Advice on Employment Laws for Overall Personnel Management

Workplace challenges are diverse, ranging from day-to-day managerial activities to crisis management requiring immediate strategic responses.  Clients seek our legal advice on a full spectrum of preventive and responsive employment legal challenges, including labor and employment issues in establishment of companies, mergers and acquisitions or spin-off contexts, restructuring and organizational changes, the legal and practical implications of people management and HR strategies, and compliance with Korea’s numerous labor and employment rules and regulations.

• Business establishment
• Mergers and acquisitions, spin-offs and integration after mergers and acquisitions
• Restructuring and organizational changes, optimal management of human resources and disciplinary actions process
• Discrimination and retaliation
• Employee benefits and employment policies
• Statutory compliance matters

Labor Relations

Our Labor & Employment Practice provides practical advice to employers on labor relations issues, such as collective bargaining, mediation and industrial actions, based on comprehensive legal knowledge and understanding as well as extensive practical experience. Understanding Korea’s complex and strict labor laws is critical to achieving legal compliance and mitigating legal risk.

• Collective bargaining
• Labor disputes and crisis management
• Labor-related regulations and compliance issues

Employment Policies and Regulations

A well-designed and well-implemented employment policy is vital for employee satisfaction and workplace harmony and acts as the first line of defense in any employment issues that may arise. In this regard, our Labor & Employment Practice assists our clients by preparing or revising company rules of employment/work rules, codes of conduct, privacy policies and other personnel policies, and by helping our clients properly implement those policies in accordance with Korean law and practice.

• Rules of Employment (i.e., work rules, employment policies or employee handbooks)
• Personnel management system (i.e., performance management, employee benefits, people strategy)
• Code of conduct
• Privacy policies and background checks

Employment and Performance Reviews

The Labor & Employment Practice drafts and reviews employment offer letters/agreements, independent contractor/subcontractor/dispatch (i.e., temp agency) agreements, as well as non-competition, non-solicitation, confidentiality, non-disclosure, severance and separation agreements and forms for processing personal information.  We also provide services related to leadership training, talent management, employee benefits and welfare, performance improvement plans and performance reviews.

• Letters/agreements related to employment 
• Performance reviews and performance improvement plans 
• Leadership evaluation and training 

Working Hours, Compensation and Benefits

Working hours and employee compensation and benefits are another multi-faceted and complex area of employment law in which our lawyers and experts have great expertise and experience. The Labor & Employment Practice offers an integrated team of experts who have a comprehensive and accurate understanding of the laws and extensive experience and who can provide practical and legal advice on all relevant aspects of a compensation and benefits package to ensure that the interest of the company and its employees/officers are best served.

We also provide our clients with advice on tax and foreign exchange implications of compensation and benefits by working with specialists outside the Labor & Employment Practice. 

• Compensation, retirement benefits, welfare and benefits of employees and executives
• Improvement of wage system
• Management and improvement of working hour system
• Human rights impact assessment, management of human rights-related risks for employees and organization assessment
• Tax and foreign exchange implications of compensation and benefits

Internal Investigations and Government Audits

Our Labor & Employment Practice offers systematic guidance on internal investigations (and disciplinary processes) and dispute resolutions concerning employee misconduct including allegations of sexual harassment, fraud, embezzlement and trade secret violations. In addition, we advise our clients on preparation for routine governmental labor and employment audits and on how to proactively minimize the potential exposure prior to such audits.

• Grievance handling, internal investigations and dispute resolution process
• Discrimination and retaliation
• Internal labor audits
• Governmental audits

Administrative Proceedings and Litigation

Our Labor & Employment Practice consists of not only experienced lawyers but also former judges, prosecutors, and MOEL officials who understand all sides and facets of a dispute. Therefore, the combined experience and legal knowledge we have accumulated as counselors and advisors in these particular areas of the Korean labor and employment law allows us to effectively resolve disputes and be more responsive to clients’ needs when representing them before the Korean labor authorities and courts in case of disputes, while it is best to resolve labor-management disputes through dialogue and compromise.

• Disputes related to unfair disciplinary actions, unfair dismissals, and termination of employment
• Disputes related to labor standards violations (e.g., wages and working hours)
• Mediation and disputes before the labor relations commissions and courts

Education and Training

Our Labor & Employment Practice provides compliance education as well as more comprehensive training programs which address key labor and employment (legal and non-legal) issues relevant to a company’s operations.

• Statutorily required education, such as sexual harassment prevention training, occupational safety and health training, educational programs to promote disability awareness and inclusion, and personal information protection training
• Compliance and ethics training
• Cooperative labor relations training

In-house Subcontracting Litigation

• Successfully represented the Korea Expressway Corporation (“KEC”) in a lawsuit filed by its subcontractor’s employees performing maintenance/management of the intelligent transportation system (“ITS”) facilities on the nation’s highways, obtaining a favorable court decision that held there was no worker dispatch relationship between the KEC and the subcontractor’s employees.

• Successfully represented a domestic car company, securing a favorable court decision that rejected the employee status of in-house subcontracting workers. This success was the result of a meticulous analysis of the factual background regarding the worker dispatch relationship and the applicable legal principles.

• Secured a landmark Supreme Court ruling that, for the first time, validated the legality of in-house subcontracting in the direct manufacturing process. This decision was obtained in a lawsuit filed by employees of an in-house subcontractor against a tire manufacturer.

• Successfully represented a tobacco packing company in a lawsuit filed by its subcontractor’s employees, who packed manufactured products under a subcontracting agreement, obtaining a favorable court decision.

Employee Status Litigation

• Successfully represented a credit information company in multiple lawsuits filed by debt collectors who entered into service agreements with the company, obtaining a favorable court ruling that the debt collectors were not employees under the Labor Standards Act.

• Successfully defended an insurance company against claims for statutory severance payments by plaintiffs who alleged that they were employees, securing court decisions that denied the plaintiffs’ claims to employee status.

• Successfully represented the government in a lawsuit filed by post office employees, securing a favorable court ruling. The court rejected claims of employee status based on implicit employment contracts and worker dispatch, confirming that the government was not their employer.

• Successfully represented an automobile company in a lawsuit filed by salespersons hired by an automobile dealer, ultimately securing a favorable Supreme Court decision that upheld the lower court’s decision denying the existence of a worker dispatch relationship.

• Successfully represented a global company and a global bank in lawsuits filed by a former corporate officer and a representative of the Korean branch office respectively, obtaining a favorable court decision that held neither the former officer nor the representative of the Korean branch office were employees.

Wage Peak System Litigation

• Successfully represented an insurance company in several lawsuits filed by employees challenging the company’s wage peak system as unlawful age discrimination, obtaining a favorable court ruling that the wage peak system did not constitute age discrimination under the Elderly Employment Act.

• Successfully represented an automobile manufacturing company in multiple lawsuits filed by employees challenging the company’s wage peak system with a retirement age extension as unlawful age discrimination, obtaining a favorable court ruling.

• Successfully represented a domestic airline in a lawsuit filed by employees challenging the company’s wage peak system with a retirement age extension as unlawful age discrimination, obtaining a favorable court ruling that the wage peak system did not constitute age discrimination under the Elderly Employment Act.

• Successfully represented an insurance company in a lawsuit by retirees challenging the company’s wage peak system on the basis that it was introduced by amending the rules of employment without obtaining individual employees’ consent. The court ruled in favor of the company, holding that it would not be reasonable to deem the wage peak system as disadvantageous solely due to a wage reduction, without considering the retirement age extension.

Ordinary Wage Litigation

• Following an en banc review of an ordinary wage case and a public hearing in 2013, secured a landmark Supreme Court ruling that held the employees’ claim for additional statutory allowances due to the expansion of the scope of ordinary wages was against the principle of good faith.

• Successfully represented a global automotive parts maker in a lawsuit filed by the labor union, which claimed that regular bonuses and business performance pay constituted ordinary wage, obtaining favorable rulings from the lower court, appellate court and Supreme Court.

• Successfully represented an airline in a lawsuit filed by employees, obtaining favorable decisions from the lower court, appellate court and Supreme Court, which rejected the claim that hourly flight allowance and basic flight allowance constituted ordinary wage. Additionally, we obtained a Supreme Court ruling that the employee’s claims were against the principle of good faith.

Business Performance Bonus Litigation

• Successfully represented a credit card company in a lawsuit filed by a retiree, obtaining a favorable court ruling that rejected the claim that performance pay should be included in the average wage.

• Successfully represented a foreign pharmaceutical company in a lawsuit by presenting a meticulous analysis of the incentive systems of both the headquarters and the Korea branch, obtaining a favorable court ruling that the company’s incentives did not constitute wages under the Labor Standards Act and should not be included in the average wage.

Holiday Work Allowance Litigation

• Successfully represented a company in a lawsuit where employees sought additional payment of the holiday work allowance, arguing that the written agreement on the substitution of holidays was defective and that the company failed to pay holiday work allowance for Labor Day, ultimately obtaining a favorable court decision.

• Successfully represented a company in a lawsuit filed by employees seeking additional allowance for overtime work on holidays at a premium rate, securing the Supreme Court’s en banc decision that no premium rate should apply to additional allowance for overtime work on holidays.

Dismissal for Managerial Reasons Litigation

• Successfully represented a manufacturer in a lawsuit regarding a layoff implemented as part of its rehabilitation plan by demonstrating that the statutory requirements for dismissal for managerial reasons were met.

• Successfully represented an automotive parts maker in a lawsuit filed by employees regarding a layoff conducted due to a business crisis, obtaining a favorable court ruling that the layoff was legitimate as it met the statutory layoff requirements.

Improving Corporate Competitiveness

• Advised a global financial company in connection with its workforce restructuring and improvement of its severance pay system.

• Supported communication and negotiations with union, enabling the client to successfully turn around its business without triggering any major industrial action or labor dispute.

Litigation Support

• Successfully represented a manufacturing company in a wrongful termination claim arising out of workforce restructuring efforts and unilateral employee terminations for “urgent business necessity.”

M&A-related HR Issues

• Successfully advised a multinational corporation in a sale of a Korean subsidiary in crisis. 

• Advised the client on various legal and HR issues and ensured that labor and management reached an agreement on those issues, such as reduction of labor costs through workforce restructuring and amendment to the collective bargaining agreement. 

Integration and HR Policy Reform

• In connection with a multinational client’s integration with a local company, assisted the client in integrating the local company’s HR policies with its global HR policies.  This new HR system enabled the local company to significantly improve its business performance.

Internal Investigations and Improvement of Internal Procedures

• Supported a client’s internal investigation regarding employee misconduct, verified the facts of employee misconduct, and advised on the appropriate disciplinary action.

• Also assisted the client in improving its internal procedures based on the investigation.

Criminal Liability in Unfair Labor Practice Case

• Represented a company charged with unfair labor practice related to the establishment of a labor union, and minimized the criminal liability by proving that each relevant act was not an unfair labor practice. 

Productivity Enhancement

• Advised a large manufacturing company on issues related to plant operations, and helped develop a system aimed at improving productivity and efficiency.

• Also assisted in the implementation stages, resulting in an improvement in productivity.

Performance Evaluations and Training for Executives

• Assisted a large Korean manufacturing company in evaluating its executives and prospective executives, and utilized the results to restructure and reposition the executives.

Human Rights Due Diligence and Human Rights Impact Assessment

• Provided a human rights impact assessment for a domestic tech company to identify/assess human rights risks across business operations and in the supply chain, in order to prevent/alleviate negative human rights impacts and to establish a human rights management system that maximizes the company’s positive impact on the community.