They Promised an Annual Salary of 100 Million Won but Notified Rejection Before Joining... Court Rules "Unfair Dismissal"

[Asia Economy Reporter Seongpil Jo] A court ruling has determined that if a company unilaterally reverses promised working conditions and start dates made through so-called 'headhunters,' it may constitute unfair dismissal. The court held that a labor contract was established solely based on the final acceptance notification, even if the employee had not actually started work or signed a labor contract.

According to the legal community on the 18th, the Seoul Administrative Court Administrative Division 3 (Chief Judge Hwanwoo Yoo) ruled against Company A in a lawsuit filed against the Central Labor Relations Commission, which requested the cancellation of an unfair dismissal ruling.

The court stated, "Unless there are special circumstances, it cannot be assumed that the employer has the right to terminate the contract merely because the employee has not yet provided labor, even if the employer has decided to hire the employee." It added, "Company A's unilateral notification of rejection without written notice of dismissal reasons and timing constitutes unfair dismissal."

In February 2018, Company A requested a headhunting firm to find an executive to oversee marketing operations and was introduced to Mr. B. After interviews, Company A informed Mr. B of the hiring conditions, including an annual salary of 100 million KRW plus incentives. Mr. B also expressed his acceptance. All communications were conducted through the headhunting firm.

After Mr. B's employment was confirmed in June of the same year, he resigned from his previous company. However, one month before his start date, Company A notified Mr. B through the headhunting firm that the hiring would be postponed to the second half of the year and that the contract terms would be changed to an annual salary of 60 million KRW. When Mr. B protested out of frustration, Company A informed him of his rejection.

The labor authorities ruled this as unfair dismissal. Company A filed a lawsuit in objection, but the court did not change its judgment. The court stated, "Since Mr. B applied to Company A, went through the interview process, and Company A externally and objectively expressed its intention to hire and notified him, it is reasonable to consider that a labor contract was established between the two parties."

This content was produced with the assistance of AI translation services.