JIPYONG LLC

Jipyong News|Newsletter_Labor & Employment

[Case Highlight 2] Successful representation cancelling final decision of National Labor Relations Commission that recognized an employee-status of a business manager at insurance company

2020.07.15

The plaintiff company was a general agency which deals with insurance products of life insurance and accident insurance companies. The plaintiff entered into an agreement with a person to work as an insurance advisor and additionally entered into an agreement with the person to work as a business manager (the “Manager”). The Manager managed the insurance sales organizational structure as the business manager, including the recruitment of new insurance advisors. However, the Manager was dismissed for false recruitment advertising. The Manager then argued that the dismissal was improper and claimed for relief at the Labor Relations Commission. The District Labor Relations Commission and the National Labor Relations Commission determined that the Manager was an employee under the Labor Standards Act and found in favor of the Manager. The plaintiff then filed a claim to the administrative court seeking cancellation of the National Labor Relations Commission’s decision. 
 
Jipyong represented the plaintiff and argued that the plaintiff and the Manager were not in an employment relationship but an independent contractor relationship. In particular, Jipyong revealed by examining witnesses the fact that most of the Manager’s work was carried out independently rather than under the plaintiff’s order and supervision. Jipyong further presented the case precedents relating to the employee-status of the insurance advisers who are similarly situated as the Manager along with the implications of the protection measures for the insurance advisers which are recently starting to be discussed. The court accepted the plaintiff’s argument that the Manager was not an employee under the Labor Standards Act and rendered a judgement that cancels the National Labor Relations Commission’s decision. 
 
While there were a number of the Supreme Court precedents holding that general insurance advisers who sell insurance products are not employees under the Labor Standards Act, the lower courts and the Labor Relations Commissions have been split on whether the insurance advisers who work as business managers managing insurance organizational structures are employees or not. This case was significant in that it presented a standard to be applied in similar disputes concerning the status of the insurance advisers who mainly work in recruitment of new insurance advisers and organizational management rather than sales of insurance products.

Events [JIPYONG - Mori Hamada & Matsumoto, MDD, and Oppenheim] SEOUL ADR FESTIVAL 2024 - FIRESIDE CHAT WITH CLIENTS 2024.10.10

Back to List

Related Practices

Professionals

Korean Attorney
Sung Soo KIM
+82-2-6200-1716 sskim@jipyong.com

Related Practices

Professionals

SHARE

Disclaimer

Limited Liabilities