Illegal Dispatch Controversy Ends After 7 Years... Supreme Court Rules "Hyundai Wia Must Directly Employ Subcontracted Workers"

[Asia Economy Reporter Baek Kyunghwan] The Supreme Court has ruled that workers who have been employed for more than two years at in-house subcontractors or who have performed tasks outside their contracts are subject to direct employment. This judgment is based on the "Act on the Protection of Dispatched Workers" (Dispatched Workers Act). The core of the ruling is that considering the form and content of their work, including receiving specific work instructions, these workers should be regarded as dispatched contract workers who must be converted to direct employment after two years. This decision is likely to have a significant impact on similar lawsuits currently pending before the Supreme Court involving Hyundai Motor Company, Kia, Hyundai Steel, Korea GM, POSCO, and others.

Recently, the Supreme Court upheld the lower court's ruling in the appeal case filed by Mr. A and others, who belong to an in-house subcontractor of Hyundai Wia, an affiliate of Hyundai Motor Company, against Hyundai Wia, ordering the defendant to express an intention to employ the plaintiffs. The lawsuit was filed 6 years and 7 months ago.

Mr. A and others argued, "The contract between the defendant and the in-house subcontractor is a worker dispatch contract, and since the defendant used the plaintiffs for more than two years or used them in tasks not subject to worker dispatch, the defendant has an obligation to directly employ the plaintiffs," initiating the lawsuit in 2014.

According to the Act on the Protection of Dispatched Workers, if a user business operator employs dispatched workers for more than two years or uses dispatched workers in tasks not subject to worker dispatch, the user business operator must directly employ those dispatched workers.

However, Hyundai Wia argued that "the plaintiffs belong to the in-house subcontractor and are not under the defendant's supervision or control, so a worker dispatch relationship does not exist."

The first trial ruled that workers who have been employed for more than two years at in-house subcontractors or who have performed tasks different from their contracts must be directly employed, ordering the defendant to express an intention to employ. The second trial also dismissed the company's appeal, siding with the workers.

The Supreme Court's judgment was no different. The court stated, "The defendant gave binding instructions regarding the performance of work directly or indirectly to the workers belonging to the in-house subcontractor and exercised considerable command and control, effectively incorporating them into its business," and ruled that "a worker dispatch relationship exists between the plaintiffs and the defendant."

According to the industry, Hyundai Wia must directly employ about 60 people who filed this lawsuit and prepare for additional lawsuits. It is known that there are about 2,000 subcontractor employees at Hyundai Wia's nationwide workplaces. In addition to Hyundai Wia, similar illegal dispatch-related lawsuits are ongoing at the Supreme Court involving Hyundai Motor Company, Kia, Korea GM, POSCO, Hyundai Steel, and others.

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