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Editorial

Press releases and law firm thought leadership

This page is dedicated to keeping readers informed of the latest news and thought leadership articles from law firms across the globe.

If your firm wishes to publish press releases or articles, please contact Shehab Khurshid on +44 (0) 207 396 5689 or shehab.khurshid@legalease.co.uk

 

Flying Under the Radar

January 2019 - Employment . Legal Developments by Lee & Ko .

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Flying Under the Radar: Companies Must Increase Awareness of the Potentially Dormant and Disruptive Changes to the Minimum Wage in Korea

Korea has experienced unprecedented yearly increases to the statutory minimum wage since 2017 in addition to changes in the applicable legislation. While companies are aware of the more patent impacts of the recent major changes to the Labor Standards Act and have initiated proactive measures to ensure legal compliance, companies often overlook the impacts of the significant changes to the statutory minimum wages and associated legislation until it is too late. And as an employer may face criminal sanctions (i.e., imprisonment up to 2 years or criminal fine not exceeding KRW 20 million) for unpaid wages, companies must be aware of the changing legislation related to the statutory minimum wage and – as with changes to the Labor Standards Act – take proactive measures to ensure continued legal compliance.

New Legislation Reduces Maximum Weekly Working Hours in Korea

July 2018 - Employment . Legal Developments by Bae, Kim & Lee LLC.

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*For better understanding of this article with other graphics , we highly recommend you to visit our firm's website as below.
http://www.bkl.co.kr/upload/data/20180410/bkl-legalupdate-2018000410.html#.WsxBYIhuaHs

 

Nearly 4 years after they first began discussions to revise the law, the Korean National Assembly passed a bill on February 28, 2018 to amend the Labor Standards Act (“LSA”), to reduce the maximum working hours. The new law will reduce Korea’s maximum working hours (“Maximum Working Hours”) from 68 hours per week to 52, will make all public holidays mandatory paid days off, will reduce the number of special industries that are exempt from restrictions on Maximum Working Hours, and will provide much needed clarification on overtime premiums for weekend working hours. The law will become effective on July 1, 2018 and will apply to large companies before being rolled out in stages to smaller companies.

The main changes affected by the bill are summarized below. If you have any questions or would like further information on this topic, please feel free to contact us.

 

 

Supreme Court Renders Decision Calling for “Gender Sensitivity” in Sexual Harassment Cases

July 2018 - Employment . Legal Developments by Bae, Kim & Lee LLC.

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Amid the widespread attention that sexual harassment/violence in the workplace has received due to international movements such as the “Me Too” movement, the Supreme Court of Korea has recently rendered a significant decision on the need to reform the judicial system’s approach to sexual harassment cases.

[SOUTH KOREA] Lower Court Issues Favorable Decision for 27,000 KIA Motors Employees in an ...

December 2017 - Employment . Legal Developments by Kim & Chang .

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Lower Court Issues Favorable Decision for 27,000 KIA Motors Employees in an Ordinary Wage Case 

On August 31, 2017, the Seoul Central District Court held for around 27,000 employees of KIA Motors ("KIA") in their claim seeking payment of unpaid allowances.  These allowances were not paid, because the defendant, KIA, had not included the employees' regular bonuses in their ordinary wages.

[SOUTH KOREA] Supreme Court Rules that Distributor's Sales Agents Are Distributor's Employees ...

August 2017 - Employment . Legal Developments by Kim & Chang .

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Supreme Court Rules that Distributor's Sales Agents Are Distributor's Employees, Entitling Them to Severance Payment from the Distributor

In a recent decision, the Supreme Court held that although a company (the "Distributor") executed service agreements with its sales agents (the "Sales Agents") who worked in the Distributor's retail space at a department store, the Sales Agents were the Distributor's "employees" as defined under the Labor Standards Act and entitled to statutory severance from the Distributor. Although the Sales Agents were subcontracted to the Distributor and received a sales commission for selling products on its behalf to customers, the Supreme Court ruled in favor of the Sales Agents.

Breaking Down the Just-Cause Barrier

August 2016 - Employment . Legal Developments by Lee & Ko .

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A Systematic Approach of Securing Greater Flexibility in Managing Poor Performing Employees

Imagine being a foreign employer in Korea and maintaining a business operation with over 50 local employees.Imagine further that amongst these employees, one individual (“Employee X") has been missing his sales targets by a margin greater than 70% for the past four consecutive months. Although he has no history of disciplinary sanctions, Employee X slouches around the office, is unmotivated and appears overly relaxed. He also shows no outward display of initiative to turn his performance situation around. As an employer, you decide that he is unfit for continued employment, and as you may have done in other jurisdictions, you seek to terminate Employee X for inadequate performance. However, under Korean law, you may lack just-cause for terminating Employee X despite his blatant performance shortcomings, and employers in Korea have often expressed tremendous frustration when they are forced to continue retaining an employee who, like Employee X, consistently fails to perform.

[South Korea] Presidential Advisory Commission Agrees on 5 Key Labor Issues

December 2015 - Employment . Legal Developments by Kim & Chang .

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A Step Forward for the Korean Labor Market – Presidential Advisory Commission Agrees on 5 Key Labor Issues 

On September 15, 2015, after one year of deliberations, the Economic and Social Development Commission (the "ESDC") came to an agreement on 5 key issues relating to labor policies.

[South Korea] Supreme Court Decides on the Criteria for Distinguishing Worker Dispatch from Subcontr

August 2015 - Employment . Legal Developments by Kim & Chang .

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On February 26, 2015, the Supreme Court rendered decisions regarding subcontracted workers. In particular, the Court provided specific factors to consider when determining whether a subcontracting arrangement will be deemed worker dispatch, which can potentially result in an illegal dispatch relationship and create a de facto employment relationship.

South Korea: Court Decisions Since the Supreme Court Rulings on Ordinary Wage

February 2015 - Employment . Legal Developments by Kim & Chang .

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Since the Supreme Court rulings in Kabul Autotech cases last year, the courts rendered a number of decisions applying these Supreme Court rulings on ordinary wage and the applicability of good faith preclusion, including the following.  

 

 

 


South Korea: Supreme Court Decisions on Ordinary Wage – Action Plan for Employers

April 2014 - Employment . Legal Developments by Kim & Chang .

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On December 18, 2013, the Supreme Court, sitting en banc, rendered its decisions on the ordinary wage cases of Kabul Autotech. The Supreme Court's ruling provided some guidance on how to resolve a substantial portion of the employers' past obligations related to ordinary wages.

 

South Korea: Supreme Court Defines the Scope of Ordinary Wage

April 2014 - Employment . Legal Developments by Kim & Chang .

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Ordinary wage, the standard in assessing compensation for overtime, nighttime and holiday work and unused annual leaves, refers to any money paid regularly, uniformly and on a fixed basis. On December 18, 2013, the Supreme Court rendered two full bench decisions on the scope of ordinary wage. Kim & Chang represented the Defendant-Appellant Kabul Autotech in both cases, in which the Supreme Court vacated the judgment of the lower courts in favor of the Defendant-Appellant and remanded the cases.

Landmark labor case: Scope of ordinary wages

February 2014 - Employment . Legal Developments by Shin & Kim.

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On December 18, 2013, the Supreme Court of Korea held that the ordinary wages of employees of KB Auto Tech include fixed bonuses regularly paid. The decision impacts all employers in Korea, as ordinary wages are used to calculate overtime and compensation for unused annual leave, which may in turn impact severance pay. The following is a summary of the relevant issues.

Read more...

 

South Korea: Amendment to Laws Protecting Non-Regular Employees

October 2013 - Employment . Legal Developments by Kim & Chang .

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On March 22, 2013, both the Act on Protection, etc. of Fixed-Term and Part-Time Workers and the Dispatched Workers' Act (the "Act on Protection of Non-Regular Employees") were promulgated to address discrimination against fixed-term, part-time and/or dispatched workers ("non-regular employees"). The amendments will become effective 6 months after the promulgation of the amendment.

Amendment to Korean Employee Retirement Benefits Security Act

December 2011 - Employment . Legal Developments by Kim & Chang .

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An amendment to the Employee Retirement Benefits Security Act (the “Act”) was promulgated on July 25, 2011 and is scheduled to take effect on July 26, 2012. The following is a brief summary of the key provisions of the amendment.

Korean Supreme Court Issues Stern Warning

October 2011 - Employment . Legal Developments by Yulchon.

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Sending Employer's Trade Secret to Your Personal Email Account May Be a Crime

The Court Finds Criminal Misappropriation When Employee Sent Trade Secrets to Personal Email Account.

INTRODUCTION OF MULTIPLE UNION SYSTEM IN KOREA

August 2011 - Employment . Legal Developments by Kim & Chang .

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Pursuant to the Trade Union and Labor Relations Adjustment Act amended on January 1, 2010, more than one union may be established in a given company ("Multiple Union System") starting from July 1, 2011. Even where there are two or more labor unions in a single company, however, the company is only required to engage in collective bargaining with one bargaining channel per company, unless the company agrees otherwise. The single bargaining channel requirement will not apply to pre-existing multiple unions until July 1, 2012. The following may serve as the relevant single bargaining channel:

ENACTMENT OF GENERAL PRIVACY REGULATION - PERSONAL INFORMATION PROTECTION ACT

June 2011 - Employment . Legal Developments by Kim & Chang .

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On March 11, 2011, the National Assembly passed a draft bill for the Personal Information Protection Act ("PIPA"), which is expected to take effect within approximately 6 months. The information telecommunications service providers who are subject to the Act on Promotion of Information Telecommunications Networks and Protection of Information ("APITN") will also have to comply with the following aspects of the PIPA that are not currently covered by the APITN:

December Change: Comprehensive Severance Payment Obligation

December 2010 - Employment . Legal Developments by Yulchon.

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Under the Act on Retirement Benefit's Guarantee, all employers must provide severance pay to their employees. Until today, however, this obligation has not applied to employers with less than 5 permanent employees.

AMENDMENT TO THE ENFORCEMENT REGULATIONS OF THE DESIGN PROTECTION ACT

December 2010 - Employment . Legal Developments by Kim & Cho.

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An Amendment to the Enforcement Regulations of the Design Protection Act (the "Amendment") has come into force beginning January 1, 2010. The major contents are as follows:

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Dinner with GC -
Korea 2018

  • China and Hong Kong GC Powerlist

    In May, The Legal 500 and GC Magazine added another country to the list of destinations for their exclusive Dinner with GC series, as South Korea’s elite in-house counsel came together at Mugunghwa in Seoul, for a closed-door discussion on the realities of the role.

    Dinner with GC - Korea 2018