[Case Information] This case concerns a decision in which the employee prevailed in full (all claims upheld) on the issue of “excessive disciplinary measure (electronic processing of medical fee refunds).” Decision body: Seoul Regional Labor Relations Commission 2026Buhae1432 ○ ○ ○ Application for Remedy for Unfair Dismissal Decision date: 2026-07-01 · Outcome: All claims upheld Summary of key issue: (a) 1. Legal Implications Ⅰ. Case Overview In this case, an employee of a medical institution was dismissed for cause and subsequently filed an application for remedy for unfair dismissal. The dismissal was based on the allegation that the employee did not directly pay medical fee refunds to patients, but instead entered them into the electronic system as if they had been paid, then kept the refund amounts or used them to offset other patients’ outstanding balances. The Seoul Regional Labor Relations Commission conducted a comprehensive review of the above factual circumstances, the background of the disciplinary action, and the appropriateness of the level of discipline, and rendered a decision fully upholding the employee’s claims, thereby accepting the employee’s assertion of unfair dismissal. Ⅱ. Summary of Issues The issue in this case is whether the conduct of “processing medical fee refunds in the electronic system as if they had been paid, while actually retaining the funds or using them to offset other patients’ outstanding balances” constitutes a valid ground for discipline, and, even if so, whether dismissal—the most severe form of discipline—is justified in light of those circumstances; in other words, whether the level of discipline falls within the range permissible under social norms. Ⅲ. Summary of the Labor Relations Commission’s Reasoning The panel in this case found that, as the employer alleged, there was a ground for discipline in that the employee violated company rules by failing to immediately pay medical fee refunds to patients and instead entering them into the electronic system as if they had been paid. However, the panel also noted that it was difficult to accurately enter the details of deposited refund amounts in the former electronic system, that there had been no violations in refund processing after the introduction of the new electronic system, that the refund amounts retained by the employee appeared to have been used for the employer’s benefit (e.g., to settle outstanding balances for emergency patients) and there was little indication that the funds had been used for the employee’s personal consumption, and that, because the transactions were entered into the system, ex post tracing was possible. In light of these factors, the panel held that, notwithstanding the existence of a ground for discipline, the dismissal in this case was excessively severe and thus constituted a departure from, and abuse of, the employer’s discretionary authority over discipline. Accordingly, the panel determined that the dismissal in this case constituted an unfair dismissal. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s perspective, it should be borne in mind that accounting or electronic processing that violates company rules can be recognized as a serious ground for discipline, even if there was no private misappropriation of funds. However, if the employee can prove specific circumstances such as the actual use of the funds, system-related constraints, and whether the conduct was for the employer’s benefit, there may be room before the Labor Relations Commission to argue that the level of discipline was excessive and to obtain a remedy for unfair dismissal. Ⅴ. Practical Points (From the Employer’s Perspective) From the employer’s perspective, it is necessary to clearly establish the electronic systems and internal rules governing the handling of refunds, settlement of outstanding balances, and other monetary operations, and to provide sufficient training and guidance to on-site staff during any system transition so as to avoid confusion. In addition, even where there has been a violation involving monetary matters, the employer should carefully consider, in a comprehensive manner, whether there was actual private consumption, whether the conduct contributed to the company’s interests, the limitations of the system, and the likelihood of recurrence, and should prudently examine whether the intended purpose can be achieved through less severe disciplinary measures such as a pay cut or suspension rather than dismissal. To prevail in this type of unfair dismissal dispute, it is important not only to establish the existence of a ground for discipline but also to have a precise understanding of the legal principles governing the appropriateness of the level of discipline, and to systematically organize and submit relevant facts and evidence from the Labor Relations Commission stage in cooperation with experts such as Labor Law Firm Law&. Because the outcome of proceedings before the Labor Relations Commission can vary greatly depending on detailed factual circumstances, it is advisable to seek professional advice from the initial response stage in cases involving similar collective redundancies or disciplinary dismissals. 2. Matters Determined A. Case Overview and Procedural History A. Legitimacy of the Grounds for Discipline It was recognized that there was a ground for discipline because the employee violated company rules by failing to pay medical fee refunds to patients, entering them into the electronic system as if they had been paid, then retaining the refund amounts or using them to offset other patients’ outstanding balances. B. Appropriateness of the Level of Discipline (1) It was recognized that, under the former electronic system, it was difficult to enter the details of deposited refund amounts, and that there had been no violations in refund processing after the introduction of the new electronic system. (2) The refund amounts retained by the employee appeared to have been used for the employer’s benefit, such as for settling outstanding balances of emergency patients, and it was difficult to find evidence of personal consumption. (3) The employee entered the transactions into the electronic system and… 3. Summary of the Decision A. Summary of the Labor Relations Commission’s Reasoning A. Legitimacy of the Grounds for Discipline It was recognized that there was a ground for discipline because the employee violated company rules by failing to pay medical fee refunds to patients, entering them into the electronic system as if they had been paid, then retaining the refund amounts or using them to offset other patients’ outstanding balances. B. Appropriateness of the Level of Discipline (1) It was recognized that, under the former electronic system, it was difficult to enter the details of deposited refund amounts, and that there had been no violations in refund processing after the introduction of the new electronic system. (2) The refund amounts retained by the employee appeared to have been used for the employer’s benefit, such as for settling outstanding balances of emergency patients, and it was difficult to find evidence of personal consumption. (3) The employee entered the transactions into the electronic system and… / [See More Related Decisions] - “‘Dismissal of Application (Non-Appearance at Hearing)’ Unfair Dismissal Decision” – Decision date: - · Case number: Application dismissed - “‘No Formation of Hiring Commitment (Absence of Offer Letter)’ Unfair Dismissal Decision” – Decision date: - · Case number: Initial decision upheld - “‘Expression of Intent to Resign (Resignation Remark During Telephone Call)’ Unfair Dismissal Decision” [Tags] Unfair dismissal, excessive disciplinary measure (electronic processing of medical fee refunds), disciplinary dismissal, violation of company policy · non-compliance with work instructions, 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 Decisions” series by Labor Law Firm Law&. ※ You can view the previous article, “‘Other Disciplinary Measures (Warning in Group Chat Room)’ Unfair Dismissal Decision,” in a new window. ※ The list of decisions related to excessive disciplinary measure (electronic processing of medical fee refunds) can be viewed together in the “List of Decisions on Excessive Disciplinary Measure (Electronic Processing of Medical Fee Refunds).” ※ Korean version of this case: Korean article