[Plaintiff, Appellant and Appellee]
[Defendant, Appellee and Appellant] Seongnam City (Attorney-at-law Cho Young-chan and 3 others of Law Firm Damso, as litigation representative)
[Judgment Below] Seoul High Court Decision 2010Na57321 decided January 21, 2011
[Order]
All appeals are dismissed. The costs of appeal shall be borne by each appellant.
[Reasoning]
The grounds of appeal (including the supplementary brief on grounds of appeal filed after the expiration of the period for submitting the grounds of appeal, to the extent it supplements the grounds of appeal) are examined as follows.
1. As to the Defendant's grounds of appeal
A. As to the first ground of appeal
(1)
Money or valuables paid to a worker as consideration for prescribed work or total work, if paid regularly and uniformly on a fixed basis, fall under ordinary wages; however, items that are not paid regularly and uniformly, or whose payment or amount varies depending on actual work performance, and are thus not fixed wages, do not constitute ordinary wages. Here, being paid "uniformly" includes not only payment to "all workers" but also payment to "all workers who meet a certain condition or standard." Furthermore, the "certain condition" referred to here must be a "fixed" condition, in light of the concept of ordinary wages, which seeks to calculate a "fixed and average wage" (see Supreme Court Decision 2006Da13070 decided June 15, 2007; Supreme Court Decision 2009Da74144 decided January 28, 2010, etc.).
(2) According to the reasoning of the judgment below, the court below, after comprehensively considering the evidence adopted, found the facts as stated in its judgment, and determined that the length-of-service allowance paid to environmental sanitation workers who had continuously worked for more than one year, in which a certain amount was added per year of service as the years of service increased and a certain amount was paid per year of continuous service, as well as the meal allowance (paid in a fixed amount monthly to all environmental sanitation workers, for the portion paid in 2006), transportation allowance, hygiene allowance, and hazard allowance, and the year-end allowance, diligence allowance, physical fitness allowance, and holiday bonus paid regularly and on a fixed basis to all environmental sanitation workers according to certain standards, were all fixed wages paid regularly and uniformly as consideration for labor, and thus were included in ordinary wages.
Examining the record in light of the legal principles set forth above, the above determination by the court below is justified, and there is no error therein in misunderstanding the legal principles concerning ordinary wages.
Supreme Court Decision 2006Da81974 decided April 12, 2007 concerns a case with different facts from this case and cannot be relied upon.
B. As to the second ground of appeal
Wages or retirement allowances for which a specific right to claim payment has already arisen have moved into the private property domain of the worker and are left to the worker's disposal; therefore, unless the labor union has obtained individual consent or authorization from the workers, it cannot, through a collective agreement with the employer alone, engage in a disposal act such as waiver or deferral of payment. Accordingly, requiring a worker to return wages already paid through a collective agreement has no effect unless there is individual consent or authorization from the workers concerned (see Supreme Court Decision 99Da67536 decided September 29, 2000; Supreme Court Decision 2009Da76317 decided January 28, 2010, etc.).
In the same vein, the determination by the court below that retroactively applying the 2008 collective agreement concluded between the Defendant and the Seongnam City Hall Labor Union, of which the Plaintiffs are members, so as to treat the overtime work allowance and holiday work allowance for January through November 2008, already paid to the Plaintiffs, as having not arisen in whole or in part, has no effect unless individual consent or authorization has been obtained from the workers, is justified, and there is no error therein in misunderstanding the legal principles concerning the effect of collective agreements, etc.
2. As to the Plaintiffs' grounds of appeal
A. As to the first through third grounds of appeal
(1)
Pursuant to the main text of Article 43(1) of the Labor Standards Act (근로기준법), wages must be paid in currency directly to the worker in full; therefore, as a matter of principle, an employer may not set off a claim it holds against the worker against the worker's wage claim. This is intended to protect workers who are in a position of economic and social subordination, and since retirement allowances to be received by workers also have the nature of wages, the same applies to them (see Supreme Court Decision 88Daka26413 decided May 8, 1990, etc.).
However, in cases where wages have been overpaid due to a calculation error or the like, if the worker, after retirement, claims wages or retirement allowance not received during employment, or even if the worker claims wages during employment, and the time of such overpayment and the time of exercising the right of set-off are close enough that the setoff does not lose the substance of settling and adjusting wages, and furthermore, there is no risk of undermining the stability of the worker's economic life, such as by the employer giving advance notice of the amount and method of the setoff, the employer may set off the claim for return of the overpaid wages, as an automatic claim, against the worker's wage claim or retirement allowance claim (see Supreme Court Decision 93Da38529 decided December 28, 1993; Supreme Court en banc Decision 2007Da90760 decided May 20, 2010, etc.).
(2) According to the reasoning of the judgment below, the court below, after comprehensively considering the evidence adopted, found the facts as stated in its judgment, and determined that, notwithstanding the absence of any agreement between the Plaintiffs or the Seongnam City Hall Labor Union and the Defendant to recognize holiday work hours as 8 hours per day or to pay the equivalent of 8 hours as holiday work allowance, the Defendant's payment of the equivalent of 8 hours as holiday work allowance for 4 hours of holiday work resulted from a misinterpretation of the collective agreement and the Ministry of Government Administration and Home Affairs guidelines concerning payment of holiday work allowance; and that, in this case where the Plaintiffs, after retirement, seek unpaid allowances that arose during their employment, the Defendant may set off its claim for return of the holiday work allowance corresponding to the 4 hours overpaid due to such misunderstanding of the Ministry of Government Administration and Home Affairs guidelines and calculation error, as an automatic claim, against the claim for unpaid holiday work allowance.
Examining the record in light of the legal principles set forth above, the above determination by the court below is justified, and there is no error therein in exceeding the limits of the principle of free evaluation of evidence in violation of logic and empirical rules, misunderstanding the legal principles concerning the prohibition of setoff, or violating the principle of party presentation.
B. As to the fourth ground of appeal
According to the reasoning of the judgment below, the court below, after comprehensively considering the evidence adopted, determined that the overtime allowance for 2 hours per day prescribed in Article 20 of the 2005 and 2007 Collective Agreements (hereinafter referred to as "the Collective Agreement in this case"), although nominally an overtime work allowance, is in substance not a statutory allowance under Article 56 of the Labor Standards Act, which provides for payment of an additional amount of at least 50/100 of the ordinary wage for overtime work, but rather an agreed allowance in the nature of a base pay intended to supplement the base pay; and that since there is from the outset no concern that the purpose of requiring payment of statutory allowances under the Labor Standards Act would be undermined in paying such agreed allowance, the Collective Agreement in this case is valid even though it adopted, as the basis for calculating the above agreed allowance, an ordinary wage that differs from the concept or scope under the Labor Standards Act.
Examining the record in light of the legal principles set forth above, this determination by the court below is justified, and there is no error therein in exceeding the limits of the principle of free evaluation of evidence in violation of logic and empirical rules, misunderstanding the legal principles concerning overtime work allowance, or violating the principle of party presentation.
C. As to the fifth and sixth grounds of appeal
(1)
Whether the "average wage" that serves as the basis for calculating retirement allowance under the rules of employment or collective agreement, etc. of a certain workplace is the average wage under the Labor Standards Act, and whether any particular payment is included therein, is to be determined by objective interpretation of the rules or agreement in question; in making such interpretation, the meaning must be discerned by comprehensively examining various circumstances, such as the payment practices at the workplace concerned and the history and content of amendments to the rules or agreement (see Supreme Court Decision 97Da25095 decided March 13, 1998; Supreme Court Decision 2003Da27429 decided March 11, 2005, etc.).
(2) According to the reasoning of the judgment below, the court below, comprehensively considering the facts found as stated in its judgment, determined that the "average wage" used as the basis for calculating retirement allowance under the Collective Agreement in this case does not mean the average wage under the Labor Standards Act and the Employee Retirement Benefit Security Act (근로자퇴직급여 보장법), but rather means "the amount obtained by dividing the total wages, consisting only of the ordinary wage agreed upon under the Collective Agreement in this case and various allowances calculated based thereon, by the total number of days in the calculation period." The court below then determined that, since it is clear from calculation that the amount of retirement allowance calculated by multiplying the average wage agreed upon as above by a payment rate of 150/100 pursuant to the Collective Agreement in this case exceeds the amount of retirement allowance calculated by multiplying the average wage under the Labor Standards Act by the payment rate under the Employee Retirement Benefit Security Act, the retirement allowance provision in this case is valid, and since the Defendant has already paid the Plaintiffs the retirement allowance calculated pursuant to the Collective Agreement in this case, the Defendant has no obligation to pay any additional retirement allowance to the Plaintiffs.
Examining the record in light of the legal principles set forth above, the above determination by the court below is justified, and there is no error therein in exceeding the limits of the principle of free evaluation of evidence in violation of logic and empirical rules, or misunderstanding the legal principles concerning collective agreements and retirement allowances.
3. Conclusion
Therefore, all appeals are dismissed, and the costs of appeal are to be borne by each appellant. This judgment is rendered as stated in the Order, by the unanimous opinion of the participating Justices.
Presiding Justice Kim Neung-hwan, Justice An Dae-hee, Justice Min Il-young (Presiding Justice on this case's report), Justice Lee In-bok