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Employees of KB Kookmin Bank filed a lawsuit against the bank complaining of disadvantages due to the change in the wage peak system and won the case in the first trial. The court ruled that KB Kookmin Bank changed the wage peak system from 'retirement age extension type' to 'retirement age maintenance type', which specifically and directly disadvantaged the working conditions of the employees, and that the change in the wage peak system without the consent of the employees and without following the Labor Standards Act procedure was invalid.
The ruling is expected to affect similar disputes involving Hyundai Motor Company and Kia, prompting the legal community to emphasize the necessity for companies to obtain employee consent and adhere to proper procedures when amending employment regulations. However, there is a view that the influence of this ruling on all companies could be limited.
In response, Attorney Ji Su Choi from Lin’s HR Team mentioned, “Companies need to make their own judgments based on whether or not they have actually obtained the collective consent of their employees." She also mentioned, “Considering the trend of extending the retirement age for workers, I don’t think it’s very rare for the peak wage system, which was initially introduced as a retirement age extension type, to be changed to a retirement age maintenance type.” She evaluated, “At least for workers who are in a similar factual situation to the above case, it is meaningful in that the burden of proof for requirements that were relatively difficult to argue and prove has been reduced.”
Please refer to the related article below.
Asian Economy
https://view.asiae.co.kr/article/2024022311490249933
The ruling is expected to affect similar disputes involving Hyundai Motor Company and Kia, prompting the legal community to emphasize the necessity for companies to obtain employee consent and adhere to proper procedures when amending employment regulations. However, there is a view that the influence of this ruling on all companies could be limited.
In response, Attorney Ji Su Choi from Lin’s HR Team mentioned, “Companies need to make their own judgments based on whether or not they have actually obtained the collective consent of their employees." She also mentioned, “Considering the trend of extending the retirement age for workers, I don’t think it’s very rare for the peak wage system, which was initially introduced as a retirement age extension type, to be changed to a retirement age maintenance type.” She evaluated, “At least for workers who are in a similar factual situation to the above case, it is meaningful in that the burden of proof for requirements that were relatively difficult to argue and prove has been reduced.”
Please refer to the related article below.
Asian Economy
https://view.asiae.co.kr/article/2024022311490249933