[Plaintiff, Appellant] Changwon Special Steel Co., Ltd. (Attorneys Lee Jae-hu and 6 others)
[Defendant, Appellee] Chairman of the National Labor Relations Commission
[Intervenor for the Defendant] Intervenor for the Defendant 1 and 181 others (Attorneys Lee O-young and 4 others)
[Judgment Below] Seoul High Court Judgment 97Gu53801, decided January 22, 1999
[Order]
The judgment below is reversed, and the case is remanded to the Seoul High Court.
[Reasoning] The grounds of appeal are examined.
1. Underlying Facts
Based on the evidence lawfully adopted by the court below and the record, the following facts are found.
A. The Business and Asset Status of Sammi Jonghap Special Steel Co., Ltd.
(1) Sammi Jonghap Special Steel Co., Ltd. (hereinafter "Sammi") originally had its head office in Seoul, operated factories in Changwon, Ulsan, and Busan, and maintained storage yards in Incheon and Hanam, engaging in the special steel industry of producing and selling steel plates, bar steel, and steel pipes. The Busan and Ulsan factories produced only steel plates, while the Changwon factory produced bar steel and steel pipes in addition to steel plates; the bar steel and pipe business division differed from the steel plate business division in its manufacturing process.
(2) The bar steel/pipe business division (land 648,967㎡, buildings 220,304㎡) and the steel plate business division (land 213,769㎡, buildings 80,752㎡) of the Changwon factory were separated by an internal road connecting to the factory's main gate, and the workers engaged in each business division were also distinguished. As of the end of 1996, of Sammi's total 3,267 employees, 2,342, or 72% of the total workforce, were engaged in the bar steel/pipe business division, while the proportion of sales revenue accounted for by the bar steel/pipe business division was only 47% of total sales.
(3) Sammi had suffered continuous deficits since fiscal year 1992, and as of December 31, 1996, its accumulated deficit reached KRW 183.6 billion, with total assets of approximately KRW 1,533.6 billion and total liabilities of approximately KRW 1,451.3 billion on its balance sheet. The assets consisted of current assets of KRW 892.8 billion, investments and other assets of KRW 204.9 billion, fixed assets of KRW 394 billion, and deferred assets of KRW 41.9 billion, etc. Among the current assets, quick assets included cash and deposits of KRW 17.5 billion, securities of KRW 5.2 billion, accounts receivable of KRW 103.7 billion, notes receivable of KRW 216.6 billion, short-term loans of KRW 4 billion, accounts receivable-other of KRW 83.3 billion, and accrued income of KRW 1.1 billion; the liabilities consisted of current liabilities of KRW 896.8 billion and fixed liabilities of KRW 554.5 billion (bonds and long-term borrowings), of which liabilities directly or indirectly related to the bar steel/pipe business division amounted to approximately KRW 1,014.2 billion.
B. Circumstances Surrounding and Content of the Asset Sale and Purchase Agreement in This Case
Sammi suffered a deficit of KRW 119.9 billion in fiscal year 1996, and had continuously operated at a deficit for the preceding five years. Judging that if the business continued in that state there was no possibility of turning a profit and it would inevitably go bankrupt, Sammi established a policy of liquidating the bar steel and pipe business division of the Changwon factory, and on December 18, 1996, exchanged a letter of intent between the parties with Pohang Iron & Steel Co., Ltd. (hereinafter "Pohang Steel") for the sale of the assets of the bar steel and pipe business division of the Changwon factory (hereinafter "the factory in this case"). Accordingly, Pohang Steel established the plaintiff on February 14, 1997, as a subsidiary for the purpose of acquiring the factory in this case. On the same day, the plaintiff drew up a basic agreement with Sammi, and on the 17th of the same month entered into an asset sale and purchase agreement with the following content, agreeing to purchase the factory in this case for KRW 719.4 billion (exclusive of value-added tax).
(1) Subject Matter of Sale and Liabilities (Article 1 of the Contract)
The subject matter of sale consists of the land, buildings, structures, machinery and equipment, tools, fixtures, vehicles, inventory assets, leased assets, transferred technology (including industrial property rights such as patents, utility model rights, design rights, etc., and manufacturing technology and know-how) of the bar steel and pipe business division, construction-in-progress accounts, rights concerning registration incidental to other items sold, permits and licenses, and computer software, operation manuals, and various guidelines related to the operation of the items sold; items directly related to the performance guarantee of the items sold are included even if not listed in the inventory list (Paragraphs 1 to 3).
The plaintiff shall not assume Sammi's liabilities. However, liabilities to financial institutions for which the items sold are provided as collateral, and lease payment obligations to leasing companies, may be assumed as part of the purchase price under the terms of this contract, in consultation with the financial institutions and leasing companies (Paragraph 4).
(2) Purchase Price and Payment Method (Articles 2 to 4 of the Contract)
Fixed assets such as land, buildings, and structures, machinery and equipment, as well as machinery in transit, construction-in-progress accounts, and inventory assets, were valued at KRW 619.4 billion on the premise that all security interests thereon would be extinguished, and the technology transfer fee was comprehensively valued at KRW 100 billion, thereby determining the total price at KRW 719.4 billion (exclusive of value-added tax); it was agreed that the purchase price would be adjusted upward or downward through a future detailed due diligence and settled upon payment of the balance (Articles 2 and 4 of the Contract).
Of the total purchase price of KRW 774.4 billion (= the above KRW 719.4 billion + value-added tax of KRW 55 billion), ① the down payment of KRW 66 billion was to be paid within three days after Sammi provided the plaintiff with "a letter of consent to release from the financial institutions stating that mortgages, factory mortgages, and other security interests of the financial institutions over the items sold would all be released and extinguished upon payment of a certain amount" and "a confirmation letter from the leasing companies stating that the lease payment obligations on the leased assets would all be discharged upon payment of a certain amount, resulting in ownership of the leased assets vesting in the lessee"; ② the interim payment of KRW 636.3 billion was to be used to repay the mortgage debts to financial institutions and lease payment debts on leased assets, and the plaintiff could pay the said amount directly to the financial institutions and leasing companies in accordance with terms agreed with the financial institutions and leasing companies; and ③ of the balance of KRW 72.1 billion, KRW 10 billion was to be paid directly by the plaintiff to Pohang Steel as part of Sammi's outstanding accounts payable to Pohang Steel (Article 3 of the Contract).
(3) Obligations Regarding Employees (Article 11 of the Contract)
Sammi shall, immediately after the conclusion of this contract, survey the employees working in the relevant departments of the items sold as to whether they wish to be employed by the plaintiff, and notify the plaintiff of the results (Paragraph 1). The plaintiff shall calculate the standard number of personnel necessary for the operation of the items sold through job analysis, etc., and in filling the required manpower, shall newly hire personnel within the range of the standard number through a fair and reasonable open recruitment procedure; in this case, priority consideration shall be given, to the extent possible, to hiring the applicants notified by Sammi before the transfer of the items sold under Article 6 (Paragraph 2). Sammi shall provide the plaintiff with materials necessary for the plaintiff's recruitment screening (all personnel data including work experience, qualifications, work performance, etc.) (Paragraph 3). With respect to Sammi's employees who pass the plaintiff's recruitment screening, Sammi shall, at its own expense and responsibility, terminate the employment relationship with such employees and settle all monetary matters related to employees, including retirement allowances (Paragraph 4). Notwithstanding the above provisions, the plaintiff does not assume any obligation to take over Sammi's employees in connection with the purchase of the items sold. Furthermore, no provision of this contract shall be construed as imposing on the plaintiff an obligation to take over Sammi's employees, and even if a Sammi employee who wishes to join the plaintiff is not hired in the course of the plaintiff's new recruitment of employees in connection with the items sold, the employment relationship between Sammi and its employees shall not thereby be severed (Paragraph 5). Sammi shall make its employees aware of the purport of this article, and particularly of Paragraph 5 above, and shall use its best efforts to ensure that Sammi's employees, including those who fail to join the plaintiff, do not cause damage to the plaintiff by asserting, for any reason including this contract, succession of the employment relationship to the plaintiff. Notwithstanding this, if Sammi's employees, excluding those newly hired as employees of the plaintiff, demand succession of the employment relationship, etc., from Sammi by litigation or other legal proceedings, Sammi shall compensate the plaintiff for damages incurred by the plaintiff, including expenses incurred by the plaintiff in defending against lawsuits, etc., filed by Sammi's employees against the plaintiff (Paragraph 6).
(4) Exemption from Liability for Other Contracts (Article 12 of the Contract)
Unless otherwise provided in this contract, the plaintiff shall not be liable for any contract entered into by Sammi with its business partners, etc. (Paragraph 1).
C. Payment of the Purchase Price and Transfer of Assets
(1) After receiving from Sammi the letters of consent to release security interests from the financial institutions, the plaintiff paid the down payment of KRW 66 billion by February 20, 1997, the interim payment of KRW 621.8 billion from March 7 to March 17 of the same year, and the balance of KRW 74.1 billion on March 17 and 18 of the same year, for a total of approximately KRW 761.9 billion. Of this amount, only the down payment was remitted to Sammi's bank deposit account; most of the interim payment, approximately KRW 590 billion, was paid directly, or caused to be paid by Sammi, as repayment of the mortgage debts or lease payment debts to the financial institutions; and the balance was paid in lieu by way of subrogated repayment of Sammi's debt of an equivalent amount owed to Pohang Steel. By the 19th of the same month, all security interests held by financial institutions over the acquired assets had been extinguished.
(2) Sammi suspended operation of the bar steel and pipe factory on March 2, 1997, held a special resolution at the shareholders' meeting on March 5 approving the asset sale and purchase agreement in this case, and completed the registration and other transfer procedures for the transferred assets in favor of the plaintiff by March 7. The plaintiff deployed security personnel at the site on March 10, and by the end of the same month conducted due diligence and took over the tangible movable property such as machinery and equipment, tools, fixtures, and inventory assets, as well as various industrial property rights and manufacturing technologies such as operation manuals.
D. Recruitment of Employees
(1) Although Sammi requested employment of all 2,342 employees of the factory in this case, the plaintiff, having calculated through job analysis on February 25, 1997, that 1,978 persons were necessary for the operation of the factory in this case, notified Sammi that it would hire within that range.
(2) On February 26, 1997, the plaintiff, jointly with Pocheol Sanki Co., Ltd., a maintenance specialty company affiliated with Pohang Steel, publicly announced recruitment of employees, and, having received job applications from a total of 2,016 employees belonging to Sammi in two rounds, from the 26th of the same month to March 4 of the same year and from March 12 to March 22 of the same year, selected 1,770 of them as employees of the plaintiff (1,421 persons), Pocheol Sanki (242 persons), Dongwoo Co., Ltd. (a specialty company affiliated with Pohang Steel for security and vehicle operation, etc., 67 persons), and LG Yutong (a specialty company operating the plaintiff's employee cafeteria, 40 persons), respectively; the employees thus hired retired from Sammi immediately thereafter.
(3) The employees thus hired amounted to 75.6% (=1,770/2,342×100) of the total workforce (however, the number hired as employees of the plaintiff was 1,421, corresponding to approximately 60.6% (=1,421/2,342×100) of the total workforce); among these, 254 of 471 managerial staff and 1,516 of 1,871 technical staff were hired, and of the 64 technical managerial staff, all 62 except 2 who were elderly or ill were hired.
E. The Plaintiff's Business Activities and Operation of the Factory in this Case
(1) The plaintiff began producing special steel from April 1, 1997, using the newly hired employees at the factory in this case. Due to declining profitability caused by oversupply, the plaintiff established a policy of closing down the bar steel business in the long term and focusing on the wire rod and billet business divisions as its main business; accordingly, bar steel production, which accounted for 59.8% of total production as of the end of 1996, was drastically reduced to 11.3% as of the end of September 1998.
(2) In line with the changed production pattern, the plaintiff introduced new technologies through technical exchange with Pohang Steel, namely bloom continuous casting quality improvement technology, process omission technology, rolled product quality improvement technology, and operation management standards, and built a new sales network in place of Sammi's former sales organization; some of Sammi's former distributors in the bar steel and pipe sectors ceased dealing with the plaintiff due to the reduction in bar steel production, and the export agency channel was changed to a Pohang Steel affiliate.
(3) While the skills and experience of workers play a significant role in the special steel industry given its characteristics, due to its characteristics as a plant-based industry, the knowledge necessary for the work, such as manuals, technical standards, and work standards necessary for facility operation, is standardized and formalized, so that ordinary employees can carry out production activities according to the manuals after a short period of training.
(4) Employees newly hired from Sammi were generally assigned to the same departments and handled the same duties as before, and received the same treatment as regular employees in terms of salary and personnel matters even during the probationary period; however, the plaintiff differed from Sammi in its position and salary system, working hours, and the organizational structure of its business divisions, and imposed a three-month probationary period on newly hired employees.
F. Other Related Matters
(1) Under the 1996 collective bargaining agreement between Sammi and its labor union, the company was required to consult in advance with the union when disposing of part or all of its production facilities (Article 18, Item 2), to guarantee succession of employment and years of service, and succession of the collective bargaining agreement and the labor union in the event of transfer of the company (Article 24), and could dismiss employees by prior agreement with the union in the event of the need to downsize the workplace or reduce personnel (Article 20, Item 2). During the collective bargaining process with the union, Sammi explained to the union that, although employment succession would not occur upon transfer of the factory in this case, it would consult with Pohang Steel to ensure employment was guaranteed to the greatest extent possible.
(2) Sammi filed an application for commencement of corporate reorganization proceedings with the Seoul District Court, Case No. 97Pa1944, on March 18, 1997; its current account transactions were suspended the following day; and the said court issued a decision preserving the company's property on March 24 of the same year, and a decision commencing corporate reorganization proceedings on December 4 of the same year.
(3) On May 2, 1997, Sammi voluntarily retired 60 employees who had been working at the factory in this case and dismissed 39 employees by way of restructuring.
(4) The Intervenors for the Defendant (hereinafter "the Intervenors") are employees who had worked at the factory in this case; some of them applied for the plaintiff's recruitment screening pursuant to the recruitment announcement but were rejected, while the remaining Intervenors did not even apply for the recruitment screening.
G. Circumstances Surrounding the Retrial Decision
The Intervenors asserted that the asset sale and purchase agreement in this case was, despite its name, a business transfer agreement, so that the plaintiff was obligated to succeed to the employment of all employees belonging to the factory in this case subject to the transfer, and that the exclusion of some employees by way of the special provisions in the asset sale and purchase agreement and the new recruitment method constituted a de facto unfair dismissal. Of the 182 Intervenors, 105 filed applications for remedy against unfair dismissal with the Gyeongsangnam-do Regional Labor Relations Commission on June 13, 1997, 35 on the 23rd of the same month, and the remaining 42 on the 30th of the same month. The Regional Labor Relations Commission, on August 25 of the same year, dismissed each of the applications for remedy on the ground that they were unlawful, having been filed after the three-month exclusion period for applications for remedy had elapsed, since the date on which the plaintiff expressed its intent to refuse to succeed to the employment of Sammi's employees was February 17, 1997, when the asset sale and purchase agreement was concluded, or at the latest March 7 of the same year, when registration of the assets was completed. The Intervenors thereupon filed an application for reexamination with the National Labor Relations Commission.
The National Labor Relations Commission, on December 8 of the same year, rendered a retrial decision to the effect that the substance of the asset sale and purchase agreement in this case was a business transfer, and that the exclusion period for the application for remedy began to run, for employees who did not apply for the recruitment screening, on March 22, 1997, the day after the deadline for receiving job applications, and, for employees who did apply for the recruitment screening, on April 1, 1997, the day after the factory's operation commencement date on which their exclusion from hiring could be confirmed; and since the exclusion period had not elapsed, the plaintiff's failure to succeed to the employment relationship of the Intervenors constituted, in substance, a dismissal without justifiable cause, and the plaintiff was required to grant the Intervenors positions equivalent to their original positions.
2. Regarding Whether There Was a Business Transfer
A. Judgment of the Court Below
The court below, based on the facts found above, determined that, notwithstanding the plaintiff's explicit statement that it would acquire only the assets and not the human organization from Sammi in concluding the asset sale and purchase agreement in this case, and notwithstanding that the employees underwent new recruitment and retirement procedures, and notwithstanding that some accounts receivable and all liabilities were not assumed, or that the organization or systems were partially different, or that some technology had been improved, the plaintiff had, in substance, received a comprehensive transfer of the business, encompassing the human and material organization of Sammi's bar steel and pipe division while maintaining its identity as a unified whole, in light of the following: that the business purposes of the plaintiff and Sammi could not be regarded as different; that the assets the plaintiff acquired from Sammi included not only real property and movable property but also industrial property rights and product manuals, such that combining these with human resources alone would enable production of the same products as Sammi; that the personnel hired by the plaintiff amounted to 75.6% of the number requested by Sammi and 89.5% of the number calculated by the plaintiff as a result of its job analysis; that the Sammi employees hired by the plaintiff were newly hired by the plaintiff and only then retired from Sammi, rather than retiring from Sammi and then being newly hired by the plaintiff; that among the plaintiff's hired employees, 254 of 471 managerial staff and 1,516 of 1,871 technical staff were hired, resulting in a markedly high proportion of technical staff necessary for operating the factory, and in particular, all 62 of the 64 technical managerial staff except 2 who were elderly or ill were hired; that of the total 48 sales personnel, 44 were former Sammi employees, and in the bar steel sector, business relationships were generally maintained with existing distributors, including Sammi's existing 34 distributors plus 4 new distributors, for a total of 38 distributors; that employees other than former Sammi employees numbered only 53, with work experience at Pohang Iron & Steel and elsewhere, and they only held executive or labor management positions; that although the plaintiff stated it would impose a three-month probationary period on former Sammi employees, they received the same treatment as regular employees in personnel matters, salary, and welfare systems even during this probationary period, and their salary, calculated on a gross basis, was set and paid at a level slightly higher than at Sammi; that former Sammi employees not hired by the plaintiff were destined to be dismissed by way of restructuring as a result of the plaintiff's acquisition of the bar steel and pipe division, and if the employment relationship were not deemed to be succeeded, this would infringe upon the union's rights under the collective bargaining agreement requiring agreement with the union in the event of business closure, and the priority right to repayment of wage claims such as retirement allowances secured by the company's property, merely by adopting the method of asset transfer while closing the business; and that the plaintiff, from April 1, 1997, shortly after this sale and purchase contract, began producing special steel using the same production method as Sammi by deploying the human resources hired from Sammi together with the material assets.
B. Judgment of the Supreme Court
However, it is difficult to accept the court below's factual findings and judgment that the plaintiff received a transfer of the business of Sammi's bar steel and pipe business division, for the following reasons.
A transfer of business refers to the transfer, as a unified whole while maintaining its identity, of an entity organized for a certain business purpose, that is, its human and material organization; a transfer of only part of a business is also possible, and where such a business transfer takes place, the employment relationships of the relevant employees are, in principle, comprehensively succeeded to by the transferee company (see Supreme Court Decision 91Da15225, decided August 9, 1991; Supreme Court Decision 93Da18938, decided November 18, 1994, etc.). While the question of whether there is identity of business is a matter of factual determination to be decided in accordance with general social conceptions, whether the act in question (the transfer contract relationship) is recognized as a transfer of business should not be determined merely by the extent to which certain business assets are transferred, but should be determined by whether the former business organization is maintained and can function as a whole or as a significant part thereof. Thus, for example, even if all of the business assets are transferred, if the organization is dismantled before transfer, there is no transfer of business; conversely, even if business facilities are transferred while some portion is withheld, if it is recognized in accordance with general social conceptions that the former organization is maintained by the transferred portion alone, this shall be regarded as a transfer of business (see Supreme Court Decision 88Daka10128, decided December 26, 1989; Supreme Court Decision 97Da35085, decided November 25, 1997; Supreme Court Decision 96Da8826, decided April 14, 1998).
However, according to the facts found above, the employees of the bar steel/pipe division of Sammi's Changwon factory constituted 72% of Sammi's total employees, whereas the ratio of sales revenue was only 47% of Sammi's total, indicating low productivity, and moreover, the accumulated deficits over many years had substantially eroded the capital; accordingly, if the business were continued to be operated in that state, there was no possibility of turning to profit, and bankruptcy was inevitable, so that Sammi established a policy of liquidating this business division. However, since there was no prospective purchaser willing to acquire the assets of the factory in this case together with the human organization, i.e., the employees, comprehensively, it was impossible to liquidate the bar steel/pipe division business in that manner, and consequently, it was decided to transfer only the assets of the factory in this case, leading to the conclusion of the asset sale and purchase agreement in this case. Accordingly, in the course of collective bargaining with the labor union prior to the conclusion of the asset sale and purchase agreement in this case, Sammi explained to the union the unavoidable circumstances necessitating the sale of the assets of the factory in this case, informed the union that employment succession would not occur even if the asset sale and purchase agreement in this case were implemented, and stated that it would nevertheless endeavor, in consultation with Pohang Steel, to ensure employment was guaranteed to the greatest extent possible. Meanwhile, Pohang Steel likewise determined that, if it acquired most of the employees, i.e., the human organization, together with the assets of the factory in this case from Sammi by way of a business transfer, there would be no possibility of fostering a sound enterprise no matter how much the production technology and management environment were improved; accordingly, in concluding the asset sale and purchase agreement in this case, Pohang Steel made clear that the subject matter of sale was limited to the production facilities and related assets of the bar steel/pipe division, and that employment of the employees would not be succeeded, providing that no provision of the asset sale and purchase agreement in this case could be construed as imposing on the plaintiff an obligation to take over Sammi's employees, that Sammi should make its employees aware of this purport and use its best efforts to prevent Sammi's employees, including those who failed to join the plaintiff, from causing damage to the plaintiff by asserting, for any reason, succession of the employment relationship to the plaintiff, and that the plaintiff would, in filling the manpower necessary for operating the factory in this case within the range of the standard personnel, newly hire through a fair and reasonable open recruitment procedure while giving priority consideration to Sammi's employees wishing to join the plaintiff. Accordingly, Sammi provided the plaintiff with materials on Sammi's employees necessary for the plaintiff's new open recruitment, and agreed that, with respect to Sammi's employees who passed the plaintiff's recruitment screening, Sammi would, at its own expense and responsibility, terminate the employment relationship with Sammi and settle all monetary matters related to employees, including retirement allowances, and that if a Sammi employee who wished to join the plaintiff was not hired in the course of the plaintiff's new open recruitment of employees, the employment relationship between Sammi and that employee would not be severed; as a result, Sammi's employees who were not newly hired by the plaintiff or its Pohang Steel affiliates remained with Sammi as before. Moreover, the plaintiff newly hired approximately 60.6% of Sammi's employees in the form of new employment (as noted above, approximately 15% of the remainder were employed by Pohang Steel-related affiliates for the purpose of relief for the employees), and did not maintain their former working conditions or position status as at Sammi, but rather, after a three-month probationary period, reassigned them according to the plaintiff's own position and salary system, working hours, etc., thereby dismantling Sammi's former human organization and reconstituting and organizing it in accordance with the standards and personnel management methods of the Pohang Steel affiliate group. While the skilled techniques and experience of employees play a significant role in production in the special steel industry given its characteristics, due to its characteristics as a plant-based industry, the knowledge and technology necessary for the work is standardized and formalized, such that ordinary employees can carry out production activities according to the manuals after a short period of training, and in particular, since Pohang Steel, the plaintiff's parent company, had abundant technical personnel necessary for special steel production, the plaintiff was not necessarily required to hire Sammi's employees, but merely newly hired Sammi's employees within the range of the standard personnel for the purpose of providing relief, to the extent possible, to Sammi's employees who would otherwise become unemployed following the sale of the factory assets in this case. Furthermore, with respect to the business purpose (production items), while the plaintiff produces special steel using the assets acquired from Sammi as they are, the plaintiff substantially changed its production strategy by establishing a policy of closing down the bar steel business division in the long term due to declining profitability caused by oversupply and focusing on the wire rod and billet business divisions as its main business, drastically reducing bar steel production from 59.8% of total production as of the end of 1996 to 11.3% as of the end of September 1998, and accordingly introduced new technology and improved quality through technical exchange with Pohang Steel in line with the changed production pattern. The plaintiff did not assume Sammi's accounts receivable, notes receivable, other receivables, or liabilities exceeding KRW 1 trillion, but used most of the purchase price for the release and extinguishment of mortgages and factory mortgages held by financial institutions over the subject matter of sale, and for lease payments on leased assets. The plaintiff bore no liability for any contract concluded by Sammi with its business partners, and while maintaining approximately 29% of Sammi's raw material suppliers and approximately 10% of its sales outlets, newly developed most of its business relationships. It can also be seen that the plaintiff did not acquire the goodwill of the Sammi trade name, nor the property value of order relationships or business secrets that Sammi had secured in the course of its business. Examining these facts in light of the legal principles set forth above, even taking into account the circumstances set forth by the court below, it is insufficient to conclude that the plaintiff, in substance, received a transfer of the business, comprehensively acquiring the human and material organization of Sammi's bar steel/pipe business division while maintaining its identity as a unified whole, from Sammi. Nor can a different conclusion be reached merely because the plaintiff hired 60.6% of Sammi's employees in the form of new employment for the purpose of guaranteeing employment for Sammi's employees, as noted above.
Nevertheless, the court below determined, for the reasons stated in its judgment, that the plaintiff had received a transfer of the business relating to the factory in this case from Sammi, and that accordingly, the employment relationships between Sammi and the Intervenors who had worked at the factory in this case were, in principle, comprehensively succeeded to by the plaintiff as the transferee. Therefore, the judgment below contains an error in violation of the rules of evidence resulting in a mistaken finding of fact, or a misunderstanding of the legal principles concerning business transfer, which affected the judgment.
This ground of appeal is well-founded.
3. Conclusion
Therefore, without examining the plaintiff's remaining grounds of appeal, the judgment below is reversed, and the case is remanded to the court below, with the unanimous agreement of the Justices participating in this decision, as set forth in the Order.
Presiding Justice Cho Mu-je, Justice Lee Yong-woo, Justice Kang Shin-wook (Justice in charge), Justice Lee Kang-kook