The company extended the retirement age from 58 to 60 in 2017 and introduced a wage peak system through a collective agreement, reducing base salary from age 58.

Retired employees claimed the system was invalid and sought compensation for lost wages and benefits.

Key Issue:
Whether the wage peak provisions remained valid after the collective agreement expired, either through implied renewal or incorporation into individual contracts.
 

Case Outcome

The court dismissed all claims by the plaintiffs, ruling that the wage peak system was valid. It found the system consistent with legal intent and not excessively disadvantageous to affected employees.

Role of One Law Partners

• Conducted precise legal analysis of collective agreement interpretation and relevant labor law precedents
• Developed a fact-based, data-driven litigation strategy
• Minimized HR and compliance risks for the company while affirming the legitimacy of its employment policies