The Labor Standards Act is only partially applicable to businesses or workplaces that employ fewer than five regular workers, and it does not apply to the use of relatives who live together or domestic workers. In cases where the Labor Standards Act does not provide for specific provisions, the principles of good faith and fair dealing under the Civil Code, the prohibition of abuse of rights, and other provisions shall apply. The Labor Standards Act strictly limits the unilateral termination of an employment relationship by an employer. That is, a legitimate reason is required, and the employer is subject to restrictions on the timing of dismissal and must follow strict procedures in the dismissal process in order to legally terminate the contract. If the employer unilaterally terminates the contract without a legitimate reason, it may be considered an unfair dismissal, and the worker can apply for relief from unfair dismissal to the Labor Relations Commission.

■ Legitimate Reasons for Dismissal
According to the Labor Standards Act, an employer is explicitly prohibited from dismissing a worker without a legitimate reason. However, if there is a legitimate reason, the termination of the employment contract is permissible. The Enforcement Decree of the Labor Standards Act specifies the following as legitimate reasons for dismissal:



① If a supplier receives bribes or other illegal benefits and supplies defective goods, causing disruptions in production.
② If an employee causes a traffic accident by allowing someone else to drive a company vehicle without authorization.
③ If an employee discloses confidential business information or other sensitive information to competitors or other businesses, causing damage to the company's operations.
④ If an employee fabricates and spreads false information or leads illegal collective actions that cause significant harm to the business.
⑤ If an employee embezzles, misappropriates, or embezzles public funds by abusing their position, such as withholding transportation fees for company vehicles, etc.
⑥ If an employee steals or illegally exports products or raw materials.
⑦ If an HR, accounting, or administrative staff member manipulates employee performance records or creates false documents, causing harm to the business.
⑧ If an employee deliberately damages company property, causing significant harm to production.
⑨ If an employee intentionally causes significant harm to the business or inflicts property damage that is recognized as such by social norms.


According to precedent, a justifiable reason for dismissing an employee refers to a situation where the employee is responsible for a circumstance that makes it impossible to continue the employment relationship based on social norms or where there is an unavoidable need for management. Whether it is impossible to continue the employment relationship depends on various factors, such as the purpose and nature of the business, the conditions of the workplace, the position and job duties of the employee, the motive for the misconduct, the impact of the conduct on corporate order, and the employee's past work attitude. Therefore, a comprehensive review of various circumstances is necessary to determine whether it is impossible to continue the employment relationship.

■ Limitations on Termination Procedures
According to the provisions of the Labor Standards Act, if an employer terminates an employee for reasons related to management, the following four criteria must be met for the termination to be considered legitimate: ①There must be an urgent need for management. ②The employer must make efforts to avoid termination. ③The selection of the employee to be terminated must be based on reasonable and fair standards. ④The employer must notify the employee representative of the termination 50 days in advance and engage in consultation regarding efforts to avoid termination and the selection of the employee to be terminated.

■ Limitations on the Timing of Termination
Employers cannot terminate employees during the period of absence due to work-related injury or illness, during the 30-day period following such absence, or during the period of absence taken by female employees for childbirth and childcare and the 30-day period following such absence. This is intended to protect employees from the risk of unemployment during periods when they are unable to work or engage in effective job-seeking activities. If an employer violates this provision and terminates an employee during the protected period, penalty provisions apply, and the termination is deemed invalid under the law. However, in cases where the employer provides temporary compensation for work-related injuries or illnesses or is unable to continue its business, the limitation on the timing of termination does not apply.

■ Limitations on Termination Procedures
If an employer intends to terminate an employee, they must provide notice at least 30 days in advance, and if notice is not given 30 days in advance, they must pay more than 30 days' wages. The employer must also provide written notice to the employee of the reason and timing of the termination. If written notice is not provided, the termination is invalid. These provisions are intended to ensure that employers terminate employees with care, clearly identify the reasons and timing of termination to resolve any disputes that may arise after the fact, and enable employees to respond appropriately to the termination.