The Labor Relations Commission’s remedy procedure for unfair dismissals is an important remedy against the infringement of the rights of workers for whom reinstatement is difficult. However, the current Labor Standards Act prescribes that monetary compensation shall be ordered instead of reinstatement only for those workers who do not wish to be reinstated. As a result, the Labor Relations Commission has been rejecting cases where reinstatement is not possible due to labor contract expiration, retirement age, or business closure without determining whether an unfair dismissal has occurred. Accordingly, the Amendment aims to improve the effectiveness of the system by allowing workers to receive monetary compensation through the Labor Relations Commission’s remedy procedure for unfair dismissals even in cases where reinstatement is not possible due to labor contract expiration, retirement age, or business closure.
It also aims to improve the effectiveness of the charges for compelling performance, a sanction against non-compliance with an unfair dismissal remedy order, by increasing the charged amount and period.

Details

A. Apply monetary compensations for unfair dismissals when reinstatement is not possible
1) Prescribe clear legal grounds on which a worker who has been unfairly dismissed may apply for reinstatement or monetary compensation (Article 28, paragraph 3 newly inserted).
2) Prescribe that where a worker has applied for reinstatement but reinstatement is not possible due to labor contract expiration, retirement age, business closure, etc., or where a worker does not wish to be reinstated, the intent of the application may be changed to monetary compensation (Article 28, paragraph 4 newly inserted).
3) Allow the Labor Relations Commission, upon becoming aware of grounds rendering reinstatement not possible for a worker who has applied for reinstatement, to confirm whether the worker wishes to change the intent of his or her application (Article 29, paragraph 4 newly inserted).
4) Prescribe that when an unfair dismissal remedy order is issued by the Labor Relations Commission, reinstatement or monetary compensation shall be ordered in accordance with the intent of the worker’s application (Article 30, paragraph 3).
B. Increase the maximum charge for compelling performance to address non-compliance with an unfair dismissal remedy order to 30 million won (Article 33, paragraph 1) and increase the applicable period to 4 years (Article 33, paragraph 5).

- Allow workers to receive monetary compensation through the Labor Relations Commission’s remedy procedure for unfair dismissals even in cases where reinstatement is not possible due to labor contract expiration, retirement age, or business closure (Article 28, paragraph 4 and Article 30, paragraph 3)
- Increase the maximum charge for compelling performance to address non-compliance with an unfair dismissal remedy order to 30 million won (Article 33, paragraph 1) and increase the applicable period to 4 years (Article 33, paragraph 5)