On October 16, the company undertook wage negotiations, and as of April 1, retroactively reversed wages payments. In addition to the original agreed on a basic cost of living increase of 4%, a lump-sum payment of KRW 1 million was already decided upon. However, when an employee that had requested leave without pay on 10 July resigned on October 17, Company H inquired as to whether they had to pay lump-sum payment.
Resoultion and Results
Resolution and Results
10.16 Upon examination, it was decided that it would be difficult to exclude the aforementioned employee from receiving the lump-sum payment despite the fact that that employee had been on a short unpaid leave. Also, when determining average wage in the interest of calculating retirement payment, it was decided that it would be incoherent to retroactively apply the agreed raise and exclude it from the lump-sum payment.
Though past negotiations have led to pay increases paid in one lump-sum, in this case, and others like it, if it was not a common practice to issue a lump sum payment, it would be feasible to refrain from issuing one in this case as well. If this proved not to be the case, then the company is obligated to make the lump-sum payment.