A South Korean court has ruled that rescinding a job offer just four minutes after notifying a candidate of their acceptance constitutes wrongful dismissal. The court determined that a job application represents an offer for an employment contract, and the company's acceptance notification establishes a binding agreement.
According to legal sources on Monday, the 13th Administrative Division of the Seoul Administrative Court (Presiding Judge Jin Hyun-seop) ruled against Company A in December in a lawsuit challenging the Central Labor Relations Commission's decision on wrongful hiring cancellation.
Company A posted a job listing for a global strategy and business development position on an online recruitment site in April 2024. Applicant B applied for the position and completed two rounds of interviews. On June 4 of the same year, Company A sent B a text message at 11:56 a.m. notifying them of their acceptance.
The dispute arose when Company A sent another text message at 12:00 p.m.—just four minutes later—stating, "We are canceling the hiring."
B filed a complaint with the Seoul Regional Labor Relations Commission, arguing the cancellation was unjust. The commission ruled it constituted wrongful dismissal. Company A appealed to the Central Labor Relations Commission but was rejected, prompting the administrative lawsuit. The company argued it was not subject to the Labor Standards Act as a workplace with fewer than five regular employees and that B did not qualify as a worker under the act based on their previous career experience and proposed salary.
The court rejected Company A's arguments. The judges determined that Company A and its subsidiary should be considered a single workplace, citing their shared office space, overlapping personnel, and operations based on the same platform.
The court also found that the employment contract was established the moment acceptance was communicated via text message.
"Company A's job posting constitutes an invitation to offer regarding an employment contract," the court stated. "The job application constitutes an 'offer' for an employment contract, and the notification of acceptance or hiring decision made to B after the interviews constitutes 'acceptance' of B's offer."
The court added, "The notification canceling the hiring without providing specific reasons just four minutes after the acceptance notice must be viewed as termination of the employment relationship by Company A's unilateral decision."
The court also dismissed the company's claim that B's hiring resulted from confusion with recruitment for a professional manager at its Japanese subsidiary.
"This does not align with the content of the job posting, and no separate mention was made during the interview process," the court explained.
"Once an employment relationship is established, an employer must provide written notice of the grounds and timing of dismissal to terminate a worker under the Labor Standards Act," the court ruled. "A hiring cancellation made without such notice constitutes wrongful dismissal."