Court Rules Delivery Riders Qualify as Employees Under Labor Standards Act

SEOUL, July 8 (Yonhap) -- A court has ruled that delivery riders working through online platforms are qualified as employees under the Labor Standards Act, judicial officials said Wednesday.

The Seoul High Court made the ruling last Friday in a lawsuit filed by a member of the Rider Union against a delivery platform company seeking to invalidate the worker's dismissal and recover unpaid wages, the officials said.

The court ruled partially in favor of the plaintiff, overturning a lower court's ruling that denied his status as an employee.

It marks the first court decision to recognize the employee status of a delivery rider.

The appellate court stated that whether a person qualifies as an employee under the current labor law should be determined based on whether they actually provided labor to the employer for the purpose of wages in a subordinate relationship, rather than the form of the contract.

It also noted that separate legislation should be enacted on the provision of labor by platform workers but it is now desirable to flexibly interpret the provisions of the Labor Standards Act in individual cases where employee status is recognized.