[Plaintiff, Appellee] Plaintiff
[Defendant, Appellant] Chief of Yeongju Regional Labor Office
[Original Judgment] Daegu High Court Decision 88Gu668 rendered on February 21, 1990
[Order]
The original judgment is reversed, and the case is remanded to the Daegu High Court.
[Reasoning] Regarding the grounds for appeal
The court below found the following facts: the Plaintiff entered into a so-called "piece-work contract" (품떼기계약) on October 4, 1986 with non-party Namyang Gyejeon Co., Ltd., which had been subcontracted a portion of the construction work for the iron oxide pigment plant at the Seokpo Smelter by non-party Yeongpung Machinery Industrial Co., Ltd., the main contractor, whereby the contract amount was set at KRW 2,100,000 and the construction work was to be cable tray installation and cable laying at Iron Oxide Plant No. 2; that pursuant to this contract, the Plaintiff hired workers and was performing the said construction work when, at around 11:00 on November 16 of the same year, while correcting a cable tray, a supporting timber broke and the Plaintiff fell from a scaffold approximately 3.5 meters high, sustaining injuries including a comminuted fracture of the right calcaneus; that the Plaintiff received medical care benefits from the Defendant pursuant to the Industrial Accident Compensation Insurance Act (산업재해보상보험법), and also received temporary disability benefits and disability benefits based on the Plaintiff's average wage as calculated by the Defendant at KRW 13,125; that the Plaintiff, dissatisfied with this calculation of average wage, filed several petitions of grievance; and that the Defendant, taking into account that the daily wage of electricians employed by the said company at the time was KRW 15,000, determined that it was reasonable to regard that amount as the Plaintiff's ordinary wage, and since the average wage was lower than the ordinary wage, decided to treat the ordinary wage amount as the average wage, thereby additionally paying the Plaintiff temporary disability benefits and disability benefits corresponding to the difference, while at the same time rendering the disposition at issue in this case to the effect that it would not pay temporary disability benefits and disability benefits calculated based on an average wage exceeding KRW 15,000.
The court below determined that the Plaintiff entered into the piece-work contract with the said Namyang Gyejeon, received materials from the said company, and completed the construction work at his own responsibility and account, but was subject to direction and supervision by the said company, the contracting party, over the entire construction work; that therefore the said piece-work contract was a so-called labor-service contract (노무도급계약) combining elements of an employment contract and a contract for work; that accordingly, the piece-work contract amount of KRW 2,100,000 comprehensively included not only labor costs and expenses paid to workers hired by the Plaintiff, but also the Plaintiff's own wages and the profit accruing to the Plaintiff from the contract for work; that although the Plaintiff's profit portion could not be included within the scope of wages that form the premise for industrial accident compensation insurance benefits, since it was not practically possible to clearly distinguish labor costs, expenses, and the Plaintiff's profit within the piece-work contract amount, it was impossible to calculate the Plaintiff's average wage on the premise of the piece-work contract amount; and further, that since, in the case of a contractor under a labor-service contract such as the Plaintiff, no hourly wage, daily wage, weekly wage, or contract amount had been fixed, there was no room to determine an ordinary wage, and that the Defendant's determination that the Plaintiff's ordinary wage should be set at KRW 15,000, taking into account that the maximum daily wage of electricians employed by the said company at the time was KRW 15,000, was unjust as its basis was unclear — all of these determinations by the court below are correct, and there is no error of mistaken fact-finding or misapprehension of legal principles as argued in the grounds of appeal.
Regarding such a case, Article 5 of the Enforcement Decree of the Labor Standards Act (근로기준법시행령) provides that where the average wage cannot be calculated pursuant to Article 19 of the said Act and Articles 2 through 4 of the said Decree, it shall be as determined by the Minister of Labor; and the proviso to Article 3(2) of the Industrial Accident Compensation Insurance Act provides that where it is recognized to be difficult to determine wages or average wages under the Labor Standards Act (근로기준법), the amount separately determined and publicly notified by the Minister of Labor shall be deemed such wages or average wages. However, since the determination or public notice by the Minister of Labor under each of the above provisions has not yet been implemented, there is likewise no way to calculate the Plaintiff's average wage on that premise. Nevertheless, the average wage serves as the standard for calculating various benefits paid to workers, namely, retirement allowance (Article 28 of the Labor Standards Act), leave-of-absence allowance (Article 38 of the same Act), annual paid leave allowance (Article 48 of the same Act), temporary disability compensation (Article 79 of the same Act), disability compensation (Article 80 of the same Act), and the limit on wage reduction as a disciplinary measure (Article 96 of the same Act); and since the purpose of the provisions concerning each of these allowances and compensations is, in all cases, to guarantee the livelihood of the worker, the average wage as the standard for such calculation must, as its fundamental principle, be calculated so as to accurately reflect the worker's ordinary living wage. This must be interpreted in the same manner with respect to the average wage serving as the standard for calculating various insurance benefits under the Industrial Accident Compensation Insurance Act. Accordingly, where the average wage cannot be calculated pursuant to the provisions of the Labor Standards Act and its Enforcement Decree, it should be calculated by a method capable of accurately reflecting the worker's ordinary living wage; and where no such method exists, the average wage of regular workers engaged in the same type of work in the area centered on the region where the worker in question is employed should be taken as the standard.
The court below determined that it was appropriate to calculate the Plaintiff's average wage based on the wage levels set forth in the Report on Wage Survey by Occupation (직종별임금실태조사보고서) published annually by the Minister of Labor, which it deemed to be the most objective and accurate data concerning wage conditions in Korea. However, the said Report on Wage Survey by Occupation was compiled and reported for the purpose of investigating and ascertaining matters concerning workers' wages, working hours, and other working conditions by occupation and industry, in order to provide basic data for the improvement of various economic policies and corporate wage systems; it is merely general data concerning wage conditions, and while it may be considered as reference or supplementary material in determining the Plaintiff's average wage, it cannot directly serve as the standard for calculating the Plaintiff's average wage. If this were affirmed, it would in effect substitute the said Report on Wage Survey by Occupation for the determination or public notice by the Minister of Labor under Article 5 of the Enforcement Decree of the Labor Standards Act and the proviso to Article 3(2) of the Industrial Accident Compensation Insurance Act, which cannot be deemed proper in light of the purpose of the said survey report.
Therefore, the court below should have examined whether there existed a method, even if not one prescribed under the Labor Standards Act and its Enforcement Decree, by which the Plaintiff's ordinary living wage could be calculated, and, if no such method existed, should have examined the average wage of regular workers engaged in the same type of work as the Plaintiff in the area centered on the construction site where the Plaintiff worked, in order to determine the Plaintiff's average wage, and then, on that basis, determined whether the Defendant's disposition was lawful. Nevertheless, without reaching such a determination, the court below held that the Plaintiff's average wage should be calculated based on the wage levels in the Report on Wage Survey by Occupation published by the Ministry of Labor, which constitutes an error of misapprehension of the legal principles concerning average wage and/or insufficient deliberation. The argument pointing this out is well-founded.
Accordingly, all participating Justices unanimously agree to reverse the original judgment and remand the case to the court below for further deliberation and judgment, and it is so ordered as stated in the Order.
Justice Yoon Yeong-cheol (Presiding Justice), Park Woo-dong, Bae Seok, Kim Sang-won