Unions argue revision weakens employer liability, while employers warn vague rules could create confusion

Labor Minister Kim Young-hoon delivers a briefing on the revised Trade Union and Labor Relations Adjustment Act, known as the "Yellow Envelope Law," at Government Complex Seoul, July 29. Korea Times photo by Hong In-ki

Sharp differences have emerged between business groups and labor unions following the government’s release of new guidelines on the so-called “Yellow Envelope Law,” a measure intended to protect striking workers from crippling liability lawsuits.

Historically symbolized by the yellow envelopes of cash donations used to support penalized workers, the revised law has drawn warnings from business leaders that it could embolden unions and disrupt operations.

The Ministry of Employment and Labor announced the new guidelines on Friday, ahead of its implementation on March 10 next year. It clarifies that subcontracted workers are entitled to collective bargaining rights with a main contractor if the contractor exercises structural control over their working hours or work methods.

Labor groups have criticized the guidelines for imposing stricter standards that reduce the liability of main contractors, while business associations warned that vague criteria could sow confusion on the ground and heighten uncertainties for management.

The law is a landmark revision that expands the definition of employers and the scope of labor disputes while limiting companies’...

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