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JIPYONG LLC

Jipyong News|Newsletter_Labor & Employment
[Case Highlight 8] Successful representation on issue of employee status of department store sales agent
2020.11.19

The company (the “Company”) operates a fashion retail business, and an agent (the “Agent”) who sells the Company’s products at a department store, upon completion of contractual relationship with the Company, filed a claim to the labor relations commission arguing that the Agent was wrongfully dismissed by the Company.

Jipyong represented the Company and argued that the Agent should not be deemed an employee under the Labor Standards Act by arguing that (i) the Company did not oversee or supervise the activities of the Agent; (ii) the rules the Agent followed in performing the activities were with relations to the characteristics of the department store as the sales location rather than the rules designated by the Company; and (iii) the profit generation and risk of loss by the revenue was voluntarily assumed by the Agent.

The labor relations commission therefore accepted these agreements to determine that the Agent could not be deemed an employee under the Labor Standards Act, and dismissed the Agent’s claim for relief from wrongful dismissal.