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[Labor] Unfair Dismissal Relief vs Invalidity Lawsuit

[Labor] Unfair Dismissal Relief vs Invalidity Lawsuit

[Labor] Unfair Dismissal Relief vs Invalidity Lawsuit

Hello, this is Attorney Choi Jong-ha at Cheongchul Law Firm.

When unwillingly dismissed and believing the dismissal is unjust, two procedures are available to challenge it: filing for unfair dismissal relief at the Labor Commission, or filing a confirmation lawsuit at court (confirmation of employee status or invalidity of dismissal). Having both procedures open for the same dismissal can cause confusion, since their nature, timeline, and effects differ significantly — careful consideration is needed.

Labor Commission unfair dismissal relief is a swift, simplified administrative remedy procedure. Designed to reduce the time and cost burden of civil litigation and promote quick reinstatement, the Labor Commission's initial decision can be obtained within about 3 months from filing.

However, Labor Commission relief has two drawbacks:

First, if the company commits to fighting until the end, the process can take longer than civil litigation. A Local Labor Commission decision can be appealed to the National Labor Commission, and the National Labor Commission decision can then proceed through district court, appellate court, and Supreme Court — potentially extending to 5 levels of review despite being designed for swift relief.

Second, if the employer fails to comply with the Labor Commission decision, separate procedures are needed for enforcement. The Labor Commission imposes enforcement fines on non-compliant employers, but unfair dismissal enforcement fines are typically around 20 million won per person. Even if the Labor Commission rules a dismissal unfair, if the employer pays the fine and refuses reinstatement, the employee must use other procedures such as court-based enforcement.

Court confirmation lawsuits are civil cases determining the validity of dismissal — whether the employment contract status remains valid. A judgment of dismissal invalidity allows the employee to claim wage equivalents for the period and to enforce against company accounts based on that judgment. Where Labor Commission relief focuses on administrative assessment of "unfair vs. just dismissal," dismissal invalidity lawsuits comprehensively resolve the civil rights and obligations following that conclusion.

Each system has pros and cons, requiring case-specific selection or parallel filing — but this judgment must be made quickly. Labor Commission relief has a 3-month statute of limitations; if missed, recognition of relief through the Labor Commission becomes very difficult.

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