Question 46: Can Employers impose the disciplinary actions of stretching the pay raise period for not more than 6 months, removal from office or dismissal if Employees regularly fail to fulfil their tasks instead of unilateral termination of their LCs?

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Pursuant to Article 38.1(a) of the Labor Code, Employees’ failure to fulfil their tasks regularly is considered one of the reasons that allow Employers to unilaterally terminate LCs[1]. Stretching the pay raise period for not more than 6 months, removal from office or dismissal are the labour disciplinary actions which are prescribed in the Labor Code. The applicable labour law does not have any regulations that allow Employers to impose labour discipline actions in replacement of the unilateral termination of LCs with Employees who regularly fail to fulfil their tasks. However, many Employers still misunderstand that the Employees’ failure to fulfil their tasks regularly is one of the labour discipline violations which must be sanctioned. Employers need to understand that the regular failure to fulfil the assigned tasks depends largely on the Employee’s capacity but the Employees themselves still respect and comply with the enterprises’ ILRs.

In short, when Employees regularly fail to fulfil their assigned tasks, Employers will consider if it is necessary to unilaterally terminate LCs instead of imposing labour disciplinary actions even though these actions are less serious.

[1]Article 38.1 (a) Labor Code