[Law Firm Now] All Your Questions on the Yellow Envelope Act Answered... Sejong Publishes '50 Questions and Answers on the Yellow Envelope Act'

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Amid various interpretations emerging regarding the Yellow Envelope Act (Amendments to Articles 2 and 3 of the Trade Union Act), which passed the National Assembly plenary session on August 24, a new set of guidelines has been published to address a wide range of questions about the interpretation and scope of the key revised provisions.

Sejong Law Firm published "50 Questions and Answers on the Yellow Envelope Act." Sejong Law Firm

On August 26, Sejong Law Firm (Managing Partner Oh Jonghan) announced the online publication of "50 Questions and Answers on the Yellow Envelope Act." The guide, "50 Questions and Answers on the Yellow Envelope Act," can be obtained free of charge by contacting the Sejong Law Firm Yellow Envelope Act Task Force (yellowenvelope_tf@shinkim.com).

Sejong Law Firm stated, "With the Yellow Envelope Act having passed the National Assembly plenary session, a variety of issues such as collective bargaining relationships and negotiation methods between principal contractors and subcontractors may arise immediately. The Sejong Labor Group has prepared these guidelines to minimize confusion among companies regarding the interpretation and application of the amended Trade Union Act and to help them respond quickly and accurately."

"50 Questions and Answers on the Yellow Envelope Act" first summarizes the main points of the Act in four sections: ▲Expansion of the scope of employers (recognition of principal contractors as employers) ▲Partial removal of passive requirements for trade unions ▲Expansion of the concept of labor disputes ▲Exemption or limitation of liability for damages arising from illegal acts by trade unions.

In addition, the guide provides 29 questions and answers related to the employer status of principal contractors, 11 related to the expansion of labor disputes, 3 regarding the expansion of union membership scope, and 7 regarding the limitation of damage claims.

Specifically, regarding the "employer status of principal contractors," the guide addresses questions such as: ▲Whether a trade union of a secondary subcontractor, which is a parts supplier or does not have a direct contractual relationship with the principal contractor, can demand collective bargaining with the principal contractor ▲Whether a trade union of a subsidiary or affiliate can demand collective bargaining with the parent company or holding company ▲If a subcontractor’s union takes industrial action against the principal contractor, whether the principal contractor can continue operations by deploying its own employees or employees of other subcontractors ▲How the criteria for "substantial control" differ from those for "worker dispatch" ▲Whether a subcontractor’s union can demand that the principal contractor directly hire subcontracted workers through collective bargaining ▲If there are multiple subcontractors each with their own union, whether the principal contractor must negotiate separately with each union or can unify the bargaining channel at the business unit level ▲If the principal contractor and the subcontractor’s union sign a wage agreement, whether union members can claim wages directly from the principal contractor.

Regarding the "expansion of labor disputes," the guide answers questions such as: ▲If a trade union selects the conclusion of an employment stability agreement restricting dismissals as a collective bargaining agenda, whether the company is required to negotiate on that agenda ▲Whether concerns from the business community that strikes over decisions such as overseas investment or political strikes could become legal are valid. Regarding the "limitation of damage claims," it addresses questions such as: ▲If the employer cannot specifically prove the degree of participation in industrial action or the extent of damage caused by individual union members, whether the employer can still claim damages against those members ▲Whether a collective agreement that is more disadvantageous to the union than the statutory limitation of damage claims is valid. These are among the questions that companies and unions will need to consider immediately upon the law’s implementation.

Sejong Law Firm stated that through these guidelines, it aims to enhance understanding of the Yellow Envelope Act and provide key points necessary for the field.

The preparation of these guidelines involved Kim Dongwook, head of the Sejong Labor Group and a leading labor law expert in Korea; Cho Chanyoung, who has delivered significant rulings as a judge specializing in labor law at the Seoul High Court; and Kim Jongsu, who has extensive experience in collective labor relations consulting and litigation.

Kim Dongwook commented, "I hope that '50 Questions and Answers on the Yellow Envelope Act' will help companies prepare for the Act and provide practical assistance in restructuring labor-management relations. We will continue to closely monitor guidelines, interpretations, and trends in case law from the Ministry of Employment and Labor to provide comprehensive solutions to companies."