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    Unfair Dismissal Precedent Concerning “Business Establishment Subject to the Labor Standards Act (Saetbyeol Fisheries · Hanmaeum Aquaculture)” (Unfair Dismissal 654)
    • Date2026/08/25 00:00
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    [Case Information] This case is a precedent that concluded with the first-instance decision being upheld, focusing on the issue of “business establishment subject to the Labor Standards Act (Saetbyeol Fisheries · Hanmaeum Aquaculture).” Decision-making body: Central Labor Relations Commission 2026Buhae56 ○ ○ ○ Application for Re‑examination of Remedy for Unfair Dismissal 2026-07-02 · Case outcome: First-instance decision upheld Summary of key issues: … Whether the application for remedy is admissible (whether there are at least five regular employees). Saetbyeol Fisheries and Hanmaeum Aquaculture, the two companies operated by the employer, must be regarded as a single business establishment. Although the number of regular employees at these establishments is fewer than five, they fall under “cases deemed to be business establishments subject to the Act” as set forth in Article 7-2(2)1 of the Enforcement Decree of the Labor Standards Act, and therefore are subject to an application for remedy for unfair dismissal. 1. Legal Implications Ⅰ. Case Overview In this unfair dismissal case, a worker filed an application with the Labor Relations Commission for remedy, alleging dismissal from two small business establishments operated by the employer, namely Saetbyeol Fisheries and Hanmaeum Aquaculture. The employer argued that each establishment had fewer than five regular employees and therefore was not subject to an application for remedy for unfair dismissal under the Labor Standards Act, and further denied both the existence and the legitimacy of any dismissal. The worker claimed unfair dismissal and proceeded with re‑examination before the Central Labor Relations Commission. Ⅱ. Issues in Dispute The issues in this case are whether the two business establishments, Saetbyeol Fisheries and Hanmaeum Aquaculture, operated by the employer, should be regarded as a single business establishment so that the requirement of at least five regular employees is satisfied, and, accordingly, whether the case falls within the scope of applications for remedy for unfair dismissal before the Labor Relations Commission; and further, whether there was a dismissal against the worker’s will and, if so, whether that dismissal was based on just cause and followed due procedure. Ⅲ. Summary of the Labor Relations Commission’s Findings The decision panel in this case found that Saetbyeol Fisheries and Hanmaeum Aquaculture, operated by the employer, must in substance be regarded as a single business establishment; that although each of the two establishments has fewer than five regular employees, they fall under “cases deemed to be business establishments subject to the Act” as prescribed in Article 7-2(2)1 of the Enforcement Decree of the Labor Standards Act; and that, therefore, the case falls within the scope of applications for remedy for unfair dismissal under Articles 11 and 28 of the Labor Standards Act. The panel further found that the worker had been excluded from work against his/her will and thus that a dismissal by the employer did exist. Despite the existence of a dismissal, the employer failed to clearly notify the worker in writing of the reasons for and timing of the dismissal, and there were serious defects in terms of just cause and compliance with procedural requirements. Accordingly, the panel held that the dismissal in this case constitutes an unfair dismissal. Ⅳ. Practical Points (From the Worker’s Perspective) Even if the place where a worker is employed appears outwardly to be divided into two separate trade names and business locations, if in substance it is operated as a single business establishment, the number of regular employees may be aggregated to determine whether the Labor Standards Act applies. In addition, even where the employer does not expressly notify the worker of dismissal but in effect excludes the worker or prevents the worker from reporting to work, if this is contrary to the worker’s will, it may be recognized as a dismissal. It is therefore important to keep a detailed record of conversations at the time, text messages, and the circumstances surrounding attempts to report to work. Ⅴ. Practical Points (From the Employer/Company’s Perspective) Where multiple business establishments with different names, such as Saetbyeol Fisheries and Hanmaeum Aquaculture, are operated but personnel, accounting, and command structures are in substance integrated, the Labor Relations Commission and the courts may regard them as a single business establishment when determining whether there are at least five regular employees. Furthermore, when taking measures that exclude a worker’s intention to continue working, the employer must clearly decide whether to dismiss and strictly comply with the restrictions and procedures on dismissal under the Labor Standards Act, including written notice of the reasons for and timing of the dismissal. It is advisable to consult sufficiently in advance with experts such as Labor Law Firm Law&. 2. Matters Decided a. Case Overview and Procedural History … Whether the application for remedy is admissible (whether there are at least five regular employees). Saetbyeol Fisheries and Hanmaeum Aquaculture, the two companies operated by the employer, must be regarded as a single business establishment. Although the number of regular employees at these establishments is fewer than five, they fall under “cases deemed to be business establishments subject to the Act” as set forth in Article 7-2(2)1 of the Enforcement Decree of the Labor Standards Act, and therefore are subject to an application for remedy for unfair dismissal. b. If the application is admissible, whether a dismissal exists Since the worker was dismissed against his/her intention to continue working, there was a dismissal by the employer with respect to the worker. c. If a dismissal exists, whether it is justified (reason and procedure) … Despite the existence of a dismissal, the employer failed to notify the worker of the reasons for and timing of the dismissal … 3. Summary of the Decision a. Summary of the Labor Relations Commission’s Findings … Whether the application for remedy is admissible (whether there are at least five regular employees). Saetbyeol Fisheries and Hanmaeum Aquaculture, the two companies operated by the employer, must be regarded as a single business establishment. Although the number of regular employees at these establishments is fewer than five, they fall under “cases deemed to be business establishments subject to the Act” as set forth in Article 7-2(2)1 of the Enforcement Decree of the Labor Standards Act, and therefore are subject to an application for remedy for unfair dismissal. b. If the application is admissible, whether a dismissal exists Since the worker was dismissed against his/her intention to continue working, there was a dismissal by the employer with respect to the worker. c. If a dismissal exists, whether it is justified (reason and procedure) … Despite the existence of a dismissal, the employer failed to notify the worker of the reasons for and timing of the dismissal … / [More Related Precedents] - “Unfair Dismissal Precedent Concerning ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’” - “Unfair Dismissal Precedent Concerning ‘Dismissal Rejected (Non‑appearance at Hearing)’” – Date of decision: – Case number: Dismissal of application - “Unfair Dismissal Precedent Concerning ‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’” [Tags] Unfair dismissal, Business establishment subject to the Labor Standards Act (Saetbyeol Fisheries · Hanmaeum Aquaculture), 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 the “Unfair Dismissal Precedents” series by Labor Law Firm Law&. ※ You can view the previous article, “Unfair Dismissal Precedent Concerning ‘Defects in Disciplinary Procedures (Security Guard’s Uniform and Negligent Performance of Duties)’,” in a new window. ※ The list of precedents related to “Business establishment subject to the Labor Standards Act (Saetbyeol Fisheries · Hanmaeum Aquaculture)” can be viewed together in the “List of Precedents Related to Business Establishment Subject to the Labor Standards Act (Saetbyeol Fisheries · Hanmaeum Aquaculture).” ※ Korean version of this case: Korean article