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| TITLE | Supreme Court en banc Decision 2012Da89399 Decided December 18, 2013【Severance Pay】 [full Text] |
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| Summary | |
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[1] Criteria to determine which wage falls under ordinary wage and the validity of the labor-management agreement excluding wage which constitute an ordinary wage under the Labor Standards Act (negative) [2] Where Company A, according to the bonus payment rules, paid the total amount to workers who have been employed for more than 2 months; the amount applying the pre-determined rate per interval for new hires who have been employed for less than 2 months or returned employees who have been on long-term leave for more than 2 months and workers who are on leave; and the amount based on the number of days worked for employees who retired during the bonus payment period, the case holding that the above bonuses constitute an ordinary wage [3] Where the labor-management agreed to exclude regular bonuses from ordinary wage and determined the wage level premised on it, whether it breaches the principle of good faith if workers assert the labor-management agreement as invalid and claim additional legal allowance calculated with regular bonuses included into ordinary wages [4] Where Company A paid bonuses to supervisory and production workers pursuant to the bonus payment rules based on the same payment rate and standard (except the monthly bonuses temporarily paid to supervisory workers for a certain period), excluded bonuses from ordinary wage in the collective agreement with the labor union, and calculated/paid legal allowance for a non-labor union member production worker (“Party B”) based on ordinary wage excluding bonus according to the above collective agreement, the case holding that the court below erred by misapprehending the legal principle, etc. and rendered Party B’s claim of unused yearly holiday allowance as not violating the principle of good faith without exhausting all necessary deliberations as to relevant circumstances |
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