Ⅰ. Procedures to Request Remedy for Unfair Dismissal, etc.

1. Concept

If an employer dismisses, lays off, suspends, or transfers a worker, or reduces wage, or takes other punitive actions against a worker without justifiable reason, the worker may apply to the Labor Relations Commission for remedy. In addition, any labor union whose rights have been infringed by unfair labor practices may also do so(Article 28 of the Labor Standards Act, Article 28 of the Union Act). As these labor disputes are dynamic, continuous, and collective, administrative agencies or courts cannot always be expected to handle them fairly, promptly, and reasonably, due to the inflexibility of bureaucracy and lack of experience of some agencies. The Labor Relations Commission is an independent administrative agency that has the authority and the ability to resolve labor disputes fairly, promptly, and in a way that is appropriate to the professional situation at hand.
When a worker, without justifiable cause, is dismissed, laid off, suspended, transferred, has his/her wages reduced or receive any other punitive action, he/she may request remedial action from the Labor Relations Commission(LRC). Such applications for remedy shall be made within 3 months from the date of the allegedly unfair act in question. If the LRC determines the dismissal 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 shall provide the worker with money or other valuables that are at least equal to the wages which the worker would have been paid during the period of his/her absence if he/she had not been dismissed. 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 a remedial order from the LRC for unfair dismissal or disciplinary measures(suspension from office, position change, pay cut, etc.) shall pay a fine(Article 33 of the LSA). This fine shall be imposed on any employer who has received, and ignored, a remedial order from the National or Regional Labor Relations Commission. Even should the employer refuse to accept the order and file an administrative suit, the fine shall still be imposed. The fine may not exceed 20 million won, but may be imposed up to twice a year for a maximum of 2 years. An employer who fails to comply with the finalized remedial order shall be imprisoned 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 Trade Union Act). However, this criminal punishment is valid after the remedy order is confirmed finally. If an employer, after receiving a remedy order from the LRC and a decision on reexamination concerning a remedy order from the National Labor Relations Commission, fails to comply by the compliance deadline, an enforcement levy not exceeding 20 million won shall be imposed on the employer. The LRC may impose this enforcement levy twice a year for up to 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 LRC is canceled in accordance with a decision rendered by the National Labor Relations Commission after reexamination or a confirmed court ruling, the LRC shall immediately stop imposing the enforcement levy and return any monies already paid, by virtue of its authority or upon request of the employer.
Controversy may arise when deciding “fulfillment” of the 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 LRC in understanding these conditions. 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).


1. Fulfillment of an order to reinstate the worker to his/her previous job is when the employee has been assigned the same position the employee had when he/she was dismissed, with the same kind of work duties, or when the employee has been assigned other work duties with his/her prior consent. However, if the same position or work is no longer available for unavoidable reasons, assigning a similar position or work duties to the employee can be regarded as fulfillment of the order for remedy.
2. Fulfillment of the duty to pay the amount equivalent to wages is when the total amount of wages that the worker would have received, up to the time of complete payment, is paid to the worker.
3. Fulfillment of an order for monetary compensation is when the amount stipulated in the written judgment is paid.
4. Fulfillment of other orders for remedy occurs when the items stated in the written judgment are implemented.
5. In cases where the parties agree to a settlement other than an order for remedy for unfair dismissal, fulfillment occurs when that settlement is implemented.


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 LRC. 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 reexamination within fifteen days from the date on which he/she received the notice of decision on 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. An amount equivalent to wages(or more) includes some additional compensation as well, which shall be determined by the LRC 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 alternatives in remedy for unfair dismissals. However, in actual practice this monetary compensation system has been used on a limited basis because it 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) Applicants
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, including expenses etc., caused by the dismissal. The judgment committee shall determine the amount by considering collectively the degree of unfair dismissal, the degree of employee fault, the employee’s intermediate income accrued from the date of dismissal to the date of judgment, and the type of employment contract.

5. Unfair dismissal and monetary compensation

Matters related to monetary compensation for unfair dismissal are not dealt with by the Labor Relations Commission. However, the courts may require an employer to make monetary compensation to the employee for purposely dismissing him/her even though that dismissal is evidently unfair.

[Related ruling] In cases where an employer dismisses an employee to push him/her out of the workplace without a justifiable reason for disciplinary dismissal, or in cases where the reason for dismissal was clearly unfair considering the content of the rules of employment, or in cases where the employer could recognize that the dismissal would be unfair if he/she had paid a little attention, that disciplinary dismissal would be an abuse of the employer’s right to discipline the employee. If this dismissal is unfair enough to be accepted as against social norms or socially accepted rules, this not only becomes an unjustifiable dismissal according to Paragraph 1 of Article 23 of the Labor Standards Act, but also an illegal act that inflicts emotional distress on the employee concerned.