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STATUTES

THE REPUBLIC OF KOREA

Volume

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

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Act is to keep peace in industry, and to contribute to the development of the national economy by promoting common interests of the labor and management through their participation and cooperation.

Article 2 (Good Faith Obligation)

Workers and employers shall consult with each other in good faith and mutual trust.

Article 3 (Definitions)

For the purpose of this Act, the definitions of terms shall be as follows:

Article 1 ~ 3

1. Term "labor-management council" means a consultative body which is established to improve welfare of workers and to ensure a sound development of business through participation of workers and employers and cooperation between them;

2. Term "worker" means a worker as provided in Article 14 of the Labor Standards Act; and

3. Term "employer" means an employer as provided in Article 15 of the Labor Standards Act.

Article 4 (Establishment)

(1) A labor-management council (hereinafter referred to as a "council") shall be established in each business or workplace which is vested with the right to decide the working conditions: Provided, That this shall not apply to businesses or workplaces as prescribed by the Presidential Decree.

(2) When any business has separately located its workplaces, councils may be established in each of these workplaces.

Article 5 (Relationship with Trade Union)

Collective bargaining and all other activities of a trade union shall not be affected by this Act.

CHAPTER II COMPOSITION OF COUNCIL

Article 6 (Composition)

Article 4 ~ 6

(1) A council shall be composed of not less than three but not more than ten members, and members representing workers and members representing employers shall be the same in number.

(2) Members representing workers (hereinafter referred to as "workers' members") shall be elected by workers: Provided, That if any trade union composed of a majority of workers, the representatives of the trade union and other persons commissioned by the trade union shall be workers' members.

(3) Members representing employers (hereinafter referred to as "employers' members") shall be the representative of the business or workplace concerned and the persons commissioned by such representatives.

(4) Necessary matters concerning the election and designation of workers' members and employers' members under paragraphs (2) and (3) shall be prescribed by the Presidential Decree.

Article 7 (Chairman, etc.)

(1) There shall be a chairman in a council, and the chairman shall be elected by mutual vote from its members. In this case, each one from workers' members and employers' members respectively may be cochairman of the Council.

(2) The chairman shall represent the relevant council and shall exercise overall control over its affairs.

(3) Workers' members and employers' members shall appoint a secretary respectively

Article 7

to be in charge of recording the council affairs and other related clerical work.

Article 8 (Term of Office of Members)

(1) The term of office of members shall be three years and members may be reelected or recommissioned.

(2) The term of office for those members elected or commissioned to fill a vacancy shall be the remaining term of the predecessor.

(3) A member shall continue to perform his duties until his successor is elected or commissioned, even though the term of his office has expired.

Article 9 (Status of Members)

(1) Members shall be unpaid and non-standing.

(2) An employer shall not unfavorably treat workers' member in connection with the performance of their duties as members of the council.

(3) The time a workers' member spends for attending a meeting of the council shall be regarded as that devoted to work.

Article 10 (Duty of Employer)

(1) An employer shall neither intervene in nor interfere with the election of workers' members.

Article 8 ~ 10

(2) An employer shall offer basic convenience such as use of place, etc., for activities of workers' members.

Article 11 (Order of Correction)

If an employer has violated the provisions of Article 9 (2) or 10 (1), the Minister of Labor may order him to correct such violation.

CHAPTER III OPERATION OF THE COUNCIL

Article 12 (Meetings)

(1) A council shall hold meetings once every three months.

(2) A council may, if deemed necessary, hold an extraordinary meeting.

Article 13 (Convocation of Meetings)

(1) The chairman shall convene and preside over meetings of the council.

(2) Where the representative of either labor or management requests a meeting to be held, specifying the purposes of the meeting in writing, the chairman shall convene meetings of the council.

(3) The chairman shall notify each member of the date, time, place, agenda, etc. of a meeting seven days prior to the meeting.

Article 11 ~ 13

Article 14 (Quorum)

A meeting shall open with the attendance of a majority of workers' members and a majority of employers' members, and a resolution shall be passed by an affirmative vote of not less than two-thirds of the members attending.

Article 15 (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.

Article 16 (Duty of Confidentiality)

Members of a council shall not reveal any confidential matter which comes to their knowledge at a meeting of the Council.

Article 17 (Bylaws of Council)

A council shall establish bylaws governing the organization and operation of the council, and shall submit them to the Minister of Labor within fifteen days from the date of the establishment of the council. The same shall apply in case where any part of the bylaws is amended.

Article 18 (Keeping of Minutes)

A council shall draw up and keep minutes recording each of the following subparagraphs:

Article 14 ~ 18

1. Date, time, and place of each meeting;

2. Members present at each meeting;

3. Contents of deliberations, and matters decided at each meeting; and

4. Other matters discussed at each meeting.

CHAPTER IV FUNCTIONS OF THE COUNCIL

Article 19 (Matters Subject to Consultation)

(1) Matters which are subject to consultation at the meeting of a council shall be as follows: <Amended by Act No. 6510, Aug. 14, 2001>

1. Improvement of productivity and the distribution of results achieved;

2. Recruitment, placement, and education/training of workers;

3. Prevention of labor disputes;

4. Settlement of workers' grievances;

5. Improvement of

Article 19

working environment such as safety and health measures, and promotion of workers' health;

6. Institutional improvement of personnel and labor management systems;

7. General rules of employment adjustment such as relocation, retraining and dismissal for managerial or technological reasons;

8. Administration of working hours and recess hours;

9. Improvement of system by which remuneration is paid, classified, and structured;

10. Introduction of new machinery or technologies or improvement of work processes;

11. Establishment or amendment of work rules;

12. Workers' stock ownership program and other assistance to increase of workers' property;

12-2. Matters on remuneration to the worker for his in-service invention;

13. Improvement off workers' welfare; and

14. Other matters concerning cooperation between workers and employers.

Article 19

(2) A council may make resolutions as to matters falling under subparagraphs of paragraph (1) in accordance with Article 14.

Article 20 (Matters Subject to Resolution of Council)

An employer intending to decide on any of the matters falling under the following subparagraphs shall undergo a resolution therefor 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 a worker welfare fund;

4. Matters which are not resolved by the grievance handling committee; and

5. Establishment of various labor-management cooperative committees.

Article 21 (Matters Requiring Report, etc.)

(1) An employer shall report and explain any of the following subparagraphs in good faith at a regular meeting:

1. Matters concerning the general management plan and actual results;

2. Matters concerning

Article 20 ~ 21

quarterly production plans and actual results;

3. Matters concerning manpower plans; and

4. Economic and financial conditions of the enterprise.

(2) Workers' members may report and explain workers' demands.

(3) In case where an employer fails to report or explain matters as specified in paragraph (1), workers' members may require the employer to submit materials on matters falling under any subparagraph of the same paragraph, and the employer shall respond in good faith to such requirement.

Article 22 (Public Notice)

A council shall, without delay, give workers a public notice on the matters resolved by it.

Article 23 (Performance of Resolution)

Workers and employers shall perform in good faith the contents of any resolution made by the Council.

Article 24 (Voluntary Arbitration)

(1) In cases falling into any of the following subparagraphs, a council may settle a dispute before an arbitration organization within the council established by agreement between workers' members and employers' members, or may refer said dispute to the Labor

Article 22 ~ 24

Relation Commission or other third parties for arbitration:

1. In case where the council fails to settle those matters as referred to in Article 20; and

2. In case where there is any disagreement on interpretation or fulfillment methods of those matters resolved by the council.

(2) When an arbitration award is rendered as referred to in paragraph (1), the matters concerned shall be deemed to be resolved by the Council, and the workers and employers shall perform the award.

CHAPTER V GRIEVANCE HANDLING

Article 25 (Grievance Handling Members)

All businesses or workplaces shall have a grievance handling committee to hear and handle workers' grievances: Provided, That this shall not apply to businesses or workplaces as otherwise prescribed by the Presidential Decree.

Article 26 (Composition and Term)

(1) A grievance handling committee shall be composed of not more than 3 members representing both parties of labor and management. In case of a business or workplace in which a council is established, the council shall elect such members from among its members, otherwise the employer shall commission them.

Article 25 ~ 26

(2) Article 8 shall apply mutatis mutandis to the term of office of grievancehandling members.

Article 27 (Grievances Handling)

(1) Upon hearing from a worker about his grievance, the grievance handling committee shall notify the worker concerned of the contents of any measure taken and other handling results with respect to such grievance within ten days from the date of hearing.

(2) Any matter shall, if deemed difficult for the grievance handling committee to deal with, be referred to the council for the settlement through its deliberation.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 28 (Central Labor-Management-Government Council)

(1) The Central Labor-Management-Government Council which consists of representing workers, employers, public interests and the Government, shall be established and operated so as to consult primary labor problems such as labor relations, employment and workers' welfare connected with industrial, economic, and social policies of the State.

(2) The chairman of the Central Labor-Management-Government Council shall be the Minister of Labor, but, if necessary, three persons respectively representing workers, employers, and public interests

Article 27 ~ 28

may be appointed as co-chairmen in addition.

(3) The Central Labor-Management-Government Council may install subcommittees on respective sectors so as to perform its duties in an effective and efficient way.

(4) Necessary matters relating to the organization and operation of the Central Labor-Management-Government Council shall be prescribed by the Presidential Decree.

Article 29 (Entrustment of Authority)

The Minister of Labor may entrust part of his authority vested under this Act to the head of regional labor office under the conditions as prescribed by the Presidential Decree.

[This Article Wholly Amended by Act No. 6098, Dec. 31, 1999]

CHAPTER VII PENAL PROVISIONS

Article 30 (Penal Provision)

Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding a ten million won:

1. A person who rejects or obstructs, without any justifiable reason, the establishment of a council as referred to in Article 4 (1);

2. A person who fails, without any justifiable reason, to perform the

Article 29 ~ 30

contents of any resolution made by a council in violation of Article 23; and

3. A person who fails, without any justifiable reason, to perform an arbitration award in violation of Article 24 (2).

Article 31 (Penal Provision)

In case where an employer fails, without any justifiable reason, to comply with an order for correction issued under Article 11, or an obligation to submit materials under Article 21 (3), he shall be punished by a fine not exceeding five million won.

Article 32 (Penal Provision)

Any employer who fails to comply with the provisions of Article 12 (1), or to appoint members of the grievance handling committee under Article 25 shall be punished by a fine not exceeding two million won. <Amended by Act No. 6098, Dec. 31, 1999>

Article 33 (Fine for Negligence)

(1) Any employer who fails to submit the bylaws of council in violation of the provision of Article 17 shall be punished by a fine for negligence not exceeding two million won.

(2) The fine for negligence under paragraph (1) shall be imposed and collected by the Minister of Labor under the conditions as prescribed

Article 31 ~ 33

by the Presidential Decree.

(3) Any person who is dissatisfied with the disposition taken to impose the fine for negligence under paragraph (2) may raise an objection to the Minister of labor within 30 days after he is notified of said disposition.

(4) Where the person who is subject to the disposition taken to impose the fine for negligence under paragraph (2), raises an objection under paragraph (3), the Minister of Labor shall, without delay, notify the competent court, which, in turn, shall proceed to a trial on a fine for negligence pursuant to the Non-Contentious Cases Litigation Procedure Act.

(5) Where the person has not paid the fine for negligence without raising any objection within the period as prescribed in paragraph (3), such fine for negligence shall be collected by referring to practices of the collection of national taxes in arrears.

[This Article Newly Inserted by Act No. 6098, Dec. 31, 1999]

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)

Addenda

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 presumed to 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

Addenda

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.

Addenda

ACT ON THE PROMOTION OF WORKERS' PARTICIPATION AND COOPERATION
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