[Focus on This Law Firm] Hwawoo Successfully Concludes 'New Government Labor Policy and Corporate Response Strategies' Seminar

With major changes expected in the labor sector following the launch of the new administration, including the passage of the Yellow Envelope Law, Hwawoo Law Firm (Managing Partner Lee Myungsoo) held a related seminar, which concluded successfully.

On the 19th, a seminar titled "New Government Labor Policy and Corporate Response Strategies" was held at the Hwawoo Training Center in Samseong-dong, Gangnam-gu, Seoul, targeting in-house corporate lawyers as well as legal and labor affairs personnel.

Park Samgeun, partner lawyer at Hwawoo Law Firm, giving a lecture at a seminar held at Hwawoo Training Center on the afternoon of the 19th. Courtesy of Hwawoo Law Firm.

The seminar consisted of three sessions: ▲ the new government's direction for labor policy ▲ legislative trends and recognition criteria regarding principal contractors' employer status ▲ corporate response strategies to legislative changes concerning principal contractors' employer status.

In the first session, Lim Seojung, a special professor at the Graduate School of Technological Human Resource Development at Korea University of Technology and Education and former Vice Minister of Employment and Labor and Chief Presidential Secretary for Job Creation under the Moon Jae-in administration, served as the lecturer.

Professor Lim provided an overview of anticipated initiatives under the new administration, including amendments to the Trade Union Act, extension of the retirement age, introduction of a 4.5-day workweek, prohibition of comprehensive wage systems, presumption of employee status, and the burden of proof on companies, all based on President Lee Jaemyung's labor policy pledges and their explanatory materials.

In the second session, Hong Jungmo, an attorney at Hwawoo, analyzed the criteria for determining the employer status of principal contractors (companies that have entered into direct contracts with ordering parties) as stipulated in the amendment to Article 2 of the Trade Union Act (commonly known as the Yellow Envelope Law), based on previous rulings by the Central Labor Relations Commission and the courts.

Attorney Hong stated, "The criteria for judgment are whether the labor provided by the worker is essential as a core element in the employer's business operations, and whether the worker is consistently incorporated into the principal contractor's business system," and presented detailed items to verify these points.

Participants attentively listening to a lecture at a seminar on the new government's labor policy held on the 19th at Hwawoo Training Center in Samseong-dong, Gangnam-gu, Seoul.

In the final third session, Park Samgeun, an attorney, gave a lecture on how companies should respond if such legislative changes regarding the employer status of principal contractors are enacted.

Attorney Park said, "Collective bargaining with subcontractor unions requires a cautious approach," and emphasized, "Based on an internal review of the possibility that employer status may be recognized, companies should assess risks and minimize the scope of bargaining."

However, Attorney Park added, "Given the government's policy stance emphasizing 'fair economy,' it is necessary to establish separate communication channels regarding the working conditions or work environment of subcontracted workers." He continued, "Companies should proactively address deficiencies, and in terms of bargaining, it may be effective to seek assistance from the principal contractor's union or utilize the collective bargaining agreements of subcontractor unions." He also predicted, "If a criminal complaint is filed, the issue of intent regarding unfair labor practices by the principal contractor for refusing collective bargaining with subcontractors will become problematic."

A scene of a Q&A session following a lecture at a seminar on the new government’s labor policy held at Hwawoo Training Center on the afternoon of the 19th. From the left, Hwawoo Law Firm partner attorney Hong Jungmo, partner attorney Park Samgeun, advisor Kwon Youngsoon, and specialist Shin Hyunsoo.

Park Chankun, head of the Hwawoo Labor Group, stated in his closing remarks, "The environment for companies has now changed, making risk management essential."

He continued, "Today, we only presented some of the expected amendments to the Trade Union Act, but we have conducted substantial research on the remaining parts as well. We will do our utmost to support companies in any areas where they need assistance going forward."

Meanwhile, the Hwawoo Labor Group has recently achieved notable results, including overturning a first-instance ruling that recognized illegal dispatch in the Celltrion illegal dispatch appeal case and securing a final acquittal in the CJ Logistics Serious Accidents Punishment Act case.