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ACT ON THE PROMOTION OF EMPLOYEES’ 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

Act No. 16320, Apr. 16, 2019

Act No. 18927, jun. 10, 2022

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to help promote peace in industry and to contribute to the development of national economy by increasing common interests of labor and management through mutual participation and cooperation by employees and employers.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 2 (Obligation to be in Good Faith)
Employees and employers shall attend a conference in a sincere manner based on mutual faith.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 3 (Definitions)
The terms used in this Act are defined as follows:
1. The term "labor-management council" means a consultative body formed to help improve the welfare of employees and ensure the sound development of enterprise through the participation and cooperation by employees and employers;
2. The term "employee" means an employee provided for in Article 2 of the Labor Standards Act;
3. The term"employer" means an employer provided for in Article 2 of the Labor Standards Act.
[This Article Wholly Amended on 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 on Dec. 27, 2007]
 Article 5 (Relation with Labor Union)
Collective bargaining or any other activity by a labor union shall not be affected by this Act.
[This Article Wholly Amended on 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 representing employees and employers, and each number of members shall be not less than three but not more than 10 persons.
(2) Members representing employees (hereinafter referred to as "member representing employees") shall be elected by direct and secret vote in which a majority of employees participated: Provided, That where it is deemed essential due to the special characteristics of a business or workplace, in the first place, employees to elect employees’ members in proportion to the number of employees of each department (hereafter in this Article referred to as “electors of members”) shall be elected by direct and secret vote in which a majority of employees participated, and then employees’ members may be elected by direct and secret vote in which a majority of the electors of members participated. <Amended on Jun. 10, 2022>
(3) Notwithstanding paragraph (2), if there exists a labor union organized by a majority of employees in a business or workplace, a member representing employees shall be the representative of the labor union and persons commissioned by the labor union. <Newly Inserted on Jun. 10, 2022>
(4) Members representing employers (hereinafter referred to as "member representing employer") shall be the representative of the relevant business or workplace and persons commissioned by the representative. <Amended on Jun. 10, 2022>
(5) Necessary matters relating to the election and commissioning of members representing employees or members representing employer shall be prescribed by Presidential Decree. <Amended on Jun. 10, 2022>
[This Article Wholly Amended on 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 members representing employees and members representing employer 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 on Dec. 27, 2007]
 Article 8 (Term of Office of Member)
(1) The term of office of a member shall be three years and may be renewed.
(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 predecessor.
(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 on 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 employees' 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 on Dec. 27, 2007]
 Article 10 (Duty of Employer)
(1) Any employer shall neither intervene in nor interfere with an election of member representing employees.
(2) Any employer shall offer basic convenience such as a use of a place for the activities of member representing employees.
[This Article Wholly Amended on Dec. 27, 2007]
 Article 11 (Order for Correction)
Where any employer takes an unfavorable disposition against a employees' member in violation of Article 9 (2), or intervenes in or interferes with an election of a employees' member in violation of Article 10 (1), the Minister of Employment and Labor may issue an order to correct such violation. <Amended on Jun. 4, 2010>
[This Article Wholly Amended on 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 on 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 on Dec. 27, 2007]
 Article 13-2
[Moved to Article 14 <Dec. 27, 2007>]
 Article 14 (Offer of Material in Advance)
Any employees' member may demand before the opening of a council meeting material related to matters for consultation under Article 20 (1) and matters 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 on Dec. 27, 2007]
[Moved from Article 13-2; previous Article 14 moved to Article 15 <Dec. 27, 2007>]
 Article 15 (Quorum)
A majority of each of the member representing employees and the member representing employers shall constitute a quorum, and any decision thereof shall require the concurring vote of at least 2/3 of those present.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 14; previous Article 15 moved to Article 16 <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 on Dec. 27, 2007]
[Moved from Article 15; previous Article 16 moved to Article 17 <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 on Dec. 27, 2007]
[Moved from Article 16; previous Article 17 moved to Article 18 <Dec. 27, 2007>]
 Article 18 (Council Bylaws)
(1) A council shall establish bylaws governing its organization and operation (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 on 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 on Dec. 27, 2007]
[Moved from Article 17; previous Article 18 moved to Article 19 <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;
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 on Dec. 27, 2007]
[Moved from Article 18; previous Article 19 moved to Article 20 <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 following subparagraphs: <Amended on Apr. 16, 2019>
1. Improvement of productivity and distribution of results achieved;
2. Recruitment, placement, education and training of employees;
3. Settlement of employees' grievances;
4. Safety, health and improvement of other working environment, and promotion of employees' health;
5. Improvement of personnel and labor management systems;
6. General rules of employment adjustment, such as manpower transposition, 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 employees' property;
12. Matters on remuneration to relevant employee for an employee invention, etc.;
13. Improvement of employees' welfare;
14. Installation of surveillance equipment for employees within a workplace;
15. Protection of motherhood for women employees and matters to help combine work and home life;
16. Prevention of sexual harassment on the job under subparagraph 2 of Article 2 of the Equal Employment Opportunity and Work-Family Balance Assistance Act and sexual harassment by clients, etc.;
17. 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 on Dec. 27, 2007]
[Moved from Article 19; previous Article 20 moved to Article 21 <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 employees;
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;
5. Establishment of various labor-management joint committees.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 20; previous Article 21 moved to Article 22 <Dec. 27, 2007>]
 Article 22 (Matters for Report)
(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;
4. Economic and financial conditions of enterprise.
(2) A member representing employees may report and explain employees' demands.
(3) In cases where an employer fails to report or explain matters under paragraph (1), a member representing employees may require the employer to submit material falling under any subparagraph of the same paragraph, and the employer shall comply with such requirement in good faith.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 21; previous Article 22 moved to Article 23 <Dec. 27, 2007>]
 Article 23 (Announcement of Matters Resolved)
A council shall, without delay, publicly notify employees of matters resolved by it.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 22; previous Article 23 moved to Article 24 <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 on Dec. 27, 2007]
[Moved from Article 23; previous Article 24 moved to Article 25 <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 members representing employees and members representing employer, 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;
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 employees and employers shall comply with such award.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 24; previous Article 25 moved to Article 26 <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 employees' grievances: Provided, That the foregoing shall not apply to a business or workplace employing less than 30 persons on a regular basis.
[This Article Wholly Amended on Dec. 27, 2007]
[Moved from Article 25; previous Article 26 moved to Article 27 <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 a business or workplace where a council is established, the council shall elect such members from among its members and for a business or workplace in which 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 on Dec. 27, 2007]
[Moved from Article 26; previous Article 27 moved to Article 28 <Dec. 27, 2007>]
 Article 28 (Grievance Handling)
(1) Upon hearing from a employee about grievances, a grievance handling committee shall notify the employee concerned of the contents of any measure taken and other results of handling within 10 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 on Dec. 27, 2007]
[Moved from Article 27 <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 on Jun. 4, 2010>
[This Article Wholly Amended on Dec. 27, 2007]
CHAPTER VII PENALTY PROVISIONS
 Article 30 (Penalty Provisions)
Any of the following persons shall be punished by a fine not exceeding 10 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 24;
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 on Dec. 27, 2007]
 Article 31 (Penalty Provision)
In cases where any employer fails, without good cause, to comply 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 on Dec. 27, 2007]
 Article 32 (Penalty Provisions)
Any employer who fails to regularly hold council meetings in violation of Article 12 (1) or to assign a grievance handling committee under Article 26 shall be punished by a fine not exceeding two million won.
[This Article Wholly Amended on 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 on Jun. 4, 2010>
(3) Deleted. <Jan. 27, 2016>
(4) Deleted. <Jan. 27, 2016>
(5) Deleted. <Jan. 27, 2016>
[This Article Wholly Amended on Dec. 27, 2007]
ADDENDA <Act No. 5312, Mar. 13, 1997>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning 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 Measures concerning 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 Measures concerning 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 presumed to have been submitted to him pursuant to the Act.
Article 5 (Transitional Measures concerning 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 Measures concerning 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 Measures concerning Penalty Provisions)
The application of penalty 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 Penalty Provisions) The application of penalty 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 (Relationship to Other Statutes and Regulations)
In cases where the Act on the Promotion of Workers' Participation and Cooperation or any provision thereof is cited by other statutes or regulations 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.
ADDENDUM <Act No. 16320, Apr. 16, 2019>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 18927, Jun. 10, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Election of Member Representing Employees)
The amended provisions of Article 6 (2) shall begin to apply where member representing employees are newly elected on or after the date this Act enters into force.