(1) Where an employer intends to dismiss an employee for managerial reasons, there must be an urgent managerial necessity. In such cases, it shall be deemed that there is an urgent managerial necessity for the transfer, merger, or acquisition of the business in order to prevent managerial deterioration.
(2) In case of paragraph (1), an employer shall make every effort to avoid dismissal and shall establish and follow reasonable and fair criteria for the selection of those persons subject to dismissal. In such cases, there shall be no discrimination on the basis of gender.
(3) Where there is an organized labor union that represents more than half of the employees at the business or workplace, the employer shall inform at least 50 days before the intended date of dismissal and consult in good faith with the labor union (where there is no such organized labor union, this shall refer to a person who represents more than half of the employees; hereinafter referred to as "representative of employees") regarding the methods for avoiding dismissals, the criteria for dismissal, etc. under paragraph (2).
(4) When an employer intends to dismiss personnel under paragraph (1) above the fixed limit prescribed by Presidential Decree, he or she shall report to the Minister of Employment and Labor as determined by Presidential Decree. <Amended on Jun. 4, 2010>
(5) When an employer dismisses employees in accordance with the conditions prescribed in paragraphs (1) through (3), it shall be deemed a dismissal with proper cause under Article 23 (1).