Corporate trends / Performance record
Unfair Dismissal Decision on “Whether Subject to Relief (Step Adjustment)” (Unfair Dismissal 439)
- Date2026/05/08 04:14
- Read 115
This case is a decision in which the employer prevailed (application dismissed) on the issue of “whether a step adjustment is subject to relief.”
[Case Information]
This case concerns a decision where the employee filed an application for relief with the Labor Relations Commission, claiming that the employer’s adjustment of the employee’s pay step constituted an unfair dismissal, etc., and the employer ultimately prevailed.
Decision Body: Jeonnam Regional Labor Relations Commission 2026BuHae97 ○ ○ ○ Application for Relief from Unfair Dismissal
Decision date: 2026.03.27 · Case result: Dismissed
Summary of key issue: A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission.
1. Legal Implications
Ⅰ. Case Overview
In this case, the employee filed an application for relief with the Labor Relations Commission, asserting that the employer’s adjustment of the employee’s pay step constituted unfair dismissal, etc. The Jeonnam Regional Labor Relations Commission focused on whether the pay step adjustment fell under dismissal, etc. as set forth in Article 23(1) of the Labor Standards Act, and thus whether it was a measure subject to an application for relief before the Labor Relations Commission.
Ⅱ. Summary of Issues
The issue in this case is whether a measure that adjusts an employee’s pay step or withholds a step increase on the grounds of the employee’s misconduct constitutes dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or “other disciplinary action” under Article 23(1) of the Labor Standards Act, such that the employee may file an application for relief from unfair dismissal with the Labor Relations Commission.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that a pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, or wage reduction as enumerated in Article 23(1) of the Labor Standards Act, that it is not defined as a type of disciplinary action under the work rules, and that the Supreme Court has distinguished measures taken in the course of operating the wage and step-increase system, such as withholding a step increase, from general “disadvantageous treatment,” holding that they are subject to relief only where they constitute “disciplinary action as a sanction for the employee’s misconduct.”
In light of this, the Commission found it difficult to regard the pay step adjustment in question as a sanction imposed as a penalty for the employee’s misconduct, and concluded that it does not fall within “other disciplinary action” contemplated as a subject of an application for relief from unfair dismissal, etc. under the Labor Relations Commission Act.
The Commission held that no dismissal disposition exists in this case, or, even if there is a disadvantage to the employee in terms of wages, the measure cannot be regarded as a personnel action constituting disciplinary action under Article 23(1) of the Labor Standards Act. Accordingly, the application must be dismissed for lack of standing as a proper subject of relief before the Labor Relations Commission.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even if an employee suffers disadvantages due to changes in the wage system, pay step adjustments, or withholding of step increases, it should be noted that it will be difficult to file an application for relief from unfair dismissal with the Labor Relations Commission unless such measures fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction, or “other disciplinary action.” In particular, where personnel or remuneration adjustments not specified as types of discipline in the work rules or collective agreement are involved, it is advisable first to confirm their legal nature and, if necessary, to consider other legal avenues such as a wage claim lawsuit or a challenge to disadvantageous changes to the work rules.
Ⅴ. Practical Points (From the Employer’s/Company’s Perspective)
From the employer’s standpoint, it is important to clearly distinguish measures taken in the operation of the wage system—such as pay step adjustments and withholding of step increases—from disciplinary actions, and to set out in detail the types and requirements of disciplinary actions in the work rules. However, even if a measure is labeled a “pay step adjustment” in form, if it is in substance a sanction imposed for the employee’s misconduct, it may be evaluated as “other disciplinary action” under Article 23(1) of the Labor Standards Act and thus become subject to an application for relief before the Labor Relations Commission. Employers should therefore manage the purposes, procedures, and criteria of personnel and remuneration adjustments in an objective manner.
2. Matters Decided
A. Case Overview and Procedural History
A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission.
3. Summary of Decision
A. Summary of the Labor Relations Commission’s Reasoning
A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission. /
[See More Related Decisions]
- “Decision on Unfair Dismissal Related to ‘Dismissal of Application (Non-Appearance at Hearing)’” – Decision date: - Case result: Dismissed
- “Decision on Unfair Dismissal Related to ‘Non-Formation of Employment Offer (Absence of Offer Letter)’” – Decision date: - Case result: Initial decision upheld
- “Decision on Unfair Dismissal Related to ‘Existence of Dismissal (Acceptance of Contract Extension)’”
[Tags]
Unfair dismissal, whether subject to relief (step adjustment), 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 one of the “Unfair Dismissal Decision” series by Labor Law Firm Law&.
※ You can view the previous article, “Decision on Unfair Dismissal Related to ‘Existence of Dismissal (Acceptance of Contract Extension)’,” in a new window.
※ The list of decisions related to whether a step adjustment is subject to relief can be viewed together at “List of Decisions Related to Whether Subject to Relief (Step Adjustment).”
※ Korean version of this case: Korean article
[Case Information]
This case concerns a decision where the employee filed an application for relief with the Labor Relations Commission, claiming that the employer’s adjustment of the employee’s pay step constituted an unfair dismissal, etc., and the employer ultimately prevailed.
Decision Body: Jeonnam Regional Labor Relations Commission 2026BuHae97 ○ ○ ○ Application for Relief from Unfair Dismissal
Decision date: 2026.03.27 · Case result: Dismissed
Summary of key issue: A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission.
1. Legal Implications
Ⅰ. Case Overview
In this case, the employee filed an application for relief with the Labor Relations Commission, asserting that the employer’s adjustment of the employee’s pay step constituted unfair dismissal, etc. The Jeonnam Regional Labor Relations Commission focused on whether the pay step adjustment fell under dismissal, etc. as set forth in Article 23(1) of the Labor Standards Act, and thus whether it was a measure subject to an application for relief before the Labor Relations Commission.
Ⅱ. Summary of Issues
The issue in this case is whether a measure that adjusts an employee’s pay step or withholds a step increase on the grounds of the employee’s misconduct constitutes dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or “other disciplinary action” under Article 23(1) of the Labor Standards Act, such that the employee may file an application for relief from unfair dismissal with the Labor Relations Commission.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that a pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, or wage reduction as enumerated in Article 23(1) of the Labor Standards Act, that it is not defined as a type of disciplinary action under the work rules, and that the Supreme Court has distinguished measures taken in the course of operating the wage and step-increase system, such as withholding a step increase, from general “disadvantageous treatment,” holding that they are subject to relief only where they constitute “disciplinary action as a sanction for the employee’s misconduct.”
In light of this, the Commission found it difficult to regard the pay step adjustment in question as a sanction imposed as a penalty for the employee’s misconduct, and concluded that it does not fall within “other disciplinary action” contemplated as a subject of an application for relief from unfair dismissal, etc. under the Labor Relations Commission Act.
The Commission held that no dismissal disposition exists in this case, or, even if there is a disadvantage to the employee in terms of wages, the measure cannot be regarded as a personnel action constituting disciplinary action under Article 23(1) of the Labor Standards Act. Accordingly, the application must be dismissed for lack of standing as a proper subject of relief before the Labor Relations Commission.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even if an employee suffers disadvantages due to changes in the wage system, pay step adjustments, or withholding of step increases, it should be noted that it will be difficult to file an application for relief from unfair dismissal with the Labor Relations Commission unless such measures fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction, or “other disciplinary action.” In particular, where personnel or remuneration adjustments not specified as types of discipline in the work rules or collective agreement are involved, it is advisable first to confirm their legal nature and, if necessary, to consider other legal avenues such as a wage claim lawsuit or a challenge to disadvantageous changes to the work rules.
Ⅴ. Practical Points (From the Employer’s/Company’s Perspective)
From the employer’s standpoint, it is important to clearly distinguish measures taken in the operation of the wage system—such as pay step adjustments and withholding of step increases—from disciplinary actions, and to set out in detail the types and requirements of disciplinary actions in the work rules. However, even if a measure is labeled a “pay step adjustment” in form, if it is in substance a sanction imposed for the employee’s misconduct, it may be evaluated as “other disciplinary action” under Article 23(1) of the Labor Standards Act and thus become subject to an application for relief before the Labor Relations Commission. Employers should therefore manage the purposes, procedures, and criteria of personnel and remuneration adjustments in an objective manner.
2. Matters Decided
A. Case Overview and Procedural History
A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission.
3. Summary of Decision
A. Summary of the Labor Relations Commission’s Reasoning
A pay step adjustment does not fall under dismissal, suspension from duty, disciplinary suspension, transfer, wage reduction or other disciplinary action as prescribed in Article 23(1) of the Labor Standards Act, is not categorized as a type of discipline under the work rules, and cannot be regarded as a sanction or disadvantageous disposition imposed as a penalty for an employee’s misconduct. Accordingly, it is not a measure for which an application for relief may be filed with the Labor Relations Commission. /
[See More Related Decisions]
- “Decision on Unfair Dismissal Related to ‘Dismissal of Application (Non-Appearance at Hearing)’” – Decision date: - Case result: Dismissed
- “Decision on Unfair Dismissal Related to ‘Non-Formation of Employment Offer (Absence of Offer Letter)’” – Decision date: - Case result: Initial decision upheld
- “Decision on Unfair Dismissal Related to ‘Existence of Dismissal (Acceptance of Contract Extension)’”
[Tags]
Unfair dismissal, whether subject to relief (step adjustment), 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 one of the “Unfair Dismissal Decision” series by Labor Law Firm Law&.
※ You can view the previous article, “Decision on Unfair Dismissal Related to ‘Existence of Dismissal (Acceptance of Contract Extension)’,” in a new window.
※ The list of decisions related to whether a step adjustment is subject to relief can be viewed together at “List of Decisions Related to Whether Subject to Relief (Step Adjustment).”
※ Korean version of this case: Korean article
