The Supreme Court of South Korea recently announced a judgment (Supreme Court judgement no. 2019Da299393 rendered on July 14, 2022; hereinafter the “Subject Judgment”) to throw out the decision of an appellate trial which determined that the legal nature of employee transfer between affiliates of a domestic communication giant constituted a dispatch of workers under the Act on the Protection, Etc. of Temporary Agency Workers (hereinafter the “Dispatch Act”) and this judgment is making growing interest and controversy over how to classify employee transfer and dispatch between affiliate companies like the case under the judgment.

Since transference and dispatch of an employee is almost similar to each other in terms of its appearance as provision of labor, such classification could be made depending on whether “the dispatch of a worker (or transfer) has been made for business” and in that sense, the Subject Judgment is noteworthy as it suggested the detailed meaning of and the criteria for such matters.

Below, we will look into the gist of the Subject Judgment and its implications.

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Above article is a special contribution by Attorney Yong-Mun Kim to Monthly Labor Law 2022 September issue.