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Labor-Management Council Requirements for Companies with 30+ Employees - Korean Labor Law
- Date2025/04/22 12:11
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In Korea, companies with 30 or more employees are legally required to establish a Labor-Management Council (LMC) under the Act on the Promotion of Workers’ Participation and Cooperation.
Failure to establish the LMC may result in an administrative fine of up to KRW 10 million.
1. Legal Basis for LMC Establishment
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Article 4 of the Act on the Promotion of Workers’ Participation and Cooperation
An employer who regularly employs 30 or more workers shall establish a Labor-Management Council at each workplace where decisions on working conditions are made.
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This obligation applies to each workplace unit, not just the head office. If a company operates in multiple regions, an LMC can also be established at the branch level.
2. Step-by-Step Advisory Process by SAERO
At Saero, we support foreign companies with full-service consulting for LMC establishment.
At Saero, we support foreign companies with full-service consulting for LMC establishment.
Our standard process includes:
(1) Kick-off Meeting
We explain the full roadmap of LMC setup and provide document templates.
We explain the full roadmap of LMC setup and provide document templates.
(2) Advisory on Election of Employee Representatives
Employee representatives must be elected by employees, through an employee-led election committee. We guide you through the legally compliant election procedure.
Employee representatives must be elected by employees, through an employee-led election committee. We guide you through the legally compliant election procedure.
(3) First Meeting Between Representatives
We support the scheduling of the first meeting between employer and employee representatives, including guidance on agenda setting and meeting minutes.
We support the scheduling of the first meeting between employer and employee representatives, including guidance on agenda setting and meeting minutes.
A sample record of proceedings is provided.
(4) Drafting of LMC Operating Bylaws
We prepare the council’s internal operating bylaws through close feedback with the company.
We prepare the council’s internal operating bylaws through close feedback with the company.
3. Reporting the LMC bylaws to the MOEL
Once the LMC is established, the finalized bylaws must be submitted to the Ministry of Employment and Labor (MOEL) within 15 days.
Once the LMC is established, the finalized bylaws must be submitted to the Ministry of Employment and Labor (MOEL) within 15 days.
As your legal representative, SAERO will prepare and file this report on your behalf to complete the final compliance step.
| Article 18 of the Act on the Promotion of Workers’ Participation and Cooperation The council shall establish its bylaws of organization and operation, and submit them to the Minister of Employment and Labor within 15 days from the date of establishment. |
Need English LMC Bylaws?
We also offer bilingual (Korean–English) versions of LMC bylaws and documentation to ensure clarity and compliance across global teams.
We also offer bilingual (Korean–English) versions of LMC bylaws and documentation to ensure clarity and compliance across global teams.
If your Korean entity has grown to 30 employees or more and has not yet established an LMC, now is the time to act. Please contact us to ensure your business remains compliant with Korean labor law.
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