[노동] The Yellow Envelope Law

Legislative Context and Timeline

The Yellow Envelope Law represents a sweeping revision of Korea's Trade Union and Labor Relations Adjustment Act (TULRAA). This significant reform package will take effect within six months of its passage. This law fundamentally shifts the balance of power in labor relations, potentially giving unions massive power to undermine employers' business operations.

Expansion of Employer Definition: From Direct Employment to Indirect Control

Under the current TULRAA, an employer is simply defined as a "business owner," though this term lacks clear legal definition. The Yellow Envelope Law dramatically expands this concept to include any entity that "substantially and specifically controls or decides working conditions" - even without direct employment contracts. This mirrors but exceeds recent U.S. NLRB joint employer rules, which were enjoined by federal courts for being overly broad. The Korean law's terminology remains dangerously vague, as the meanings of "substantially," "specifically," "control," and "decide" are undefined in the statute.

Real-World Impact on Commercial Contracts

The expanded employer definition creates unprecedented liability for general contractors. When a general contractor negotiates prices with subcontractors - prices that inherently factor in labor costs - the subcontractor's union can now claim the general contractor controls their wages through pricing decisions. For example, if a general contractor agrees to pay $100 per unit to a subcontractor, and this price was calculated considering the subcontractor's employee wages, the general contractor becomes vulnerable to labor disputes from the subcontractor's workforce. This interpretation places virtually all commercial contracts between general and subcontractors under the Trade Union Act's jurisdiction.