Yellow Envelope Act Passes Environment and Labor Committee Subcommittee, Full Committee Vote Scheduled (Comprehensive)

The "Yellow Envelope Act" (Amendment to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), over which former President Yoon Suk-yeol exercised his veto power, passed the bill subcommittee of the National Assembly's Environment and Labor Committee 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, when discussions on the amendment to Article 2 of the Trade Union Act began, Kim Hyungdong, Kim Wisang, and Woo Jaejun of the People Power Party walked out, stating, "Social consensus has not yet matured. Please give us more time." The amendment expands the definition of "employer" and the scope of labor disputes, and limits 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 considerable room for legal disputes over the scope of liability. In addition, if damages occur due to industrial action, the amendment stipulates that the scope of each liable party's responsibility must be determined individually, based on the cause and degree of contribution. It also prohibits employers from claiming damages from third parties.

Democratic Party members of the Environment and Labor Committee plan to push ahead with the passage of the amendment at a full committee meeting around 8 p.m. on this day. Kim Jooyoung, the Democratic Party's secretary on the committee, explained after the subcommittee adjourned, "Since the bill is basically the same as the one that passed last year, there haven't been major changes, but some new provisions have been added to enhance the completeness of the law and reduce confusion in the field."

The newly added provisions include the Supreme Court precedent from June 2023, which involved members of the Hyundai Motor Irregular Workers' Chapter of the Korean Metal Workers' Union, regarding claims for damages related to industrial action.

The Yellow Envelope Act, following its introduction in the 21st National Assembly, also passed the plenary session of the National Assembly last year under the initiative of the then-opposition Democratic Party. Former President Yoon exercised his veto power against the amendment twice. The People Power Party has consistently opposed the bill, arguing that its provisions could encourage illegal strikes.