Court Rules "Unfair Dismissal"
The court has ruled that notifying a candidate of the cancellation of their employment just four minutes after informing them of their successful application constitutes unfair dismissal.
On March 2, the 13th Administrative Division of the Seoul Administrative Court (Presiding Judge Jin Hyunseop) announced that it had ruled against the plaintiff in a lawsuit filed by Fintech Company A against the Chairperson of the Central Labor Relations Commission, seeking to overturn a "remedial retrial decision on unfair cancellation of employment."
On June 4, 2024, at 11:56 a.m., the CEO of Company A sent a text message to Mr. B, who had applied for a global strategy position, stating, "We are pleased to inform you that you have been accepted with an annual salary of 120 million won. Please start work from next Monday."
One minute later, Mr. B replied via text, "Thank you. May I register for parking?" The CEO responded, "No, the parking lot is full." Just one minute after Mr. B then replied, "Okay! I will commute by public transportation. When is the payday?" the CEO suddenly sent a message at 12:00 p.m. on the same day stating, "We have decided to cancel your employment." This entire sequence occurred within just four minutes of the initial job offer.
In July 2024, Mr. B filed for relief with the Seoul Regional Labor Relations Commission, and in August of the same year, the commission determined that the cancellation of employment was unfair, as the company had not notified Mr. B in writing of the reason and timing for the cancellation. Company A objected to this decision and filed a lawsuit.
In court, Company A argued that it employed fewer than five regular workers and was therefore not subject to the Labor Standards Act. The company also claimed that since Mr. B was to be hired as a professional manager for its Japanese subsidiary, an employment contract had not been established.
However, the court did not accept these claims.
First, the court found that Company A operated a workplace with at least five employees, given that it shared approximately 75 pyeong (about 248 square meters) of office space with its subsidiary, operated organically by assigning or transferring personnel between entities, and carried out its business based on the same platform.
The court further emphasized that "when an employer notifies an applicant of their successful employment following the recruitment process, this constitutes an 'acceptance' of an offer to enter into an employment contract," and that "the employment contract was already established when the acceptance notice was given."
The court also rejected the company's claim that the situation was a "mistake" due to intending to hire Mr. B as the manager of its Japanese subsidiary, pointing out that this did not match the recruitment notice and was not mentioned during the interview process.
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