What Does the ‘Yellow Envelope Law’ Mean for Labor Negotiations in South Korea?

Translation result

Following earlier rulings in the public sector, the Labor Relations Commission has issued its first decision recognizing a prime contractor as the employer in the private sector.

On the 7th, Yonhap reported that the Seoul Regional Labor Relations Commission held hearings on correction requests that sought public notices of bargaining demands filed against the Induk Foundation (Induk University) and Sungkonghoe University. The commission granted both requests.

This is the first time a public notice of bargaining demands has been accepted in the private sector; previously the commission had granted all five related correction requests in the public sector.

Since the law took effect, subcontractor unions at Induk University and Sungkonghoe University have sought negotiations with their respective schools, listing workplace safety, working conditions, benefits, wages, and hours on their agenda.

Under the Yellow Envelope Law, when a subcontractor union requests bargaining, the principal employer must publicly post notice of that demand for seven days beginning the day it receives the request. Both universities denied employer responsibility and declined to post the notice, prompting the subcontractor unions to file correction requests with the Seoul Regional Labor Relations Commission.

The commission’s ruling requires the institutions to post the bargaining-demand notices for seven days. If a principal employer objects, it may petition the Central Labor Relations Commission for a rehearing; if it still contests the outcome, the employer must pursue administrative litigation.

Labor authorities may sanction employers for unfair labor practices if they intentionally or maliciously refuse to bargain during this process.

Meanwhile, the Seoul commission also granted a correction request from the union of a Korea Airports Corporation subsidiary seeking a public notice of its bargaining demand.