Unfair Labor Practices in Korea 

Employer Conduct That May Lead to Criminal Liability

What Are Unfair Labor Practices?

Constitutional Rights Workers Must Be Free to Exercise

Unfair labor practices refer to employer conduct that infringes upon the three fundamental labor rights guaranteed by the Constitution – namely, the rights to organize, to bargain collectively, and to take collective action. The Trade Union and Labor Relations Adjustment Act (“Trade Union Act”) strictly prohibits such practices. 

If an employer engages in an unfair labor practice, the individual who committed the violation may be subject to criminal penalties. In addition, under the dual liability provision of the Trade Union Act, the corporation or individual business owner may also be subject to a fine. 

The Four Major Types of Unfair Labor Practices

Unfair labor practices are generally categorized into four major types:

• Discriminatory Treatment  for Union Activity

This refers to cases where an employer disadvantages an employee on grounds of lawful union activities. It includes situations where the employer takes adverse action because the employee has joined or attempted to join a union, has sought to organize a union, or has otherwise engaged in lawful union activities. Retaliatory discrimination – such as taking adverse action because the employee has reported the employer’s legal violations to the Labor Relations Commission, testified in related proceedings, or submitted evidence to an administrative authority – also falls within this category. 

• Unfair Employment Contracts (Yellow-Dog Contracts)

This refers to conduct in which an employer makes it a condition of employment that an employee not join a trade union, withdraw from a union, or become a member of a specific union. Such conditions are intended to suppress the employee’s freedom of association even before employment begins. Imposing such a condition constitutes an unfair labor practice, and any employment contract term containing it is void. 

• Refusal or Neglect of Collective Bargaining

This refers to conduct in which the employer, without just cause, refuses or neglects to engage in collective bargaining or to conclude a collective agreement with the union representative or a person delegated by the union. The duty to engage in collective bargaining requires the employer to negotiate in good faith; it does not impose an obligation to reach an agreement. 

Acts constituting unfair labor practices include: repeatedly postponing bargaining without justification; unilaterally interrupting negotiations; refusing to bargain merely because the union’s demands are considered excessive; or avoiding bargaining on grounds of managerial difficulties. 

However, the employer may refuse bargaining if a justified reason exists, such as when the person requesting bargaining lacks authority, when bargaining is demanded at unreasonable times or locations (e.g., late at night or at the employer’s residence), or when the union engages in violent or threatening conduct. 

• Interference with or Domination of a Trade Union

This refers to conduct in which an employer interferes with or dominates the organization or operation of a trade union, and it is one of the most frequently disputed types of unfair labor practices. 

Examples include obstructing the formation of a trade union; inducing employees to withdraw from a union or to join a specific union; bribing union officials with money or providing entertainment to influence union management; interfering with or disrupting union events or lawful industrial actions; intervening in union elections; intimidating or discouraging union activities by making negative comments, speeches, or posts about the union; engaging in an unlawful lockout; and granting preferential treatment to a specific union. In addition, providing wages in excess of the time-off limit or subsidizing union operating expenses in a manner that threatens the union’s independence likewise constitutes an unfair labor practice.

When Does Unfair Labor Practice Liability Arise?

Who Can Be Punished – and Under What Conditions?

For criminal liability for an unfair labor practice to arise, the actor must qualify as an employer under the Trade Union Act, the prohibited conduct must have progressed beyond mere preparation, and there must be intent to commit the unfair labor practice. 

An employer includes not only the business owner or a person responsible for managing the business, but also any person who has the authority to effectively control or determine working conditions, even without a direct employment relationship.

The employer must have begun carrying out the unfair labor practice; mere preparatory acts are not sufficient. The required intent may be inferred from objective circumstances and does not require proof of a specific purpose or motive.

A Heightened Risk in Unionized Workplaces

Disputes during collective bargaining or escalating industrial action can intensify conflict, sometimes leading employers to take excessive measures. Unionized workplaces tend to experience a higher frequency of unfair labor practice allegations, which highlights the critical importance of understanding the applicable laws and preparing in advance.  

Key Takeaways

Unfair labor practice rules protect employees and trade unions from employer conduct that interferes with the exercise of fundamental labor rights, while setting important boundaries for how employers may respond to union activities, collective bargaining, and industrial action. Understanding these rules is important for both employers seeking to manage labor relations lawfully and employees or trade unions seeking to protect their rights under Korean labor law.

For assistance with unfair labor practice matters under Korean labor law, please contact us.