[Plaintiffs, Appellants] Korea Blind Union (사단법인 한국시각장애인연합회), an incorporated association, and 1 other (Attorneys Seo Woo-hong and 2 others, Counsel for the Plaintiffs)
[Defendant, Appellee] Chairman of the National Labor Relations Commission (중앙노동위원회)
[Intervenor for the Defendant] Intervenor for the Defendant
[Judgment Below] Seoul High Court Judgment 2004Nu9823, delivered on May 18, 2005
[Order]
The part of the judgment below concerning the Defendant's Intervenor, specifically the part concerning the Seoul Metropolitan Nowon Welfare Center for the Blind (서울특별시립 노원시각장애인복지관), is reversed, and the same part of the first instance judgment is revoked, and the said Plaintiff's action is dismissed. The appeal by Plaintiff Korea Blind Union (사단법인 한국시각장애인연합회) is dismissed. The costs of appeal for the dismissed portion, including the portion arising from the Defendant's Intervenor's intervention, shall be borne by Plaintiff Korea Blind Union, and the total litigation costs for the dismissed portion, including the portion arising from the Defendant's Intervenor's intervention, shall be borne by the non-party (Director of the Seoul Metropolitan Nowon Welfare Center for the Blind; date of birth and address omitted).
[Reasoning]
1. We examine the grounds of appeal of Plaintiff Korea Blind Union (사단법인 한국시각장애인연합회) (hereinafter referred to as "Plaintiff Corporation") (the supplementary brief on grounds of appeal submitted after expiration of the period shall be considered only to the extent it supplements the grounds of appeal).
Where a fixed term of an employment contract is set, absent special circumstances, the employment relationship between the parties to the employment contract naturally terminates upon expiration of the term, without the need for any separate action by the employer such as dismissal. However, even where a fixed-term employment contract has been executed, if, for example, a short-term employment contract has been repeatedly renewed over a long period such that the fixed term becomes merely a formality, and considering comprehensively the content of the contract, the motive and circumstances leading to the conclusion of the employment contract, the purpose of fixing the term and the true intention of the parties, the customary practice regarding the manner of concluding the same type of employment contract, and labor protection statutes, if it is recognized that the fixing of the term is merely a formality, then, notwithstanding the wording of the contract, the employer's refusal to conclude a renewal contract without justifiable grounds must be deemed void in the same manner as a dismissal (see Supreme Court Decision 97Da42489, delivered on January 23, 1998; Supreme Court Decision 98Du625, delivered on May 29, 1998, etc.).
Examining the record in light of this legal principle, the court below, having cited the reasoning of the first instance judgment and found facts as stated therein, comprehensively considered the following circumstances: ① the business operated by Plaintiff Corporation is a public interest business aimed at rehabilitation training and welfare benefits for the visually impaired, and in connection with this business, Plaintiff Corporation was designated as an institution carrying out the vocational rehabilitation fund project for the disabled, and received the entirety of its operating expenses and personnel expenses from the State in the name of the vocational rehabilitation fund for the disabled; ② the Minister of Health and Welfare requested cooperation from the Plaintiffs, through year-end official documents, to conclude renewal contracts with contract employees related to this project and to maintain the continued employment relationship, absent special circumstances, in order to enhance the professionalism of the workforce; ③ regarding the Plaintiffs' request to return the project, the Minister of Health and Welfare initially rejected such request, considering the public interest nature and special characteristics of this project, thereby indicating that there was a continuing need for the project, and accordingly, financial support from the State could also continue; ④ employees, including the Intervenor, who were employed before 2002, had renewed their employment contracts each year without any particular problems, and it appears that, but for the Plaintiffs' request to return the project, the Intervenor could have continued to maintain the employment relationship; ⑤ the retirement allowance that was to be accumulated with government budget was not settled and paid each time the employment contract term expired, as the Plaintiffs asserted; and ⑥ in light of the various circumstances above, the Defendant's Intervenor, etc. (hereinafter the Defendant's Intervenor is referred to as "Intervenor," and, including the intervenor for the defendant in the court below other than the Defendant's Intervenor, referred to as "Intervenor, etc.") held an expectation that the employment relationship with the Plaintiffs would naturally continue even after the one-year period specified as the contract term had passed. Comprehensively considering all these circumstances, the court below determined that, although the Intervenor, etc. were employees hired under a fixed one-year contract term, the fixing of the term was in fact merely a formality, such that they were substantially in the position of employees without a fixed term, and therefore the Plaintiffs' act of notifying the Intervenor, etc. of the expiration of the employment contract term constituted, in substance, a dismissal, and, in the absence of justifiable grounds as prescribed by the Labor Standards Act (근로기준법), such dismissal was void as an unfair dismissal. This determination is justified, and there is no illegality therein, such as a misapprehension of the legal principle affecting the outcome of the judgment, a violation of the rules of evidence, or a mistake of fact due to incomplete deliberation, as alleged in grounds of appeal 1 through 3.
2. We examine, ex officio, the action brought by Plaintiff Seoul Metropolitan Nowon Welfare Center for the Blind.
Where a remedial order has been issued by a Regional Labor Relations Commission (지방노동위원회) or a Special Labor Relations Commission (특별노동위원회) with respect to an unfair dismissal or an unfair labor practice, the entity that must comply with and remedy the matter pursuant to such order must be the employer who is the business owner. Therefore, where the remedial order is issued against a part of the organization, an executive body, or a person in charge of business affairs of the employer who is the business owner, it shall be deemed to have been issued against the employer who is the business owner. Accordingly, an application for reexamination to the National Labor Relations Commission (중앙노동위원회) regarding such order, as well as a lawsuit to revoke the decision on reexamination, may likewise be filed only by the relevant business owner who has the capacity to be a party, as the party with standing to sue (see Supreme Court Decision 97Nu19731, delivered on April 9, 1999, etc.).
However, according to the reasoning of the judgment below and the record, Plaintiff Corporation is a corporation that received approval for establishment on May 1, 1981, for the purpose of promoting the welfare and protecting the rights and interests of the visually impaired through education and culture, vocational rehabilitation, social welfare activities, and livelihood assistance for the visually impaired in Korea, and Plaintiff Seoul Metropolitan Nowon Welfare Center for the Blind (hereinafter referred to as "Plaintiff Welfare Center") is a welfare facility for the disabled operated by Plaintiff Corporation. It can be seen that, although Plaintiff Welfare Center is also listed together with Plaintiff Corporation in the "business owner" column of the employment contracts executed between Plaintiff Corporation and the Intervenor, etc. in this case, such contracts were signed and sealed by the president, who is the representative of Plaintiff Corporation.
If so, Plaintiff Welfare Center is merely a social welfare facility operated by Plaintiff Corporation, and cannot be regarded as an unincorporated association or foundation having a capacity to be a party separate from Plaintiff Corporation. Therefore, the issuance of the unfair dismissal remedial order against Plaintiff Welfare Center in the decision on reexamination in this case must be deemed to have been substantively directed against Plaintiff Corporation, the employer who is the business owner. Accordingly, the lawsuit seeking revocation of the decision on reexamination in this case may likewise be filed only by Plaintiff Corporation, which has the capacity to be a party, and therefore the portion of the action in which Plaintiff Welfare Center seeks revocation of the decision on reexamination in this case was filed by an entity lacking the capacity to be a party and without standing to sue, and is thus unlawful. The judgment below, which overlooked this and examined and determined the merits of this portion of the action, contains an illegality of misapprehending the legal principle, which affected the outcome of the judgment.
3. Accordingly, the appeal of Plaintiff Corporation is dismissed, and the costs of appeal for this portion shall be borne by the losing party. As it is found that this Court is sufficiently able to render judgment on the portion of the judgment below concerning Plaintiff Welfare Center, the first instance judgment on this portion is revoked, and the said Plaintiff's action is dismissed, and the total litigation costs relating to the dismissed portion above shall be borne by the representative of the said Plaintiff, by analogical application of Article 108 of the Civil Procedure Act (민사소송법) (bearing of costs by an unauthorized representative). This judgment is rendered as stated in the Order, with the unanimous concurrence of the Justices participating in the decision.
Justice Park Jae-yoon (Presiding Justice), Justice Lee Kyu-hong, Justice Kim Young-ran, Justice Kim Hwang-sik (Justice in Charge)