[Plaintiffs, Appellants] Plaintiff 1 and 6 others (Attorneys Kang Mun-dae and 1 other of Seogyo Law Firm, Counsel for the plaintiffs)
[Defendant, Appellee] ○○○ Co., Ltd. (Attorneys Lee Ki-taek and 6 others of Bae, Kim & Lee LLC (Yulchon), Counsel for the defendant)
[Judgment Below] Seoul High Court Judgment 2024Na2017777, decided July 9, 2025
[Order]
The part of the judgment below concerning the "claim for the amount of wages reduced due to the wage peak system" is reversed, and this part of the case is remanded to the Seoul High Court. The remainder of Plaintiff 3's appeal is dismissed.
[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.
1. Outline of the case
According to the reasoning of the judgment below and the record, the following facts may be found.
A. Pursuant to the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion (고용상 연령차별금지 및 고령자고용촉진에 관한 법률), as amended by Act No. 11791 on May 22, 2013, employers became obligated to set the retirement age of employees at 60 years or older (Article 19, Paragraph 1), and pursuant to Item 1 of the proviso to the Addenda, the amended provision applied to the Defendant from January 1, 2016.
B. From around March 2014 to around May of the same year, the Defendant conducted collective bargaining with the ○○○ Labor Union (hereinafter referred to as "the instant labor union") and agreed on matters including the extension of the retirement age and the introduction of the wage peak system. Meanwhile, the instant labor union was not a labor union organized by a majority of the Defendant's employees.
C. The Defendant prepared draft amendments to the personnel management regulations and the salary regulations, etc., reflecting the content of the retirement age extension and wage peak system agreed upon as above. According to the draft amendment to the personnel management regulations, the retirement age of the Defendant's employees was to be changed from 57 years to 60 years. According to the draft amendment to the salary regulations, (i) the wages of employees subject to the wage peak system were to be paid at an amount calculated by multiplying the annual salary immediately preceding the application by a payment rate of 100% at ages 56 and 57, 75% at age 58, 65% at age 59, and 60% at age 60; and (ii) for employees ranked in the top 10% according to personnel evaluation results, the final payment rate would be the above respective payment rates plus 10 percentage points, while for employees ranked in the bottom 10%, the final payment rate would be the above respective payment rates minus 10 percentage points.
D. Around July 2014, the Defendant posted on the company's internal computer network a notice entitled "Guidance on Employee Consent to Amendment of Company Regulations" regarding the above draft amendment, along with an employee consent form for the amendment of company regulations. In order to indicate whether or not they consented, employees had to review the said consent form, which contained a comparison table of the current regulations and the amended regulations, together with the statement "I have fully understood the detailed contents concerning the amendment of company regulations, and I consent to the amendment and its application," and required employees to choose either "consent" or "non-consent" with respect to the entire draft amendment to the rules of employment (which included, in addition to the content on the extension of the retirement age and introduction of the wage peak system, amendments concerning the substitute holiday system, annual paid leave, and maternity leave before and after childbirth).
E. As a result of the Defendant's consent procedure conducted through the company's internal computer network from July 9, 2014 to July 15 of the same year regarding the above draft amendment, 3,857 employees, or approximately 78% of the total of 4,906 employees, indicated their consent.
F. The Defendant implemented the wage peak system pursuant to the above draft amendment (hereinafter referred to as "the instant wage peak system") from January 1, 2016.
G. Thereafter, with respect to the Plaintiffs born in 1960 and 1961, the Defendant maintained their wages at 100% until age 58 and paid reduced wages for two years starting from the year they turned 59, in accordance with the instant wage peak system, while for employees born in 1962 or later, the Defendant applied the age-based wage freeze and reduction under the payment rates of the instant wage peak system as they were.
2. As to whether the majority of employees consented to the introduction of the instant wage peak system (relating to the first ground of appeal)
A. Judgment of the court below
The court below determined that the amendment of the rules of employment introducing the instant wage peak system had obtained the consent of a majority of employees pursuant to the proviso to Article 94, Paragraph 1 of the Labor Standards Act (근로기준법), for the following reasons.
1) After collective bargaining regarding the instant wage peak system was conducted between the Defendant and the instant labor union, around June 2014 the Defendant's headquarters personnel team held briefing sessions for the support team leaders of each branch to explain the content of the amendment to the rules of employment, and it appears that briefing sessions were subsequently held at each branch, through which employees came to understand the content and purpose of the wage peak system and had an opportunity to express their opinions.
2) In order to indicate whether they consented to the amendment of the rules of employment, employees reviewed the posted material containing the content before and after the amendment, and 3,857 out of the total 4,906 employees consented to the introduction of the instant wage peak system.
3) Although employees could not indicate consent or non-consent for each individual provision, since an employee who did not consent to the introduction of the instant wage peak system could collectively withhold consent to the entire amendment to the rules of employment, such a method cannot be deemed unlawful or improper as a method of consent through the collective decision-making method of employees.
B. Judgment of the Supreme Court
The judgment of the court below is difficult to accept, for the following reasons.
1) Relevant legal principles
Where an employer seeks to disadvantageously change existing working conditions for employees by amending the rules of employment, the employer must obtain the consent of the group of employees subject to the previous rules of employment, through a collective decision-making method. As to the method of consent, where there is a labor union organized by a majority of the employees, the consent of that labor union is required; where there is no such labor union, consent of a majority of the employees is required, obtained through a meeting method whereby, free from any intervention or interference by the employer, employees of the entire workplace, or of each organizational unit or department, exchange opinions among themselves and gather their views for or against the amendment. Unless consent is obtained by such a method, a disadvantageous amendment of the rules of employment cannot be effective (see, e.g., Supreme Court Decision 2020Da239441, decided November 26, 2020).
2) Determination
A) According to the facts found above and the record, the following circumstances may be found.
(1) It is difficult to find objective evidence that, before indicating whether or not to consent to the amendment of the rules of employment introducing the instant wage peak system, the Defendant's employees, including the Plaintiffs, went through a process such as gathering, either as an entire workplace unit or by organizational unit or department, to exchange opinions on the matter and thereby form a collective view for or against it. The briefing sessions that the Defendant held for the support team leaders of each branch around June 2014, after the conclusion of collective bargaining with the instant labor union, were directed at some managers who appear to have participated as negotiating members on the Defendant's side during the collective bargaining process, and thus cannot be regarded as a gathering of the entire body of employees who were the subjects of consent. Furthermore, the materials submitted by the Defendant are insufficient to establish that the Defendant additionally held briefing sessions for employees at each branch after the above briefing sessions, and even assuming such additional briefing sessions were held, there is insufficient evidence that those sessions were conducted in the form of meetings in which employees exchanged opinions and gathered views for or against the matter.
(2) The notice posted by the Defendant on the company's internal computer network did not contain a concrete explanation of the instant wage peak system, and the consent form merely presented a table listing the content of the rules of employment before and after the amendment side by side. Moreover, the above notice and consent form described the nature of the consent procedure as being for "reflecting in the rules of employment the amendments made pursuant to the conclusion of the collective agreement and changes in the Labor Standards Act," such that it would have been difficult for employees to sufficiently recognize that their expression of intent constituted the exercise of the right of consent under Article 94, Paragraph 1 of the Labor Standards Act with respect to a disadvantageous amendment of the rules of employment. Therefore, the above notice and consent form alone are insufficient to establish that the Defendant sufficiently explained to employees, prior to the consent procedure for the instant wage peak system, the content of the instant wage peak system and the disadvantages that employees would suffer.
(3) The Defendant granted employees a consent period of seven days from the time the above notice and consent form were posted. However, considering the following circumstances: as noted above, it is difficult to find that the Defendant sufficiently explained to employees, before and after the start of the above period, the content of the instant wage peak system and the purpose of the consent procedure, through the above notice and consent form, etc.; the Defendant's employees were scattered across numerous branches nationwide, including the headquarters, making it difficult for them to gather, whether as a whole or by unit, within a short period to exchange opinions and form a collective view for or against the matter; and there is no other indication that the Defendant encouraged employees to exchange opinions with one another and consolidate their views for or against the matter in a collective manner - it is difficult to say that the consent period and consent procedure provided by the Defendant substantially guaranteed employees the opportunity to form a collective intention regarding the introduction of the instant wage peak system.
(4) Under the Labor Standards Act, the labor union that constitutes a lawful subject of consent to a disadvantageous amendment of the rules of employment must be a labor union organized by a majority of the employees. Therefore, the fact that the Defendant introduced the instant wage peak system pursuant to an agreement with the instant labor union, which was not a labor union organized by a majority of the employees, cannot be deemed to constitute consent by a lawful subject, nor can the collective bargaining or consultation with the instant labor union be regarded as a substitute for the collective decision-making method of a majority of employees.
(5) Even if a method of obtaining individual consent forms may be used in the process of gathering employees' opinions, as noted above, the process of forming such opinions must be accompanied by a collective decision-making method, such as a meeting format in which employees exchange opinions with one another and consolidate views for or against the matter. In the absence of such substance, even if the number of the Defendant's employees who individually expressed consent to the instant wage peak system formally constitutes a majority, it is difficult to regard the result of such aggregation as signifying the collective consent of a majority of employees.
B) Examining the above circumstances in light of the legal principles set forth above, it is difficult to find that the amendment of the rules of employment introducing the instant wage peak system obtained the consent of a majority of employees through the collective decision-making method under the proviso to Article 94, Paragraph 1 of the Labor Standards Act. Nevertheless, the court below determined, for the reasons stated in its judgment, that the instant amendment to the rules of employment did not violate the proviso to Article 94, Paragraph 1 of the Labor Standards Act. This determination by the court below contains an error of misunderstanding the legal principles concerning the majority employee consent required for a disadvantageous amendment of the rules of employment, which affected the conclusion of the judgment.
3. As to Plaintiff 3's claim for position allowance (relating to the third ground of appeal)
The court below determined, for the reasons stated in its judgment, that it was difficult to find that Plaintiff 3 was a person eligible for payment of the position allowance.
Examining the reasoning of the judgment below in light of the relevant legal principles and the record, there is no error in the judgment below, as alleged in the grounds of appeal, of failing to fulfill the necessary duty of examination or clarification that affected the conclusion of the judgment, and the remaining arguments disputing the court below's selection of evidence and fact-finding do not constitute lawful grounds of appeal.
4. Conclusion
Without examining the remaining grounds of appeal, the part of the judgment below concerning the "claim for the amount of wages reduced due to the wage peak system" is reversed, and this part of the case is remanded to the court below for further hearing and determination; the remainder of Plaintiff 3's appeal is dismissed. This judgment is rendered in accordance with the unanimous opinion of the participating Justices, as stated in the Order.
Justice Kwon Yeong-jun (Presiding Justice), Oh Kyung-mi, Um Sang-pil, Park Yeong-jae (Justice in charge)