A Study on Labor Law Issues on Business Transfer of Bankrupt Universities

This paper raised the need for business transfer to protect professors and employees of bankrupt universities and reviewed related legal issues. This is because it was believed that efforts to find ways to protect the jobs of university members as much as possible without hastily concluding that the declaration of bankruptcy is the closure of the university. In conclusion, considering that the current education law does not prohibit the separate transfer of school management rights, and that Debtor Rehabilitation and Bankruptcy Act takes precedence over Private School Act when declared bankrupt, it is not impossible to apply the business transfer allowed by the Debtor Rehabilitation and Bankruptcy Act to educational foundation. However, he saw the need for a more active legislative overhaul to recognize the concept of business transfer in higher education institutions. Even if the business transfer of a bankrupt university is made, it is difficult to assert that professors and employees of bankruptcy educational foundation are naturally eligible for employment succession unless there is a special legislation, considering the legislative purpose of the Debtor Rehabilitation and Bankruptcy Act, which aims to fairly repay the bonds of bankruptcy creditors. In contrast, since the rehabilitation procedure is for the purpose of rehabilitating and rebuilding educational foundation, employment succession should be recognized when transferring business according to the rehabilitation plan.