Limitation of Dismissal under the “Labor Standards Act”

Regulations for Limiting Dismissal under the “Labor Standards Act”
- The “Labor Standards Act” requires the discharge reason (Article 23, Paragraph 1, Article 24 of the “Labor Standards Act”), period (Article 23, Paragraph 2 of the “Labor Standards Act,” and procedure (Articles 26 and 27 of the “Labor Standards Act”) to restrict the employer from dismissing the employee unilaterally.
※ To make the discharge effective, the employer shall comply with the provisions restricting dismissal under the Act and subordinate statute related to labor relations, along with the limitations stated under the “Labor Standards Act.”

Restriction on dismissal reasons
- LABOR STANDARDS ACT, EQUAL EMPLOYMENT OPPORTUNITY AND WORK-FAMILY BALANCE ASSISTANCE ACT, TRADE UNION AND LABOR RELATIONS ADJUSTMENT ACT prohibit dismissal for a specific reason.
- Articles 23 (1) and 24 of the Labor Standards Act restrict dismissals without justifiable reasons and layoffs for managerial reasons.

Restriction on dismissal timing
- The employer shall not dismiss an employee for the period during which he/she is on leave for occupational injury or illness and for the period during which a woman is on leave for 30 days before and after childbirth pursuant to Article 74 of the Labor Standards Act. (Body part of Article 23 (2) of the Labor Standards Act)
※ However, this is not the case if the employer has made a temporary compensation pursuant to Article 84 of the Labor Standards Act or is unable to continue the business. (Proviso to Article 23 (2) of the Labor Standards Act)

Restriction on dismissal procedure
- Advance notice of dismissal
· The employer shall make a notice at least 30 days in advance to dismiss the worker (including dismissal for management reasons), and shall pay at least 30 days in ordinary wages if the notice is not made 30 days in advance. (Body part of Article 26 of the Labor Standards Act, Supreme Court Decision, Apr. 15, 2010, 2009 Do 13833)
※ However, this is not the case if the worker’s term of continuous employment is less than 3 months, it is impossible to continue a business due to natural disasters or other unavoidable reasons, or where an employee intentionally causes a huge disruption to the business or damages property for the reasons prescribed in Article 4 of the Enforcement Rule of the Labor Standards Act. (Proviso to Article 26 of the Labor Standards Act)
- Written notice of reasons for dismissal, etc.
· In order to fire a worker, the employer shall notify the reason for dismissal and the timing of dismissal in writing. (Article 27 (1) of the Labor Standards Act)
· A worker's dismissal shall be effective only when the reason for dismissal and the timing of dismissal are notified in writing. (Article 27 (2) of the Labor Standards Act)
· If the employer made the foregoing notice in writing stating the reasons for dismissal and the timing of dismissal, it shall be deemed to have given the above notice. (Article 27 (3) of the Labor Standards Act)
- Procedural restrictions on collective agreements and employment rules
· Where disciplinary or dismissal procedures are provided in collective agreements, employment rules, etc., dismissal made without such procedures shall not be effective except in exceptional cases in which procedural defects repaired. (Uijeongbu District Court's Decision dated Jul.15, 2011, 2010 Gahap 4196: Determined)
· The reasons for dismissal are not sufficiently stated by listing only the provisions of collective agreements or rules of employment violated by the employee without stating at all what kind of action constitutes the cause of termination in the notice of dismissal for the employee (Supreme Court's Decision dated Oct.27, 2011, 2011Da 42324).
Scope of restrictions on dismissal under the Labor Standards Act

Any business or business establishment with five or more workers
- The Labor Standards Act applies to all businesses or business establishment with five or more workers on a regular basis. (Body part of Article 11 (1) of Labor Standards Act)

A business or business establishment that uses not more than four workers
- For a business or place of business with four or fewer workers on a regular basis, some provisions of the Labor Standards Act may be applied, as prescribed in Article 7 of the Enforcement Decree of the Labor Standards Act. (Article 11 (2) of Labor Standards Act)
· For a business or business establishment with four or fewer workers on a regular basis only the provisions concerning the timing of dismissal(Article 23 (2) of the Labor Standards Act) and the notice of dismissal(Article 26 of the Labor Standards Act)shall apply. (Article 7, attached Table 1 of the Enforcement Decree of the Labor Standards Act).
· For a business or place of business with four or fewer workers on a regular basis, The provisions concerning dismissal without justifiable reasons (unfair dismissal under Article 23 (1) of the Labor Standards Act), dismissal for managerial reasons (Article 24 and 25 of the Labor Standards Act), written notification of reasons for dismissal, etc. (Article 27 of the Labor Standards Act), and application for unfair dismissal relief (Article 28 through 33 of the Labor Standards Act) shall not apply.
※ As the Regulations of application for unfair dismissal relief (Article 28 through 33 of the Labor Standards Act) are not applied to workers in businesses or business establishment with fewer than four employees, the workers cannot apply to the Labor Relations Commission for unfair dismissal relief.
- Matters concerning working relations not covered by the Labor Standards Act shall be governed by the Civil Act.
· An employer may dismiss the worker at any time unless there is an agreement on the period of work. (Article 660 (1) of the Civil Act)
※ The dismissal shall take effect one month after the date of dismissal. When remuneration is determined by period, the dismissal shall take effect after one quarter of laid off. (Article 660 (2) of the Civil Act)

A business or business establishment which has only relatives living together and a household employee.
- Labor Standards Act does not apply to a business or business establishment which has only relatives living together and a household employees. (Proviso to Article 11 (1) of the Labor Standards Act)
※ As the Regulations of application for unfair dismissal relief (Article 28 through 33 of the Labor Standards Act) are not applied to workers in which has only relatives living together and a household employees, the workers cannot apply to the Labor Relations Commission for unfair dismissal relief.