Dismissal of Full-Time Employee After Suspension for "Reassignment to Another Project" Ruled Unfair

Published 24 Nov.2025 14:40(KST)

The court has ruled that it was unfair to dismiss an employee solely because a project had ended, especially since the employee had never stated an intention to resign and was set to continue working as a full-time employee.

On September 25, the 12th Administrative Division of the Seoul Administrative Court (Presiding Judge Kang Jaewon) ruled in favor of the plaintiff in a lawsuit filed by Mr. A against the Chairman of the Central Labor Relations Commission, seeking to overturn a retrial decision regarding unfair dismissal relief (Case No. 2024Guhap85588).

Photo to aid understanding of the article. Pixabay.

[Facts]

Mr. A joined an IT company, Company B, in November 2023 and worked on a project. In February 2024, the CEO of Company B informed Mr. A, "We will consider withdrawing you from the current project and reassigning you to another business area or a new project." The CEO further stated, "Between March 20 and April 8, the schedule for reassignment to another project will be decided, and until then, you will be placed on suspension," and accordingly placed Mr. A on suspension. Mr. A remained on unpaid standby until March 18. On March 18, the CEO notified Mr. A, "It has been decided that you will simply leave the company while on suspension," thus informing him of his dismissal.

Mr. A filed for unfair dismissal relief with the Seoul Regional Labor Relations Commission (hereafter Seoul Regional Commission), but in May 2024, the Seoul Regional Commission dismissed the case, stating that no dismissal had occurred. Mr. A appealed, but the Central Labor Relations Commission (hereafter Central Commission) also dismissed the case in September 2024, stating, "The employment relationship between Mr. A and Company B ended due to resignation following project withdrawal, so no dismissal exists."

In response, Mr. A filed an administrative lawsuit seeking to overturn the Central Commission's retrial decision, arguing, "I signed a full-time employment contract and never agreed to resign. I was waiting for reassignment to another project, but the company unilaterally notified me of my dismissal."

[Court's Ruling]

The court accepted the plaintiff's claim.

Regarding Company B's argument that "Mr. A expressed his intention to resign voluntarily in February 2024," the court found, "There is no evidence to support that Mr. A expressed an intention to resign voluntarily." Furthermore, the court stated, "According to the recorded conversations and other evidence, it was in fact the company that first proposed reassignment to another project after the withdrawal from the existing project, and it is confirmed that discussions regarding reassignment were based on the premise of continued employment."

Accordingly, the court ruled, "At most, Mr. A appeared to accept the suspension, but it cannot be said, as the respondent claims, that there was an agreement to resign between the parties and that Mr. A accepted the suspension on that basis."

Regarding Company B's claim that "the plaintiff caused multiple problems, including poor work performance," the court found, "Given that the company CEO repeatedly praised Mr. A, there are no grounds for dismissal based on poor performance or other reasons."

Finally, the court rejected Company B's argument that "the employment relationship ends when the project ends." The court stated, "Both parties entered into a full-time employment contract with no fixed term, and there is no basis to conclude that any implicit condition was included in the contract." In other words, "Company B's failure to provide written notice of the reason and timing of dismissal to Mr. A constitutes a violation of Article 27 of the Labor Standards Act," and thus, the court found that Company B's dismissal of Mr. A constitutes unfair dismissal.