[Plaintiff, Appellant] Seoul Olympic Commemorative National Sports Promotion Foundation (서울올림픽기념 국민체육진흥공단) (Counsel: Attorney Heo Jeong-hun)
[Defendant, Appellee] Chairman of the National Labor Relations Commission (중앙노동위원회위원장)
[Intervenor for Defendant]
[Judgment Below] Seoul High Court Judgment of September 19, 1995, Case No. 94Gu29531
[Order]
The judgment below is reversed, and the case is remanded to the Seoul High Court.
[Reasoning]
The grounds of appeal are examined.
1.
Removal from position (직위해제) generally refers to a provisional measure of releasing an employee from his or her assigned post—without actually permitting the employee to perform duties—in order to prevent anticipated impediments to business operations that would arise if the employee concerned were to continue performing duties in the future, in circumstances such as where the employee lacks the ability to perform his or her duties, or has a poor work record or poor work attitude, where disciplinary proceedings are pending against the employee, or where the employee has been indicted in a criminal case. Accordingly, such removal differs in nature from disciplinary action (징계), which constitutes a punitive sanction imposed for the purpose of maintaining corporate order in response to an employee's past misconduct (see this Court's Decisions 75Nu121, rendered April 13, 1976; 83Nu184, rendered October 25, 1983; 83Nu489, rendered February 28, 1984; 91Da30729, rendered July 28, 1992; and 92Da36861, rendered February 9, 1993, among others).
Therefore, unless there is a special procedural provision concerning removal from position in the rules of employment (취업규칙) or similar regulations, it is not necessary to go through disciplinary procedures in carrying out a removal from position. Furthermore, in light of the nature of removal from position as discussed above, and the fact that, unlike disciplinary action—where various types of disciplinary measures may be imposed for an employee's misconduct—an employer cannot be compelled to take measures other than removal from position against an employee for whom grounds for removal from position exist, the legitimacy of a removal-from-position measure taken against an employee should be judged based on whether grounds for such removal from position exist with respect to the employee, and whether any violation of procedural provisions concerning removal from position is sufficient to render the removal-from-position measure void. It cannot be concluded that a removal-from-position measure lacks legitimacy merely because it is harsh to the employee or is inequitable when compared to disciplinary measures imposed on other employees for similar misconduct.
2. According to the reasoning of the judgment below, the court below found as follows. While working as the General Affairs Division Manager of a lodging facility (hotel) that is a subsidiary institution under the Plaintiff Foundation, the Intervenor for Defendant (hereinafter "the Intervenor") received a request from Nonparty 1, who was acting as the manager of the Planning and Review Division of the said lodging facility, to withdraw funds from the General Affairs Division's budget, purportedly on the President's instructions, in order to procure incidental expenses for the President's overseas business trip. Fully aware that the funds would be unlawfully used for the President's overseas travel expenses rather than for their original budgetary purpose, the Intervenor nevertheless signed the draft documents and expenditure resolution forms—prepared in advance by Nonparty 1—dated July 15, 1993, in the amount of KRW 885,000 under the pretext of "entertainment expenses for commendation of service personnel," and dated July 23 of the same year, in the amount of KRW 1,250,000 under the pretext of "commendation expenses for executive staff." Nonparty 1 then obtained approval on each of these expenditure resolution forms from the Director of Management, Nonparty 2, and the Director of Planning, Nonparty ○○○, and on that basis withdrew a total of KRW 2,135,000 from the Accounting Division on July 22 and 23 of the same year, which was used as overseas travel expenses for Nonparty 3, the President of the lodging facility.
The court below further found that Article 126 of the Plaintiff Foundation's Personnel Regulations (인사규정) provides that all employees shall faithfully perform their duties in compliance with the articles of incorporation and various regulations; that Article 142, Paragraph 1, Item 1 of the same Regulations provides that the Chairman of the Board may, upon resolution of the Personnel Committee, remove from position an employee who lacks the ability to perform duties, whose work performance is extremely poor, or whose work attitude as an employee is extremely poor; and that Article 138, Paragraph 1, Item 5 of the same Regulations provides that the Chairman of the Board may dismiss ex officio an employee who has received an order to await disposition (대기명령) due to removal from position, if it is determined that during that period there has been no improvement in ability or no sign of genuine repentance.
Based on these findings, and citing various circumstances set out in its judgment, the court below held that the removal-from-position measure against the Intervenor in this case was excessively harsh in light of the degree of the misconduct, and was also grossly inequitable, such that it exceeded the legitimate scope of personnel authority or constituted an abuse of such authority. The court below further held that, without even needing to examine whether legitimate grounds for ex officio dismissal subsequently existed, the removal from position in this case was unjust, and that the ex officio dismissal based thereon was likewise unjust.
However, according to the record, the Plaintiff Foundation is a public-interest corporation (공익법인) established pursuant to the National Sports Promotion Act (국민체육진흥법) for the purpose of commemorating the Seoul Olympic Games and promoting national sports through the creation, operation, and management of funds and related incidental projects. It can also be seen that the Intervenor, after serving as Purchasing Division Manager and Guest Room Division Manager, among other positions, at the said lodging facility operated by the Plaintiff Foundation as part of its projects, served from May 6, 1993 as General Affairs Division Manager overseeing general affairs, personnel matters, and the like within the said lodging facility.
Under these circumstances, if the facts are as found by the court below, the Intervenor's conduct as described above—committed while he held the position of General Affairs Division Manager overseeing general affairs, personnel matters, and the like at the said lodging facility operated by the Plaintiff Foundation, a public-interest corporation established under the National Sports Promotion Act—clearly falls under the grounds for removal from position prescribed in Article 142, Paragraph 1, Item 1 of the Personnel Regulations, namely, "a person who lacks the ability to perform duties or whose work attitude as an employee is extremely poor." Moreover, since the Intervenor himself acknowledges that the Plaintiff carried out the removal-from-position measure in this case upon resolution of the Personnel Committee, the removal-from-position measure in this case should, at first glance, be regarded as a legitimate measure taken in accordance with the applicable regulation.
Furthermore, according to the record, it cannot be said, as the court below found, that the Intervenor's aforementioned conduct was inevitably carried out upon the President's instructions, nor can the amount of funds so withdrawn be regarded as comparatively small. Even in light of the facts that the Intervenor did not actively take the lead in the above misconduct, did not personally use the funds, and had previously served faithfully without having committed misconduct or received disciplinary action, these circumstances alone do not support the conclusion that the removal-from-position measure in this case was excessively harsh (in light of the nature of removal from position discussed above, the circumstances cited by the court below cannot by themselves support a finding that the removal from position in this case was harsh), or that it was excessively inequitable compared to other persons who committed misconduct.
(According to the record, it can be seen that the Plaintiff handled the cases of Nonparty 1 and Nonparty 2, as found by the court below, through voluntary resignation (의원면직); given these circumstances, the removal from position of the Intervenor cannot be said to be excessively inequitable compared to their treatment. Moreover, even if they came to work at other business sites as a result of the Plaintiff's measures, this cannot be regarded as equivalent to reinstatement, and such circumstances would not change the conclusion in any event. As for Nonparty 4, Nonparty 5, and Nonparty 6, who received only a warning (주의처분) from the Plaintiff, the circumstances differ from those of the Intervenor, since their withdrawal of the budget of KRW 1,800,000, as found by the court below, under the pretext of advertising and publicity expenses, arose because Nonparty 1 brought them draft documents stating that the funds would be used for publicity activities targeting employees of domestic travel agencies sending tourists abroad while the President was stationed in Japan during his overseas business trip, and they judged that the disbursement of advertising and publicity expenses for such activities was legitimate and accordingly signed the expenditure resolution forms, among other documents. Therefore, the court below's determination that the removal-from-position measure in this case was excessively inequitable, based on a comparison with the above cases, also cannot readily be accepted.)
Accordingly, these circumstances alone cannot be said to have any bearing on the legitimacy of the removal-from-position measure in this case, which was taken provisionally in order to prevent anticipated impediments to business operations in the future.
Moreover, the record contains no indication that, after receiving the removal-from-position measure, the Intervenor's ability to perform duties improved during the period of removal from position, or that he showed genuine repentance for his wrongdoing or other signs of reform. Rather, according to the record, it can be seen that the Intervenor, rather than genuinely repenting of his wrongdoing, consistently sought to excuse himself by shifting responsibility to his superior, claiming that his misconduct was unavoidably committed upon the President's instructions. Given these circumstances, it cannot be concluded that the Plaintiff's ex officio dismissal of the Intervenor, who had failed to show such signs of reform, in accordance with the Personnel Regulations, exceeded the legitimate scope of personnel authority or constituted an abuse of such authority.
Nevertheless, the court below made a contrary determination, and thus the court below ultimately committed an error of law, affecting the judgment, by misapprehending the legal principles concerning the legitimate scope of personnel authority in relation to removal from position. The ground of appeal pointing this out is therefore well-founded.
3. Accordingly, the judgment below is reversed, and the case is remanded to the court below. This Judgment is rendered in accordance with the unanimous opinion of the participating Justices, as set forth in the Order.
Justice Jeong Gwi-ho (Presiding Justice), Kim Seok-su, Lee Don-hui, Lee Im-su (Justice in Charge)