The LRC is an independent administrative agency with quasi-judicial functions such as adjudicating disputes between the labor and management and redressing discriminations with expertise. The decision of the LRC is made based on consensus. The LRC holds quasi-judicial authorities on rights disputes, mediative authorities on interests disputes, and rule-making authorities for the performance and operation of the commission. In more detail, the LRC performs various functions such as investigation, hearing, adjudication, conciliation (mediation & arbitration), determination, resolution, approval, adjustment, and filing a lawsuit.
Mediation is a function in which the LRC makes a mediation proposal in a fair manner and recommends it to both parties in the labor relations in case labor disputes occur between the two parties. Any party in labor relations who wants to apply for mediation should submit a mediation application for labor disputes to the LRC which has jurisdiction over them. The application should contain: (1) workplace outline, (2) collective bargaining developments, (3) disagreed issues between the two parties and the arguments of both sides on the issues, and (4) documents attached recording other references. When labor disputes mediation is applied for, the LRC commences a mediation process immediately, after composing a mediation committee which consists of a workers’ member, an employers’ member, and a public interest member (three in total) in the case of a general business, and a special mediation committee that comprises three public interest members in the case of public services. In principle, the mediation process should be completed within ten days for a general business and 15 days for public services after the mediation is applied for. However, when the concerned parties agree, it can be extended for another ten days for a general business and another 15 days for public services. When both parties accept the mediation proposal, the LRC should make a mediation statement (three copies), which is signed on and given their seal by all members of the Mediation Committee as well as both parties concerned. The mediation statement accepted by the parties concerned has the same effect as a CBA.
Arbitration is a function of the LRC in which both parties or either party in labor disputes file for arbitration to the LRC according to CBA and resolve the disputes complying with the disposition (arbitration adjudication) made by the LRC. When a labor dispute case is filed to the LRC for arbitration, industrial actions are prohibited for 15 days from the date the case is filed. Not like mediation, arbitration is a disposition which is legally binding for the parties concerned. Since whether to accept the arbitration decision is not up to the parties concerned, they must follow the decision. The arbitration process begins when both parties or either party in labor disputes file for it according to a CBA. The arbitration adjudication is finalized in a written document and the date for effect commencement should be clarified in the document. The written arbitration adjudication by the LRC has the same effect as a CBA. When either party finds the arbitration adjudication made by the RLRC (or the SLRC) violating the laws or abusing rights, either party concerned can file for a review by the NLRC within ten days after the written adjudication is delivered to them. Therefore, the NLRC reviews only whether there has been any law violation or rights abuse, not whether the adjudication was appropriate or not.