On December 19, 2024, the Supreme Court of Korea rendered two en banc decisions (2020Da247190 and 2023Da302838) that significantly reshape the legal framework for determining “ordinary wage” under the Labor Standards Act (“LSA”). In these decisions (collectively, the “Decisions”), the Supreme Court unanimously departed from its previous decision on ordinary wage in its en banc precedents set in 2013 (2012Da29399 and 2012Da94643) and held that certain conditional bonuses—such as those contingent on continued employment or a minimum number of working days—should be included in ordinary wage, regardless of the conditions attached.

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