Supreme Court recognizes KHNP bonuses as ordinary wages as well... minimum performance pay amounts need to be recalculated
Supreme Court ruling on ordinary wages, KHNP basic bonus recalculated including employment condition Check the impact on severance pay and allowances, as well as the 기준 for calculating performance pay
The Supreme Court has ruled in a wage lawsuit filed by workers at Korea Hydro & Nuclear Power that the base bonus, which is subject to an employment condition, also qualifies as ordinary wages. This ruling could affect the calculation methods for severance pay and various allowances.
The Supreme Court said the employment condition attached to the base bonus could not be viewed as a condition that forces workers to waive or lose their wages. Accordingly, it held that the bonus cannot be excluded from ordinary wages merely because the worker must be employed at the time of payment.
However, it said that the base performance bonus cannot be regarded in its entirety as ordinary wages. The Supreme Court stated that under KHNP regulations, it cannot be concluded that the minimum 지급 amount of the performance bonus is 200% of the standard wage, and that the actual payment structure must be reexamined to determine the scope of the minimum 지급 amount before recalculating allowances and severance pay.