I’ve heard that Korea is strict about the dismissal of workers. One of the regulations that protects workers is that they must be given 30 days’ advance notice of dismissal or be paid allowances for failure to give advance notice, equivalent to ordinary wages of not less than 30 days. Does the company need to follow this? It feels unfair to follow up on workers who continue to damage the company.
When an employer intends to dismiss a worker, he/she shall give the worker a notice of dismissal at least 30 days in advance of such dismissal. If the employer fails to give such advance notice, he/she shall pay no less than 30 days of the worker’s ordinary wages (dismissal notice allowance). However, this will not apply where a natural disaster, calamity or other unavoidable circumstance prevents continuation of the business or where the worker has caused considerable hindrance to the business or intentionally inflicted damage to the property, cases that fall under any cause determined by Ordinance of the Ministry of Employment and Labor. However, there is no need for an advance notice of dismissal in the following cases (Article 26 of the Labor Standards Act):
1. Where the employee has worked less than 3 consecutive months;
2. Where it is impossible to continue business because of a natural disaster, armed conflict, or other unavoidable cause;
3. Where a worker has caused considerable difficulties to business, or damage to property on purpose.
Deleted.
Moreover, the reasons as given in ordinances by the Ministry of Employment and Labor are as follows:
1. If an employee receives money or other reward from a supplier to accept delivery of defective products and disrupt production;
2. If an employee lends a business vehicle to an unauthorized person, resulting in a traffic accident;
3. If an employee provides confidential business and other information to competitors, resulting in business hindrance to the employer;
4. If an employee falsifies facts and disseminates them, or leads illegal collective action and brings considerable business hindrance;
5. If an employee uses his/her position to misappropriate, long-term misappropriation or embezzles funds of a public fund, or breaches trust of a public fund, including wrongful gain of profit from business vehicles;
6. If an employee steals or removes products or raw materials without authorization;
7. If an employee in charge of personnel, management, or accounting has damaged the business by manipulating employee performance or creating false documents;
8. If an employee intentionally destroys the equipment of the business and brings about considerable hindrance to the business;
9. Other employee behavior that, based on social norms, can be recognized as deliberately acting to bring considerable hindrance to the business or causing property damage.
Such cases waive the relevant employee’s right to receive advanced notice of dismissal.