Employees protest a revised enforcement decree tied to a pro-labor measure generally known as the “Yellow envelope legislation” close to the presidential workplace in Seoul, Nov. 29. Newsis
A authorities decree detailing the so-called Yellow Envelope Legislation — a landmark revision meant to curb the power of firms to hunt giant harm claims in opposition to hanging employees — has drawn criticism from each enterprise teams and labor unions, with every accusing the Ministry of Employment and Labor of making extra confusion than readability forward of its implementation in March 2026.
The revised enforcement ordinances underneath the Commerce Union and Labor Relations Adjustment Act have drawn criticism for putting extra burdens on firms whereas narrowing the sensible attain of the pro-labor legislation’s core protections for subcontracted employees.
Key questions stay over how the brand new guidelines will govern collective bargaining between principal employers and subcontractor unions and the way a lot discretion the federal government will wield within the course of. In idea, a subcontractor union might search separate talks with a principal employer, however whether or not such negotiations proceed in any given case could be determined by the Nationwide Labor Relations Fee or a newly created state physique.
The principles additionally depart unresolved how broadly the definition of an “employer” could also be interpreted and the way strictly limits on damage-compensation legal responsibility will probably be utilized.
The Korea Enterprises Federation, a company representing main corporations right here, launched survey outcomes Sunday displaying employers’ worries about what the legislation may deliver to their workplaces. They argue that if all subcontractor unions file direct bargaining requests in giant numbers, employers will probably be pulled into overlapping negotiations that have been beforehand dealt with by single‑channel talks, which they worry may paralyze companies.
In line with a ballot of 100 firms, 87 % stated the implementation of the legislation is more likely to damage labor-management relations. Many corporations say the standards for figuring out whether or not a principal firm workouts “substantial management” over subcontracted employees are too obscure, creating floor for conflicts over whether or not the corporate could be thought of an employer of such employees and, in that case, underneath what circumstances. The survey confirmed 77 % stated they’re involved a couple of sharp enhance in authorized prices pushed by that ambiguity.
Confronted with this uncertainty, 99 % stated there needs to be corrective motion by lawmakers, with 63.6 % calling for delaying enforcement till key authorized questions are resolved.
Labor teams have additionally expressed dissatisfaction with the enforcement decree, arguing that it makes direct bargaining between subcontractor unions and their “actual employers” too slender and conditional, successfully hollowing out the legislation’s unique intent. By leaving key particulars to the discretion of presidency our bodies, together with fee members, they are saying the decree turns what was meant to be a transparent authorized safeguard right into a obscure promise.
The Korean Confederation of Commerce Unions, an umbrella union which led the laws push, stated final week that it despatched President Lee Jae Myung a proper letter urging him to scrap the enforcement decree.
“If the unification of bargaining channels is pressured, there will probably be circumstances the place bargaining with the principal employer turns into inconceivable, as a result of protracted unification procedures,” the group stated. “Conflicts between labor and administration, in addition to amongst employees themselves may additionally intensify.”
The ministry has characterised its decree as a balanced try to protect the legislation’s goal ― permitting subcontractor unions to cut price with principal employers ― whereas nonetheless organizing talks round a unified bargaining window to maintain the method manageable. It maintains that each one unions can individually negotiate with their employers. However with out clarifying among the key ideas, corresponding to who particularly counts as an employer, many circumstances are anticipated to finish up in court docket.
