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ACT ON THE PROMOTION OF WORKERS’ PARTICIPATION AND COOPERATION

Act No. 5312, Mar. 13, 1997

Amended by Act No. 6098, Dec. 31, 1999

Act No. 6510, Aug. 14, 2001

Act No. 8295, Jan. 26, 2007

Act No. 8372, Apr. 11, 2007

Act No. 8815, Dec. 27, 2007

Act No. 10339, jun. 4, 2010

Act No. 13903, Jan. 27, 2016

CHAPTER Ⅰ GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to help promote peace in industry and to con- tribute to the development of national economy by increasing common interests of labor and management through mutual participation and cooperation by workers and employers.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 2 (Obligation to be in Good Faith)
Workers and employers shall attend a conference in a sincere manner based on mutual faith.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 3 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "labor-management council" means a consultative body formed to help improve the welfare of workers and ensure the sound development of enterprise through the participation and cooperation by workers and employers;
2. The term "worker" means a worker provided for in Article 2 of the Labor Standards Act; and
3. The term"employer" means an employer provided for in Article 2 of the Labor Standards Act.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 4 (Establishment of Labor-Management Council)
(1) A labor-management council (hereinafter referred to as a "council") shall be established at each business or workplace which is vested with the right to decide working conditions: Provided, That this shall not apply to any business or workplace employing less than 30 people on a regular basis.
(2) In cases where one business has any workplace located in a different region, a council may be established at such workplace as well.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 5 (Relation with Trade Union)
Collective bargaining or any other activity by a trade union shall not be affected by this Act.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅱ COMPOSITION OF COUNCIL
 Article 6 (Composition of Council)
(1) A council shall be composed of the same numbers of members repre- senting workers and employers, and each number of members shall be not less than three but not more than ten persons.
(2) Members representing workers (hereinafter referred to as "workers' members") shall be elected by workers, and if a trade union composed of a majority of workers is available, they shall be the representative of the trade union and persons commissioned by the said trade union.
(3) Members representing employers (hereinafter referred to as "employers' members") shall be the representative of the business or workplace concerned and persons commissioned by such representative.
(4) Necessary matters concerning the election and commissioning of workers' members or employers' members shall be prescribed by Presi- dential Decree.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 7 (Chairperson and Secretary)
(1) A council shall have a chairperson, and the chairperson shall be elected by mutual vote from among members. In this case, each one from workers' members and employers' members may be co-chairpersons.
(2) The chairperson shall represent the relevant council and exercise overall control of its affairs.
(3) Both workers and employers shall appoint one secretary respectively to be in charge of clerical work, such as recording the results of meetings.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 8 (Term of Office of Member)
(1) The term of office of a member shall be three years and he may be reelected or recommissioned.
(2) The term of office of a member elected or commissioned to fill the vacancy of a member shall be the remaining term of the relevant prede- cessor.
(3) A member shall continue to perform his duties until his successor is elected or commissioned, even when the term of his office has expired.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 9 (Status of Members)
(1) Members shall be non-standing and non-paid basis.
(2) Any employer shall not take an unfavorable disposition against any workers' member in connection with the performance of duty as a member of a council.
(3) Hours for which a member attends a council meeting and hours which are directly related thereto as determined by council bylaws under Article 18 shall be regarded as hours devoted to work.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 10 (Duty of Employer)
(1) Any employer shall neither intervene in nor interfere with an election of workers' members.
(2) Any employer shall offer basic convenience such as a use of a place for the activities of workers' members.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 11 (Order for Correction)
Where any employer takes an unfavorable disposition against a workers' member in violation of Article 9 (2), or intervenes in or interferes with an election of a workers' member in violation of Article 10 (1), the Minister of Employment and Labor may issue an order to correct such violation. <Amended by Act No. 10339, Jun. 4, 2010>
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅲ OPERATION OF COUNCIL
 Article 12 (Meetings)
(1) A council shall hold meetings regularly every three months.
(2) A council may, if deemed necessary, hold an extraordinary meeting.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 13 (Convocation of Meetings)
(1) The chairperson shall convene and preside over meetings of a council.
(2) Where the representative of either labor or management demands a meeting to be held specifying the purpose of the meeting in writing, the chairperson shall comply with such demand.
(3) The chairperson shall notify each member of the date, time, place, agenda, etc. of a meeting seven days before the opening of the meeting.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 13-2 Moved to Article 14
 Article 14 (Offer of Material in Advance)
Any workers' member may demand before the opening of a council meeting material related to matters for consultation under Article 20 (1) and mat- ters for resolution under Article 21 from among agenda notified under Article 13 (3), and the relevant employer shall sincerely comply with such demand: Provided, That the foregoing shall not apply if the material demanded falls under the management or business secret of enterprise or personal information.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 15 (Quorum)
A meeting shall open with the attendance of respective majorities of workers' members and employers' members, and pass a resolution by an affirmative vote of not les.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 16 (Opening of Meetings)
A meeting of a council shall be open to the public: Provided, That it may not be open to the public upon a resolution of the council.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 17 (Duty of Confidentiality)
Members of a council shall not divulge any confidential matter which they come to know at a meeting of the Council.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 18 (Council Bylaws)
(1) A council shall establish bylaws governing its organization and oper- ation (hereinafter referred to as "council bylaws") and submit them to the Minister of Employment and Labor within 15 days from the date of establishment of the council. The same shall also apply in cases where they are amended.<Amended by Act No. 10339, Jun. 4, 2010>
(2) Necessary matters with regard to matters to be stipulated in council bylaws, procedures for establishment, amendment, etc. thereof shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 19 (Keeping of Minutes)
(1) A council shall draw up and keep minutes recording matters falling under any of the following subparagraphs:
1. Date, time and place of each meeting;
2. Members present at each meeting;
3. Contents of consultation, and matters decided at each meeting; and
4. Other matters discussed.
(2) Minutes referred to in paragraph (1) shall be kept for three years from the date they are drawn up.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅳ FUNCTIONS OF COUNCIL
 Article 20 (Matters for Consultation)
(1) Matters requiring consultation by a council shall be as any of the fol- lowing subparagraphs:
1. Improvement of productivity and distribution of results achieved;
2. Recruitment, placement, education and training of workers;
3. Settlement of workers' grievances;
4. Safety, health and improvement of other working environment, and promotion of workers' health;
5. Improvement of personnel and labor management systems;
6. General rules of employment adjustment, such as manpower trans- position, retraining and dismissal due to managerial or technological reasons;
7. Administration of working hours and recess hours;
8. Improvement of systems for payment mode, system, structure, etc. of remuneration;
9. Introduction of new machinery and technologies, or improvement of work processes;
10. Establishment or amendment of work rules;
11. Employee stock ownership plan and other assistance to increase workers' property;
12. Matters on remuneration to relevant worker for an employee inven- tion, etc.;
13. Improvement of workers' welfare;
14. Installation of surveillance equipment for workers within a workplace;
15. Protection of motherhood for women workers and matters to help com- bine work and home life; and
16. Other matters regarding cooperation between labor and management.
(2) A council may pass resolutions as to matters falling under any subparagraph of paragraph (1) in accordance with a quorum referred to in Article 15.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 21 (Matters for Resolution)
With respect to matters falling under any one of the following sub- paragraphs, an employer shall undergo a resolution by the council:
1. Establishment of a basic plan for education and training and ability development of workers;
2. Establishment and management of welfare facilities;
3. Establishment of an in-house employee welfare fund;
4. Matters which are not resolved by the grievance handling committee; and
5. Establishment of various labor-management joint committees.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 22 (Matters for Report, etc.)
(1) An employer shall report or explain in good faith matters falling under any one of the following subparagraphs at a regular meeting:
1. Matters concerning overall management plans and actual results;
2. Matters concerning quarterly production plans and actual results;
3. Matters concerning manpower plans; and
4. Economic and financial conditions of enterprise.
(2) Workers' members may report and explain workers' demands.
(3) In cases where an employer fails to report or explain matters under par- agraph (1), workers' members may require the employer to submit ma- terial falling under any subparagraph of the same paragraph, and the employer shall comply with such requirement in good faith.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 23 (Public Notice of Matters Resolved)
A council shall, without delay, publicly notify workers of matters resolved by it.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 24 (Implementation of Matters Resolved)
Workers and employers shall implement in good faith matters resolved by a council.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 25 (Voluntary Arbitration)
(1) In the cases falling under any one of the following subparagraphs, a council may settle disputes by having an arbitration body within the council to be established by agreement between workers' members and em- ployers' members, or refer such dispute to a labor relations commission or other third party for arbitration:
1. Where a council fails to pass a resolution with regard to matters for resolution referred to in Article 21; and
2. Where there is any disagreement on interpretation or implementation methods, etc. for matters resolved by the council.
(2) When an arbitration award is rendered as referred to in paragraph (1), it shall be deemed to have undergone a resolution by a council, and workers and employers shall comply with such award.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅴ GRIEVANCE HANDLING
 Article 26 (Grievance Handling Committee)
Every business or workplace shall have a grievance handling committee to hear and handle workers' grievances: Provided, That this shall not apply to business or a workplace employing less than 30 persons on a regular basis.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 27 (Composition of Grievance Handling Committee and Term of Office)
(1) A grievance handling committee shall be composed of not more than three members representing labor and management, and for business or a workplace where a council is established, the council shall elect such members from among its members and for business or a workplace where no council is established, the employer shall commission them.
(2) Article 8 stipulating the term of office of council members shall apply mutatis mutandis to the term of office of grievance handling committee members.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 28 (Grievance Handling)
(1) Upon hearing from a worker about grievances, a grievance handling committee shall notify the worker concerned of the contents of any measure taken and other results of handling within ten days from the date of hearing.
(2) Any matter shall, if deemed difficult for a grievance handling committee to deal with, be referred to a council for settlement through consultation.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
 Article 29 (Delegation of Authority)
The Minister of Employment and Labor may delegate a part of his/her authority vested under this Act to the head of any regional employment and labor agency as prescribed by Presidential Decree. <Amended by Act No. 10339, Jun. 4, 2010>
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
CHAPTER Ⅶ PENAL PROVISIONS
 Article 30 (Penalty Provisions)
Anyone falling under any one of the following subparagraphs shall be punished by a fine not exceeding ten million won:
1. A person who rejects or obstructs, without any justifiable reason, the establishment of a council referred to in Article 4 (1);
2. A person who fails, without any justifiable reason, to implement matters resolved by a council in violation of Article 23;
3. A person who fails, without any justifiable reason, to implement the contents of an arbitration award in violation of Article 25 (2).
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 31 (Penalty Provision)
In cases where any employer fails, without any justifiable reason, to com- ply with an order for correction issued under Article 11, or an obligation
to submit material under Article 22 (3), he shall be punished by a fine not exceeding five million won.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 32 (Penalty Provision)
Any employer who fails to regularly hold council meetings in violation of Article 12 (1) or to assign a grievance handling committee under Ar- ticle 26 shall be punished by a fine not exceeding two million won.
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
 Article 33 (Administrative Fines)
(1) Any employer who fails to submit council bylaws in violation of Article 18 shall be punished by an administrative fine of up to two million won.
(2) An administrative fine under paragraph (1) shall be imposed and collected by the Minister of Employment and Labor as prescribed by Presidential Decree. <Amended by Act No. 10339, Jun. 4, 2010>
(3) through (5) Deleted. <by Act No. 13903, Jan. 27, 2016>
[This Article Wholly Amended by Act No. 8815, Dec. 27, 2007]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measure for Establishment of Council)
A labor-management council which has been established pursuant to the previous provisions at the time this Act enters into force, shall be presumed to have been established pursuant to this Act.
Article 3 (Transitional Measure for Term of Office of Council Members)
The term of council members in office at the time this Act enters into force, shall be subject to the provisions effective at the time when they were elected or commissioned.
Article 4 (Transitional Measure for Bylaws of Council)
Bylaws of a council submitted to the Minister of Labor pursuant to the previous provisions at the time this Act enters into force, shall be pre- sumedto have been submitted to him pursuant to the Act.
Article 5 (Transitional Measure for Matters Resolved)
Matters resolutes by a council pursuant to the previous provisions at the time this Act enters into force, shall be deemed to have been resolved by the council pursuant to this Act.
Article 6 (Transitional Measure for Arbitration Awards)
Arbitration Awards rendered pursuant to the previous provisions at the time this Act enters into force, shall be deemed as rendered pursuant to this Act.
Article 7 (Transitional Measure for Penal Provisions)
The application of penal provisions to the actions prior to the enforcement of this Act, shall be subject to the previous provisions.
ADDENDA <Act No. 6098, Dec. 31, 1999>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Penal Provisions) The application of penal provisions to acts committed before this Act enters into force shall be governed by the previous provisions.
ADDENDA <Act No. 6510, Aug. 14, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2002.
Articles 2 through 7 Omitted.
ADDENDUM<Act No. 8295, Jan. 26, 2007>
This Act shall enter into force on July 1, 2007.
ADDENDA <Act No. 8372, Apr. 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 17 Omitted.
ADDENDA <Act No. 8815, Dec. 27, 2007>
Article 1 (Enforcement Date)
This Act shall come into force on the date of its promulgation.
Article 2 Omitted.
Article 3 (Relation with other Acts and Subordinate Statutes)
In cases where the Act on the Promotion of Workers' Participation and Cooperation or any provision thereof is cited by other Acts or subordinate statutes as at the time this Act enters into force, this Act or corresponding provision in this Act shall be deemed to have been cited instead of the former provisions, if this Act has provisions corresponding thereto.
ADDENDA <Act No. 10339, Jun. 4, 2010>
Article 1 (Enforcement Date)
This Act shall come into force one month after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 13903, Jan. 27, 2016>
This Act shall enter into force on the date of its promulgation.