The Korea Herald

지나쌤

Court partially acknowledges Hyundai Motor’s regular bonuses as ordinary wages

By Shin Ji-hye

Published : Jan. 16, 2015 - 11:30

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The court on Friday ordered Hyundai Motor to pay two of its employees regular bonuses as part of their ordinary wages, hinting at an increase in severance pay and other employee benefits at the company in the future.

The ruling by the Seoul Central District Court was made after 23 unionists in March 2013 filed a suit demanding that the world’s fifth-largest carmaker include their bonuses, vacation stipends and transportation support paid on a regular basis as part of their ordinary wages.

If sustained, the ruling could pose a huge influence on Korean automobile workers in general with an increase in employee benefits such as severance, overtime pay and others that are aligned with the ordinary wage system, given Hyundai’s presence in the industry.

But Hyundai’s damage will be minimal, since only two, who were from Hyundai Auto Service and protected by a specific labor employment act, were acknowledged, experts said. 

By Bae Ji-sook (baejisook@heraldcorp.com)