LABOR LAW GUIDE

Chapter 12 Understanding the Labor Union

Section 2: Requirements to Protect Labor Unions

Employees may organize, at their own discretion, a labor union to maintain or improve their working conditions or promote their social and economic status. There are no statutory restrictions on the organizational structure of a union. Accordingly, employees are free to organize one, whether it is company, industry-level, or occupation-based.
The labor union shall be established under the substantial requirements of Article 2, subparagraph 4, of the Trade Union Act and the formal requirements of Article 10 of the same Act, so it can be recognized and protected under the general rights of the Act. The labor union shall substantially meet the requirements, which include subject, independence, purpose and association. Although the labor union meets the requirements, any person who intends to establish a labor union under the Trade Union Act shall submit a report of establishment, together with the union’s bylaws, to administrative agencies such as the Minister of Employment and Labor, the mayors and provincial governors with jurisdiction over the area, and then obtain certificates of report of establishment from the administrative agencies. When a labor union has received these certificates of report, it is considered established as of the time when the Minister of Employment and Labor received the report.

Ⅰ. Substantial Requirements


Article 2 of the Trade Union Act (Definitions)
4. The term labor union means an organization, or associated organizations of workers, formed in a voluntary and collective manner upon the workers’ initiative for the purpose of maintaining and improving their working conditions and enhancing their economic and social status. However, an organization shall not be regarded as a labor union in the following cases:
A. An employer, or other persons who always act in the interest of the employer, are allowed to join;
B. Most of its expenditures are paid for by the employer;
C. Its activities are only aimed at mutual support, self-improvement, and other welfare undertakings;
D. Those who are not workers are allowed to join; and
E. Its aims are mainly directed at political issues.


1. Positive requirements

The labor union shall be an organization or associated organizations of workers, formed in a voluntary and collective manner upon the workers’ initiative for the purpose of maintaining and improving their working conditions and enhancing their economic and social status. These positive requirements must be established by the labor union.

(1) Subject of rights: Employees’ organization

The labor union shall be formed under a united organization of workers to protect rights. The Trade Union Act defines the term worker as a person who, being subordinate to an employer, works for the employer and receives wages in return, whatever the subordinate relationship with the employer is called(such as employment, subcontracting, commissioning or an untitled contract). In order to determine whether the person is subordinate to the employer or not, it is necessary to examine what is really happening between the two: if wages are given for work under the employer’s control and instruction; if wages are given in return for the work; and what kind of work is being provided.
The employees belonging to a union at the employer’s company should have a subordinate relationship with the employer. Accordingly, persons who are not subordinate to the employer may not form a legitimate labor union, as defined in the Trade Union Act, at the employer’s company.

(2) Independence

The labor union shall be formed as a collective group by the basic principle of establishment. The labor union represents a group separate from the employer and shall behave voluntarily and collectively upon the workers’ free will without the intervention of the labor office or the employer. Otherwise it loses its independence.

(3) Purpose

The labor union shall be an organization established for the purpose of maintaining and improving the working conditions and enhancing the economic and social status of workers.

2. Negative requirements

The labor union shall be free of the following negative requirements:

(1) An employer, or other persons, who always act in the interest of the employer, are allowed to join.
This is designed to prevent the labor union from becoming a company union and to promote equality and independence by excluding the employer and other persons who act in the interest of the employer. A person who, in relation to the employees of the business, acts in the interest of the employer or represents the employer’s interest, is a person who is given a certain mandate and responsibility to determine working conditions and personnel matters or make orders or instructions on work. In order to determine whether a particular person has such a mandate and responsibility, his/her actual and specific duties, rather than his official position or title, should be examined. Although some union members were allowed in by the union despite their ineligibility for membership because they are acting in the interest of the employer, the union does not immediately forfeit its status as a labor union under the Trade Union Act. It will be forfeited only in cases where the autonomy of the labor is infringed in reality or is likely to be infringed.

(2) Most of its expenditures are paid for by the employer.
The labor union shall not receive regular subsidies or assistance from the employer, other than the least possible support such as an office, office fixtures, etc.

(3) Its activities are only aimed at mutual support, self-improvement, and other welfare undertakings.
The labor union shall be designed to maintain or improve working conditions. If the labor union exists only for the betterment of welfare, it shall not be recognized as a labor union.

(4) Those who are not workers are allowed to join
An employee who was dismissed from the relevant workplace may also maintain their union membership. However, a dismissed person cannot serve as a union officer. However, if a dismissed person applies for remedy for unfair labor practices to the Labor Commission, he or she may maintain the status of a union officer until a re-examination by the National Labor Commission is made.

★ Unemployed person: This stipulation in Paragraph 4(d) of Article 2 of the Trade Union Act was established to prevent denial of the employee characteristic when a union member is dismissed by an employer, and is used on a very limited basis for cases like this. This stipulation is not applicable to those employees belonging to industrial, occupational and regional unions, which do not need subordinate relationships with particular employers. The ‘employee’ stipulated by Paragraph 1 and 4(d) of Article 2 of the Trade Union Act does not only refer to employees hired by the particular employer directly, but also to those who are unemployed temporarily and looking for a job, as long as they are entitled to the employee’s three rights.

(5) Its aims are mainly directed at political issues.
Before its revision, Article 12 of the Trade Union Act prohibiting unions from engaging in political activities has been deleted and this new article has been replaced to protect the labor union from losing its purpose.

Ⅱ. Formal Requirements

Any person who intends to establish a labor union shall submit a report specifying the related matters, together with the bylaws, to the Minister of Employment and Labor. Upon receiving the certificate of report, the union shall be recognized as established from the time it notifies the Minister of Employment and Labor of its establishment.
The fundamental reason that the Trade Union Act requires a report on union establishment lies in the need of the competent authorities to protect and guide labor unions to ensure that they are organized into an effective and orderly system and are operated as independent and democratic organizations.

1. Reporting the organization of a labor union
A person or a group of persons who intends to organize a labor union shall submit a written report, along with bylaws of the body organized, to a competent administrative authority. A certificate of union establishment shall be issued within 3 days of reporting, unless any legal problems are detected about the organization.

2. Issuance of the certificate
If the competent authority finds nothing to disqualify the applicant from establishing a union, it shall issue a ‘Certificate of Reported Establishment’ within 3 days of reporting. When the certificate is issued, the labor union concerned is deemed to have established on the date when the establishment report was delivered to the competent authority.

3. Request for more information
If bylaws are not attached, the reporting form is not filled in completely, or anything false is identified in the submitted information, the authority shall request more information or correction within 20 days of reporting.

4. Rejection of the report
If the organization is determined to be ineligible or has not responded to the above request, the establishment report shall be rejected.

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

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