a South Korean court ruled that the mass dismissal of 100 security guards by the management of Hyundai Apartments in Apgujeong was not an unfair dismissal

 Recently, a South Korean court ruled that the mass dismissal of 100 security guards by the management of Hyundai Apartments in Apgujeong was not an unfair dismissal. The Seoul High Court's Administrative Division 7 overturned a lower court decision, siding with the apartment residents' association. The court recognized the economic necessity of the layoffs, which were justified by the transition from self-management to outsourced management due to increased costs from minimum wage hikes and other financial burdens.

In February 2018, the residents' association notified over 100 security guards of their dismissal, citing the unsustainable financial burden caused by rising minimum wages and the increased costs of severance pay. While the Seoul Regional Labor Office initially deemed the layoffs lawful, the Central Labor Committee later ruled them as unfair dismissals. This led the residents' association to file an administrative lawsuit, arguing that as a non-profit entity, their criteria for urgent managerial needs differed from those of a commercial business.

The appellate court found that the residents' association had taken reasonable steps to avoid the layoffs by negotiating terms with the outsourcing company, ensuring that the current employees' jobs were retained without age restrictions. Consequently, the court ruled that the economic rationale and the efforts made by the residents' association to mitigate the impact on employees were sufficient to justify the layoffs. The Supreme Court upheld this decision, confirming the legality of the dismissals.

This ruling sets a significant precedent for similar cases, outlining the legal standards for economic dismissals and management transitions in residential complexes.

Today's Proverb: "Objective and rational judgments are the foundation of all affairs."