All appeals by the plaintiffs are dismissed.

The costs of appeal are assessed against the plaintiffs.

Purport of claim and appeal

The first instance court.

1. Determination as to the grounds for appeal by the Plaintiffs ought to be based on whether the form of a contract is an employment contract or a contract for employment, and in substance, whether an employee provided labor in a subordinate relationship with an employer for the purpose of wages at a business or workplace. Determination should be made by comprehensively taking account of the following factors: (a) whether the employer determines the work hours and place; (b) whether the employer is subject to the rules of employment or the rules of employment; (c) whether the employer is subject to the employer’s designation of work hours and place; (d) whether the employee is subject to detention; (e) whether the employer is able to operate his/her business on his/her own account; (e) whether the employer was able to own equipment, raw materials, work tools; (e) whether the employer was able to own carry on business on his/her own; and (e) whether the risks, such as the creation of profits and losses caused by the provision of labor; and (e) whether the basic wage or fixed wage was determined; and (e) whether the provision of labor and the exclusive nature and degree of the status of the employee is recognized by the social security system.

On the other hand, the issue of whether a worker is a worker in an individual case where the worker is disputed shall vary according to the specific facts and degree of proof, such as the type of work at the individual workplace.

In a case where the circumstances in which it is difficult to recognize the nature of workers as a result of the fact-finding hearing are revealed or where the party responsible for proving the nature of workers fails to submit evidence to prove the specific facts in the course of litigation, the employee nature may be denied

Supreme Court Decision 2020Da207864 Decided June 25, 2020