"Huh? Why is this week's pay different from last week's?" Who hasn't been confused by a different number on their paycheck even though they worked the exact same amount of hours? The issue of "weekly rest days" has confused many part-timers and business owners, and now there's finally some clarity: thanks to a new Supreme Court ruling that stemmed from a taxi driver's lawsuit.
here's a complete breakdown of what the ruling means, how it changes things, and how your paycheck will be calculated from now on.
1. the controversial weekly holiday pay: what was at stake?
first, it's important to clarify what a weekly holiday is. According to the Labor Standards Act, employers are required to give employees who work at least 15 hours a week and attend all contracted working days at least one paid day off per week. The day's wage paid is called "weekly holiday pay". it's like a paid bonus for a good week's work.
the problem is that this "day's wage" was never clear. for example, a worker who works five days a week for eight hours a day is entitled to eight hours' worth of weekly pay. But what about a biweekly worker or a short-time worker who works three days a week for eight hours a day? How many hours should their "day" be considered?
in the absence of a standard, different employers calculated it differently - some gave them eight hours, which was the actual number of hours worked in a day, while others calculated it differently. This led to a constant source of conflict, with workers who worked three days a week receiving the same amount of weekly rest as those who worked five days a week, known as the 'weekly rest unreasonableness' issue.
2. the Supreme Court's new standard: How the taxi driver case changed everything
the Taxi Drivers' Lawsuit brought this long-standing debate to a head. Taxi drivers who worked every other day sued their employers, arguing that "we work eight hours a day, so we should be paid the same eight hours of weekly rest as those who work five days a week." The first and second courts sided with the drivers.
but the Supreme Court disagreed. the Supreme Court saw it as unreasonable to pay the same amount of weekly rest for different total hours worked, and it finally laid out a new principle. this was the Supreme Court's first clear statement on how to calculate weekly vacation payfor workers who work less than five days a week, and it set an important standard for all workplaces going forward.
3. calculate your own weekly pay: a complete guide to the new formula
so how does the new weekly wage calculation work? the formula is simpler than you might think.
how to calculate your new weekly pay
calculate paid weekly vacation time: (total hours worked in a week / 5 days)
calculate the amount of your weekly vacation pay: Paid weekly vacation hours × hourly rate
let's apply this new formula to some real-world examples to see the change more clearly.
example 1: Taxi driver (8 hours per day, 3 days per week)
total hours worked in a week: $8 hours \times 3 days = 24 hours
old claim: 8 hours of weekly vacation pay
new claim: $24 hours / 5 days = 4.8 hours$worth of weekly vacation pay
based on the minimum wage of 9,860 won in 2024, the weekly vacation pay will change from approximately 78,880 won to 47,328 won.
example 2: Part-time cafe worker (5 hours per day, 4 days per week)
total hours worked per week: $5 hours \times 4 days = 20 hours
existing practice (unclear): varies by location, e.g., 8 hours or 4 hours
new standard: $20 hours / 5 days = 4 hours $ worth ofweekly vacation pay
example 3: Office worker (8 hours per day, 5 days per week)
(Related: The Complete Guide to the 2024 Minimum Wage)
4. after the ruling: Workers and business owners, a different reality
the Supreme Court's decision has big implications for workers and business owners alike.
for starters, bi-weekly workers or those who work less than five days a weekmay be entitled to less weekly pay than before. while this may be a disappointment in terms of workers' rights, the upside is that the previously unclear calculation is now unified, giving workers a predictable paycheck no matter where they work.
on the other hand, small businesses and the self-employed, who have struggled to keep up with labor costs, have welcomed the ruling, as it will help ease the burden on their business by allowing them to pay reasonable wages that are proportional to the actual hours worked, and allow for more flexibility in the labor market. there is also speculation that the ruling will lead to discussions about the future of the weekly vacation pay system itself.
(Related: 5 Labor Law Trivia You Should Know)
5. what you need to know about weekly vacation pay (FAQ)
we've gathered the most frequently asked questions about the new weekly vacation pay calculation.
Q1. Will I lose my weekly vacation pay if I'm late or leave early?
A. No, you will still get paid. being "present" means not being absent from work, which is a requirement for weekly pay. late arrivals and early departures are not absences, so if you show up for work on your scheduled day, you'll still get paid as normal. however, wages may be deducted for the time you didn't work.
Q2. I'm only working through this week and then leaving, will I still get paid for my weekly vacation?
A. Yes, you will. in the past, it was only paid if you were scheduled to work the following week, but now, if you work a full week of scheduled workdays, you must be paid for that week even if you leave the following week.
Q3. Do businesses with fewer than 5 employees have to pay weekly vacation pay?
A. Yes, you must - it's a legal obligation for all businesses covered by labor laws, regardless of size.
Q4. If I take one day off out of a five-day work week, what happens to my weekly pay for that week?
A. You should be paid as normal. If you take annual leave, you are legally considered to have worked, so if you worked on all of the remaining working days except the day you took annual leave, you are entitled to your weekly pay.
Q5. I have an agreement in my employment contract that says 'no weekly vacation pay', is that okay?
A. No, the agreement is legally invalid. Weekly vacation pay is a mandatory regulation set forth in the Labor Standards Act, so the agreement between you and your employer does not remove the obligation to pay it.
conclusion
the Supreme Court's ruling establishes a clear principle that weekly vacation pay is now "proportional to the amount of work done.
the ruling is significant because it clears up a long-standing confusion and sets out a reasonable standard. workers now know exactly what their rights are and can demand fair payment, and employers can manage labor costs with clear standards. we hope that by familiarizing yourself with the new weekly rest period calculation, you can create a healthy work environment where everyone's rights are respected without unnecessary misunderstandings or disputes.
what are your thoughts on the new weekly rest period calculation? feel free to share your thoughts in the comments! If you enjoyed this article, don't forget to like, subscribe, and sign up for our newsletter.