1. The plaintiff's appeal is dismissed.

2. The costs of appeal shall be borne by the Plaintiff.

Purport of claim and appeal

The first instance court.

1. The parties' assertion

A. The Plaintiff’s assertion is a worker who, as the representative of the Defendant Company, worked as a director of the Defendant Company from October 24, 1997 to September 5, 2014, provided labor as a full-time director and a field director in a subordinate relationship according to C’s instruction and received wages of 1.5 million won per month.

However, from September 5, 201 to September 5, 2014, the Defendant Company did not pay 54 million won (i.e., monthly wage of 1.5 million won x 36 months) and retirement allowance of 4.5 million won (i.e., monthly wage of 1.5 million won x 3 years).

Therefore, the defendant is liable to pay to the plaintiff 58 million won in total of the unpaid wages and retirement allowances, and damages for delay.

B. The plaintiff and C agreed to operate a partnership business with their respective investment of KRW 20 million and acquire the defendant company as the representative director, and the plaintiff was in joint management of the defendant company after being appointed as the director. Thus, the plaintiff is not eligible for wages and retirement allowances.

2. Determination

(a) Officers such as directors, auditors, etc. of a stock company are delegated by the company for certain business affairs. Thus, they are not an employment relationship under the employer's direction and supervision, which provides certain labor and receives certain wages, and therefore, even in the case of receiving certain wages, they cannot be deemed as wages under the Labor Standards Act, and even in the case of paying retirement allowances to officers such as directors, etc. under the company's regulations, such retirement allowances are not the retirement allowances under the Labor Standards

However, whether a worker is subject to the Labor Standards Act shall be determined according to whether the worker provided labor to the employer for the purpose of wages in substance regardless of the form of contract.