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Unfair Dismissal Decision Concerning “Fewer Than Five Regular Employees (Small-Scale Private Academy)” (Unfair Dismissal 503)
- Date2026/06/29 04:08
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[Case Information]
This case is an unfair dismissal decision that was concluded by dismissal on procedural grounds in connection with the issue of “fewer than five regular employees (small-scale private academy).”
Decision Committee: Jeju Regional Labor Relations Commission 2026Buhae98 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-06-23 · Case Number: Dismissed
Summary of Key Issue: The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet.
1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns an instructor who worked at a small private academy and, after being dismissed, filed an application for remedy with the Labor Relations Commission. The employer took the position that the academy was a workplace with fewer than five regular employees and therefore not subject to the unfair dismissal remedy system under the Labor Standards Act. Despite the Commission’s request for supplementation, the employee failed to submit materials supporting the claim that the number of regular employees was five or more.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where an academy instructor claims unfair dismissal and files an application for remedy with the Labor Relations Commission, the academy constitutes a business or workplace employing five or more regular employees as prescribed in Article 11(1) of the Labor Standards Act, and thus whether it is a workplace for which an application for remedy for unfair dismissal may be filed with the Labor Relations Commission.
The panel in this case noted that: (i) the employer, through the academy instructor posting sheet, asserted that only one director, one English instructor, and one math instructor were working at the academy, making it a workplace with fewer than five regular employees; (ii) a search of employment insurance records for the workplace did not reveal any employment insurance establishment data; and (iii) despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee failed to submit any objective materials sufficient to recognize that the workplace employed five or more regular employees on a regular basis.
Accordingly, the panel determined that it was difficult to regard the dismissal in this case as having occurred at a workplace to which the unfair dismissal remedy system under the Labor Standards Act applies, and that the requirements for filing an application seeking an unfair dismissal remedy order from the Labor Relations Commission had not been met.
Summary of the Labor Relations Commission’s Reasoning
The Labor Relations Commission based its decision on the following grounds: first, under Article 11(1) of the Labor Standards Act, an order for remedy of unfair dismissal is only possible for businesses or workplaces that employ five or more workers on a regular basis; second, the number of regular employees must be calculated objectively based on the average over a certain period and daily headcounts, rather than temporary fluctuations, and the burden of proof regarding this lies with the employee applying for the remedy; and third, in this case, aside from the academy instructor posting sheet submitted by the employer, no materials such as employment insurance records, four major social insurance records, or payroll ledgers were submitted that could support a finding that the number of employees was five or more. As a result, the Commission found it difficult to regard the academy as a workplace employing five or more regular employees and therefore dismissed the application for remedy for unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
For an employee to apply to the Labor Relations Commission for a remedy for unfair dismissal, it is necessary to secure in advance materials that can prove the workplace employs five or more regular employees (such as employment insurance enrollment records, pay slips, attendance records, and statements from colleagues). This is particularly important in workplaces with few staff and unclear employment insurance coverage, such as private academies and small retail stores. In such cases, it is crucial to systematically collect all materials that can demonstrate the actual number of workers and their working patterns.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s perspective, whether the number of regular employees is fewer than five is directly connected to the applicability of the Labor Standards Act and the unfair dismissal remedy system. Accordingly, personnel, payroll, and employment insurance records should be managed consistently. However, even if a workplace employs fewer than five regular employees, general legal principles—such as restrictions on dismissal under the Civil Act, the terms of employment contracts and work rules, and the principle of good faith—may still apply to dismissals. Employers must therefore not neglect efforts to ensure the legitimacy of the reasons and procedures for dismissal.
What both employees and employers should bear in mind in this type of case is that whether there are “five or more regular employees” is not a simple numerical issue. It is determined by comprehensively considering various factors, including employment insurance, actual working patterns, and whether workplaces are integrated. If a similar dispute is anticipated, it is advisable to seek early assistance from experts such as Labor Law Firm Law&, in order to organize the facts and evidence.
2. Matters Decided
A. Case Overview and Procedural History
The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet. A search of employment insurance records for the workplace did not reveal any employment insurance establishment data, and despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee did not submit any materials sufficient to recognize that the workplace employed five or more regular employees. Therefore, it is difficult to regard the workplace as a business with five or more regular employees under Article 11(1) of the Labor Standards Act.
3. Gist of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet. A search of employment insurance records for the workplace did not reveal any employment insurance establishment data, and despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee did not submit any materials sufficient to recognize that the workplace employed five or more regular employees. Therefore, it is difficult to regard the workplace as a business with five or more regular employees under Article 11(1) of the Labor Standards Act. /
[See More Related Decisions]
- “Dismissal (Non-Appearance at Hearing)” Unfair Dismissal Decision – Decision Date: - Case Number: Dismissed
- “Failure of Employment Offer to Be Formed (Absence of Offer Letter)” Unfair Dismissal Decision – Decision Date: - Case Number: First-Instance Decision Upheld
- “Failure to Satisfy Requirements for Redundancy Dismissal (Workout Company)” Unfair Dismissal Decision
[Tags]
Unfair dismissal, fewer than five regular employees (small-scale private academy), others, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Employee Status (Academy Instructor)’ Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to “fewer than five regular employees (small-scale private academy)” can be found in the “Fewer Than Five Regular Employees (Small-Scale Private Academy) Related Decisions List.”
※ Korean version of this case: Korean article
This case is an unfair dismissal decision that was concluded by dismissal on procedural grounds in connection with the issue of “fewer than five regular employees (small-scale private academy).”
Decision Committee: Jeju Regional Labor Relations Commission 2026Buhae98 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-06-23 · Case Number: Dismissed
Summary of Key Issue: The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet.
1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns an instructor who worked at a small private academy and, after being dismissed, filed an application for remedy with the Labor Relations Commission. The employer took the position that the academy was a workplace with fewer than five regular employees and therefore not subject to the unfair dismissal remedy system under the Labor Standards Act. Despite the Commission’s request for supplementation, the employee failed to submit materials supporting the claim that the number of regular employees was five or more.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where an academy instructor claims unfair dismissal and files an application for remedy with the Labor Relations Commission, the academy constitutes a business or workplace employing five or more regular employees as prescribed in Article 11(1) of the Labor Standards Act, and thus whether it is a workplace for which an application for remedy for unfair dismissal may be filed with the Labor Relations Commission.
The panel in this case noted that: (i) the employer, through the academy instructor posting sheet, asserted that only one director, one English instructor, and one math instructor were working at the academy, making it a workplace with fewer than five regular employees; (ii) a search of employment insurance records for the workplace did not reveal any employment insurance establishment data; and (iii) despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee failed to submit any objective materials sufficient to recognize that the workplace employed five or more regular employees on a regular basis.
Accordingly, the panel determined that it was difficult to regard the dismissal in this case as having occurred at a workplace to which the unfair dismissal remedy system under the Labor Standards Act applies, and that the requirements for filing an application seeking an unfair dismissal remedy order from the Labor Relations Commission had not been met.
Summary of the Labor Relations Commission’s Reasoning
The Labor Relations Commission based its decision on the following grounds: first, under Article 11(1) of the Labor Standards Act, an order for remedy of unfair dismissal is only possible for businesses or workplaces that employ five or more workers on a regular basis; second, the number of regular employees must be calculated objectively based on the average over a certain period and daily headcounts, rather than temporary fluctuations, and the burden of proof regarding this lies with the employee applying for the remedy; and third, in this case, aside from the academy instructor posting sheet submitted by the employer, no materials such as employment insurance records, four major social insurance records, or payroll ledgers were submitted that could support a finding that the number of employees was five or more. As a result, the Commission found it difficult to regard the academy as a workplace employing five or more regular employees and therefore dismissed the application for remedy for unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
For an employee to apply to the Labor Relations Commission for a remedy for unfair dismissal, it is necessary to secure in advance materials that can prove the workplace employs five or more regular employees (such as employment insurance enrollment records, pay slips, attendance records, and statements from colleagues). This is particularly important in workplaces with few staff and unclear employment insurance coverage, such as private academies and small retail stores. In such cases, it is crucial to systematically collect all materials that can demonstrate the actual number of workers and their working patterns.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s perspective, whether the number of regular employees is fewer than five is directly connected to the applicability of the Labor Standards Act and the unfair dismissal remedy system. Accordingly, personnel, payroll, and employment insurance records should be managed consistently. However, even if a workplace employs fewer than five regular employees, general legal principles—such as restrictions on dismissal under the Civil Act, the terms of employment contracts and work rules, and the principle of good faith—may still apply to dismissals. Employers must therefore not neglect efforts to ensure the legitimacy of the reasons and procedures for dismissal.
What both employees and employers should bear in mind in this type of case is that whether there are “five or more regular employees” is not a simple numerical issue. It is determined by comprehensively considering various factors, including employment insurance, actual working patterns, and whether workplaces are integrated. If a similar dispute is anticipated, it is advisable to seek early assistance from experts such as Labor Law Firm Law&, in order to organize the facts and evidence.
2. Matters Decided
A. Case Overview and Procedural History
The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet. A search of employment insurance records for the workplace did not reveal any employment insurance establishment data, and despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee did not submit any materials sufficient to recognize that the workplace employed five or more regular employees. Therefore, it is difficult to regard the workplace as a business with five or more regular employees under Article 11(1) of the Labor Standards Act.
3. Gist of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
The employer asserted that the workplace was a business with fewer than five regular employees, consisting of one director, one English instructor, and one math instructor, and submitted the academy instructor posting sheet. A search of employment insurance records for the workplace did not reveal any employment insurance establishment data, and despite the Commission’s request for supplementation and attempts to contact the employee by phone and text message, the employee did not submit any materials sufficient to recognize that the workplace employed five or more regular employees. Therefore, it is difficult to regard the workplace as a business with five or more regular employees under Article 11(1) of the Labor Standards Act. /
[See More Related Decisions]
- “Dismissal (Non-Appearance at Hearing)” Unfair Dismissal Decision – Decision Date: - Case Number: Dismissed
- “Failure of Employment Offer to Be Formed (Absence of Offer Letter)” Unfair Dismissal Decision – Decision Date: - Case Number: First-Instance Decision Upheld
- “Failure to Satisfy Requirements for Redundancy Dismissal (Workout Company)” Unfair Dismissal Decision
[Tags]
Unfair dismissal, fewer than five regular employees (small-scale private academy), others, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Employee Status (Academy Instructor)’ Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to “fewer than five regular employees (small-scale private academy)” can be found in the “Fewer Than Five Regular Employees (Small-Scale Private Academy) Related Decisions List.”
※ Korean version of this case: Korean article
