Labor Relations Commission · Remedy Application
Labor Relations Commission
What is a Labor Relations Commission?
- Handles remedies for unfair dismissal and unfair labor practices, and mediation of labor disputes
- The employer bears the burden of proving justification
- Records from the time decide the outcome, not after-the-fact explanations
What a Labor Relations Commission case changes for a company is the burden of proof. In an unfair dismissal dispute, the company must prove that the dismissal was justified. An employee starts the process with a single application form, while the company has to back up three things with documents: the grounds for dismissal, whether the penalty was proportionate, and compliance with procedure. That is why a case begins not on the day the dismissal is decided, but on the day the problem first surfaces.
The deadlines are tight. You can file an unfair dismissal remedy application only within 3 months of the dismissal. To contest a regional commission ruling, you must request review by the National Labor Relations Commission within 10 days of receiving the written decision. If you still disagree with the result, you must file an administrative lawsuit within 15 days. Miss a deadline by even one day, and the case is dismissed before the merits are considered. Coverage also differs. Workplaces with fewer than 5 regular employees are not covered by unfair dismissal remedy applications, but you can file an unfair labor practice remedy application regardless of workplace size.
Cases also fall into different types. Unfair dismissal and unfair labor practice cases are adjudication cases: an investigator looks into the complaint, a hearing is held, and the commissioners reach a decision. Disputes over interests, such as wage increases or a breakdown in collective agreement talks, are mediation cases, in which a mediation committee proposes a settlement. In practice, many cases are settled before the hearing. The investigator often asks both sides what they want and steers the case toward a monetary settlement instead of reinstatement. A settlement leaves no adjudication record, which is another factor companies weigh.
The cases that most often fall apart in practice are those where 'the grounds were clear, but the procedure was skipped.' If the work rules provide for a disciplinary committee and an opportunity to respond, but the company simply told the employee verbally, the dismissal is ruled unfair on the procedural defect alone, even if the misconduct is established. The argument that a resignation letter was collected, so it was not a dismissal, also collapses once signs of coercion emerge. Dismissal must be notified in writing, stating the reason and the date, and failing to comply with a remedy order triggers repeated fines.
Inwoo LeeExpert in leadership, communication and performance management
Hwi KimCEO of HRDIST & Talent Development Systems ConsultantA quasi-judicial administrative body with a panel of members, established under the Labor Relations Commission Act. It handles remedies for unfair dismissal and unfair labor practices, mediation and arbitration of labor disputes, and decisions on bargaining unit consolidation.
Company A is an auto parts manufacturer with 68 employees and KRW 24 billion (≈ US$17,956,000) in annual revenue. It dismissed a sales team associate for poor performance and unexcused absences. Seven weeks later, a notice arrived from the regional Labor Relations Commission that an unfair dismissal remedy application had been filed. The HR head said, 'We warned the employee by email several times,' but not a single written record remained. (Hypothetical example)
- On the day the notice arrived, the HR head called the company’s labor attorney, confirmed that 10 days remained to file the response, and told the CEO, 'We need all the documents together by the end of this week.'
- Three HR staff spent two days digging through the groupware and pulled together two years of attendance records, 4 warning emails, and 2 team-lead meeting memos. But there were no minutes of the disciplinary committee at all, and the dismissal had been communicated only verbally.
- After the labor attorney summed it up as 'The grounds may be arguable, but the procedure has gaps,' Company A changed course. Rather than fight to the end at the hearing, it chose the settlement process the investigator had proposed.
- At a conciliation session chaired by the investigator, the case closed with a settlement of KRW 11.5 (≈ US$1) million, equal to 3.2 months of salary. That was about half the amount expected had the case gone as far as reinstatement and back pay.
- Afterward, Company A wrote the principle “warnings in writing, discipline with minutes” into its rules of employment. The following year, all 6 disciplinary actions had notices and written statements on file, and the company faced 0 remedy applications.