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Labor Relations
What is the Monetary Compensation System for Unfair Dismissal?
10/1/2025
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Author:system
The Labor Relations Commission, when issuing a remedial order for dismissal, if the worker does not desire reinstatement to the original position, instead of ordering reinstatement to the original position, may order the employer to pay the worker an amount of money equivalent to or greater than the wages that the worker would have received had they provided labor during the dismissal period (Article 30, Paragraph 3 of the Labor Standards Act). As a remedy for unfair dismissal, if the worker does not wish for reinstatement to the original position, in addition to reinstatement, a monetary compensation system has been introduced whereby the Labor Relations Commission orders payment of an amount equivalent to or greater than the wages and terminates the employment relationship. The amount equivalent to or greater than the wages includes the wage equivalent for the dismissal period and consolation money as a substitute for reinstatement to the original position, which the Labor Relations Commission determines by considering the worker's fault, the degree of unfairness of the dismissal, and other factors.
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