Court Rules Golf Instructors with Individual Membership Contracts Are Not Employees Even If Enrolled in Four Major Social Insurances

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The court ruled that even if a person is enrolled in the four major social insurances, they cannot be recognized as a worker without direct supervision and control by the employer.

On the 14th, Judge Kim Jae-eun of the Seoul Eastern District Court Criminal Division 8 announced that he acquitted gym owner Lee (57), who was prosecuted for violating the Labor Standards Act and the Employee Retirement Benefit Security Act.

Lee is accused of dismissing golf instructor A, who worked for about three years since 2014, without prior notice and failing to pay 1 million won in dismissal notice allowance, approximately 7.5 million won in unpaid wages, and about 7.2 million won in severance pay.

A individually contracted golf lessons with members and set his own lesson fees different from the business's standard lesson fees. Although A did not sign a separate employment contract, he was enrolled in the four major social insurances, including employment insurance and industrial accident insurance.

The court initially issued a summary order fining Lee 1 million won, finding him guilty, but after Lee appealed and a formal trial was held, the judiciary's previous judgment recognizing A as a worker changed.

The prosecution argued that since members paid lesson fees to the gym and A received money from the gym in the form of wages, he should be considered a worker.

However, Judge Kim stated, "When problems such as the golf instructor receiving lesson fees and disappearing occurred, the gym directly collected the lesson fees and then practically paid the equivalent amount to the instructor the following month," adding, "It is difficult to see that Lee managed these fees as the rightful owner."

The court found that even when members expressed dissatisfaction with the instructors' teaching methods, the gym did not impose any disadvantages on them and had no disciplinary measures. Furthermore, there were no management tools such as cards to verify attendance, employment rules, or personnel regulations.

Judge Kim also explained that the lesson hours of golf instructors, including A, did not necessarily coincide with the gym's business hours, and Lee did not participate in deciding their working hours.

Previously, the Seoul Regional Labor Relations Commission and the Central Labor Relations Commission ruled that A was a worker and declared the dismissal unfair after A filed a relief application with the Labor Office following his dismissal in 2017. The following year, Lee filed a lawsuit requesting the court to cancel the unfair dismissal ruling.

Accordingly, the Seoul Administrative Court recognized A as a worker in the first trial, but the second trial court ruled at the end of last year that it was difficult to consider A a worker. The second trial's judgment was finalized in February this year after passing through the Supreme Court.

This content was produced with the assistance of AI translation services.