초록 열기/닫기 버튼
In Korea wages have been calculated as prescribed by the Labor Standards Act since 1953, according to which workers shall be paid basic wages set in proportion to the number of working hours and additional allowances for overtime, night and holiday work. However, as industrialization resulted in diversified types of employment, cases where the wage calculation method (wage payment method) is hard to apply began to occur. To address this problem, a practice has developed in which companies pay fixed wages, including additional pay for overtime, night and holiday work, even without setting basic wages, or pay basic wages along with a fixed amount of additional pay for extended work. Such a practice, called “inclusive wage system”, has been considered legitimate in more and more court rulings. Yet these rulings have fallen short of presenting a unified view on the concept, nature and effect of the inclusive wage system. Moreover, the scope of allowances included in inclusive wages is too broad. The inclusive wage system is not defined by law so should be relied on as a complementary method only when it is impossible to calculate wages in accordance with the Labor Standards Act. The revision of the Labor Standards Act in 1997 brought great flexibility to the working hour system. Therefore, any rigidity that might arise from the Labor Standards Act should be addressed through the flexible working hour system. The effect of the inclusive wage system should be recognized only when it is hard to apply the flexible working hour system in paying wages. In addition, the concept, nature and effect of the inclusive wage system should be prescribed by the Labor Standards Act so as to prevent its excessive use.
키워드열기/닫기 버튼
Inclusive wage system, Inclusive wage contract, basic wage, allowances for extended work (overtime work), allowances for night work, allowances for holiday work, miscellaneous allowances, wage payment method, wage payment contract
