Taxi driver paying for gas… Supreme Court “Void even if an agreement is reached with the company”

The Supreme Court ruled that even if a taxi company agreed to an agreement where its drivers would bear the cost of gas (fuel cost) necessary for driving the vehicle, it was invalid as it breached the current law.

A view of the Supreme Court in Seocho-dong, Seoul. /news1

According to the legal community on the 26th, the first division of the Supreme Court (presiding judge Kim Seon-seon) confirmed the lower court on the 27th of last month which ruled in favor of the plaintiff in a lawsuit filed by taxi driver A in against the company for wages.

The company that Mr. A works for him to pay the fuel costs with their own transport revenue in the salary agreement with the taxi drivers. Taxi drivers have been paying their own fuel costs out of transport revenue according to wage agreements with companies. Even after October 2017, when the Taxi Development Act, which prohibited this, was enforced in the region, the company made an agreement with the drivers and passed on the fuel cost to the drivers.

Then, in 2019, Mr A filed a lawsuit against the company claiming wages equivalent to the fuel costs he paid. The company claimed that it had no obligation to pay, but the first and second trials raised Mr A’s hand, saying, “The company should pay about 10 million won.” The Supreme Court also found this ruling to be correct.

The court said, “Article 12, Paragraph 1 of the Taxi Development Act, which prohibits taxi operators from passing on transportation costs, is a mandatory regulation.” “An illegal act, such as an agreement between the trade union and the trade union to increase private payments in order to put a real burden on the workers, although the operator has agreed to bear the external fuel cost with the intention of avoiding the fuel burden . the cost from the business operator is also invalid.” he said.


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