On December 18, 2013, the Supreme Court of Korea held that the ordinary wages of employees of KB Auto Tech include fixed bonuses regularly paid. The decision impacts all employers in Korea, as ordinary wages are used to calculate overtime and compensation for unused annual leave, which may in turn impact severance pay. The following is a summary of the relevant issues.

  • Scope of ordinary wage prior to the decision
  • Scope of ordinary wage clearly defined after the decision
  • Implications
  • Aftermath