Ⅰ. Basic Principles for Disciplinary Action

An employer can exercise the right to disciplinary action for an employee’s violation of service regulations to maintain order within the company, provided, however, that it is justified when the organization authorized by 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 action precludes any 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 against 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.

Ⅱ. Types of Disciplinary Action

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 submit a written explanation and requires self-correction. In some cases, an additional consequence may follow the reprimand. Accordingly, a detailed explanation of the reprimand shall not necessarily be 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 wage reduction for each infraction shall not exceed 50% of one day’s average wage for the relevant worker and the total reduction shall not exceed one-tenth of total wages in a month.
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 prohibited or the person is demoted.

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, extended suspension means the employee cannot receive wages or seek another job, and shall therefore 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.