JIPYONG LLC

A company, which provided for severance compensation to be available for some of the employees only under a collective agreement, terminated such severance compensation under an agreement with the labor union, and adopted instead a uniform system of statutory severance pay. With that, the company decided to pay the outstanding severance compensation at that point. The employees who had qualified for the severance compensation argued that the agreement with the labor union should be invalidated, and filed a claim seeking declaration of invalidation of the agreement with the labor union. Jipyong at this point successfully represented the employer to obtain the verdict in favor of the employer.

Although the plaintiffs appealed on the decision of the court of first instance, the appellate court also found in favor of the employer on the ground that the collection agreement was valid and the system of severance compensation for the employees was terminated, thereby dismissing the appeal.