[Breaking News] Supreme Court Rules "Wage Peak System Age Discrimination Illegal"... Violates the Act on Employment of Older Persons
[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The Supreme Court has ruled that the 'wage peak system,' which reduces workers' wages while maintaining the retirement age through agreement with labor unions, is illegal as it constitutes age discrimination prohibited by the Elderly Employment Act.
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On the 26th, the Supreme Court's First Division (Presiding Justice Noh Tae-ak) held a hearing for the appeal trial of a wage claim lawsuit filed by retiree A against a domestic research institute. The court ruled that the wage peak system violates Article 4-4, Paragraph 1 of the former Elderly Employment Act, a mandatory provision prohibiting discrimination based on age, thereby upholding the lower court's partial ruling in favor of the plaintiff.
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