The factors a Korean Court will, typically, look at to determine if one is an “employee” are:
- Does the company have decision-making power over the content of the work of the individual?
- Are company rules of employment applied to the individual?
- Does the individual have business risks associated with working with the company?
- Does the company have substantial control over the work processes of the individual?
- Does the company set the time and date and other specifics of the work of the individual?
- Does the company own the work assets of the individual?
- Can individuals use a third party to replace the work of the individual?
- Are earnings based on work – not success/sales?
- Does the individual nearly exclusively depend on the work from the particular company?
- Is the work with the company continuous, thus, not temporary?
- Is the individual deemed an employee under the Social Security System?
We have written a good deal on this blog on distribution agreements in the past. Please take a look at these, below, articles for more details on doing business in Korea, Korean employment law, and distribution and agency agreements.
- Distribution Agreements in Korea: Crawl Before you Walk
- Finding a Korean Distributor: Top Ten Musts
- Entering into a Joint Venture/Partnership in Korea
- Independent Contractor Obligations in Korea: Amcham Speech
Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. He is ranked, for Korea, as one of only two non-Korean attorneys as a Top Attorney by AsiaLaw.
You may schedule an initial free consultation with our Attorney at: Schedule a Call with an Attorney in Korea to discuss establishing or expanding your business into Korea.
- Hiring a Korean Independent Contractor for Work in Korea
- Korean Independent Contractor Risks and Obligations under Korea LSA Speech to Amcham Korea
- Korean Independent Contractor Risks: Korean Labor Standards Act Basics
- Audit Proof your Independent Contractor Expenses
- Must I grant Male Employees Maternity/Paternity Leave in Korea?: Korean Labor/Employment Law Updates
- Is your Korean Employee a Dispatched Worker and Thus a De Facto “Employee” under the Korean Labor Standards Act?
- Can you claim severance pay from a Non-Korean Employer?
- Without a Korean Employment Contract, can you bring a Claim against your Korean Employer for Breach of Contract or Labor Law Violations?
- Non-Compete Clauses in Korean Employment Agreements and Korean Business Sales Agreements
- Hiring/Terminating an Employee/Contractor in Korea: Employment Law in Korea