[Plaintiffs, Appellants] Plaintiff 1 and 1 other (Attorneys Kwon Du-seop and 7 others, Counsel for the plaintiffs)
[Defendant, Appellee] Chairman of the National Labor Relations Commission
[Intervenor for the Defendant] YESCO Co., Ltd. (Law Firm Ilshin and 1 other, Counsel for the intervenor)
[Judgment Below] Seoul High Court Decision 2007Nu5105 decided October 5, 2007
[Order]
The judgment below is reversed, and the case is remanded to the Seoul High Court.
[Reasoning]
The grounds of appeal are examined.
1. The former Act on the Protection, etc. of Temporary Agency Workers (파견근로자보호 등에 관한 법률) (before its amendment by Act No. 8076 on December 21, 2006; hereinafter the "Temporary Agency Workers Protection Act") defines "temporary agency work" as "a situation in which a temporary work agency employs a worker and, while maintaining that employment relationship, has the worker perform work for a user company under the direction and supervision of the user company pursuant to the terms of a worker dispatch contract" (Article 2, Item 1), and provides in the main text of Article 6(3) that "where a user company continuously uses a dispatched worker for more than two years, the user company shall be deemed to have employed the dispatched worker from the day following the date on which the two-year period expires" (hereinafter the "deemed direct employment provision").
Temporary agency work is originally a form of labor supply business. "Labor supply business" refers to "a business that has a person use a worker under a supply contract" (Article 4, Item 7 of the Employment Security Act (직업안정법)), that is, a business in which a worker who is factually or contractually under the control of one person is used under the direction of another person. If such business were freely permitted, there would be concerns about the harms of intervening in another person's employment for profit or of intermediary exploitation of wages or other benefits of workers in the middle; therefore, the Labor Standards Act (근로기준법) in principle prohibited such business (Article 8 of the Labor Standards Act before its full amendment by Act No. 8372 on April 11, 2007; Article 9 of the Labor Standards Act as so amended), permitting it only for persons who obtained permission from the Minister of Labor under the Employment Security Act, and, in the case of domestic labor supply business, limiting the scope of eligible permit holders to labor unions (Article 33(1) of the Employment Security Act; Article 33(2), Item 1 of its Enforcement Decree). Thereafter, in the "Social Pact for Overcoming the Economic Crisis" of February 9, 1998 (the so-called Tripartite Agreement), an agreement was reached to introduce a temporary agency work system within a limited scope as a means of enhancing labor market flexibility. In connection with this, the Temporary Agency Workers Protection Act was enacted, and temporary agency work business was excluded from the scope of labor supply business (Article 4, Item 7 of the Employment Security Act).
The legislative purpose of the Temporary Agency Workers Protection Act is to ensure the proper operation of temporary agency work business and to establish standards concerning the working conditions, etc. of dispatched workers, thereby contributing to the employment stability and welfare enhancement of dispatched workers and facilitating the smooth supply and demand of manpower (Article 1 of the Temporary Agency Workers Protection Act). In particular, in order to ensure the "proper operation of temporary agency work business," Chapter 2 sets forth, as regulatory measures on temporary agency work business, the grounds for dispatch (that the work must fall within the category of duties subject to worker dispatch, or that there must exist a temporary ground for dispatch), the period of dispatch, and permission for dispatch business. That is, with respect to the grounds for dispatch, Article 5(1) of the Temporary Agency Workers Protection Act, in principle, limits the duties subject to worker dispatch, excluding direct production process duties in manufacturing, to duties requiring expert knowledge, skill, or experience, etc., as prescribed by Presidential Decree, while Article 5(2) provides that, except for duties absolutely prohibited from dispatch as being unsuitable as the subject of temporary agency work business, temporary agency work business may be conducted only where a vacancy has arisen due to childbirth, illness, injury, etc., or where there is a temporary or intermittent need to secure manpower. With respect to the period of dispatch as well, Article 6(1) limits the period of worker dispatch under Article 5(1) above to one year, but permits a one-time renewal upon agreement among the temporary work agency, the user company, and the dispatched worker, up to a maximum of two years; and Article 6(2) provides that the period of worker dispatch under Article 5(2) above shall be limited, in the case of a vacancy arising from childbirth, illness, injury, etc., to the period necessary to resolve the cause thereof, and, in the case of a temporary or intermittent need to secure manpower, to within three months, and that even if there is agreement among the temporary work agency, the user company, and the dispatched worker, the period may be renewed only once. Regarding permission for dispatch business, Article 7 provides that a person who intends to conduct temporary agency work business must obtain permission from the Minister of Labor. Furthermore, in order to ensure the effectiveness of the above statutory provisions for the proper operation of temporary agency work business, the Temporary Agency Workers Protection Act provides in Article 43, Item 1 for criminal punishment of a temporary work agency that violates the above provisions concerning the grounds for dispatch, the period of dispatch, and permission for dispatch business, and in Article 44, Item 1, for criminal punishment of a user company that violates the above provisions concerning the grounds for dispatch and the period of dispatch.
Examining the legislative background and purpose of the Temporary Agency Workers Protection Act, as well as the content of the above provisions for the proper operation of temporary agency work business, it can be said that the legislative intent of the deemed direct employment provision is, with respect to a user company's act of continuously using a dispatched worker in violation of the restrictive provisions on the period of dispatch, to deem a direct employment relationship to have been established between the user company and the dispatched worker in their private-law relationship, separately from administrative supervision or criminal punishment, thereby preventing the routinization and prolongation of temporary agency work and promoting the employment stability of dispatched workers accordingly.
Meanwhile, Article 6(3) of the Temporary Agency Workers Protection Act merely provides that "where a user company continuously uses a dispatched worker for more than two years, ... the user company shall be deemed to have employed the dispatched worker," and does not set forth, as a requirement for the deemed employment, that the worker dispatch must fall under a ground for dispatch prescribed in Article 5 of the Temporary Agency Workers Protection Act, or that it must be a worker dispatch conducted by a temporary work agency that has obtained permission for temporary agency work business under Article 7 of the Temporary Agency Workers Protection Act. Moreover, as examined above, the Temporary Agency Workers Protection Act sets different periods for the restriction on the period of worker dispatch depending on the type of dispatched duty in Article 6(1) and (2), and places the deemed direct employment provision in paragraph (3), thereby making clear that the deemed establishment of an employment relationship between the user company and the dispatched worker under the above deemed direct employment provision is a consequence of the user company's violation of the restriction on the period of dispatch. Comprehensively considering the wording, structure, and legislative intent of the deemed direct employment provision as set forth above, the provision means that, where there exists "worker dispatch" as defined in Article 2, Item 1 of the Temporary Agency Workers Protection Act, and such worker dispatch continues for more than two years, a direct employment relationship is established between the user company and the dispatched worker directly from such fact. In this case, unless there are other special circumstances from which it can be seen that the period of the employment relationship is fixed, the period should, in principle, be regarded as having no fixed term.
2. Therefore, the interpretation that the deemed direct employment provision applies only to a so-called "lawful worker dispatch," that is, a case where there exists a ground for dispatch prescribed in Article 5 of the Temporary Agency Workers Protection Act and the dispatch is conducted by a temporary work agency that has obtained permission under Article 7 of the Temporary Agency Workers Protection Act, is a restrictive interpretation that not only lacks any basis in light of the wording and legislative intent of the above provision, as discussed above, but is also unreasonable and untenable for the following additional reasons.
First, the position that the deemed direct employment provision should be interpreted as applying only to lawful worker dispatch falling under the duties subject to worker dispatch prescribed in Article 5(1) above appears to be based on the argument that the "two years," which is the duration of the employment relationship required for deemed direct employment, is the same period as the "two years," which is the maximum period of worker dispatch under Article 5(1) above. However, as noted above, while the Temporary Agency Workers Protection Act designates certain duties requiring expert knowledge, skill, or experience, etc. as duties subject to worker dispatch under Article 5(1) above, Article 5(2) above permits temporary agency work business to be conducted, in cases where exceptional specific grounds and needs exist, even for duties other than those prescribed in Article 5(1) above, except for duties absolutely prohibited from dispatch. Furthermore, in light of the fact that the deemed direct employment provision is placed not immediately after Article 6(1) above, which sets the maximum two-year period for worker dispatch under Article 5(1) above, but rather after Article 6(2) above, which concerns the period of worker dispatch under Article 5(2) above, the above argument lacks persuasiveness.
Furthermore, if the deemed direct employment provision is held to apply only to lawful worker dispatch, then a user company that received the services of worker dispatch in violation of the restrictions prescribed by the Temporary Agency Workers Protection Act would instead not bear the burden of deemed direct employment, which would be contrary to legal equity. In particular, as long as the duties fall under the duties subject to worker dispatch prescribed in Article 5(1) above or a ground for worker dispatch prescribed in Article 5(2) of the same Article exists, a user company that received the services of worker dispatch from a temporary work agency that has not obtained permission for temporary agency work business under Article 7 above would not be subject to criminal punishment (Article 44, Item 1). In such a case, if the user company is not even subject to the deemed direct employment provision, the user company would naturally come to prefer receiving worker dispatch from a temporary work agency that has not obtained permission for temporary agency work business, which would encourage acts in violation of the Temporary Agency Workers Protection Act and risk undermining the very foundation of the permission system for temporary agency work business; therefore, such interpretation is not reasonable.
Meanwhile, the deemed direct employment provision was replaced by the "direct employment obligation provision" newly established as Article 6-2 when the Temporary Agency Workers Protection Act was amended by Act No. 8076 on December 21, 2006. The direct employment obligation provision, as so amended, imposes on the user company an obligation of direct employment of the relevant dispatched worker even in cases where the user company uses a dispatched worker for duties for which temporary agency work business is not, in principle, permitted, and in cases where the user company received the services of worker dispatch from a temporary work agency that has not obtained permission for temporary agency work business (each item of paragraph (1) of the same Article). Since this provision, too, is aimed at preventing the routinization and prolongation of temporary agency work and thus shares the same legislative intent as the deemed direct employment provision, an interpretation seeking to narrow the scope of application of the deemed direct employment provision is unwarranted also in light of this legislative history.
3. Nevertheless, the court below, departing from the foregoing legal principles, cited the judgment of the first instance and held that, because the Intervenor company, the user company, had the Plaintiffs, who were dispatched workers, perform duties different from those permitted under Article 5(1) of the Temporary Agency Workers Protection Act, the worker dispatch in this case was unlawful, and on that ground, determined that the deemed direct employment provision did not apply. The judgment of the court below, in so holding, erred in its understanding of the legal principles concerning the interpretation of the scope of application of the deemed direct employment provision prescribed in Article 6(3) of the Temporary Agency Workers Protection Act, and such error affected the judgment.
The ground of appeal pointing this out has merit.
4. Accordingly, without determining the remaining grounds of appeal, the judgment below is reversed, and the case is remanded to the court below for further examination and determination. This judgment is rendered as set forth in the Order by the unanimous opinion of the Justices involved.
Chief Justice Lee Yong-hoon (Presiding Justice), Justice Ko Hyun-cheol, Justice Kim Young-ran, Justice Yang Sung-tae, Justice Kim Hwang-sik, Justice Lee Yong-hoon, Justice Park Si-hwan, Justice Kim Ji-hyung (Justice in charge), Justice Lee Hong-hoon, Justice Park Il-hwan, Justice Kim Neung-hwan, Justice Jeon Su-an, Justice Ahn Dae-hee, Justice Cha Han-sung