Labor Union Initial Conversation in Korea (blooper)

Isabelle: “Today let’s talk about the first communication with the newly established union.”

Justin: “How does the initial conversation with the union begin?”

Isabelle: “Once the union is formed, they will send an official letter to start collective bargaining. They will first seek to establish ground rules.”

Justin: “What do those ground rules entail, and what should the company consider?”

Isabelle: “They usually cover when and where to negotiate. The union may want to have negotiations on the company premises during work hours to assert their influence.”

Justin: “I see. So, it would be important for the company to weigh the implications carefully before agreeing to the union’s request. What happens after the ground rules are addressed?”

Isabelle: “Next, the union will want to establish ‘Priority Negotiation Clauses,’ which generally includes time-off workers, check-offs, and allocating union office space.”

Justin: “What are time-off workers and check-offs?”

Isabelle: “Time-off workers are employees allowed to work on union affairs during normal work hours, while still being paid. Check-offs are arrangements for union fees to be automatically deducted before salaries are paid.

Justin: “Does the company have to accept the union’s suggestion for these?”

Isabelle: “No, the company should also carefully consider these clauses as well to preserve their bargaining leverage for later negotiations.”

Korean Supreme Court Expands Labor Rights for Part-Time University Lecturers

The Korean Supreme Court Decision 2023Da217312, Decided on July 11, has redefined the scope of “low-hours employees” under the Labor Standards Act. According to this Act, workers averaging under 15 hours per week over four weeks typically do not qualify for weekly paid days off or minimum annual leave. However, eight university lecturers challenged this rule, arguing that their work exceeded 15 hours per week when factoring in lecture preparation, grading, and administrative duties, even if their contracts stated otherwise.

While lower courts ruled in favor of the government, citing insufficient evidence that actual hours exceeded the contractual ones, the Supreme Court overturned these rulings. The Court found that preparation and administrative tasks are integral to lecturers’ duties, and basing “low-hours” classification solely on contracted lecture hours misrepresents their true workload. The Court argued that excluding these tasks contradicts the intent of the Labor Standards Act, which is meant to exempt only those with minimal work hours and lesser involvement.

This decision grants these lecturers the right to weekly paid days off and annual leave and may set a precedent for other part-time employees with similar roles. It suggests that even if contractual hours are below 15, jobs requiring substantial preparation or additional duties might still qualify for these entitlements. This could also extend to severance benefits, though that was not addressed directly in this ruling.

Understanding Visa Categories and Eligibility Requirements

South Korea’s visa system offers categories tailored for various purposes such as work, study, family, and residency, each with specific eligibility and duration:

  • Work Visas: E-series visas (E-1 to E-7) cater to professionals in fields like education and technology. For instance, E-2 visas are for language instructors, while E-7 visas apply to skilled workers.
  • Investor and Entrepreneur Visas: D-8 and D-9 visas support foreign investors engaged in start-ups, trade, and business ventures.
  • Family and Residency Visas: F-series visas include family members of foreign residents, marriage migrants, and residents under special categories. F-2 visas are available to residents meeting income and conduct requirements, offering a path to permanent residency (F-5).

Pathways to Permanent Residency: Long-Term Planning Korea provides streamlined pathways to long-term residency and permanent status (F-5), appealing to professionals, investors, and families:

  • Employment-Based Residency: E-series visa holders may qualify for F-2 residency after five years and advance to F-5 permanent residency, often aided by completing the Social Integration Program (KIIP).
  • Investment-Based Residency: Substantial investment (e.g., over 300 million KRW with employment of two South Korean nationals) can lead D-8 visa holders to F-5 permanent residency.

Required Documentation and Submission Applying for a Korean visa requires careful documentation:

  • Application Forms: Accessible via platforms like HiKorea, including e-application options.
  • Proof of Eligibility: May include educational, employment, financial, or business credentials.
  • Residence and Employment Verification: Documentation of investment, income, and employment stability.
  • Social Integration Requirements: Completion of KIIP is often necessary for F-series visas.

Key Considerations for Family Members Family reunification is a core aspect of Korean visas, allowing dependents to join primary visa holders:

  • Spouses and Children: Most E and F visas allow spouses and children under F-3 status, typically limiting employment.
  • Parental Visas: F-1 visas allow eligible parents to join adult children under residency visas, provided income requirements are met.

Special Programs and Expedited Services Korea offers specialized programs for investors and high-tech professionals, like the “Start-up Visa” with streamlined processing.

Conclusion: Strategic Planning for Success Korea’s visa system aims to attract global talent and investment. For those seeking long-term residency, understanding the requirements, preparing documentation, and consulting with immigration experts can facilitate a successful application and smooth transition to residency. If you have questions about the most appropriate visa type or need assistance in applying for visas, don’t hesitate to contact the professionals at InterLEX to assist with all your needs!

The Power of Majority Labor Unions

Isabelle: “The more employees that join a union, the more powerful it becomes. Especially according to Korean labor law. If more than 50% of employees join a union, their power increases significantly.”

Justin: “What happens if 50% of a company’s employees join the union?”

Isabelle: “In that case, it becomes a Majority Union, gaining substantial legal power. This includes general binding force of the collective bargaining agreement (CBA), representation in the Labor-Management Council (LMC).”

Justin: “So at this point the CBA covers all employees, even non-members?”

Isabelle: “Exactly, that’s the general binding force.”

Justin: “Does this change the union’s status with the company?”

Isabelle: “Yes, the majority union acts as the employee representative in the LMC. With this, they gain authority to request information including the company’s financial situation, that are generally not available to the public.”

Justin: “Are there any implications for the rules of employment?

Isabelle: Yes, the company would also need the consent of the majority union for detrimental changes to the Rules of Employment (ROE).”

Why Unions are Formed in Korea and How to Address Them

Justin: Hi Isabelle, recently Samsung’s labor union has been in the news a lot. I was curious why are unions formed in Korea?

Isabelle: Unions are typically formed for a few key reasons. First, there’s a lot of concern about job security. Also, there could be a general dissatisfaction with working conditions, such as inadequate salaries. There also might be distrust of leadership, especially with allegations of workplace harassment or unfair treatment.

Justin : I see. Then from the company’s perspective, it’s critical to address these types of problems to reduce the motivation for employees to unionize.

Isabelle: Yes, at the end of the day, dynamics between companies and unions are like two competing leaderships trying to earn employees’ trust.

Justin: That’s an interesting point. So, if employees believe they can rely on the company’s existing channels to resolve their concerns, they might feel less inclined to turn to a union.

Isabelle: Exactly. These channels might include regular communication through the Labor Management Council, which, according to Korean labor law, should meet at least every three months. Additionally, a solid complaint management system for whistleblowers is essential.

Justin : What else? Isabel: Another recommended feedback mechanism would be, implementing a fair performance-based compensation system.

Justin : I see. I guess when employees see that their hard work is rewarded fairly, their desire for collective action is diminished.

Isabelle : That’s right. Unions form to gain collective bargaining power to obtain better working conditions. If employers are mindful of these factors, unions are less likely to form.

Supreme Court Decision on the Scope of Management and Supervison Personnel

Under the Korean Labor Standards Act (LSA), certain exemptions apply to managerial or supervisory employees, freeing them from the 52-hour workweek limit, overtime pay, and holiday allowances. However, the law lacks a precise definition of what qualifies someone for this status. A recent Supreme Court ruling (Supreme Court Decision 9019Da223389, decided on April 12, 2024) sheds light on this issue, stressing that the determination must go beyond titles and allowances, focusing instead on the actual duties performed and the degree of supervision involved.
The case centered around a company policy that denied overtime allowances to employees receiving a responsibility allowance, which was intended for managerial positions. Although the lower court had supported the company’s stance, the Supreme Court reversed the ruling. The Court found that simply receiving a responsibility allowance or holding a managerial title does not automatically exempt employees from overtime pay. Instead, the key consideration is whether the employees were performing substantive managerial duties and if they operated under minimal supervision.

This ruling emphasizes the need for companies to look beyond job titles or internal policies when classifying employees under the LSA. Moving forward, businesses must carefully assess the actual responsibilities and supervision levels of their employees to ensure they are properly categorized and compliant with the law. If you have any questions about whether an employee might be considered a manager, please contact the experts at InterLEX for assistance!

Korean Labor Attorneys Are Not Attorneys

Be careful! Some Labor Attorney’s are Not Lawyers & Some Labor Law firms are not law firms in Korea.

Justin: I was shocked to hear that so called ‘labor attorneys’ are not lawyers in Korea.

No wonder why Korean Labor Attorney’s costs vary so much in Korea. Some quote costs quite low and claim to offer the same service

Isabel: Actually, you have raised a very important issue that most non-Koreans would not know.

To clarify, 변호사 like myself, often called as attorney or legal counsel, are actual lawyers in Korea.

However, 노무사, often calling themselves as labor attorneys are not really lawyers.

Justin: Really? That is really odd because in my understanding the term ‘attorney’ can only be used after earning a JD and passing the bar exam. Do these labor attorneys have those qualifications?

Isabel : No. They have passed a separate exam which with no requirement of any level of education to pass this 노무사 or labor attorney exam. Since they are not attorneys, they also cannot represent their clients in court, nor defend criminal cases related to labor law violations.

Justin:This confusion could definitely mislead international clients….

Isabel:A relationship with legal counsel is one based on trust and firm understanding of each other. If an HR issue was unresolved with the capabilities of a Nohmusa and escalated to the courts, a client would have to later hire a real lawyer, Byeonhosa to resolve the matter. Fortunately, at InterLEX, we are all fully licensed lawyers with abilities to aid our clients in all legal matters and represent them in court or any labor commission necessary.

Justin: Then how about the term ‘labor law firm’. Are they really a ‘law firm with lawyers’?

Isabel: No. This term is also used in a very confused manner.

The so called labor attorneys call their firms labor law firm, but they are technically no law firms, 법무법인 under the Korean law.

Many international clients think there are numerous labor law firms in Korea with real lawyers, however, it is important to differentiate those two.

Justin: Then how many true law firm are there in Korea, with the expertise in labor and employment?

Isabel: Excluding those giant law firm with numerous services, InterLEX is the only labor and employment law firm with international capability.

So called ‘labor law firms’ are not law firms.