Jung Min-ho has worked as a staff writer at The Korea Times since 2012, mostly covering social and political issues. He currently belongs to the Politics & City Desk where he covers topics such as health, labor and human rights. Prior to joining the team, he was responsible for covering North Korea and sports. His article about a biosecurity breach of Middle East respiratory syndrome won him an award from the Korea Science Journalists Association in 2016. He is also the co-author of the book, "Medical Pioneers of Korea" (2019). He served as the head of the international relations committee at the Journalists Association of Korea from 2021 to 2023.
‘Yellow envelope law’ decree sparks dual backlash from labor, businesses
Workers protest a revised enforcement decree tied to a pro-labor measure known as the “Yellow envelope law” near the presidential office in Seoul, Nov. 29. Newsis
By Jung Min-ho
Companies warn of legal chaos as workers say reform falls short
A government decree detailing the so-called Yellow Envelope Law — a landmark revision intended to curb the ability of companies to seek large damage claims against striking workers — has drawn criticism from both business groups and labor unions, with each accusing the Ministry of Employment and Labor of creating more confusion than clarity ahead of its implementation in March 2026.
The revised enforcement ordinances under the Trade Union and Labor Relations Adjustment Act have drawn criticism for placing additional burdens on companies while narrowing the practical reach of the pro-labor law’s core protections for subcontracted workers.
Key questions remain over how the new rules will govern collective bargaining between principal employers and subcontractor unions and how much discretion the government will wield in the process. In theory, a subcontractor union may seek separate talks with a principal employer, but whether such negotiations proceed in any given case would be decided by the National Labor Relations Commission or a newly created state body.
The rules also leave unresolved how broadly the definition of an “employer” may be interpreted and how strictly limits on damage-compensation liability will be applied.
The Korea Enterprises Federation, an organization representing major firms here, released survey results Sunday showing employers’ worries about what the law could bring to their workplaces. They argue that if all subcontractor unions file direct bargaining requests in large numbers, employers will be pulled into overlapping negotiations that were previously handled through single‑channel talks, which they fear could paralyze businesses.
According to a poll of 100 companies, 87 percent said the implementation of the law is likely to hurt labor-management relations. Many firms say the criteria for determining whether a principal company exercises “substantial control” over subcontracted workers are too vague, creating ground for conflicts over whether the company can be considered an employer of such workers and, if so, under what circumstances. The survey showed 77 percent said they are concerned about a sharp increase in legal costs driven by that ambiguity.
Faced with this uncertainty, 99 percent said there should be corrective action by lawmakers, with 63.6 percent calling for delaying enforcement until key legal questions are resolved.
Labor groups have also expressed dissatisfaction with the enforcement decree, arguing that it makes direct bargaining between subcontractor unions and their “real employers” too narrow and conditional, effectively hollowing out the law’s original intent. By leaving key details to the discretion of government bodies, including commission members, they say the decree turns what was meant to be a clear legal safeguard into a vague promise.
The Korean Confederation of Trade Unions, an umbrella union which led the legislation push, said last week that it sent President Lee Jae Myung a formal letter urging him to scrap the enforcement decree.
“If the unification of bargaining channels is forced, there will be cases where bargaining with the principal employer becomes impossible, due to the protracted unification procedures,” the organization said. “Conflicts between labor and management, as well as among workers themselves could also intensify.”
The ministry has characterized its decree as a balanced attempt to preserve the law’s objective ― allowing subcontractor unions to bargain with principal employers ― while still organizing talks around a unified bargaining window to keep the process manageable. It maintains that all unions can separately negotiate with their employers. But without clarifying some of the key concepts, such as who specifically counts as an employer, many cases are expected to end up in court.