‘Yellow envelope law’ decree sparks dual backlash from labor, businesses

A government decree detailing the so-called Yellow Envelope Law — a landmark revision intended to curb the ability of companies to seek large damage claims against striking workers — has drawn criticism from both business groups and labor unions, with each accusing the Ministry of Employment and Labor of creating more confusion than clarity ahead of its implementation in March 2026. The revised enforcement ordinances under the Trade Union and Labor Relations Adjustment Act have drawn criticism for placing additional burdens on companies while narrowing the practical reach of the pro-labor law’s core protections for subcontracted workers. Key questions remain over how the new rules will govern collective bargaining between principal employers and subcontractor unions and how much discretion the government will wield in the process. In theory, a subcontractor union may seek separate talks with a principal employer, but whether such negotiations proceed in any given case would be decided by the National Labor Relations Commission or a newly created state body. The rules also leave un