JIPYONG LLC
KOREA LEGAL INSIGHT
Recent Supreme Court Ruling on Labor Standards Act and Its Possible Implication on Foreign Companies Operating Subsidiaries in Korea
December 2, 2024

On October 25, 2024, the Supreme Court’s First Division rejected an appeal by a company that filed suit seeking to nullify a Central National Labor Relations Commission (NLRC) decision that deemed the termination of an employee wrongful.

In the underlying case, Company A, a Korean travel agency, terminated one of its three employees. The ex-employee had been responsible for accounting since 2016, and the reason for termination was due to the downturn in the travel industry following the COVID-19 pandemic. At the time, Company A was sharing an office space with Company B. From 2019 onwards, Company A and Company B became subsidiaries of the same foreign company, Company C.

KLI Editors

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