Seoul High Court Rules Delivery Riders Are Employees, First Recognition of Worker Status

A court has ruled that delivery riders working through platforms are considered employees under the Labor Standards Act.
The 38-1 Civil Division of the Seoul High Court (Presiding Judges Lee Ji-young, Hwang Seong-mi, and Park Seong-yun) ruled in favor of the plaintiff in part on July 3, overturning a lower court decision that had denied the worker status of a delivery rider, identified as A, a member of the Rider Union. The rider had filed a lawsuit against a delivery platform company seeking to invalidate their dismissal and claiming unpaid wages.
This marks the first time a court has recognized the worker status of a delivery rider.
The court emphasized that whether an individual qualifies as an employee under the Labor Standards Act should be determined based on whether they provided labor for wages in a subordinate relationship, rather than the form of the contract.
The court stated, "The plaintiff (A) is an employee under the Labor Standards Act who provided labor in the form of delivery services in a subordinate relationship, under the direction and command of the defendant company, for the purpose of earning wages."
The court based its decision on the fact that the rider could only perform delivery tasks through the platform's app, that the platform set both the working hours and compensation standards, and that the rider was subject to specific direction and supervision by the platform.
The court explained, "It is acknowledged that the plaintiff provided labor in a form significantly more flexible than that of a typical employee defined by the current Labor Standards Act."
The court added, "However, even if there are provisions in the Labor Standards Act that are not suitable for application to riders and delivery platforms, and even if it is desirable for separate legislation to be enacted that better suits the labor provided by platform workers like the plaintiff, it is preferable to flexibly interpret the Labor Standards Act in individual cases where worker status is recognized to regulate labor relations according to their substance, rather than indiscriminately denying worker status until such legislation is in place."
Regarding the ruling, the Korean Public Service and Transport Workers' Union stated, "This reaffirms that employers cannot evade their obligations under the Labor Standards Act, such as social insurance, paid leave, and severance pay, simply because the work is performed through a platform," adding, "Platform companies must come up with measures to guarantee rights under labor law in line with the spirit of this ruling."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.