Labor Office: "Freelance Contractors Are Not Employees"... Encourages Civil Litigation

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee]#InformationTechnology (IT) developer Mr. A signed a freelance contract and started working. Mr. A worked from 9 a.m. to 6 p.m. alongside regular company employees and was allowed to take one day off per month. One day, however, the company told Mr. A that there was no more work for him and asked him to quit, while also failing to pay his wages properly.

Mr. A filed a complaint about unpaid wages with the Labor Office, but the labor inspector told him to pursue a civil lawsuit because he was not considered a worker. Although he worked the same hours as other regular developers, he was judged not to be a worker because he was a freelancer.

Mr. B, an office worker at a design company, started working under the condition of being converted to a regular employee after a 3-month internship. However, after 3 months, the company classified Mr. B as a sole proprietor and employed him as a freelancer. No labor contract was signed, and he was not enrolled in the four major social insurances. He also did not receive overtime pay.

The civic group 'Jikjang Gapjil 119,' formed by labor experts including labor attorneys and lawyers, disclosed on the 17th cases of workers like Mr. A and Mr. B who work as so-called 'disguised freelancers.'

According to Jikjang Gapjil 119, disguised freelancers are widely used across all industries, not limited to specific sectors. They work under the company's direction and control, perform regular duties, and are deprived of basic workers' rights such as annual leave and severance pay.

The Ministry of Labor often judges that these individuals are not workers simply because they have contracts with companies as freelancers.

A representative of Jikjang Gapjil 119 said, "Although courts and the Ministry of Employment and Labor believe that employment relationships should be judged based on substance rather than contracts, due to negligence by labor inspectors, genuine workers who should be protected by labor laws are becoming disguised freelancers and losing all their rights. The Ministry of Employment and Labor should create new guidelines for determining worker status and impose the burden of proof on employers."

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