1. In principle, an employer should determine basic wages for workers when concluding a labor contract and pay them in addition to the allowances.

However, in cases where a wage payment contract under the so-called comprehensive wage system with the contents that the sum of the allowances is determined as monthly wage or daily wage without calculating the basic wage in advance, without taking into account the working hours, the form of employment, the nature of work, etc., and inspiring employees’ desire to work, is concluded, it shall not be deemed null and void if it is deemed that there is no disadvantage to the workers and that it is justifiable in light of all the circumstances.

[See Supreme Court Decisions 2003Da66523, Aug. 19, 2005; 2004Da66995, 6704, Apr. 28, 2006; 2004Da67004, Apr. 28, 2006; where an employer has not obtained the approval of the Minister of Employment and Labor with respect to the application of the minimum wage under the Minimum Wage Act, the provision on the minimum wage under the Minimum Wage Act shall apply to the relevant employee (see, e.g., Supreme Court Decision 2004Do7716, Jan. 28, 2005). Whether the paid wage falls short of the minimum wage should be determined by comparing the paid wage with the amount of the minimum wage, other than the wage calculated under the Minimum Wage Act and Article 6(4) of the Enforcement Rule of the same Act and Article 2 [Attachment 1] of the same Act.

The first instance court held that the Defendant, who is the representative director of E Co., Ltd. (hereinafter “Nonindicted Company”) among the facts charged in the instant case, did not pay KRW 1,159,707 to C within 14 days from the date of retirement without an agreement on the extension of the due date between the parties, on the facts charged (see, e.g., Supreme Court Decision 2006Da64245, Jan. 11, 2007).