[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “legitimacy of transfer (resolution of internal organizational conflict).” Decision body: Jeonnam Regional Labor Relations Commission 2026Buhae618 ○ ○ ○ Application for Remedy for Unfair Dismissal 2026-08-19 · Case result: Dismissed Summary of key issues: The personnel transfer at issue was a normal exercise of managerial prerogative implemented to resolve internal organizational conflict and stabilize organizational operations. The business necessity of the transfer and the reasonableness of the selection of the transferee were recognized. It was not deemed that the disadvantages to the employee’s livelihood resulting from the transfer significantly exceeded the level ordinarily to be borne, and the employer was found to have undergone the consultation procedures required under the principle of good faith. Accordingly, the personnel transfer in this case was held to be justified. 1. Legal Implications Ⅰ. Case Overview In this case, the employer, seeking to resolve serious internal conflict and stabilize organizational operations, issued a transfer order to a specific employee. The employee then filed an application with the Labor Relations Commission, asserting that the transfer constituted an unfair transfer amounting in substance to an unfair dismissal. The Jeonnam Regional Labor Relations Commission comprehensively reviewed the necessity and procedure of the personnel action and the degree of disadvantage to the employee’s livelihood, ultimately ruling in favor of the employer. In doing so, it applied in detail the criteria for determining the legitimacy of transfer and reassignment orders. Ⅱ. Issues The issue in this case was whether “a transfer measure based on internal organizational conflict falls within the scope of ordinary managerial prerogative, or whether it constitutes, in substance, an unfair dismissal or an abuse of rights by imposing excessive disadvantages on the employee’s livelihood.” The panel focused its analysis on: (i) whether there was business necessity for the transfer; (ii) whether the criteria for selecting the transferee were reasonable and fair; (iii) whether the disadvantages to the employee’s livelihood resulting from the transfer significantly exceeded the level ordinarily to be borne; and (iv) whether the employer had undergone the consultation procedures required under the principle of good faith. Ⅲ. Summary of the Labor Relations Commission’s Reasoning First, the Labor Relations Commission found that there was business necessity for the transfer, in that there was a recognized need to resolve internal conflict and stabilize organizational operations. Second, considering the nature of the conflict, the roles within the organization, the staffing structure, and other relevant circumstances, it held that the selection of the transferee could not be viewed as arbitrary and that its reasonableness was established. Third, it found that the disadvantages to the employee’s livelihood—such as wages, commuting, and family life—did not significantly exceed the level ordinarily to be borne in the case of a transfer, and that the employer had undergone a consultation process with the employee. Taking these factors together, the Commission held that the personnel transfer in this case constituted a legitimate exercise of managerial prerogative. The dismissal disposition in this case was found not to constitute an unfair dismissal effected in substance through the transfer order, contrary to the employee’s assertion. Rather, the transfer was deemed a legitimate transfer falling short of unfair dismissal, and the application for remedy for unfair dismissal was dismissed. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s perspective, a transfer or reassignment does not automatically amount to an unfair dismissal. The issue of abuse of rights arises only where there is no business necessity, where the personnel measure is an unreasonable action targeting the individual employee, or where the disadvantages to the employee’s livelihood are markedly excessive. If you consider a transfer to be unfair, it is important to organize and retain concrete materials concerning the disadvantages to your livelihood, including changes in job duties and workplace before and after the transfer, changes in wages, commuting distance, family care responsibilities, and health conditions. In addition, whether the consultation process was merely formal and whether you were actually given an opportunity to express your views can become key issues in future disputes before the Labor Relations Commission. Accordingly, you should preserve records of conversations at the time, as well as emails and messenger logs. Ⅴ. Practical Points (From the Employer/Company’s Perspective) From the employer’s perspective, when issuing personnel orders such as transfers or reassignments, it is important, first, to document the objective necessity for organizational operation, and second, to clearly set out the criteria for who is selected and why. In addition, you should consider alternatives to minimize disadvantages to the employee’s livelihood and keep records showing that you went through a sincere consultation process, explaining changes in wages, workplace, and working hours before and after the transfer. This will make it easier to have the legitimacy of the action recognized by the Labor Relations Commission. In particular, where the transfer is based on internal organizational conflict, you should design the structure of the conflict, the solutions, and the balance of personnel measures for all parties involved so that the measure does not appear to be a sanction or retaliatory action against a particular individual. 2. Matters Decided A. Case Overview and Procedural History The personnel transfer in this case was a normal exercise of managerial prerogative implemented to resolve internal organizational conflict and stabilize organizational operations. The business necessity of the transfer and the reasonableness of the selection of the transferee were recognized. It was not deemed that the disadvantages to the employee’s livelihood resulting from the transfer significantly exceeded the level ordinarily to be borne, and the employer was found to have undergone the consultation procedures required under the principle of good faith. Accordingly, the personnel transfer in this case was held to be justified. 3. Summary of the Decision A. Summary of the Labor Relations Commission’s Reasoning The personnel transfer in this case was a normal exercise of managerial prerogative implemented to resolve internal organizational conflict and stabilize organizational operations. The business necessity of the transfer and the reasonableness of the selection of the transferee were recognized. It was not deemed that the disadvantages to the employee’s livelihood resulting from the transfer significantly exceeded the level ordinarily to be borne, and the employer was found to have undergone the consultation procedures required under the principle of good faith. Accordingly, the personnel transfer in this case was held to be justified. / [Further Related Decisions] - “Unfair Dismissal Decision on ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’” - “Unfair Dismissal Decision on ‘Non-Formation of Employment Offer (Absence of Offer Letter)’” – Date of decision: – Case result: First-instance decision upheld - “Unfair Dismissal Decision on ‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’” [Tags] Unfair dismissal, legitimacy of transfer (resolution of internal organizational conflict), transfer/reassignment (personnel order), abuse of managerial prerogative, 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, “Unfair Dismissal Decision on ‘Violent Conduct (Threatening a Colleague)’,” in a new window. ※ A list of decisions related to legitimacy of transfer (resolution of internal organizational conflict) can be found under “List of Decisions on Legitimacy of Transfer (Resolution of Internal Organizational Conflict).” ※ Korean version of this case: Korean article