Concerns Over Industry Backlash Following Hyundai Wia Subcontracted Workers' Direct Employment Ruling

[Asia Economy Reporter Changhwan Lee] The Supreme Court's ruling that Hyundai Wia must directly employ in-house subcontracted irregular workers has raised concerns in the industrial sector.

On the 8th, the Supreme Court upheld the lower court's ruling in the appeal trial of an employment intention claim lawsuit filed by 64 employees belonging to Hyundai Wia's in-house partner companies, ordering "the defendant to express the intention to employ the plaintiffs."

The employees of the partner companies filed a lawsuit in 2014, claiming that "Hyundai Wia used the plaintiffs for more than two years or assigned them to tasks that do not fall under worker dispatch work, thus having an obligation for direct employment."

However, Hyundai Wia argued, "The plaintiffs belong to in-house partner companies and are not under the defendant's command and supervision, so a worker dispatch relationship does not exist."

The first and second trials ruled that Hyundai Wia must directly employ them, and the Supreme Court also affirmed the lower court's judgment this time.

Regarding this Supreme Court ruling, Hyundai Wia stated, "Since the boundary between contracting and dispatching is not defined by law and is judged only by court interpretation, the industrial field is still experiencing confusion, and the costs incurred from illegal dispatch judgments are unfortunately borne entirely by companies."

Hyundai Wia expressed concern that lawsuits from about 2,000 dispatched employees of partner companies would continue. The company said, "Our company has been struggling with management difficulties for years due to the rapid changes in the mobility market and the COVID-19 pandemic," adding, "In this situation, we are very worried about whether we can bear the enormous burden arising from this ruling."

This ruling against Hyundai Wia may affect ongoing major corporate lawsuits surrounding the direct employment of irregular workers. Conflicts over illegal dispatch are intensifying not only at Hyundai Wia but also at Hyundai Motor, Kia, Korea GM, POSCO, and Hyundai Steel.

Companies argue that dispatched employees perform only simple tasks under legitimate contracting agreements, so it is not illegal dispatch, but courts are not accepting this, leaving companies struggling to devise countermeasures.

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