Corporate trends / Performance record
‘Cancellation of Hiring Decision (Revocation After Notifying Preliminary Successful Applicant of Start Date)’ Unfair Dismissal Case (Unfair Dismissal 127)
- Date2026/01/20 04:04
- Read 243
This case concerns an unfair dismissal decision in a dispute over the issue of “cancellation of a hiring decision (revocation after notifying a preliminary successful applicant of the start date),” which concluded with a full victory for the worker.
[Case Information]
Decision Body: Incheon Regional Labor Relations Commission
2025Buhae773 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2025.11.14 · Outcome: Full recognition
Summary of Key Issues:
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the selection procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it was held that an employment relationship had been formed.
1. Legal Implications
This unfair dismissal case is a decision in which the Labor Relations Commission examined whether cancellation of hiring at the hiring-decision stage constitutes a dismissal, and if so, whether it is justified. This is also a type of inquiry that Labor Law Firm Law& frequently receives in practice. The Incheon Regional Labor Relations Commission held that the employer’s unilateral cancellation of hiring, after coordinating the start date and workplace with the preliminary successful applicant, did not constitute a justifiable dismissal, and accordingly granted a monetary compensation order.
Ⅰ. Case Overview
In its job posting, the employer presented specific working conditions and, after the selection process, assigned the applicant a preliminary successful applicant ranking. When the applicant’s preliminary ranking came up, the employer contacted the applicant by phone and other means on the premise of hiring and consulted and coordinated the start date and workplace. The applicant then prepared to join the company on that basis.
However, citing changes in its internal staffing situation (withdrawal of a previously anticipated resignation, selection errors, etc.), the employer unilaterally cancelled the applicant’s hiring without any separate written notice. Viewing this as an unfair dismissal, the applicant filed an application for remedy with the Labor Relations Commission, opting for a monetary compensation order instead of reinstatement to the original position. The Commission ordered payment of monetary compensation of approximately KRW 1,960,000.
Ⅱ. Issues
The issue in this case is whether, at the stage where a worker has been selected as a preliminary successful applicant through a job posting and selection process and the start date and workplace have been coordinated, the employer’s cancellation of hiring on the grounds of internal circumstances constitutes a “dismissal” under the Labor Standards Act, and whether that cancellation of hiring (dismissal) was supported by just cause and complied with lawful procedures.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that the employer had specified concrete working conditions in the job posting; that the worker, based on that posting, applied and was assigned a preliminary successful applicant ranking; and that, once the preliminary ranking came up, the employer and the applicant reached a concrete agreement premised on hiring by coordinating the start date and workplace.
In light of this series of steps—job posting → application → preliminary success → coordination of start date and workplace—the Commission found that an employment contract had been formed between the employer and the worker.
Furthermore, the reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—were entirely internal circumstances of the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring as required by Article 27 of the Labor Standards Act. In view of these factors, and in light of case law and commentary holding that cancellation of a hiring decision also constitutes termination of an employment contract and thus a dismissal, for which just cause and lawful procedures are required,
the Commission held that this dismissal was unfair, as it lacked substantive just cause and was tainted by a serious procedural defect arising from violation of the written-notice requirement.
In addition, the worker had expressly applied for a monetary compensation order in lieu of reinstatement. A monetary compensation order is calculated based on at least the amount of wages the worker would have received had he or she normally provided labor from the date of dismissal to the date of the decision. Taking into account that, in this case, it was appropriate to set the amount, including wage equivalents, at KRW 1,960,000, the Commission accepted the application for a monetary compensation order.
Ⅳ. Practical Points (From the Worker’s Perspective)
Even at the hiring-decision stage, once a preliminary success notice has been given and coordination of the start date and workplace has been completed, this may in substance be evaluated as the formation of an employment contract. If, at this stage, the employer unilaterally cancels the hiring, this may not be a mere “postponement of entry” but may constitute a dismissal under the Labor Standards Act. Workers should therefore consider filing an application for remedy for unfair dismissal with the Labor Relations Commission, focusing on whether the dismissal was substantively justified and whether there was a violation of the written-notice procedure.
In particular, if the employer cites only “company circumstances” and cancels the hiring verbally or via KakaoTalk messages, etc., without providing written notice of the reasons and timing of the dismissal, a finding of unfair dismissal may be made solely on the basis of procedural illegality. It is thus important to systematically secure relevant evidence (job postings, messages notifying success and start date, records of the cancellation notice, etc.).
Ⅴ. Practical Points (From the Employer/Company Perspective)
Where, in the course of new hiring, the start date and workplace have been finalized and coordinated with a preliminary successful applicant, there is a high likelihood that this will be regarded as formation of an employment contract. HR departments and hiring managers must recognize that any subsequent cancellation of hiring carries legal risks equivalent to dismissal. Even where cancellation of hiring is unavoidable due to business circumstances or internal staffing errors, employers should examine whether there is “just cause” under Article 23 of the Labor Standards Act and strictly comply with Article 27’s requirement to provide written notice of the reasons and timing of dismissal.
It is also helpful for preventing disputes to clearly define, at the job posting and selection-guidance stage, the legal nature of the hiring decision, grounds for rescission, and whether the employment is on a probationary or trial basis, and to concretely incorporate into work rules and HR regulations the standards and procedures to be followed where cancellation of a hiring decision is unavoidable.
This unfair dismissal decision by the Incheon Regional Labor Relations Commission demonstrates that cancellation of hiring at the hiring-decision or preliminary success stage can clearly constitute a dismissal, and that the Commission strictly requires not only substantive justification but also compliance with the written-notice obligation under Article 27 of the Labor Standards Act. It therefore provides important practical guidance for both workers and employers.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it is determined that an employment relationship was formed.
B. Whether the cancellation of hiring (dismissal) was justified
The reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—are circumstances attributable to the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring, and therefore cannot be deemed to have satisfied the procedural requirements of Article 27 of the Labor Standards Act. In light of these factors, the cancellation of hiring lacked just cause and was procedurally defective, and thus constitutes an unfair dismissal.
C. Whether to accept the application for a monetary compensation order
Since the worker applied for a monetary compensation order in lieu of reinstatement, it is appropriate to order payment of KRW 1,960,000 (one million nine hundred sixty thousand won), including wage equivalents.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it is determined that an employment relationship was formed.
B. Whether the cancellation of hiring (dismissal) was justified
The reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—are circumstances attributable to the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring, and therefore cannot be deemed to have satisfied the procedural requirements of Article 27 of the Labor Standards Act. In light of these factors, the cancellation of hiring lacked just cause and was procedurally defective, and thus constitutes an unfair dismissal.
C. Whether to accept the application for a monetary compensation order
Since the worker applied for a monetary compensation order in lieu of reinstatement, it is appropriate to order payment of KRW 1,960,000 (one million nine hundred sixty thousand won), including wage equivalents.
/
[See More Related Decisions]
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Case” – Decision date: – Case number: Initial decision upheld
- “‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ Unfair Dismissal Case”
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ Unfair Dismissal Case”
[Tags]
Unfair dismissal, cancellation of hiring decision (revocation after notifying preliminary successful applicant of start date), cancellation of hiring, others, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is part of Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “‘Disciplinary Sanction Level (Repeated Workplace Bullying)’ Unfair Dismissal Case,” in a new window.
※ A list of decisions related to “cancellation of hiring decision (revocation after notifying preliminary successful applicant of start date)” can be viewed under “List of Decisions Related to Cancellation of Hiring Decision (Revocation After Notifying Preliminary Successful Applicant of Start Date).”
※ Korean version of this case: Korean article
[Case Information]
Decision Body: Incheon Regional Labor Relations Commission
2025Buhae773 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2025.11.14 · Outcome: Full recognition
Summary of Key Issues:
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the selection procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it was held that an employment relationship had been formed.
1. Legal Implications
This unfair dismissal case is a decision in which the Labor Relations Commission examined whether cancellation of hiring at the hiring-decision stage constitutes a dismissal, and if so, whether it is justified. This is also a type of inquiry that Labor Law Firm Law& frequently receives in practice. The Incheon Regional Labor Relations Commission held that the employer’s unilateral cancellation of hiring, after coordinating the start date and workplace with the preliminary successful applicant, did not constitute a justifiable dismissal, and accordingly granted a monetary compensation order.
Ⅰ. Case Overview
In its job posting, the employer presented specific working conditions and, after the selection process, assigned the applicant a preliminary successful applicant ranking. When the applicant’s preliminary ranking came up, the employer contacted the applicant by phone and other means on the premise of hiring and consulted and coordinated the start date and workplace. The applicant then prepared to join the company on that basis.
However, citing changes in its internal staffing situation (withdrawal of a previously anticipated resignation, selection errors, etc.), the employer unilaterally cancelled the applicant’s hiring without any separate written notice. Viewing this as an unfair dismissal, the applicant filed an application for remedy with the Labor Relations Commission, opting for a monetary compensation order instead of reinstatement to the original position. The Commission ordered payment of monetary compensation of approximately KRW 1,960,000.
Ⅱ. Issues
The issue in this case is whether, at the stage where a worker has been selected as a preliminary successful applicant through a job posting and selection process and the start date and workplace have been coordinated, the employer’s cancellation of hiring on the grounds of internal circumstances constitutes a “dismissal” under the Labor Standards Act, and whether that cancellation of hiring (dismissal) was supported by just cause and complied with lawful procedures.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that the employer had specified concrete working conditions in the job posting; that the worker, based on that posting, applied and was assigned a preliminary successful applicant ranking; and that, once the preliminary ranking came up, the employer and the applicant reached a concrete agreement premised on hiring by coordinating the start date and workplace.
In light of this series of steps—job posting → application → preliminary success → coordination of start date and workplace—the Commission found that an employment contract had been formed between the employer and the worker.
Furthermore, the reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—were entirely internal circumstances of the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring as required by Article 27 of the Labor Standards Act. In view of these factors, and in light of case law and commentary holding that cancellation of a hiring decision also constitutes termination of an employment contract and thus a dismissal, for which just cause and lawful procedures are required,
the Commission held that this dismissal was unfair, as it lacked substantive just cause and was tainted by a serious procedural defect arising from violation of the written-notice requirement.
In addition, the worker had expressly applied for a monetary compensation order in lieu of reinstatement. A monetary compensation order is calculated based on at least the amount of wages the worker would have received had he or she normally provided labor from the date of dismissal to the date of the decision. Taking into account that, in this case, it was appropriate to set the amount, including wage equivalents, at KRW 1,960,000, the Commission accepted the application for a monetary compensation order.
Ⅳ. Practical Points (From the Worker’s Perspective)
Even at the hiring-decision stage, once a preliminary success notice has been given and coordination of the start date and workplace has been completed, this may in substance be evaluated as the formation of an employment contract. If, at this stage, the employer unilaterally cancels the hiring, this may not be a mere “postponement of entry” but may constitute a dismissal under the Labor Standards Act. Workers should therefore consider filing an application for remedy for unfair dismissal with the Labor Relations Commission, focusing on whether the dismissal was substantively justified and whether there was a violation of the written-notice procedure.
In particular, if the employer cites only “company circumstances” and cancels the hiring verbally or via KakaoTalk messages, etc., without providing written notice of the reasons and timing of the dismissal, a finding of unfair dismissal may be made solely on the basis of procedural illegality. It is thus important to systematically secure relevant evidence (job postings, messages notifying success and start date, records of the cancellation notice, etc.).
Ⅴ. Practical Points (From the Employer/Company Perspective)
Where, in the course of new hiring, the start date and workplace have been finalized and coordinated with a preliminary successful applicant, there is a high likelihood that this will be regarded as formation of an employment contract. HR departments and hiring managers must recognize that any subsequent cancellation of hiring carries legal risks equivalent to dismissal. Even where cancellation of hiring is unavoidable due to business circumstances or internal staffing errors, employers should examine whether there is “just cause” under Article 23 of the Labor Standards Act and strictly comply with Article 27’s requirement to provide written notice of the reasons and timing of dismissal.
It is also helpful for preventing disputes to clearly define, at the job posting and selection-guidance stage, the legal nature of the hiring decision, grounds for rescission, and whether the employment is on a probationary or trial basis, and to concretely incorporate into work rules and HR regulations the standards and procedures to be followed where cancellation of a hiring decision is unavoidable.
This unfair dismissal decision by the Incheon Regional Labor Relations Commission demonstrates that cancellation of hiring at the hiring-decision or preliminary success stage can clearly constitute a dismissal, and that the Commission strictly requires not only substantive justification but also compliance with the written-notice obligation under Article 27 of the Labor Standards Act. It therefore provides important practical guidance for both workers and employers.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it is determined that an employment relationship was formed.
B. Whether the cancellation of hiring (dismissal) was justified
The reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—are circumstances attributable to the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring, and therefore cannot be deemed to have satisfied the procedural requirements of Article 27 of the Labor Standards Act. In light of these factors, the cancellation of hiring lacked just cause and was procedurally defective, and thus constitutes an unfair dismissal.
C. Whether to accept the application for a monetary compensation order
Since the worker applied for a monetary compensation order in lieu of reinstatement, it is appropriate to order payment of KRW 1,960,000 (one million nine hundred sixty thousand won), including wage equivalents.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
A. Whether hiring (an employment contract) was formed
The employer specified concrete working conditions in the job posting, and the worker, having reviewed that posting, applied and was assigned a preliminary successful applicant ranking in accordance with the procedure. Once the worker’s preliminary ranking came up, the employer contacted the worker on the premise of hiring and completed coordination of the start date and workplace. In light of these circumstances, it is determined that an employment relationship was formed.
B. Whether the cancellation of hiring (dismissal) was justified
The reasons asserted by the employer for cancelling the hiring—withdrawal of a previously anticipated resignation, selection errors concerning the resigning employee, etc.—are circumstances attributable to the employer. The employer did not provide the worker with written notice of the reasons and timing of the cancellation of hiring, and therefore cannot be deemed to have satisfied the procedural requirements of Article 27 of the Labor Standards Act. In light of these factors, the cancellation of hiring lacked just cause and was procedurally defective, and thus constitutes an unfair dismissal.
C. Whether to accept the application for a monetary compensation order
Since the worker applied for a monetary compensation order in lieu of reinstatement, it is appropriate to order payment of KRW 1,960,000 (one million nine hundred sixty thousand won), including wage equivalents.
/
[See More Related Decisions]
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Case” – Decision date: – Case number: Initial decision upheld
- “‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ Unfair Dismissal Case”
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ Unfair Dismissal Case”
[Tags]
Unfair dismissal, cancellation of hiring decision (revocation after notifying preliminary successful applicant of start date), cancellation of hiring, others, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is part of Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “‘Disciplinary Sanction Level (Repeated Workplace Bullying)’ Unfair Dismissal Case,” in a new window.
※ A list of decisions related to “cancellation of hiring decision (revocation after notifying preliminary successful applicant of start date)” can be viewed under “List of Decisions Related to Cancellation of Hiring Decision (Revocation After Notifying Preliminary Successful Applicant of Start Date).”
※ Korean version of this case: Korean article
