Section 2: Individual Labor Relations
Chapter 7: Dismissal
4. Efforts to Avoid Dismissal and Criteria for Selecting Those Persons Subject to Dismissal
4.2 Criteria for Selecting Those Persons Subject to Dismissal for Managerial Reasons
| Supreme Court Decision on May 24, 2012, Case 2011du11310 | |||||
| * Plaintiff, Appellant: Korea W Terminal Corporation
* Defendant, Respondent: Chairman of the National Labor Relations Commission * Defendant Assistant Participant: As listed in the annex 1. Facts: a. The plaintiff held discussions about layoffs with the head of Branch 5, who proposed increasing the weight of subjective evaluations and reducing the weight of employee-side factors in the layoff candidate selection criteria. Most participants supported a rival candidate who had been in opposition to the head of Branch 5 during various elections. b. The plaintiff had no prior experience conducting performance evaluations for field workers, focusing previously only on office staff. Team leaders conducted performance evaluations for 120130 field workers within just eight days, without an institutionalized process to incorporate the opinions of foremen or team leaders. The evaluations did not account for the nature of field jobs, which mainly involved moving cargo (containers) according to instructions from a computerized control room. Instead, criteria such as target achievement and creativity were used. c. Most participants received top scores in objective work attitude evaluations but the lowest scores in subjective evaluations. Conversely, among the 105 remaining employees who scored full marks in the subjective evaluations, 12 received the lowest scores in the objective evaluations. 2. Court Judgment: a. When an employer wishes to dismiss employees for managerial reasons, Article 24, Sections 1 to 3 of the Labor Standards Act requires the establishment of reasonable and fair standards for layoffs and the selection of candidates according to those standards. Although these standards may vary based on the specific circumstances of the employer, they must be objectively rational, socially acceptable, and applied fairly to ensure the rightful candidates are selected for dismissal. b. In this Case, the criteria for selecting layoff candidates were divided equally into subjective and objective evaluations of work attitude, and employee-side factors, each accounting for one-third. The subjective and objective evaluations were equally weighted despite being used to assess the same aspect (work attitude). The disproportionate awarding of points in the subjective category, along with inappropriate criteria for the field workers' duties, resulted in significant discrepancies between participants' subjective and objective scores, and between the participants and the remaining employees. Given these circumstances, the selection criteria could not be considered reasonable or fair, and their application did not justly select the candidates for dismissal, rendering the layoffs of the participants illegal. |
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