Rules of employment refer to company rules that employers unilaterally write about working conditions and service discipline. The Labor Standards Act stipulates the duty to prepare and report rules of employment (Article 93) and how to prepare and change rules of employment (Article 94). In particular, there is a provision that a labor contract that stipulates working conditions that do not meet the standards set forth in the rules of employment is null and void (Article 97). In this case, the normative effect of the rules of employment is explained by saying that the invalidated part follows the standards set forth in the rules of employment. The characteristic of these rules of employment is that the employer can unilaterally create favorable conditions in order to adhere to the principle of agreement between labor and management in determining working conditions, but collective consent is required for unfavorable changes.
✴ Labor Standards Act Article 93 [Preparation and reporting of employment rules]
Employers who regularly employ 10 or more workers must prepare employment rules for the following matters and report them to the Minister of Employment and Labor. The same shall also apply to cases where this is changed.
1. Matters concerning start and end times of work, break times, holidays, vacations, and shift work
2. Matters concerning the method of determining, calculating, and paying wages, the calculation period of wages, the timing of payment, and the increase in wages;
3. Matters concerning the method of calculating and paying family allowances;
4. Retirement matters
5. Matters concerning retirement benefits, bonuses and minimum wage
6. Matters concerning the burden of workers' food expenses, work supplies, etc.
7. Matters concerning educational facilities for workers;
8. Matters concerning maternity protection and support for work-family balance, such as leave before and after childbirth and parental leave
9. Matters concerning safety and health, matters concerning the improvement of the workplace environment according to the characteristics of workers such as gender, age, or physical condition;
10. Matters pertaining to work and non-work disaster assistance
11. Matters concerning the prevention of workplace bullying and measures to be taken when it occurs
12. Matters concerning awards and sanctions
13. Other matters applicable to all workers in the business or workplace


■ Change of Employment Rules
❍ Changes of Employment Rules
The employer shall hear the opinions of the majority of the workers in the case of drafting or changing the rules of employment, if there is a trade union organized by a majority of the workers in the relevant workplace, the union if there is no such union. However, if the rules of employment are changed unfavorably to the workers, consent must be obtained. Regarding the effect of the rules of employment in case of violation of the duty to listen to opinions, hearing opinions is a control regulation, not an effective regulation. The purpose of hearing opinions is to protect workers by giving them opportunities to reflect their opinions, and it cannot be regarded as invalid because they do not listen to workers' opinions. Kim Hyung-bae, 『Labor Law』24th edition, 2015, Parkyoungsa, p. 304.


❍ Disadvantageous Changes in Employment Rules
Regulations When an employer makes changes to work conditions that are disadvantageous to employees in accordance with the employment regulations without their consent, the previous employment regulations will continue to apply to existing employees whose benefits have been infringed upon. However, employees who accept the new employment conditions and enter into an employment relationship under the changed regulations will be subject to the new regulations. Supreme Court ruling 2011. 6. 24. 2009da58364 Decision


(1) Disadvantage Change Method
The methods for obtaining consent are as follows: If there is no labor union representing the majority of employees, the consent of the majority of employees must be obtained through a meeting-based decision-making process. "Consent by meeting-based decision-making" refers to a method of exchanging opinions among employees without the interference or intervention of the employer at the unit or department level of a business or workplace, and then aggregating the opinions to determine the majority. Supreme Court ruling 2004. 5. 14. 2002da23185 Decision
② If there is a labor union consisting of the majority of employees, the consent of the labor union is sufficient to apply the changed employment regulations to non-union members who have not gone through individual consent procedures. Supreme Court ruling 2008. 2. 29. 2007da85997 Decision
③ If work conditions are diversified, such as production and office work, regular and contract work, consent must be obtained from the group of employees affected by the changes to the disadvantageous employment regulations. Therefore, it is not necessary to obtain the consent of the majority of all employees. Supreme Court ruling 1990. 12. 7. 90da19647 Decision
④ Even if only a specific group of employees will be disadvantaged at the time of the change, if it is expected that the changed employment regulations will be applied to other employee groups in the future, consent must be obtained from the group of employees, including the group that will be affected by the changes. Supreme Court ruling 2009. 5. 28. 2009du2238 Decision


(2) Criteria for Judging Disadvantageous Changes in Employment Rules
Whether a change in employment rules constitutes a disadvantageous change must be determined by considering various factors, such as the purpose and process of the change, the nature of the work at the workplace, the overall system of each provision in the employment rules, and other relevant circumstances. Therefore, even if one element of working conditions is disadvantageously changed, it must be considered comprehensively if there are other elements that have a compensatory or positive effect. Supreme Court ruling 2004. 1. 27. 2001da42301 Decision

Related court cases include the following: ① If a progressive retirement pay provision is changed to a non-progressive one, which may be disadvantageous to workers, but also includes wage increases and reduced working hours that are advantageous to workers, such changes cannot be deemed as one-sidedly disadvantageous to workers. Supreme Court ruling 1984. 11. 13. 84daka414 Decision
② If a change in the salary provision of employment rules is advantageous to some workers but disadvantageous to others, the change may be deemed disadvantageous to workers. Supreme Court ruling 1993. 5. 14. 93da1893 Decision
③ The reduction or abolition of overtime work that exceeds the statutory working hours cannot be regarded as a disadvantageous change in employment rules. Administrative Interpretation: Ministry of Employment and Labor, 2003.3.13.
④ If there is a financial loss due to the cessation of night or holiday work allowances when the work conditions change from night or holiday work to daytime work under a shift system, it is difficult to consider this as a disadvantageous change. Administrative Interpretation: Ministry of Employment and Labor, 2003.6.11.


■ Procedures for Amending Employment Regulations
Unilaterally changing the content of existing working conditions to the disadvantage of employees through the amendment of employment regulations is not allowed under the principle of protection and preservation of the spirit of the Labor Standards Act and the principle of equality between employers and employees in determining working conditions through voluntary agreement (Article 4 of the Labor Standards Act). Supreme Court ruling 77da355, July 26, 1977 Decision

Employers have the authority to make amendments to the employment regulations. Even if the employment regulations are changed to the disadvantage of employees without the consent of the group of workers, the legally effective employment regulations are the amended regulations, and the previous regulations will apply to the existing employees whose vested rights are infringed. Supreme Court ruling 1996.12.23. 95da32631 Decision


❍ In Case of Favorable Changes
In cases where the changes are favorable or not disadvantageous, the employer is not obligated to obtain consent, but only to listen to opinions.

❍ In Case of Disadvantageous Changes
To change the working conditions or other conditions specified in the employment rules to the disadvantage of the employees, the employer must obtain the consent of a majority of the employees through either a collective decision-making process or a meeting. In cases where there is a labor union representing the majority of the employees, the employer may obtain the union's consent, and if there is no such union, the employer must obtain the consent of the majority of the employees. The consent of individual employees who have agreed to the changes is not effective.

❍ Criteria for Judging the Disadvantageous Changes
When determining whether a change in employment rules is reasonable in terms of social norms and whether it is disadvantageous to workers, various factors such as the purpose and background of the change, the nature of the work at the workplace, and the overall structure of each provision in the employment rules should be comprehensively considered. Therefore, it should not be based solely on one particular working condition but rather on a comprehensive review of all working conditions.
First, the revised rules of employment that conflict with the benefits and disadvantages of workers are invalid. Seoul District Court Sentence 1997. 1. 23. 96gahap54787 Decision
In the case of a conflict between benefits and disadvantages between workers due to a change in the employment rules, it is considered unfavorable to the workers, and if the company fails to obtain consent from all workers or a labor union to which a majority of workers are members, it is considered invalid as a violation of Article 94 of the Labor Standards Act.
Second, if a change in employment rules is disadvantageous to workers and the union does not consent, it is not recognized as effective. Administrative Court Sentence 2001. 1.18. 2000gu12156 Decision
Although Paju Agricultural Cooperative received post facto agreement from 60 of the 64 labor union members for its personnel regulations amendment, if a workplace is organized by a labor union representing a majority of workers, any disadvantageous changes in employment rules require the consent of the labor union itself and cannot be substituted for the consent of individual workers belonging to the union. Therefore, the amendment of the personnel regulations is ineffective, and the plaintiff's suspension order based on this is also unfair.
Third, if the payment rate for retirement allowances has been changed to a disadvantageous level, but the integration of the company after retirement extension, wage increases, promotions, and improvements in other working conditions, and the necessity and content of such changes in employment rules are recognized as reasonable in terms of social norms, the application of such changes to existing workers may be recognized without the consent of the workers' collective decision-making method. Supreme Court ruling 2001. 1. 5. 99da70846 Decision


❍ Cases Not Covered by Previous Employment
Rules For matters not specified in the previous employment rules, it is permissible to make changes without workers' consent. However, if a company that doesnot have a retirement age regulation introduces a new retirement age, it is considered a disadvantageous change and requires the consent of the workers' collective decision-making. Also, if a new disciplinary reason is not in violation of the law, a collective agreement, or employment rules, it may be newly defined in the employment rules. Supreme Court ruling on June 14, 1994 93da26151.


■ Method of Consent
As collective consent is required, individual consent on a circulated consent form or the agreement of worker representatives in a labor-management council cannot be considered the consent of the majority of workers. Supreme Court ruling 1994. 6. 24. 92da28556 Decision

However, if a majority of workers delegate their consent rights to worker representatives in the labor-management council, it would be possible. The method of collecting opinions for and against among workers without the involvement of the employer at the unit department level is allowed. Supreme Court ruling 1992. 25 91da25055 Decision
In the case of changes to employment regulations that only apply to a group of workers who are not members of a labor union, the consent of the labor union is not required, and the consent of the majority of those workers is needed.130) Administrative interpretation: Geungi 68207-4087 2001. 11. 27


■ Effect of Consent
If there is consent from the labor union, it is acceptable even if it is disadvantageous to some workers. According to court precedents, if there was no group consent based on a collective decision-making process of workers regarding changes to employment rules, but it was later approved through provisions of a collective agreement, it is regarded as having retroactively consented.131) Administrative interpretation: Labor Standard Act 68207-4087 2001. 11. 27.
132) Supreme Court ruling 1993. 3. 23. 92da52115 Decision 2001da77970