[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “denial of employee status (funeral vehicle driver).” Decision date: 2026-06-26 · Decision body: Jeonnam Regional Labor Relations Commission · Case No.: 2026부해446 Key issue summary: □ Whether the applicant falls under an “employee” under the Labor Standards Act. The applicant: ① did not commute to the workplace on a regular basis, but instead checked the funeral procession schedule and, at his own discretion, decided whether to drive the funeral vehicle himself and arranged the funeral vehicle and substitute drivers (daemu drivers) by having them dispatched from external funeral service providers, thereby having autonomy over whether to drive the vehicle himself and over the allocation of the vehicle and substitute drivers, and had low continuity and exclusivity in providing labor to the user; ② did not obtain the employer’s approval for matters such as attendance and use of leave; … 1. Legal Implications This unfair dismissal case was contested before the Jeonnam Regional Labor Relations Commission, which denied the applicant’s employee status and dismissed the unfair dismissal relief application for lack of standing. Labor Law Firm Law& here summarizes this decision. For those who work in forms that outwardly resemble sole proprietors or freelancers—such as funeral vehicle drivers—this case illustrates the criteria used by the Labor Relations Commission to determine whether a person qualifies as an “employee” under the Labor Standards Act. Ⅰ. Case Overview The applicant had been performing funeral vehicle driving duties in line with funeral procession schedules at a funeral hall and, in response to measures taken by the employer, filed an application with the Labor Relations Commission alleging unfair dismissal. The Jeonnam Regional Labor Relations Commission first examined whether the applicant qualified as an “employee” under the Labor Standards Act and, having found that employee status should be denied, rendered a decision dismissing the application for relief. Ⅱ. Issues in Dispute The issue in this case is whether the applicant, who had been performing funeral vehicle driving duties, qualifies as an employee under the Labor Standards Act and, accordingly, whether he has standing as a proper party to file an application for relief from unfair dismissal with the Labor Relations Commission. Ⅲ. Summary of the Labor Relations Commission’s Reasoning The panel in this case noted that the applicant did not regularly commute to the workplace and, instead, by checking the funeral procession schedule, could himself arrange the funeral vehicle and substitute drivers (daemu drivers) through external funeral service providers; that he did not obtain the employer’s prior approval for attendance or use of leave; that his remuneration was not a basic or fixed wage but rather “service fees based on the number of driving assignments”; that he could substitute his own driving work by deploying a third-party substitute driver; that on days without funeral processions he drove vehicles for other funeral halls, indicating low exclusivity and continuity in providing labor to this employer; and that no written employment contract had been executed and there had been no enrollment in the four major social insurances or any withholding of taxes. In light of these factors, the panel found it difficult to regard the applicant as having been in a typical relationship of subordination to the employer in the course of providing labor, and instead considered that he had strongly provided services as an independent business operator on his own account and responsibility. For these reasons, the panel held that, since the applicant does not fall under an employee as defined by the Labor Standards Act, the dismissal at issue cannot be the subject of unfair dismissal relief proceedings before the Labor Relations Commission, and the application must be dismissed for lack of standing as a proper party. Ⅳ. Practical Points (From the Employee’s Perspective) Those who outwardly work as sole proprietors—such as funeral vehicle drivers, owner-operators of trucks, and freelance instructors—should, regardless of the title of their contract, carefully examine whether they are in fact subject to the employer’s direction and supervision, whether their working hours and place of work are designated, whether they can be replaced by a third party, and how their remuneration is determined and paid. In particular, if you move among multiple workplaces, take the lead in scheduling and allocation, and earn income in the form of per-case commissions, you should be aware that it will be difficult to have your employee status recognized by the Labor Relations Commission. Ⅴ. Practical Points (From the Employer/Company’s Perspective) From the company’s standpoint, for external/outsourced work such as funeral vehicle driving, delivery, and call driving, you must clearly design whether the relationship is an employment contract or a contract for services/outsourcing, and manage actual operations in line with that structure. If, in substance, you direct and supervise workers in a manner close to that of employees while merely labeling them as sole proprietors in form, employee status may be recognized in other disputes, potentially triggering simultaneous issues regarding wages, severance pay, and the four major social insurances. Accordingly, at an early stage, you should review the contract type and operational method together with experts such as Labor Law Firm Law&. 2. Matters Decided a. Case Overview and Procedural History A case in which it was decided that the worker did not fall under an employee under the Labor Standards Act and therefore lacked standing as a proper party to file an application for relief from unfair dismissal. 3. Gist of the Decision a. Summary of the Labor Relations Commission’s Reasoning □ Whether the applicant falls under an employee under the Labor Standards Act The worker: ① did not commute to the workplace, but instead checked the funeral procession schedule and, at his own discretion, decided whether to drive the funeral vehicle himself and arranged the funeral vehicle and substitute drivers (daemu drivers) by having them dispatched from external funeral service providers, thereby having autonomy over whether to drive the vehicle himself and over the allocation of the vehicle and substitute drivers, and had low continuity and exclusivity in providing labor to the employer; ② did not obtain the employer’s approval for matters such as attendance and use of leave; ③ received remuneration in the nature of service fees paid according to the number of funeral vehicle driving assignments, without any basic or fixed wage; ④ could have the funeral vehicle driving duties performed by a third-party substitute driver; ⑤ could drive funeral vehicles for other funeral halls when there were no funeral processions; and ⑥ did not execute a written employment contract, was not enrolled in the four major social insurances, and did not pay income tax or other taxes. In light of all these circumstances, the worker cannot be regarded as an employee under the Labor Standards Act and therefore lacks standing as a proper party to file an application for relief from unfair dismissal. [See More Related Decisions] - “Unfair Dismissal Decision on Disciplinary Severity (Participation in Services for Other Institutions)” - “Unfair Dismissal Decision on Expectation of Employment Succession (Logistics Center Competitive Bidding)” - “Unfair Dismissal Decision on Interest in Relief / Refusal to Rehire (Post-Retirement Fixed-Term Employment)” [Tags] Unfair dismissal, denial of employee status (funeral vehicle driver), others, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm ※ This article is part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&. ※ The previous article, “Unfair Dismissal Decision on Expectation of Re-employment (Manager’s Audit Remarks),” can be viewed in a new window. ※ The list of decisions related to denial of employee status (funeral vehicle driver) can be viewed together under “List of Decisions Related to Denial of Employee Status (Funeral Vehicle Driver).” ※ Korean version of this case: Korean article