Amendments to Articles 2 and 3 of the Trade Union Act, Purpose of the Amendments, and Expected Changes
By Bongsoo Jung (Korean labor attorney, KangNam Labor Law Firm)

I. Amendments to Articles 2 and 3 of the Trade Union Act

On July 28, 2025, the Environment and Labor Committee of the National Assembly reviewed and passed an amendment bill to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act (hereinafter referred to as the “Trade Union Act”). The bill subsequently passed the Legislative and Judiciary Committee of the National Assembly on August 1, and is scheduled to be submitted to the plenary session on August 23.
The contents of the amendment can be broadly summarized into four points. First, the expansion of the concept of “employer,” making it possible for subcontractor labor unions to engage in collective bargaining with the principal employer. Second, the deletion of the current provision that disqualifies as a labor union any labor organization that allows the membership of persons who are not workers. Third, the addition to the concept of labor disputes of (i) managerial decisions affecting working conditions, and (ii) the employer’s violations of a collective agreement. Fourth, the establishment of a new provision on (i) criteria for determining the proportion of individual workers’ liability when damages are recognized due to acts such as strikes, (ii) the right to claim reduction of damages, and (iii) grounds for exemption from liability for damages.
The above four matters are specified across ten amended provisions.
Category        Current Trade Union Act        Amended Trade Union Act
1. Concept of Employer Article 2(2)        “Employer” means an employer, a person responsible for the management of the business, or a person who acts on behalf of the employer in matters concerning workers of the business.        “Employer” means an employer, a person responsible for the management of the business, or a person who acts on behalf of the employer in matters concerning workers of the business. In this case, even if the person is not a party to the employment contract, any person who is in a position to substantively and specifically control or determine the working conditions of workers shall be deemed an employer within that scope.
2. Negative Requirements for Labor Unions Article 2(4), subparagraph (d)        “Labor union” means an organization or a federation of such organizations formed voluntarily by workers as the main body to maintain and improve working conditions and to enhance the economic and social status of workers. However, any of the following shall not be deemed a labor union. (d) When the admission of persons who are not workers is permitted.        “Labor union” means an organization or a federation of such organizations formed voluntarily by workers as the main body to maintain and improve working conditions and to enhance the economic and social status of workers. However, any of the following shall not be deemed a labor union.
(d) (deleted)
3. Concept of Labor Disputes Article 2(5)        5. “Labor dispute” means a state of conflict arising from disagreement between a labor union and an employer or employers’ association concerning the determination of working conditions such as wages, working hours, welfare, dismissal, and other treatment. In this case, “disagreement” means a situation where, despite continued efforts by the parties to reach an agreement, there is no longer any possibility of agreement through autonomous bargaining.        5. “Labor dispute” means a state of conflict arising from (i) disagreement between a labor union and an employer or employers’ association concerning the determination of working conditions such as wages, working hours, welfare, status of workers, and other treatment, and managerial decisions affecting working conditions, and (ii) the employer’s clear violation of matters under Article 92(2), subparagraphs (a) through (d) of a collective agreement. In this case, “disagreement” means a situation where, despite continued efforts by the parties to reach an agreement, there is no longer any possibility of agreement through autonomous bargaining.
4. Claim for Damages and Limitation of Liability Articles 3 and 3-2        Article 3 (Restriction on Claims for Damages) If an employer suffers damages due to collective bargaining or industrial action under this Act, the employer shall not claim compensation for such damages against a labor union or workers.        Article 3 (Restriction on Claims for Damages) ① If an employer suffers damages due to collective bargaining, industrial action, or other activities of a labor union under this Act, the employer shall not claim compensation for such damages against a labor union or workers.


        (Newly introduced)        ② A labor union or worker who has inevitably caused damage to the employer in order to defend the interests of the labor union or workers against the employer’s unlawful acts shall not be liable for compensation.
        (Newly introduced)        ③ Where the court recognizes liability for damages caused by collective bargaining, industrial action, or other activities of a labor union to a worker, the court shall determine the proportion of liability of the worker responsible for damages according to the following criteria: 1. Status and role in the labor union 2. Circumstances and degree of participation in the industrial action, etc. 3. Degree of involvement in the occurrence of damages 4. Wage level and the amount of damages claimed 5. Cause and nature of the damages 6. Other matters deemed necessary for equitable distribution of damages
        (Newly introduced)        ④ Workers or labor unions liable for damages under paragraph (3) may file a claim with the court for reduction of the amount of compensation. In such case, the court shall determine whether and to what extent to reduce the compensation for each debtor, considering the debtor’s economic status, family responsibilities such as dependents, guarantee of minimum living expenses, and maintenance of livelihood.
        (Newly introduced)        ⑤ Notwithstanding Article 6 of the Suretyship Act, a surety shall not be liable for damages arising from collective bargaining, industrial action, or other activities of a labor union.
        (Newly introduced)        ⑥ An employer shall not exercise the right to claim damages for the purpose of threatening the existence of the labor union, obstructing its operation, or hindering the activities of union members and thereby causing damage.
        (Newly introduced)        Article 3-2 (Exemption from Liability) Same as originally proposed: An employer may exempt a labor union or workers from liability for damages and other responsibilities arising from collective bargaining, industrial action, or other activities of a labor union.
Supplementary Provisions                Article 1 (Effective Date) This Act shall enter into force six months after its promulgation. Article 2 (Application of Restrictions on Claims for Damages, etc.) The amended provisions of Article 3 shall apply to damages arising from collective bargaining, industrial action, or other activities of a labor union occurring after the enforcement of this Act. However, the amended provisions of Article 3-2 shall also apply to damages occurring before the enforcement of this Act.

II. Purpose of the Amendments to Each Provision and Legal Application
1. Expansion of the Concept of Employer (Article 2, Subparagraph 2)
By stipulating that even a person who is not a party to the employment contract but is in a position to substantively and specifically control or determine the working conditions of workers shall also be deemed an employer, the scope of the current definition of “employer” has been expanded (new provision added to the latter part of Article 2, Subparagraph 2).
Category        Current Trade Union Act        Amended Trade Union Act
Concept of Employer Article 2(2)        “Employer” means an employer, a person responsible for the management of the business, or a person who acts on behalf of the employer in matters concerning workers of the business.        “Employer” means an employer, a person responsible for the management of the business, or a person who acts on behalf of the employer in matters concerning workers of the business. In this case, even if the person is not a party to the employment contract, any person who is in a position to substantively and specifically control or determine the working conditions of workers shall be deemed an employer within that scope.

2. Deletion of the Provision Disqualifying Labor Unions that Allow Membership of Non-Workers
By deleting the current provision that a labor organization shall not be deemed a labor union if it allows the membership of persons who are not workers, the amendment ensures the right to organize for various categories of working people such as specially-employed workers and platform workers, and aligns with the recommendations of international organizations such as the ILO (deletion of Article 2, Subparagraph 4(d)).
Category        Current Trade Union Act        Amended Trade Union Act
Negative Requirements for Labor Unions Article 2(4), subparagraph (d)        “Labor union” means an organization or a federation of such organizations formed voluntarily by workers as the main body to maintain and improve working conditions and to enhance the economic and social status of workers. However, any of the following shall not be deemed a labor union. (d) When the admission of persons who are not workers is permitted.        “Labor union” means an organization or a federation of such organizations formed voluntarily by workers as the main body to maintain and improve working conditions and to enhance the economic and social status of workers. However, any of the following shall not be deemed a labor union.
(d) (deleted)

3. Addition of Matters Included in the Concept of Labor Disputes (Article 2, Subparagraph 5)
By defining labor disputes as “a state of conflict arising from disagreement concerning the determination of working conditions such as wages, working hours, welfare, dismissal, status of workers, and other treatment, and managerial decisions affecting working conditions, as well as the employer’s clear violation of matters under Article 92(2), subparagraphs (a) through (d) of a collective agreement,” the amendment allows for the expansion of the scope of lawful industrial action (Article 2, Subparagraph 5).
Subparagraphs (a) through (d) of Article 92(2) are as follows:
a. Matters concerning wages, welfare expenses, and retirement allowances.
b. Matters concerning working hours, rest periods, holidays, and leave.
c. Matters concerning grounds for and important procedures of disciplinary action and dismissal.
d. Matters concerning safety, health, and accident relief.
Category        Current Trade Union Act        Amended Trade Union Act
Concept of Labor Disputes Article 2(5)        5. “Labor dispute” means a state of conflict arising from disagreement between a labor union and an employer or employers’ association concerning the determination of working conditions such as wages, working hours, welfare, dismissal, and other treatment. In this case, “disagreement” means a situation where, despite continued efforts by the parties to reach an agreement, there is no longer any possibility of agreement through autonomous bargaining.        “Labor dispute” means a state of conflict arising from (i) disagreement between a labor union and an employer or employers’ association concerning the determination of working conditions such as wages, working hours, welfare, status of workers, and other treatment, and managerial decisions affecting working conditions, and (ii) the employer’s clear violation of matters under Article 92(2), subparagraphs (a) through (d) of a collective agreement. In this case, “disagreement” means a situation where, despite continued efforts by the parties to reach an agreement, there is no longer any possibility of agreement through autonomous bargaining.

4. Restriction on Claims for Damages (Article 3)
(1) It has been stipulated that if an employer suffers damages due to collective bargaining, industrial action, or other activities of a labor union under this Act, the employer shall not claim compensation for such damages against the labor union or workers (Article 3, Paragraph 1).
(2) It has been stipulated that if, in order to defend the interests of the labor union or workers against the employer’s unlawful acts, the labor union or workers inevitably cause damage to the employer, the labor union or workers shall not be liable for compensation (newly added Article 3, Paragraph 2).
(3) Where the court recognizes liability for damages to a worker, the court shall determine the proportion of responsibility according to the worker’s status and role in the labor union, the circumstances and degree of participation in industrial action, the degree of involvement in the occurrence of damages, the worker’s wage level and the amount of damages claimed, and the cause and nature of the damages (newly added Article 3, Paragraph 3).
(4) Labor unions and workers may file a claim with the court for reduction of the amount of compensation, and the court shall determine whether and to what extent to reduce the compensation for each debtor, considering the debtor’s economic condition, family obligations such as dependents, guarantee of minimum living expenses, and maintenance of livelihood (newly added Article 3, Paragraph 4).
(5) Notwithstanding the Suretyship Act, it has been stipulated that a surety shall not be liable for damages arising from industrial action and similar activities (newly added Article 3, Paragraph 5).
(6) It has been stipulated that an employer shall not exercise the right to claim damages for the purpose of threatening the existence of the labor union, obstructing its operation, or hindering union members’ labor union activities and thereby causing damage (newly added Article 3, Paragraph 6).
(7) It has been stipulated that an employer may exempt a labor union or workers from liability for damages and other responsibilities arising from collective bargaining, industrial action, or other activities of a labor union (newly added Article 3-2).

Category        Current Trade Union Act        Amended Trade Union Act
Claim for Damages and Limitation of Liability Articles 3 and 3-2        Article 3 (Restriction on Claims for Damages) If an employer suffers damages due to collective bargaining or industrial action under this Act, the employer shall not claim compensation for such damages against a labor union or workers.        Article 3 (Restriction on Claims for Damages) ① If an employer suffers damages due to collective bargaining, industrial action, or other activities of a labor union under this Act, the employer shall not claim compensation for such damages against a labor union or workers.


        (Newly introduced)        ② A labor union or worker who has inevitably caused damage to the employer in order to defend the interests of the labor union or workers against the employer’s unlawful acts shall not be liable for compensation.
        (Newly introduced)        ③ Where the court recognizes liability for damages caused by collective bargaining, industrial action, or other activities of a labor union to a worker, the court shall determine the proportion of liability of the worker responsible for damages according to the following criteria: 1. Status and role in the labor union 2. Circumstances and degree of participation in the industrial action, etc. 3. Degree of involvement in the occurrence of damages 4. Wage level and the amount of damages claimed 5. Cause and nature of the damages 6. Other matters deemed necessary for equitable distribution of damages
        (Newly introduced)        ④ Workers or labor unions liable for damages under paragraph (3) may file a claim with the court for reduction of the amount of compensation. In such case, the court shall determine whether and to what extent to reduce the compensation for each debtor, considering the debtor’s economic status, family responsibilities such as dependents, guarantee of minimum living expenses, and maintenance of livelihood.
        (Newly introduced)        ⑤ Notwithstanding Article 6 of the Suretyship Act, a surety shall not be liable for damages arising from collective bargaining, industrial action, or other activities of a labor union.
        (Newly introduced)        ⑥ An employer shall not exercise the right to claim damages for the purpose of threatening the existence of the labor union, obstructing its operation, or hindering the activities of union members and thereby causing damage.
        (Newly introduced)        Article 3-2 (Exemption from Liability) Same as originally proposed: An employer may exempt a labor union or workers from liability for damages and other responsibilities arising from collective bargaining, industrial action, or other activities of a labor union.

5. Effective Date
Article 1 of the Supplementary Provisions stipulates that “This Act shall enter into force six months after its promulgation.” Since the law will be applied six months after promulgation, the government will prepare an enforcement decree and enforcement rules in relation to the application of the law so that there will be no issues in its implementation.

III. Expected Changes for Companies

1. Collective Bargaining Rights of In-House Subcontractor Unions Following the Expansion of the Concept of Employer
According to this amendment, the following provision has been introduced: “Even if a person is not a party to the employment contract, if the person is in a position to substantively and specifically control or determine the working conditions of workers, such person shall also be deemed an employer within that scope.”
In relation to this, a recent lower court ruling found that a principal employer falls under the category of “employer” bearing the obligation to engage in collective bargaining with a subcontractor union. The ruling presented the following criteria:
“Whether the principal employer is deemed an employer under the Trade Union Act, bearing the obligation to engage in collective bargaining with the in-house subcontractor’s workers, should be determined based on whether the principal is in a position to substantively and specifically control or determine the subject matter of bargaining requests; whether the labor of the in-house subcontractor’s workers is essential to the principal’s business operations and incorporated into its business system; and whether there is a need and appropriateness for collectively determining the working conditions of the in-house subcontractor’s workers through collective bargaining with the principal. In making such a determination, the court should comprehensively consider factors such as the extent to which the subcontractor’s work constitutes a portion of the principal’s business conducted at the workplace, the working methods of the subcontractor’s workers and the degree of the principal’s direct or indirect involvement therein, and the relationship between the principal and the subcontractor.”
Even if in-house subcontractor unions demand collective bargaining, the current Trade Union Act already adopts the system of unifying bargaining channels. This means that even when there are many subcontractors within a company, through the unified bargaining channel system, collective bargaining will be carried out with a single channel. In other words, the detailed provisions on this matter will likely be provided through the enforcement decree of the Trade Union Act following the passage of this amendment.

2. Addition of Matters Included in the Concept of Labor Disputes
Previously, labor disputes were limited to disagreements arising during collective bargaining over matters related to the determination of working conditions such as wages, working hours, and treatment of workers. However, this amendment has added two more grounds for labor disputes.
First, matters concerning managerial decisions of the enterprise that affect working conditions, such as collective dismissals (mass layoffs) and mergers and acquisitions, may now be subject to labor disputes, thereby permitting lawful strikes.
Second, where the employer violates key provisions of a collective agreement, lawful industrial action is now permitted. Previously, such cases were recognized only as disputes of rights pursued through litigation for legal violations; under the amendment, lawful strikes through labor disputes are now legislated.
The major matters of collective agreements referred to here are found in Article 92, subparagraphs (a) through (d), namely:
a. Matters concerning wages, welfare expenses, and retirement allowances.
b. Matters concerning working hours, rest periods, holidays, and leave.
c. Matters concerning grounds for and important procedures of disciplinary action and dismissal.
d. Matters concerning safety, health, and accident relief.

3. Impact of the Restriction on Claims for Damages
The most extensively expanded portion of this amendment is the restriction on civil claims for damages by employers. The law has come to be known as the “Yellow Envelope Act” precisely because workers have long suffered from excessive civil damage claims brought by employers.
When even one labor union engages in unlawful strikes, the union and its members have been held liable for both civil and criminal responsibility. Particularly through the imposition of quasi-solidary liability, multiple union members were burdened with civil liability, making it practically impossible for them to maintain normal lives.
Recent Supreme Court precedents have limited the liability of union members by applying responsibility more concretely to unlawful industrial actions. This amendment can be seen as reflecting such precedents. The Supreme Court held:
“Union members who participated in executing an unlawful industrial action pursuant to the instructions of the labor union that decided and led such action cannot realistically be expected to disobey the union’s directives once the action was decided by majority vote, even if they doubted the legitimacy of the strike. Requiring individual members to judge the legality of the strike under the urgent circumstances of industrial action risks weakening workers’ right to organize. Furthermore, the extent of each member’s involvement in the decision-making or execution of the industrial action may vary significantly. To treat the scope of liability for damages of the labor union, which decided and led the unlawful action, as identical to that of each individual member without considering these circumstances would not only risk undermining the constitutionally guaranteed rights of organization and collective action of workers, but would also contradict the principle of fair and reasonable allocation of damages, which is the underlying philosophy of the liability system. Therefore, the extent of liability imposed on individual members must be determined comprehensively, considering such factors as their status and role within the labor union, the circumstances and degree of participation in the industrial action, the extent of their contribution to the occurrence of damages, their actual wage level, and the amount of damages claimed.”
As a result of the restriction on damage claims under this amendment to the Trade Union Act, the likelihood has increased that labor unions and union members’ industrial actions may lead to more unlawful strikes. Therefore, employers must establish thorough countermeasures in response.