LABOR LAW GUIDE

Chapter 6 Dismissals

Section 5 Remedy for Unfair Dismissal, etc.

1. Procedures to Request for Remedy and Review for Unfair Dismissal, etc.
(footnote266 For further details, refer to “Chapter 17. Labor Relations Commission”.)

(1) Concept
When a worker is, without justifiable cause, dismissed, laid off, suspended, transferred, had his/her wages reduced or placed under any other punitive action, he/she may request remedial action from the Labor Relations Commission. The application for remedy to the Labor Relations Commission shall be made within 3 months from the date of the allegedly unfair act in question. When the Commission determines that the dismissal in question is unfair, it may order the employer concerned to restore the dismissed worker to the previous job or pay monetary compensation to the worker(Article 30 (3) of the LSA).
In cases where the worker doesn't want to return to the previous workplace, the employer should provide the worker with money or other valuables that are at least equal to the wages which the worker would have been paid for the period of his/her absence if he/she had not been dismissed. The money or other valuables at least equivalent to the wage includes monetary compensation for the unfair dismissal, and is paid in lieu of reinstatement.
An employer who fails to comply with the Commission's remedial order for unfair dismissal or disciplinary measures(suspension from office, positional change, pay cut, etc.) shall pay a compulsory fine(Article 33 of the LSA). The compulsory fine shall be imposed on the employer who has received a remedial order from the National or Regional Labor Relations Commission. Even should the employer refuse to accept the order and files an administrative suit, the compulsory fine shall be imposed on him/her. The compulsory fine may not exceed 20 million won, and may be imposed up to twice per year for up to 2 years. An employer who fails to comply with the finalized remedial order shall be penalizedwith imprisonment for a term not exceeding 1 year or a fine not exceeding 10 million won (Article 111 of the LSA).

(2) Failure to comply with an order for remedy (Enforcement levy)
Employers are required to obey orders for remedy, and penalties are applied if they fail to do so (Article 111 of the LSA, Article 89 of the Labor Union Act). However, this criminal punishment is valid after the remedy order is confirmed finally. If an employer, after receiving the remedy order from the Labor Relations Commission and a decision on reexamination concerning a remedy order from the National Labor Relations Commission, fails to comply with a remedy order by the compliance deadline, an enforcement levy in the amount not exceeding 20 million won shall be imposed on the employer. The Labor Relations Commission may impose an enforcement levy twice a year for two years from the date the initial order for remedy was issued, or until the order is complied with. If an order for remedy issued by the Labor Relations Commission is canceled in accordance with a decision rendered by the National Labor Relations Commission after reexamination or a confirmed court ruling, the Labor Relations Commission shall immediately stop imposing the enforcement levy and return any monies already paid, by virtue of its authority or at the request of the employer.
Controversy may arise when deciding "fulfillment" of the employer's remedy order if there are no criteria to determine "fulfillment" of the orders from the Labor Relations Commission. There will be disputes among parties and the Labor Relations Commission in understanding the conditions related to complete fulfillment. So, the purpose of pursuing complete fulfillment is to prevent these disputes, ensure the effectiveness of an order for remedy, and resolve labor disputes in the early stages (Article 79 of the Rules on the LRC).



(3) Procedures for appeal
If an employer or worker is aggrieved by an order for remedy or decision to dismiss rendered by a Regional Labor Relations Commission, he/she may apply to the National Labor Relations Commission for reexamination within ten days of the date on which he/she received the notice of the order for remedy or decision to dismiss the application. The procedures for application to the National Labor Relations Commission are the same as the procedures for application to the Labor Relations Commission. An employer or worker may file a lawsuit in accordance with the Administrative Litigation Act against the decision made by the National Labor Relations Commission after the reexamination within fifteen days from the date on which he/she received the notice of decision on the reexamination. If an employer or worker is aggrieved by the decision of the National Labor Relations Commission and appeals to the Administrative Court, the National Labor Relations Commission becomes a defendant and the worker (the employer) becomes a defendant assistant participant. If no application for reexamination is made and no administrative lawsuit is filed within the periods listed above, the order for remedy, decision to dismiss or decision on reexamination shall be considered confirmed.

(4) Monetary compensation system
The monetary compensation system was introduced so that workers not wishing to be reinstated can still receive remedy. Under the monetary compensation system, the Labor Relations Commission may order the employer to pay the worker an amount not less than the wages he/she would have received if he/she had worked during the period after he/she was dismissed, in lieu of ordering that the worker be reinstated. The amount equivalent to wages (or more) includes some additional compensation as well, which shall be determined by the Labor Relations Commission after considering such things as any worker fault, and degree of unfairness of the dismissal, etc. This monetary compensation system has contributed to worker rights by providing alternative methods for receiving remedy for unfair dismissals. However, in actual practice this monetary compensation system has been used on a limited basis because this system permits the minimum compensation equal only to the wages the worker would have received during the period after dismissal. Accordingly, in order to promote the monetary compensation system, it would be reasonable to require compensation equal to the total salary during the period after dismissal, a certain amount of compensation for the trouble and inconvenience of taking action, and the costs related to the application for remedy.
① Applicant: Only an employee or his/her legal agent can apply for financial compensation.
② Application Period: An employee who intends to apply for financial compensation must apply between the date of application for remedy and the date on which notification for judgment hearing is received.
③ Application Requirements: An employee wishing financial compensation instead of reinstatement shall submit an application for financial compensation to the Labor Relations Commission. In this application, the employee shall stipulate the amount of desired compensation, and method and details of calculation. Reference data, such as the employment contract, pay slip(s), etc., shall also be attached.
④ Calculation of Compensation
The compensation period shall be from the date of dismissal to the date of judgment on the case, and the amount shall include equivalent salary. Equivalent salary means the amount that the employee would have likely received if he/she had been able to work normally during the time between dismissal and judgment on the case.
Compensation shall be the amount of money the employee would likely have received if he/she had been able to work normally between the period of during the date of dismissal and the date of the Commission's judgment, including expenses etc., caused b

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

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