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Showing posts with the label employment law

Court Deems IT Project-Based Termination Unfair

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Key Legal Ruling on Unfair Dismissal in the IT Industry A recent ruling by a lower court has set an important precedent regarding the dismissal of regular employees in the IT industry. The Seoul Administrative Court’s Administrative Division 12, presided over by Judge Kang Jae-won, ruled that dismissing an employee under the pretext of project-based work practices constitutes unfair dismissal. This decision marks a significant moment in labor law, particularly for those working in industries where project-based employment is common. The case involved Mr. A, who joined an IT company in November 2023 and was assigned to a software development project. In February of the following year, he was informed that the company would withdraw from the current project and discuss assigning him to another one. Mr. A remained unpaid for approximately a month while in a suspended status. In March, the company notified him that his suspension would be treated as a resignation. Mr. A filed an applic...

86% of SMEs Opt for Selective Hiring of Older Workers

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Survey Highlights Preferences for Prolonging Employment of Older Workers A recent survey has revealed that 86% of small and medium-sized enterprises (SMEs) believe that selective re-employment is the most desirable method for extending the employment of older workers, rather than simply increasing the retirement age. The Korea Federation of SMEs released the findings of its "Opinion Survey on Employment Extension Among Small and Medium-Sized Enterprises" on the 19th. The survey was conducted among SMEs with 30 or more employees that have a retirement system. According to the results, 86.2% of responding companies identified "selective re-employment" as the preferred approach for extending employment of retirees. Only 13.8% supported "statutory retirement age extension," a proposal often advocated by labor groups. Selective re-employment refers to a system where employers decide on re-employment based on job performance, achievements, health status, and...

Court Rules Strike Replacement Pay Not Unfair Labor Practice

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Court Rules on Special Allowances During Strike A recent court ruling has clarified the legal implications of special allowances provided to workers during a labor strike. The Seoul Administrative Court’s 13th Administrative Division, presided over by Judge Jin Hyeonseop, ruled in favor of a synthetic resin manufacturer, Company A, in a case that challenged a decision made by the Central Labor Relations Commission. The dispute arose from a full-scale strike organized by the Korean Chemical, Textile and Food Workers’ Union (KCTFU), which is affiliated with the Korean Confederation of Trade Unions. The strike began on October 30, 2023, and lasted for one month. Many employees from Company A’s Ulsan and Jincheon production plants participated in the walkout. During the strike, Company A offered special allowances to non-striking workers who took on replacement roles. These workers were compensated at 50% of their hourly wage for the time spent working as replacements. This payment was...