{"id":53592,"date":"2025-12-11T10:04:56","date_gmt":"2025-12-11T10:04:56","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&p=53592"},"modified":"2025-12-11T10:04:56","modified_gmt":"2025-12-11T10:04:56","slug":"yellow-envelope-act-passes-national-assembly-plenary-session","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/yellow-envelope-act-passes-national-assembly-plenary-session\/","title":{"rendered":"\u201cYellow Envelope Act\u201d Passes National Assembly Plenary Session"},"content":{"rendered":"

On August 24, 2025, the National Assembly passed the amendment to the Trade Union and Labor Relations Adjustment Act (the \u201cTULRAA\u201d), commonly known as the \u201cYellow Envelope Act.\u201d<\/strong><\/p>\n

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The amendment was promulgated on September 9, 2025 and will become effective on March 10, 2026, six months from the date of promulgation. The key aspects of the amendment are as follows.<\/p>\n

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  1. Expansion<\/strong> of Scope of \u201cEmployer\u201d Under TULRAA<\/strong><\/li>\n<\/ol>\n

    The proposed amendment recognizes an entity as an \u201cemployer\u201d under the TULRAA if it has substantial and specific control over working conditions, even if it is not the direct employer under an employment contract. Accordingly, if a contracting entity can substantially and specifically control or determine the working conditions of a subcontractor\u2019s employees, it may be deemed an employer and be obligated to engage in collective bargaining with the subcontractor\u2019s union.<\/p>\n

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    1. Expansion of Scope of \u201cUnion Membership\u201d Under TULRAA<\/strong><\/li>\n<\/ol>\n

      Currently, the TULRAA stipulates that an organization is not considered a trade union if it allows non-employees to join. The proposed amendment deletes this provision, making it possible for individuals who are not \u201cemployees\u201d as defined by the TULRAA to join a trade union.<\/p>\n

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      1. Expansion of Scope of \u201cIndustrial Dispute\u201d Under TULRAA<\/strong><\/li>\n<\/ol>\n

        The previous versions of this bill proposed deleting the word \u201cdetermination,\u201d which would have expanded the scope of industrial disputes to include not only disputes of interest (matters concerning the determination of working conditions), but also disputes of right (matters concerning the implementation of determined conditions). However, the current amendment retains the word \u201cdetermination\u201d but expands the scope of industrial disputes to include matters related to the \u201cstatus of workers,\u201d \u201cbusiness management decisions that affect working conditions,\u201d and \u201cviolations of a collective bargaining agreement by the employer.\u201d<\/p>\n

        Notably, by explicitly including \u201cbusiness management decisions that affect working conditions\u201d as a subject of industrial disputes, the amendment makes it likely that union demands for collective bargaining or industrial action over management decisions \u2013 such as mergers, spin-offs, business transfers, factory relocations or restructuring that impact employees \u2013 will be regarded as legitimate actions.<\/p>\n

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        1. Limitation on Damages Claims Against Unions<\/strong><\/li>\n<\/ol>\n

          While the current TULRAA grants immunity from liability for damages resulting from legitimate collective bargaining and industrial actions, the amendment broadens this protection to cover damages arising from \u201cother activities of the trade union\u201d as well. It also clarifies that a union or worker is not liable for damages caused to an employer when acting in defense against the employer\u2019s illegal acts. In addition, the amendment outlines specific factors that courts must consider when determining the extent of individual liability for illegal acts committed by the union and\/or workers and provides a framework for such union and\/or workers to request a reduction in damages.<\/p>\n

          The TULRAA encompasses major amendments, such as the (i) expansion of the scope of an \u201cemployer,\u201d (ii) expansion of the scope of \u201cunion membership,\u201d (iii) expansion of the scope of industrial disputes, and (iv) limitation on damages claims, and it is likely to have a significant impact on existing labor-management relations. Accordingly, companies will need to prepare for changes in labor-management relations with the implementation of the TULRAA.<\/p>\n

           <\/p>\n

          Please click on the following link to view the full version of this newsletter (Link<\/a>).<\/p>\n

          Authors<\/strong><\/p>\n

          Hyun Jae PARK (View Profile<\/a>)<\/p>\n

          Shin Hyeong PARK (View Profile<\/a>)<\/p>\n

          https:\/\/www.kimchang.com\/en\/insights\/detail.kc?sch_section=4&idx=33102<\/a><\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-53592","legal_developments","type-legal_developments","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments\/53592","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments"}],"about":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/types\/legal_developments"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/media?parent=53592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}