A South Korean court has ruled that informal discussions about start dates and verbal indications of potential job acceptance following an interview do not constitute a binding employment contract. (Image courtesy of Yonhap)
SEOUL, Dec. 31 (Korea Bizwire) — A South Korean court has ruled that informal discussions about start dates and verbal indications of potential job acceptance following an interview do not constitute a binding employment contract. The decision also clarified that rescinding such offers does not qualify as unfair dismissal.
On Monday, 2024, the Seoul Administrative Court overturned a ruling by the Central Labor Relations Commission (CLRC), which had found a cosmetics manufacturing company, identified as Company A, guilty of unfair dismissal after retracting a job offer to an executive-level candidate.
The case involved a candidate, identified as Mr. B, who interviewed for a management position at Company A in October 2022. Following the interview, the company’s CEO called Mr. B to discuss potential start dates, stating that he was “almost finalized” for the role. However, four days later, the company decided to hire a different candidate and informed Mr. B via text message that his application had been put on hold and he could pursue other opportunities.
Mr. B filed a grievance with the Incheon Regional Labor Relations Commission, claiming unfair dismissal. After the initial claim was dismissed, the CLRC reversed the decision in July 2024, ruling that the verbal communication constituted a job offer and its subsequent withdrawal was an unjust dismissal.
In response, Company A filed a lawsuit challenging the CLRC ruling. The court ultimately sided with the company, stating that the CEO’s comments merely indicated an intent to proceed with Mr. B’s candidacy but did not establish a definitive employment relationship.
The court emphasized that even if an employer expresses an intention to hire, an employment contract is only considered binding when both parties agree on essential terms, such as wages, job responsibilities, and contract duration. In this case, the lack of agreement on such critical details invalidated the claim of unfair dismissal.
This ruling underscores the legal distinction between preliminary hiring discussions and formalized employment contracts in South Korea, setting a precedent for similar disputes in the future.
Ashley Song (ashley@koreabizwire.com)
