The Supreme Court has ruled against the peak wage system introduced by a large number of local companies to gradually cut the salaries of senior workers several years before retirement.
The top court said the peak wage system is an illegal discrimination against workers on the basis of age, making the first ruling of its kind in a lawsuit filed by a former employee of a local research institute.
It noted that the peak wage system violates a clause of the Act on Prohibition of Age Discrimination in Employment and Aged Employment Promotion, which stipulates that workers and persons wanting to become workers should not be discriminated against on the basis of age without reasonable causes.
[FULL STORY HERE]
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