All appeals are dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

1. As to the ground of appeal No. 1, in principle, an agreement should be made to determine basic wages in a labor contract and pay them in addition to various allowances.

(1) In the event that a wage payment contract or a collective agreement is concluded under the so-called comprehensive wage system with the contents that the total amount of various allowances is determined as monthly wage or daily wage without calculating the basic wage, or that the certain amount of each month is paid as various allowances, even if a wage payment contract or a collective agreement is concluded without calculating the basic wage, it is valid unless it is disadvantageous to an employee due to such reasons as including working conditions that do not meet the standard prescribed under the Labor Standards Act.

However, whether an agreement on the comprehensive wage system has been established ought to be specifically determined by comprehensively considering various circumstances, such as working hours, form and nature of work, unit of wage calculation, collective agreement and employment rules, and actual condition of the same workplace.

Although overtime night work is naturally expected to be performed in individual cases, it does not constitute an inclusive wage system in cases where a collective agreement, employment rules, wage regulations, etc. stipulate that overtime night work allowance, etc. are clearly divided and paid separately from basic pay, and there is an agreement on overtime work exceeding certain working hours in a collective agreement, etc.

It cannot be readily concluded that the above agreement on the comprehensive wage system has been established on the ground that the rate of increase in wages was set based on the amount including allowances or on the basis of basic pay.

(see, e.g., Supreme Court Decision 2008Da57852, Dec. 10, 2009). The lower court determined that the wage agreement concluded between the Plaintiffs and the Defendant cannot be deemed as an inclusive wage agreement, based on the reasons indicated in its reasoning.

The judgment of the court below.