Re-Notice of Proposed Amendments to the Enforcement Decree of the Amended Trade Union Act: Changes to the Criteria for Separating Bargaining Units
Background and Key Changes of the Re-Notice
The Ministry of Employment and Labor initially issued a notice of proposed amendments to the Enforcement Decree, with the public comment period running until January 5, 2026. During this process, various opinions were raised by both management and labor groups.
Reflecting these views, the Ministry prepared a revised draft of the amended Enforcement Decree and announced that a re-notice period would be conducted from January 21 to February 6, 2026.
Under the original draft, the criteria for separating bargaining units among unions within a principal contractor and between principal contractor and subcontractor unions were assessed under the same standards.
Four factors were presented: significant differences in working conditions, employment type, bargaining practices, and the relationship between labor unions.
By contrast, the revised draft represents a significant change in that it further specifies the intent of the amended Trade Union Act by distinguishing between (i) common criteria applicable to all cases and (ii) criteria to be applied with priority in principal contractor–subcontractor bargaining situations.
Dual-Track and More Specific Criteria for Separating Bargaining Units
The core feature of the revised draft is the introduction of a dual-track framework for determining bargaining unit separation.
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It distinguishes between (i) common criteria generally applicable to bargaining unit separation (Article 14-11(3) of the Enforcement Decree) and (ii) criteria to be applied on a priority basis in bargaining between principal contractor and subcontractor labor unions (Article 14-11(4) of the Enforcement Decree).
For separation of bargaining units among labor unions within a principal contractor, the common criteria—largely similar to the existing framework—continue to apply.
While the revised draft provides more detailed explanations regarding differences in working conditions, employment types, and bargaining practices, and adds “equivalent grounds,” the fundamental analytical framework does not differ substantially from the prior approach.
However, a separate set of criteria has been newly introduced for bargaining between principal contractor and subcontractor labor unions.
Where a subcontractor labor union demands bargaining with a principal contractor, the revised draft expressly provides that “interests between labor unions” and the “potential for conflicts between labor unions” should be considered with priority over the common criteria.
This clarification institutionalizes the principle that bargaining unit separation may be permitted even where conflicts of interest exist due to differences in upper-level union affiliations.
Such differentiation is generally viewed as a mechanism to prevent confusion in labor-management relations within principal contractors under the amended Trade Union Act framework.
Implications and Key Considerations for Companies
While maintaining the principle of single bargaining channel unification, the revised draft places greater emphasis on inter-union interests when determining bargaining unit separation, thereby expanding the possibility for subcontractor labor unions to engage in independent bargaining with principal contractors.
This also implies that bargaining unit separation may occur not only between principal contractor and subcontractor unions, but also among subcontractor labor unions themselves.
Accordingly, companies should recognize that bargaining demands from subcontractor labor unions may materialize as tangible management risks and prepare accordingly.
In particular, given the introduction of the broad and flexible standard of “equivalent grounds,” the practical impact may grow depending on how the Labor Relations Commission interprets and applies the amended Enforcement Decree in the future.
For corporate officers and HR professionals experiencing uncertainty over these developments, it is crucial to emphasize that early response and strategic planning are of paramount importance.
Decent Law Firm’s Support for Responding to the Amended Trade Union Act
Decent Law Firm provides practice-focused advisory services on issues arising from the amended Trade Union Act, including changes in bargaining structures, principal contractor–subcontractor labor relations, and disputes concerning bargaining unit separation.
Through comprehensive, situation-specific support—ranging from legal review at the bargaining demand stage to representation in Labor Relations Commission proceedings and strategic planning for labor-management relations—we assist companies in managing legal uncertainty and risk.
In an evolving labor environment, accurately understanding legal standards and responding proactively is essential to maintaining stable corporate management. We therefore recommend seeking legal advice sooner rather than later.
