Yellow Envelope Act Passes Environment and Labor Committee Subcommittee

The "Yellow Envelope Act" (Amendment to Articles 2 and 3 of the Trade Union Act), which former President Yoon Suk-yeol had previously vetoed (requested reconsideration), passed the National Assembly Environment and Labor Committee's legislative subcommittee on July 28, led by members of the Democratic Party of Korea and the Progressive Party.

On the 28th, members of the ruling and opposition parties greeted each other at the 1st Employment and Labor Law Review Subcommittee of the National Assembly Environment and Labor Committee held at the National Assembly Members' Office Building. 2025.7.28 Photo by Kim Hyunmin

On this day, Kim Hyungdong, Kim Wisang, and Woo Jaejun of the People Power Party walked out as soon as discussions began on the amendment to Article 2 of the Trade Union Act, stating, "Societal debate on this issue has not yet matured. Please allow more time." The amendment aims to broaden the definition of "employer," expand the scope of labor disputes, and restrict companies' ability to claim damages against striking workers.

Specifically, the Yellow Envelope Act expands the definition of "employer" to include "anyone who has a substantial and concrete impact on working conditions." The problem is that the criteria are ambiguous, which leaves significant room for legal disputes over the extent of liability. In addition, if damages occur as a result of industrial action, the amendment stipulates that the scope of individual liability must be determined based on the degree of fault and contribution. It also prohibits employers from claiming damages from third parties.

Previously, the Yoon Suk-yeol administration exercised its veto (request for reconsideration) twice regarding this bill. The People Power Party has consistently opposed the bill, arguing that its provisions could encourage illegal strikes.