Article 93 of the Labor Standards Act of Korea (“LSA”) requires an employer with at least 10 employees to prepare and maintain rules of employment, and as the rules of employment intend to uniformly regulate rules of employment as to all employees, the rules of employment become part of the employment relationship between the employer and the employees.

With the advent of the new Lee, Myung Bak administration in Korea last February 2008, one of the key regulatory structure changes taken place relate to the financial authority structure in Korea.

[Source: Joongang Daily]

Arbitration is defined as a process in which private disputes are resolved swiftly and privately through arbitrator(s) to whom the parties agree to refer their disputes avoiding rather prolonged court procedures.

Under the Labor Standards Act of Korea (LSA), an employer may not terminate an employee without a justifiable cause. Under LSA, such justifiable cause would include “layoffs” or so-called “administrative terminations” implemented due to ‘urgent managerial necessities of the company. In this article, we take a close look at employment termination based on urgent managerial necessity.