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대법원 90다14560

Severance Pay (퇴직금) Calculation Case퇴직금

Decided1991. 06. 28. Court대법원Case reversed and remanded (파기환송) — the lower court's decision favoring the worker's split-calculation method was overturned; overall outcome was unfavorable to the worker.
AI-generated English translation (summary, key points, decision summary and full text) for reference only — not an official translation and without legal effect. The Korean original below is authoritative.
AI Easy read — AI summary of this decision
AI-generated summary for reference only — the Korean original below is authoritative.

A worker requested that his severance pay (퇴직금) be calculated using different standards for his normal working period versus his sick leave/leave-of-absence period. The Korean Supreme Court (대법원) ruled that since the right to severance pay only arises upon termination of the employment contract, it cannot be calculated by splitting the employment period into separate segments with different standards. The Court reversed the lower court's decision, which had improperly allowed such a split calculation, and remanded the case for further review — resulting in an outcome unfavorable to the worker.

Key takeaways
  • CaseA worker asked that his severance pay be calculated separately — using one standard for his normal working period and a different standard for his sick leave/leave-of-absence period.
  • OutcomeThe Supreme Court ruled that since the right to severance pay arises only when the employment contract ends, it cannot be split and calculated by different periods with different standards.
  • LessonSeverance pay (퇴직금) must be calculated as one lump sum for the entire employment period, using a single standard applied at the time the employment contract terminates — not broken up by different working conditions during employment.
Issues
  • When does the right to claim severance pay (퇴직금) actually arise?
  • Can severance pay be calculated separately for normal working periods and sick leave/leave-of-absence periods using different standards?
Key reasoning

Under Korean labor law, an employer's obligation to pay severance pay (퇴직금) does not arise while the employment contract remains in effect; it only comes into existence at the moment the employment relationship ends. Because this obligation is a single, unified duty that crystallizes only upon termination, it cannot be broken down and calculated separately for different sub-periods of employment (such as normal working periods versus sick leave or leave-of-absence periods). The lower court erred by treating the normal working period and the sick leave/leave period as if they generated separate, independently calculable severance pay claims. The Supreme Court therefore held that severance pay must be computed as a single calculation covering the entire employment period, based on the standards applicable at the time of termination.

Summary of Decision (English, AI translation)

As long as the employment contract continues, there is no room for the employer's obligation to pay retirement allowance to arise; that obligation arises only when the employment contract is terminated. Therefore, where there is a normal working period along with a period of sick leave or leave of absence, the retirement allowance cannot be calculated by computing amounts separately for each period and then adding them together.

Full text (English, AI translation) 2,413 chars

[Plaintiff, Appellee] Plaintiff
[Defendant, Appellant] Samhui Tongun Co., Ltd., Attorneys Kim Du-hyeon and 1 other, Counsel for the Defendant
[Original Judgment] Incheon District Court Decision 90Na1939 rendered on October 19, 1990

[Order]

The original judgment is reversed and the case is remanded to the Incheon District Court Panel Division.

[Reasoning] As to the grounds of appeal,
According to the reasoning of the original judgment, the court below premised that a retirement allowance claim already arises during the continuation of the employment relationship, and that only its due date is fixed at the uncertain time of retirement; and on that basis, the court below determined that in a case such as this one, where there is a period of normal work and a period of sick leave or leave of absence, the retirement allowance must be the sum of amounts calculated separately for each period. The court below then calculated the retirement allowance in this case using, for the former period, the average wage as of the expiration of that period, and for the latter period, the ordinary wage at the time of retirement pursuant to Article 19, Paragraph 2 of the Labor Standards Act (근로기준법).

However, this Court has rejected the ground of appeal that is the same as the view of the court below regarding the time when a retirement allowance claim arises, and has held that "as long as the labor contract continues, there is no room for the employer's obligation to pay retirement allowance to arise, and such obligation arises only when the labor contract is terminated" (see this Court's Decision 73Da278, rendered October 10, 1973), and this has been this Court's consistent position (see this Court's Decisions 74Da1840, rendered July 22, 1975, and 77Da1137, rendered September 28, 1977).

Accordingly, the determination of the original judgment is contrary to the above precedents of this Court and has affected the outcome of the judgment; therefore, the ground of appeal pointing this out is well-founded, and the original judgment cannot avoid reversal without the need to examine the remaining grounds of appeal.

Accordingly, the Justices unanimously agree to reverse the original judgment and remand the case to the court below for further trial and determination, and hereby render judgment as stated in the Order.

Justice Yoo Young-cheol (Presiding Justice), Park U-dong, Bae Seok, Kim Sang-won

【판결요지】

근로계약이 존속하는 한 사업주의 퇴직금 지급의무는 발생할 여지가 없고 근로계약이 종료되는 때에 비로소 그 지급의무가 생기므로, 정상적인 근무기간과 병가 또는 휴직기간이 있는 경우 근로자의 퇴직금을 각 기간별로 계산하여 합산한 금액으로 산정할 수는 없다.

【참조조문】

근로기준법 제28조 제1항

【참조판례】

대법원 1973.10.10. 선고 73다278 판결(집21(3)민57), 1975.7.22. 선고 74다1840 판결(공1975,8623), 1977.9.28. 선고 77다1137 전원합의체판결(공1977,10313)

【주문】·【이유】 전문 859자 · 펼쳐 보기

【원고, 피상고인】 원고

【피고, 상고인】 삼희통운 주식회사 소송대리인 변호사 김두현 외 1인

【원 판 결】 인천지방법원 1990.10.19. 선고 90나1939 판결

【주 문】

원판결을 파기하여 사건을 인천지방법원 합의부에 환송한다.

【이 유】 상고이유에 대하여,

원판결 이유에 의하면, 원심은 퇴직금채권은 근로관계의 존속중에 이미 발생하고 있지만 단지 그 이행기가 퇴직이라는 불확정기한에 있다고 전제를 삼은 다음, 따라서 이 사건과 같이 정상적인 근무기간과 병가 또는 휴직한 기간이 있는 경우 그 퇴직금은 각 기간별로 계산하여 합산한 금액이어야 한다고 판단하고, 전자는 그 기간만료 당시의 평균임금을, 후자는 근로기준법 제19조 제2항에 따라 퇴직당시의 통상임금을 각 기준으로 하여 이 사건 퇴직금을 산정하였다.

그러나 당원은 퇴직금채권의 발생시기에 관하여 원심의 견해와 같은 상고논지를 배척하면서 "근로계약이 존속하는 한 사업주의 퇴직금 지급의무는 발생할 여지가 없고 근로계약이 종료되는 때에 비로소 그 지급의무가 생긴다"고 판시한 바 있고(당원 1973.10.10. 선고 73다278 판결 참조), 이는 당원의 일관된 견해이기도 하다(당원 1975.7.22. 선고 74다1840 판결, 1977.9.28. 선고 77다1137 판결 참조).

따라서 원판결의 판단은 위 당원판례에 상반되는 판단을 하여 판결결과에 영향을 미쳤다 할 것이므로 이 점을 지적하는 논지는 이유있고, 원판결은 나머지 상고이유를 판단할 필요없이 파기를 면할 수 없다.

이에 원판결을 파기하고 사건을 다시 심리판단케 하기 위하여 원심법원에 환송하기로 관여법관의 의견이 일치되어 주문과 같이 판결한다.

대법관 유영철(재판장) 박우동 배석 김상원

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