1.

Key Amendments to the Enforcement Decree
 

(1)

Extension of Correction Period: Pursuant to Article 14-3, Paragraph 3 of the Enforcement Decree, if a principal company fails to post a bargaining request from a subcontractor’s union and the subcontractor’s union files a request for correction with the Labor Relations Commission(“LRC”), the LRC now has up to 20 days (previously 10 days) to determine if the principal company qualifies as the “employer” for bargaining purposes.
 

(2)

New Criteria for Bargaining Unit Separation: Pursuant to Article 14-11, Paragraph 3 of the Enforcement Decree, when deciding whether to separate or combine bargaining units between the principal and subcontractor unions, the authorities will now prioritize “similarity of interests,” “adequacy of representation,” and the “potential for conflict among unions” over traditional factors such as working conditions.
 

2.

Key Points of the MOEL Guidelines
 

(1)

Structural Control vs. Illegal Worker Dispatch: The “employer status” of a principal company is now determined by “structural control.” This focuses on whether the principal company limits the subcontractor’s decision-making regarding working conditions rather than direct command over individual workers. This is a broader and more flexible standard than the one used for “illegal worker dispatch” under the Worker Dispatch Act.
 

(2)

Scope of Bargaining (Business Management Decisions): While core business decisions (e.g., merger, spin-off, etc.) themselves are not subject to bargaining, processes that are carried out during the implementation process, such as layoffs or reassignments, are now expressly specified as subjects of bargaining.
 

3.

Manual for Principal-Subcontractor Collective Bargaining
 

(1)

Automatic Bargaining Unit Separation: The MOEL has shifted its position announced on November 24, 2025. The Manual provides that the principal and subcontractor unions are independent bargaining units by default and that no separate legal procedure is required to treat “the entire group of subcontracted workers” as a separate bargaining unit from the principals’ own employees.
 

(2)

Diversified Units based on Affiliation: Bargaining units within the subcontractor group can now be separated not only by job function (e.g., job A, job B, etc.) but also by their affiliation with umbrella unions (e.g., Confederation A, Confederation B, etc.).
 

(3)

Broad Public Notice Obligation: When a principal company receives a bargaining request, it must provide public notice to all relevant subcontractors and their workers (including off-site subcontractors) for which the principal company’s “employer status for bargaining” can be recognized. The Manual recommends that public notices be posted not only in areas where the subcontractor’s workers are stationed but also on the subcontractor’s physical bulletin boards and internal IT systems through proactive cooperation with the subcontractor.
 

4.

Government Support Systems
 

(1)

Support Committee for Bargaining Decisions: The MOEL will establish the “Collective Bargaining Advisory Committee” comprised of legal experts and industry specialists to provide formal interpretations on whether a company qualifies as an “employer with an obligation to bargain” as this is an issue that may arise during actual negotiations.
 

(2)

Promotion of “Win-Win” Bargaining Consulting for Principals and Subcontractors: To minimize confusion during the initial implementation stage and to facilitate substantive bargaining between the principals and subcontractors, the MOEL introduced a “Win-Win” bargaining consulting program. The program will initially focus on the public sector to establish best practices and gradually expand into the private sector to develop standardized bargaining models.
 

5.

Strategic Implications and Recommendations
 

(1)

Proactive Risk Management in Public Notices: Failure to properly notify all relevant subcontractor unions of a bargaining request can halt or reset the entire bargaining process. Principal companies should set an expansive scope for public notices (covering both in-house and external subcontractors) and maintain a robust record of these actions in advance.
 

(2)

Strategic Use of the Support Committee: Refusing to bargain without a valid reason now carries a higher risk of unfair labor practice charges. However, if there is a dispute on whether a company has “structural control” over a specific issue, the company should proactively seek a formal interpretation from the MOEL’s Collective Bargaining Advisory Committee to clarify the company’s obligations and mitigate legal exposure.
 

(3)

Preparation for Changes due to Bargaining Unit Separation and Umbrella Union Affiliations: As the Manual suggests that bargaining units may be separated based on affiliations with umbrella unions, there are concerns that bargaining units may be separated excessively due to varying interests of the unions (despite the similarity in the work carried out by the workers in different unions). Accordingly, when faced with a bargaining request from a subcontractor’s union, companies should proactively analyze the potential impact of separating or combining bargaining units and develop a strategic response.