is not a disciplinary measure but a matter of wage calculation.

(4) Demotion
For a given period, promotion is restricted or position is lowered.

(5) Suspension from office
This disciplinary action concerns suspending those employees who violate company regulations while retaining their status. Wages are also unpaid during the suspension period.
However, under extended suspension, the employee cannot receive wages or to seek another job, and so the period shall be limited to 6 months.

(6) Disciplinary dismissal
This is a disciplinary action to sever all labor relations with the employee whose violation is so severe that the company cannot expect managerial order without excluding him/her.


3. Criteria Used to Determine Justifiable Disciplinary Action

(1) Concept
When an employer punishes an employee who violates company regulations, it is exercising its right to take disciplinary action in order to maintain managerial order and promote productivity. The purpose of this disciplinary action is to prevent reoccurrence of identical violations by properly punishing an employee who violates company service regulations and to restore company order. The employer's authority to take disciplinary action is discretionary but shall be exercised within boundaries set by the Labor Standards Act. That is, "No employer shall dismiss, lay off, suspend, or transfer an employee, or reduce wages, or take other punitive measures against an employee without justifiable reasons" (Article 23 (1) of the Labor Standards Act). Therefore, disciplinary action without justifiable reason is null and void, as it is an abuse of the employer's right.
In cases where an 'application for remedy for unfair dismissal' is made at the Labor Relations Commission, judgment criteria for justifiable disciplinary action may be classified under the following three principles: 1) whether there was a justifiable reason for disciplinary action, 2) whether the severity of punishment was appropriate, and 3) whether disciplinary process was observed. In judging the criteria for disciplinary action, there has been no dispute over the "reasons for disciplinary action," but there has been a lot of dispute over "the severity of punishment" and the "disciplinary process." The following are some concrete labor cases related to the three criteria for disciplinary action.

(2) Reasons for Disciplinary Action¹⁹⁵⁾
The employer shall clearly stipulate reasons for disciplinary action related to company service regulations in the Rules of Employment or other appropriate document, before implementing disciplinary action. This regulation of disciplinary action shall satisfy the need for justifiable reason under the precondition that "an employer cannot discipline an employee without justifiable reason" from Article 23 (1) of the Labor Standards Act.
As long as disciplinary reasons and types of disciplinary action related are stipulated in the Rules of Employment, disciplinary action implemented accordingly are acceptable, unless they violate the good-faith principle or are an abuse of rights. When the employee's misbehavior falls under the reasons for dismissal as stipulated by the Rules of Employment, dismissal according to the Rules is justifiable.¹⁹⁶⁾
1) Individual behaviors
① Misrepresentation of experience; ② Absence without permission; ③ Poor personal work evaluation; ④ Verbal/physical violence, or causing injury; ⑤ Interference of business; ⑥ Neglecting to protect company secrets; ⑦ Embezzlement, misappropriation, and diversion; ⑧ Sexual harassment at work; ⑨ Falsified reports or documents; ⑩ Character defamation; ⑪ Disregard for rules; ⑫ Stealing company property; ⑬ Accepting or offering bribes; and ⑭ Use of company facilities without permission
2) Disobedience to company directions
① Refusing to be assigned to another workplace; ② Refusing a job transfer or transfer to another division or subsidiary; ③ Refusing to work overtime; ④ Refusing to submit a written apology; ⑤ Refusing to follow company directions
3) Delinquency in private life
① Causing a traffic accident; ② Gambling; ③ Arrest, detention, indictment for a criminal offense; ④ Scandalous criminal offense
4) Illegal group activities or union activities
① Union activities during working hours; ② Distribution or posting of leaflets; ③ Wearing a union ribbon or armband; ④ Obstructing other employees from working; ⑤ Illegal occupation of company facilities

(3) Severity of Disciplinary Punishment
A. Principles
① In regulating reasons for disciplinary action in the Rules of Employment, the company can stipulate various levels of disciplinary punishment for identical cases. The company can regulate standard types of disciplinary punishment for violations, but it can also stipulate heavier punishment according to the severity of the violations. For the most part, it is up to the company what disciplinary punishment they wish to give. However, this discretion requires a socially acceptable balance between the reasons for disciplinary action and the disciplinary punishment. In cases where the employer gives a very heavy punishment for a light violation, the di