The Korean Public Service and Transport Workers' Union (KPTU) announced today, July 8, that a court has ruled for the first time that delivery riders working through platforms are considered employees under the Labor Standards Act.

According to the KPTU, the 38-1 Civil Division of the Seoul High Court ruled in favor of the plaintiff in part on July 3, overturning the lower court's decision in a lawsuit filed by a member of the Rider Union against a delivery platform company for unfair dismissal and unpaid wages.

The ruling corrects the lower court's decision, which had previously denied the rider's status as an employee.

The court determined that if a rider provides labor in a subordinate relationship under the company's direction while logged into the platform application, they should be viewed as an employee.

The grounds for recognizing their status as workers included the fact that riders cannot independently secure customers and must perform labor solely through the application, and that the calculation and payment of their compensation are determined by criteria set by the company.

The court's decision implies that it is difficult to view the rider as having full autonomy regarding their work.

The KPTU stated, "This is a ruling that recognizes the employee status of platform workers. It reaffirms that employers cannot evade their obligations under the Labor Standards Act—such as social insurance, annual leave, and severance pay—simply because the labor is performed through a platform." The union added, "Platform companies must come up with measures to guarantee rights under labor law in accordance with the spirit of this ruling."
 
(Photo: Yonhap News)