South Korea has passed the landmark “Yellow Envelope Law”, reforming the Trade Union and Labour Relations Adjustment Act and expanding protections for indirect, subcontracted and precarious workers.

The law broadens the definition of “employer” to include anyone who exercises substantial control over workers’ conditions, enabling subcontracted and indirectly employed workers to engage in collective bargaining with principal employers.

It also clarifies trade union recognition for organisations that include some non-workers, such as platform or gig economy workers, and expands the definition of labour disputes to cover restructuring, closures, and mass layoffs.

The law also limits corporations’ ability to use Strategic Lawsuit Against Public Participation (SLAPP) lawsuits to intimidate or financially burden unions and striking workers by seeking compensation for losses caused by strikes.

The bill, first proposed in 2015, passed in a 183-3 vote, despite strong opposition from business groups and foreign investors, as well as a boycott and filibuster from the main opposition People Power Party, which criticised the measure as prioritising labour unions over business interests.

Democratic Party lawmakers hailed it as a “monumental moment,” while labour unions called it a major victory following a long campaign for broader worker protections.

The bill is set to take effect in March 2026