Corporate trends / Performance record
Unfair Dismissal Decision on “Legitimacy of Transfer (Organizational Restructuring) · Level of Wage Reduction (KakaoTalk Insults)” (Unfair Dismissal 459)
- Date2026/05/18 04:08
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This case concerns a decision in which the employer prevailed (application dismissed) on the issues of “legitimacy of transfer (organizational restructuring) · level of wage reduction (KakaoTalk insults).”
Adjudicating Committee: Gyeongbuk Regional Labor Relations Commission 2026Buhae87 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.03.24 · Case result: Dismissed
Summary of key issues:
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions arising from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was held to be legitimate.
1. Legal Implications
Ⅰ. Case Overview
In this case, the employer, citing organizational restructuring, ordered the employee to transfer, and separately imposed a disciplinary wage reduction of five months on the grounds that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat. The employee claimed that these measures constituted unfair personnel actions equivalent to unfair dismissal and filed an application for remedy with the Labor Relations Commission.
The employee challenged the measures as unfair, arguing excessive disadvantage in living conditions resulting from the transfer and the excessive severity of the disciplinary sanction. The employer countered that the transfer was necessitated by organizational restructuring and that the discipline was unavoidable to maintain workplace order.
Ⅱ. Issues
The issues in this case are:
“Whether the transfer ordered by the employer in the course of organizational restructuring was a legitimate transfer in terms of business necessity, disadvantage in living conditions, and good-faith consultation, and whether the disciplinary wage reduction of five months imposed for the employee’s use of informal speech and abusive language toward a superior and insulting remarks in a KakaoTalk group chat was a legitimate disciplinary measure in terms of grounds, level, and procedure.”
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case found that the employer was in a situation where organizational restructuring was necessary, that it was difficult to regard the disadvantage in the employee’s living conditions caused by the transfer as significantly exceeding the level ordinarily to be borne by an employee, and that the employer appeared to have undergone a good-faith consultation process as required under the principle of good faith prior to the transfer.
Accordingly, the Commission held that the transfer was legitimate in terms of business necessity, procedure, and disadvantage in living conditions.
In addition, the Commission recognized that the employee had used informal speech and abusive language toward a superior and had made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order. It further found that the disciplinary level of a five‑month wage reduction could not be viewed as a clear deviation or abuse of the employer’s discretionary disciplinary authority under social norms, and that the disciplinary procedures had been lawfully conducted in accordance with the relevant rules.
On this basis, the Commission held that the wage reduction was also legitimate in terms of grounds, level, and procedure, and therefore did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, unlike in cases of transfer or redundancy dismissal, when a transfer order is issued due to organizational restructuring, if business necessity is recognized and the disadvantage in living conditions is not excessive, the Labor Relations Commission may evaluate the measure as a legitimate personnel action. This should be kept in mind.
Furthermore, the use of informal speech and abusive language toward a superior, as well as insulting remarks made in online spaces such as KakaoTalk group chats, can clearly constitute grounds for discipline. Depending on the frequency of such conduct and its impact on workplace order, severe disciplinary measures such as wage reduction may be justified. It is therefore important to remember that workplace etiquette and hierarchical order must also be observed in non‑face‑to‑face and online communications.
Ⅴ. Practical Points (From the Employer/Company Perspective)
From the employer’s side, when issuing a transfer order, it is very important for purposes of proving legitimacy in a Labor Relations Commission dispute to document the necessity of the organizational restructuring and the rationality of personnel redeployment, and to keep detailed records of the consultation process with the employee subject to transfer (explanations, hearing of opinions, etc.).
In addition, acts of insult or abuse in digital spaces such as KakaoTalk group chats should be clearly stipulated as grounds for discipline in the work rules. When imposing discipline, the employer should determine the disciplinary level by comprehensively considering the nature and degree of the misconduct, its impact on workplace order, and any prior disciplinary history, and should establish internal disciplinary standards in advance so that the duration and rate of wage reduction do not appear excessive under social norms.
By obtaining advice from professional institutions such as Labor Law Firm Law&, and by reviewing transfer and disciplinary procedures and standards in advance, employers can enhance their ability to defend against future disputes over unfair dismissal and unfair discipline.
2. Matters Adjudicated
A. Case Overview and Procedural History
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions resulting from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was legitimate.
B. Legitimacy of the wage reduction in this case (grounds, level, procedure)
The facts that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order, were all recognized as grounds for discipline. The disciplinary level of a five‑month wage reduction could not be viewed as a deviation or abuse of the scope of the employer’s discretionary authority, and the disciplinary procedures were lawful.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Decision
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions resulting from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was legitimate.
B. Legitimacy of the wage reduction in this case (grounds, level, procedure)
The facts that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order, were all recognized as grounds for discipline. The disciplinary level of a five‑month wage reduction could not be viewed as a deviation or abuse of the scope of the employer’s discretionary authority, and the disciplinary procedures were lawful. /
[Further Related Decisions]
- “Unfair Dismissal Decision on ‘Legitimacy of Reassignment (Reassignment of Security Guard)’”
- “Unfair Dismissal Decision on ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’”
- “Unfair Dismissal Decision on ‘Non‑Formation of Hiring Commitment (Absence of Offer Letter)’” – Date of decision: – Case result: First‑instance decision upheld
[Tags]
Unfair dismissal, legitimacy of transfer (organizational restructuring) · level of wage reduction (KakaoTalk insults), violation of company policy · non‑compliance with work instructions, disciplinary action (wage reduction), reassignment · transfer, 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.
※ The previous article, “Unfair Dismissal Decision on ‘Legitimacy of Reassignment (Reassignment of Security Guard)’,” can be viewed in a new window.
※ The list of decisions related to legitimacy of transfer (organizational restructuring) · level of wage reduction (KakaoTalk insults) can be viewed together in the “List of Decisions Related to Legitimacy of Transfer (Organizational Restructuring) · Level of Wage Reduction (KakaoTalk Insults).”
※ Korean version of this case: Korean article
Adjudicating Committee: Gyeongbuk Regional Labor Relations Commission 2026Buhae87 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.03.24 · Case result: Dismissed
Summary of key issues:
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions arising from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was held to be legitimate.
1. Legal Implications
Ⅰ. Case Overview
In this case, the employer, citing organizational restructuring, ordered the employee to transfer, and separately imposed a disciplinary wage reduction of five months on the grounds that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat. The employee claimed that these measures constituted unfair personnel actions equivalent to unfair dismissal and filed an application for remedy with the Labor Relations Commission.
The employee challenged the measures as unfair, arguing excessive disadvantage in living conditions resulting from the transfer and the excessive severity of the disciplinary sanction. The employer countered that the transfer was necessitated by organizational restructuring and that the discipline was unavoidable to maintain workplace order.
Ⅱ. Issues
The issues in this case are:
“Whether the transfer ordered by the employer in the course of organizational restructuring was a legitimate transfer in terms of business necessity, disadvantage in living conditions, and good-faith consultation, and whether the disciplinary wage reduction of five months imposed for the employee’s use of informal speech and abusive language toward a superior and insulting remarks in a KakaoTalk group chat was a legitimate disciplinary measure in terms of grounds, level, and procedure.”
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case found that the employer was in a situation where organizational restructuring was necessary, that it was difficult to regard the disadvantage in the employee’s living conditions caused by the transfer as significantly exceeding the level ordinarily to be borne by an employee, and that the employer appeared to have undergone a good-faith consultation process as required under the principle of good faith prior to the transfer.
Accordingly, the Commission held that the transfer was legitimate in terms of business necessity, procedure, and disadvantage in living conditions.
In addition, the Commission recognized that the employee had used informal speech and abusive language toward a superior and had made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order. It further found that the disciplinary level of a five‑month wage reduction could not be viewed as a clear deviation or abuse of the employer’s discretionary disciplinary authority under social norms, and that the disciplinary procedures had been lawfully conducted in accordance with the relevant rules.
On this basis, the Commission held that the wage reduction was also legitimate in terms of grounds, level, and procedure, and therefore did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, unlike in cases of transfer or redundancy dismissal, when a transfer order is issued due to organizational restructuring, if business necessity is recognized and the disadvantage in living conditions is not excessive, the Labor Relations Commission may evaluate the measure as a legitimate personnel action. This should be kept in mind.
Furthermore, the use of informal speech and abusive language toward a superior, as well as insulting remarks made in online spaces such as KakaoTalk group chats, can clearly constitute grounds for discipline. Depending on the frequency of such conduct and its impact on workplace order, severe disciplinary measures such as wage reduction may be justified. It is therefore important to remember that workplace etiquette and hierarchical order must also be observed in non‑face‑to‑face and online communications.
Ⅴ. Practical Points (From the Employer/Company Perspective)
From the employer’s side, when issuing a transfer order, it is very important for purposes of proving legitimacy in a Labor Relations Commission dispute to document the necessity of the organizational restructuring and the rationality of personnel redeployment, and to keep detailed records of the consultation process with the employee subject to transfer (explanations, hearing of opinions, etc.).
In addition, acts of insult or abuse in digital spaces such as KakaoTalk group chats should be clearly stipulated as grounds for discipline in the work rules. When imposing discipline, the employer should determine the disciplinary level by comprehensively considering the nature and degree of the misconduct, its impact on workplace order, and any prior disciplinary history, and should establish internal disciplinary standards in advance so that the duration and rate of wage reduction do not appear excessive under social norms.
By obtaining advice from professional institutions such as Labor Law Firm Law&, and by reviewing transfer and disciplinary procedures and standards in advance, employers can enhance their ability to defend against future disputes over unfair dismissal and unfair discipline.
2. Matters Adjudicated
A. Case Overview and Procedural History
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions resulting from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was legitimate.
B. Legitimacy of the wage reduction in this case (grounds, level, procedure)
The facts that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order, were all recognized as grounds for discipline. The disciplinary level of a five‑month wage reduction could not be viewed as a deviation or abuse of the scope of the employer’s discretionary authority, and the disciplinary procedures were lawful.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Decision
A. Legitimacy of the transfer (business necessity, disadvantage in living conditions, good-faith consultation)
The employer was in a situation where organizational restructuring was necessary, so business necessity was recognized. It was difficult to view the disadvantage in the employee’s living conditions resulting from the transfer as significantly exceeding the level ordinarily to be borne, and the employer was found to have undergone a good-faith consultation process as required under the principle of good faith. Accordingly, the transfer was legitimate.
B. Legitimacy of the wage reduction in this case (grounds, level, procedure)
The facts that the employee used informal speech and abusive language toward a superior and made insulting remarks in a KakaoTalk group chat that disregarded a manager, thereby undermining workplace order, were all recognized as grounds for discipline. The disciplinary level of a five‑month wage reduction could not be viewed as a deviation or abuse of the scope of the employer’s discretionary authority, and the disciplinary procedures were lawful. /
[Further Related Decisions]
- “Unfair Dismissal Decision on ‘Legitimacy of Reassignment (Reassignment of Security Guard)’”
- “Unfair Dismissal Decision on ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’”
- “Unfair Dismissal Decision on ‘Non‑Formation of Hiring Commitment (Absence of Offer Letter)’” – Date of decision: – Case result: First‑instance decision upheld
[Tags]
Unfair dismissal, legitimacy of transfer (organizational restructuring) · level of wage reduction (KakaoTalk insults), violation of company policy · non‑compliance with work instructions, disciplinary action (wage reduction), reassignment · transfer, 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.
※ The previous article, “Unfair Dismissal Decision on ‘Legitimacy of Reassignment (Reassignment of Security Guard)’,” can be viewed in a new window.
※ The list of decisions related to legitimacy of transfer (organizational restructuring) · level of wage reduction (KakaoTalk insults) can be viewed together in the “List of Decisions Related to Legitimacy of Transfer (Organizational Restructuring) · Level of Wage Reduction (KakaoTalk Insults).”
※ Korean version of this case: Korean article
