Article 24 (Restrictions on Dismissal for Managerial Reasons), Labor Standards Act, as last amended by Act No. 12325, Jan. 21, 2014

A dismissal with proper cause shall satisfy the following conditions. If these items are satisfied, the employer can be exempt from legal responsibility as proper cause under the 4 conditions of Article 23(1).

① Urgent necessity in relation to the business; ② efforts were made to avoid dismissal; ③ fair criteria for the selection of those persons subject to dismissal; ④ the employee representative is informed 50 days in advance and after consulting in good faith.

Each of the above qualifications is not defined or fixed, but shall be determined flexibly in relation to meeting other requirements in actual cases. Whether the dismissal for managerial reasons in a substantial case meets each of the above requirements shall be judged synthetically in consideration of each individual situation related to each requirement.

*Labor Standards Act

Article 24 (Restrictions on Dismissal for Managerial Reasons)(1) Where an employer intends to dismiss a worker for managerial reasons, there must be an urgent managerial necessity. In this case, it shall be deemed that there is an urgent managerial necessity for the transfer, merger, or acquisition of the business in order to prevent managerial deterioration.

(2) In case of paragraph (1), an employer shall make every effort to avoid dismissal and shall establish and follow reasonable and fair criteria for the selection of those persons subject to dismissal. In this case, there shall be no discrimination on the basis of gender.

(3) Where there is an organized labor union that represents more than half of the workers at the business or workplace, the employer shall inform at least 50 days before the intended date of dismissal and consult in good faith with the labor union (where there is no such organized labor union, this shall refer to a person who represents more than half of the workers; hereinafter referred to as "labor representative") regarding the methods for avoiding dismissals, the criteria for dismissal, etc. under paragraph (2).

(4) When an employer intends to dismiss personnel under paragraph (1) above the fixed limit prescribed by Presidential Decree, he/she shall report to the Minister of Employment and Labor as determined by Presidential Decree.

(5) When an employer dismisses workers in accordance with the conditions prescribed in paragraphs (1) through (3), it shall be deemed a dismissal with proper cause under Article 23 (1).