Even if your contract says "freelancer," you are an employee if you actually worked under the company's instructions, at the times and place it set. Once employee status is recognized, rights under the Labor Standards Act (근로기준법), from severance pay to protection against dismissal, follow together.
Criteria for Being Recognized as an Employee
The Supreme Court (대법원) decides based on a combination of factors, and does not deny employee status just because one factor is missing. In particular, circumstances that a company can set at will from its superior position, such as withholding business income tax, not enrolling the worker in the four major social insurances (4대보험), or not applying the rules of employment (취업규칙), are not given much weight as grounds for denying employee status.
| Factor | Circumstances supporting employee status |
|---|---|
| Deciding the work | The company decides the content and method of work and provides a manual |
| Direction and supervision | Work reports, performance management, disadvantages for not following instructions |
| Control of time and place | Set start and finish times, fixed workplace, approval needed for leave |
| Independent business nature | Equipment and supplies provided by the company, cannot use someone else to do the work, no risk of loss |
| Nature of pay | A fixed amount set by hours or period worked, fixed salary |
| Continuity and exclusivity | Works only for one company over a long period, restricted from working elsewhere |
Occupations Often Disputed
- Private academy instructors: whether the academy set the class schedule and teaching materials and the instructor also handled student management
- Fitness trainers and Pilates instructors: whether they did center operation work besides classes, and whether working hours were set
- TV writers and video editors: whether they came to work regularly on the production company's instructions
- Dispatch-type freelance IT developers and designers: whether they were integrated into the client's team and subject to attendance management
- Delivery, transport and designated driving: freedom to refuse dispatch, ability to use multiple platforms
- Insurance planners and sales staff: pressure to meet targets, duty to come to work, degree of integration into the organization
Even within the same occupation, workplaces operate differently, so conclusions differ. Messages containing work instructions, attendance records, and rules set by the company are the most important evidence.
What You Can Receive if Recognized as an Employee
| Right | Details |
|---|---|
| Severance pay (퇴직금) | If you worked for 1 year or more, 30 days of average wage (평균임금) for each year of continuous service |
| Overtime, night and holiday pay; weekly holiday allowance | Premium pay applies to workplaces with 5 or more workers; weekly holiday allowance applies regardless of workplace size |
| Pay for unused annual leave | Workplaces with 5 or more workers |
| Protection against dismissal | At workplaces with 5 or more workers, you can apply for a remedy against unfair dismissal |
| Four major social insurances (4대보험) | Retroactive employment insurance enrollment may make you eligible for unemployment benefits |
Severance pay and wages are subject to a 3-year statute of limitations, so if you left the company long ago, check the deadline first. The 3.3% tax already withheld may need to be settled again as earned income.
How to Dispute It
- Complaint to the Regional Employment and Labor Office (노동청)File a complaint for unpaid severance pay or wages and ask the labor inspector to determine employee status
- Labor Relations Commission (노동위원회)Treat the contract termination as a dismissal and apply for a remedy (3-month deadline)
- Civil lawsuitDispute employee status as a preliminary issue in a lawsuit claiming severance pay and allowances
- Request for confirmation of insuranceRequest confirmation of employment and industrial accident insurance enrollment status from the Korea Workers' Compensation and Welfare Service (근로복지공단)
The Regional Employment and Labor Office's decision does not bind the court, so even if employee status is denied in the complaint, you can dispute it again in a lawsuit. If there is a lot of evidence and the amount is large, some people choose to go straight to a lawsuit.
Risks for the Company to Consider
If workers engaged under freelance contracts are recognized as employees, the company faces not only the difference in severance pay and allowances, but also retroactive charges for the four major social insurance premiums and criminal liability for violating the Labor Standards Act (근로기준법). One person's complaint often spreads to all other workers engaged on the same contract basis.
Aligning the way work is instructed, attendance management, and pay structure with the actual nature of the contract, or switching to an employment contract where employee status is likely to be recognized, reduces long-term costs.
Rules and Case Law on Employee Status
| Topic | Basis | Summary |
|---|---|---|
| Definition of employee | Labor Standards Act (근로기준법) Article 2, Paragraph 1, Subparagraph 1 | A person who offers work to a business or workplace for the purpose of earning wages, regardless of the type of occupation |
| Test for judgment | Supreme Court Decision 2004Da29736 (2006. 12. 7.), et al. | Judged by substance rather than contract form: whether work was provided in a subordinate relationship |
| Industrial accident insurance for service providers | Industrial Accident Compensation Insurance Act (산업재해보상보험법) Article 91-15 and following | Even if not employees, service providers in occupations set by Presidential Decree are covered by industrial accident insurance |
The test for employee status differs somewhat among the Labor Standards Act, the Employee Retirement Benefit Security Act (퇴직급여법), and the Trade Union and Labor Relations Adjustment Act (노동조합법). This page focuses on employees under the Labor Standards Act in connection with severance pay, wages, and dismissal.
Evidence of Employee Status
- Collect records showing your start and finish times (access cards, app check-ins, transit card records).
- Back up messenger chats and emails containing work instructions and reports.
- Capture screenshots of the company's work rules and its method for requesting leave.
- Organize the pay you received each month and how it was calculated.
- Keep materials showing you used company equipment, accounts, or business cards.
- If coworkers worked under the same conditions, secure their contact information.
Worker status disputes: frequently asked questions
If 3.3% was withheld from my pay, am I not an employee?
I signed the contract saying I would not claim severance pay.
If I am recognized as an employee, can I also receive unemployment benefits?
Is industrial accident insurance available even if I am not an employee?
Applicable law: Labor Standards Act (근로기준법), Supreme Court Decision 2004Da29736 (2006. 12. 7.), et al. (대법원 2006. 12. 7. 선고 2004다29736 판결 등), Industrial Accident Compensation Insurance Act (산업재해보상보험법). Written based on the laws in force on 2026-09-17. This page provides general legal information and is not legal advice on a specific case. Labor laws and court decisions change often, so decide how to respond after consulting a lawyer who has reviewed your documents, such as your contract and any notices you received.
This page is an English translation of the Korean original. If the two differ, the Korean version prevails. Korean page ›