MOEL Interpretation

L-M Council Act

The Labor-Management Council as Examined Through Case Law


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8.If labor and management representatives reach an agreement and sign it at a labor-management council, it can be regarded as a collective agreement. (Supreme Court, March 11, 2005, Case No. 2003Da27429)
7.An agreement in the labor-management council requiring overseas-dispatched employees to waive in advance the benefits arising from the totalization of their continuous service period is invalid. (Supreme Court, July 25, 1997, Case No. 96Da22174)
6.Even after making all possible efforts to avoid layoffs, if a company fails to resolve a severe financial deficit, a mass layoff decided through labor-management consultation is lawful. (Seoul Administrative Court, November 14, 2008, Case No. 2008GuHap15947)
5.If a labor-management council agrees to staff reductions for business reasons, it should be regarded as having conducted sincere prior consultation with the employees, even if individual prior consultations with employees were not held. (Supreme Court, October 26, 2001, Case No. 2000Du3016)
4.It is fair to select employees for layoff based on special evaluation scores after consulting on layoff selection criteria through the labor-management council. (Seoul Administrative Court, December 8, 2000, Case No. 99Gu30721)
3.Labor-management council employee representatives do not have the authority to act on behalf of employees regarding disadvantageous changes to working conditions. (Seoul Administrative Court, December 13, 2002, Case No. 2002GuHap12519)
2.In a case where the labor-management council was not held for approximately seven months, the representative of the affiliated organization, who is not the chairperson of the labor-management council, cannot be punished for violating the obligation to convene the labor-management council under Articles 32 and 12(1) of the Act on the Promotion of Worker Participation and Cooperation. (Supreme Court, December 24, 2008, Case No. 2008Do8280)
1.Changes to work rules that are approved only through the labor-management council have no legal effect. (Seoul High Court, March 2, 1990, Case No. 89Na27081)
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