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The System of Remedy for Dismissal: Unfair Dismissal and Money compensation

  • DONG-A LAW REVIEW
  • 2014, (64), pp.33-62
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law

Byung-Woon Lee 1

1순천대학교

Accredited

ABSTRACT

The Money Compensation System is now operation after its introduction in July 2007 to assist unfairly dismissed laborers. Pertaining to the original intentions of the Labor Standards Act, the outcomes as yet are insufficient to label it a success. This is primarily because the specific standards for use in trial have not been arranged. The Labor Standards Act, along with the National Labor Relations Act, originally sets regulations and pursues prompt navigation of the regulation procedures to protect laborers. However, the Financial Compensation System was also introduced with the same purpose. Since this system can only be applied after the dismissal has been identified as a wrongful one, the parameters governing fair dismissal is of key importance. This paper will explain how the unfair dismissal can be identified, the definition of dismissal, as well as the grounds for restriction. Assuming that it is possible to establish the extent of unfair dismissal, the significance of discharge, the standards to identify unfair dismissal, and the methods to help the workers will also be discussed. To evaluate effectiveness of the Financial Compensation System, systems from other countries to help laborers will also be examined, along with their criteria and regulations and how they may apply to Korea. This paper looked into the present condition and operation method of Korea’s Financial Compensation System, and ways to secure the effectiveness of it. Even though this system is legally binding, it is not operating effectively because there are no objective indemnity criteria with legal standing. The opposition of the industrial world and their lack of promotion to laborers are other reasons for stagnation. The Financial Compensation System was initially examined from the position of workers as it was introduced to protect them. Subsequently; the right to apply the Financial Indemnification System, the possibility for abuse of power, the opportunity to establish a single legal system such as the labor court, and the limits of the Financial Compensation System when considering the coexistence of work and life of laborers are areas requiring further examination.

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