HD Hyundai Construction Equipment has agreed to directly employ laid-off subcontracted workers starting in 2026. Under the agreement, these workers will also receive unpaid wages and compensation following their dismissal.
HD Hyundai Construction Equipment has decided to directly employ 25 workers who were laid off when its in-house subcontractor, Seojin ENG, went out of business, and to pay them wages and other compensation from February 2018 to December 2025. The company also agreed to retroactively accrue severance pay according to company standards, alongside a welcome bonus of 5 million won for each worker. Consequently, both parties agreed to withdraw all related legal disputes, effectively concluding a six-year conflict.
Seojin ENG operated as an in-house subcontractor of HD Hyundai Construction Equipment since 2015. However, during collective bargaining with the labor union in August 2020, it decided to shut down and collectively laid off over 60 workers at that time. These individuals have been pursuing a worker status confirmation lawsuit, claiming they are illegally dispatched workers from HD Hyundai Construction Equipment and that the primary contractor should employ them directly.
The agreement between HD Hyundai Construction Equipment and the laid-off workers was reached just before the passage of the Yellow Envelope Law (Amendment to the Labor Union and Labor Relations Adjustment Act). This law expands the definition of employers, allowing subcontractor workers to engage in collective bargaining and action against the primary contractor, and was approved in a parliamentary session on the 24th.