National Research Institute employee A has been subject to the wage peak system since 2011, when he turned 55.
In the performance evaluation, if he had the highest grade, he received 930,000 won less in salary, and if he had the lowest grade, 2.83 million won was reduced.
The retirement age was the condition that was maintained until the age of 61 as it was originally.
After his retirement, Mr. A filed a lawsuit to return the lesser wages due to the wage peak system.
[Kim Seon-jong / Plaintiff's attorney: The same salary (with the employee) under a whopping 26 years...
.
It is unfair to discriminate simply because of your age, without any other substantial compensation.
.]
Following the 1st and 2nd trials, today (26th) the Supreme Court upheld Mr. A's hand, saying that the wage peak system applied to Mr. A violated the Elderly Employment Act.
In other words, it is invalid because it violates the provision not to discriminate on the basis of age without reasonable grounds.
The Supreme Court interpreted this provision of the Elderly Employment Act as a 'mandatory rule' that must be followed.
The Supreme Court also ruled that the peak wage system in this case was introduced to reduce the burden of labor costs and did not have justification for the peak wage system.
For the first time, the standard for judging the legal wage peak system was presented.
[Lee Hyeon-bok / Supreme Court Justice Research Officer: The criteria for judgment that comprehensive consideration should be given to the legitimacy of the purpose of introduction, the width and period of actual wage reduction, whether there have been appropriate target measures such as extending the retirement age or reducing the intensity of work, and where the reduced financial resources are utilized suggest…
.]
(Report: Han So-hee, Video coverage: Seol Min-hwan, Editing: Park Ji-in, Producer: D Content Planning Department)