– A Complete Guide to Employee Rights and Legal Protections
Understanding Employee Dismissal in Korea
The Korean Labor Standards Act provides strong protections for employees against unfair dismissal. Companies cannot freely terminate workers without meeting specific legal requirements and following proper procedures.
Legal Framework for Employee Dismissal
Under Article 23(1) of the Labor Standards Act, employers are prohibited from dismissing workers without justifiable reasons. This fundamental protection ensures employment stability and prevents arbitrary termination.
Management-Related Dismissals
Article 24 of the Labor Standards Act specifically addresses dismissals for management reasons, including cases related to COVID-19. These provisions set strict standards to protect employees from unnecessary job losses.
Legal Requirements for Management-Related Dismissals
1. Urgent Management Need
According to Article 24(1), employers must demonstrate genuine management necessity for dismissals. This may include:
- Business transfers
- Acquisitions
- Mergers
- Prevention of management deterioration
2. Efforts to Avoid Dismissal
Under Article 24(2) and (3), employers must:
- Make genuine efforts to prevent dismissals
- Establish fair and reasonable dismissal criteria
- Notify labor unions 50 days before dismissal (if applicable)
Employee Rights During Dismissal Process
Notice Requirements
According to Articles 26 and 27, employers must:
- Provide 30 days advance notice before dismissal
- Pay 30 days of ordinary wages if notice period isn’t given
- Clearly state the reason for dismissal and effective date
Legal Remedies for Unfair Dismissal
Appeal Process
Employees who believe they were unfairly dismissed have several options:
- File a complaint with the local labor committee (Article 28)
- Appeal to the Central Labor Commission for reconsideration (Article 31(1))
- File an administrative lawsuit if necessary (Article 31(2))
Practical Implications for Employers
In practice, dismissing employees in Korea while complying with all legal requirements is extremely challenging. Companies rarely win unfair dismissal lawsuits, making it risky to terminate employees without proper cause and procedure.
Risk Mitigation Strategy
Many companies find that negotiating a voluntary departure with appropriate compensation is the most effective way to reduce legal risks and ensure smooth employment transitions.