Industrial Accident Compensation Insurance Act | Analysis of an Administrative Court Judgment Holding That a Truck Owner-Operator Paid Freight Charges Based on Performance Is Also Eligible for Industrial Accident Insurance Benefits

A, the plaintiff who filed the lawsuit concerning the payment under the Industrial Accident Compensation Insurance Act, had regularly received freight transport requests from logistics company B and had been paid freight charges based on performance.

During that time, A was injured in an accident in which a forklift at the factory receiving the delivered freight struck A's left ankle, and A applied to the Korea Workers' Compensation and Welfare Service for medical care benefits, asserting that this constituted an occupational injury.

However, the Korea Workers' Compensation and Welfare Service denied the application for medical care benefits, reasoning that “A, as an owner-operator^* who substantially owns the truck at issue, was not enrolled in the four major insurances, bore the risk of profit and loss according to the volume of transport on A's own account, and does not qualify as a worker in a special type of employment^*.”

A then filed a lawsuit.

*Owner-operator: a worker in a special type of employment who purchases a vehicle, obtains a commercial license plate (yellow) of a transport company, and works under it.

*Worker in a special type of employment: a worker who works under a contract with a business owner but earns income according to the amount of work performed rather than a fixed monthly salary. Examples include delivery drivers, insurance planners, study-materials tutors, and door-to-door salespersons.

The Administrative Court, which heard the lawsuit that A filed against the Korea Workers' Compensation and Welfare Service under the Industrial Accident Compensation Insurance Act, ruled in favor of the plaintiff, ordering that “the disposition denying the medical care benefits be revoked.”

The court noted that “most of A's transport work was requested by B, and A was paid the freight charges calculated by B according to the volume of transport assessed for that work, the transport time, and the like.”

It went on to emphasize that “A performed most of the work for B, and the remuneration received from B can be regarded only as consideration for the provision of labor relating to the transport work that A provided, or as performance-based remuneration.”

On this basis, the court determined that “A is recognized as having provided labor under B's direction and supervision for the purpose of wages, and can be assessed as having been effectively exclusively bound to B,” holding that A should be regarded as a worker under the Labor Standards Act, and thereby granted the plaintiff's claim seeking revocation of the disposition denying the medical care benefits.

This analysis has examined an Administrative Court judgment holding that, under the Industrial Accident Compensation Insurance Act, industrial accident insurance benefits should be paid where a truck owner-operator who was performing freight transport work at the request of a logistics company suffered an occupational injury.

A lawsuit under the Industrial Accident Compensation Insurance Act is a complex proceeding conducted against a state agency or a company on the basis of statutory provisions, so it is often difficult for an individual to approach.

In particular, a clear causal relationship between the work and the accident must be established, and this process can feel very difficult without the help of a professional.

If you are preparing a lawsuit relating to an industrial accident, receiving the advice of an attorney experienced in such matters can be of considerable value.

At Daeryun Law Firm LLP, the 🔗attorneys handling labor and industrial accident matters are attorneys with extensive experience in industrial accident litigation who actively assist clients in protecting their interests and obtaining compensation for their losses.

If you are facing difficulties in a similar situation, you are welcome to reach out to Daeryun at any time.