Law

How do courts rule when practitioners of emerging occupations look for an "employer"?

2026-07-02   

Can signing an insurance agency contract be recognized as an employment relationship? Is it reasonable for stand-up to seek fixed salaries from clubs? The determination of employment relationships involving practitioners of emerging professions has become a new issue in the field of labor disputes. Working for 7 years and 6, signing agency contracts 4 times, an insurance customer service representative demanding the recognition of an employment relationship with the insurance company... Is the relationship between the two parties an agency relationship an employment relationship? Recently, a reporter from the *Workers' Daily* learned about this typical labor dispute case from the Changchun Intermediate People's Court of Jilin Province. the current era of deep integration between the digital economy and the service industry, the determination of employment relationships involving practitioners of emerging professions such as insurance brokers, stand-up comedians, and internet has become a new issue in the field of labor disputes. How can judicial practice find a balance between "formal agreement" and "substantive employment," both protecting the operational autonomy market entities and upholding the legal bottom line of workers' rights? Insurance company customer service representative demands recognition of employment relationship Liu joined an insurance company in Gongzhuling City Jilin Province on June 4, 2018, working in a renewal collection (customer service specialist) position. On May 31, 2018 the two parties signed a "Service Marketing Client Manager Agency Contract," which explicitly stipulated: "From the date Party B signs this contract with Party A, an agency relationship is established, this contract is not an employment contract." Subsequently, the two parties renewed the agency contract in 2019, 2022, and 202. Liu's monthly income was always paid in the form of commissions and allowances. At the end of 2025, Liu claimed that an employment relationship existed with insurance company from June 4, 2018, to December 17, 2025, and applied for arbitration. The arbitration commission refused to accept the case on grounds that the arbitration request did not fall within the scope of labor and personnel dispute handling. Subsequently, Liu sued the Gongzhuling People's Court, requesting the recognition of an, the payment of 65,000 yuan in economic compensation for the termination of the employment contract by the company, and the back payment of the "five insurances and one" during the period of employment. During the trial, Liu stated that the company implemented unified attendance and business performance management. During the working period, he had to sign in on every day, accept the company's work arrangements and management, wear uniforms with the company logo, and participate in training, commendation, and other activities organized by the company. The comprehensively managed his attendance, behavior, and performance through an internal system, using this as the basis for salary payment. The labor he provided was an important component of the company's business, and there was a clear personal subordination and economic subordination between the two parties. The insurance company, on the other hand, stated that when signing and repeatedly renewing the, Liu clearly knew and accepted that the nature of the contract was an agency contract, not an employment contract. Meanwhile, Liu's work content and commission structure both conformed to characteristics of an insurance agency relationship. His core work content was to promote and sell designated insurance products and provide renewal collection services within the authorized scope, which fully conformed to the scope agency activities stipulated in the agency contract. His income structure consisted of new policy commissions, renewal commissions, etc., which fully conformed to the typical characteristics of the "commission system" in the industry. Therefore, the relationship between the two parties was a commissioned agency relationship, not an employment relationship.

The court determined that both parties are independent civil subjects. "In the actual management process of insurance companies, the between an insurance agency relationship and a de facto labor relationship is relatively blurred. To determine whether the relationship between the two parties is an insurance agency relationship or a de facto labor relationship the contracts signed by both parties and the actual employment facts should be comprehensively considered, with a focus on reviewing the constituent elements of a de facto labor relationship," said Sun Ke, the judge of the case. The court held that the agency contract is legal and valid, legally binding on both parties, and both parties have fulfilled their respective rights and obligations in accordance the agency contract. Liu independently decided his working hours and business methods in actual work, and his income was based on commissions generated from performing insurance agency business. The insurance company managed and Liu in accordance with the *Insurance Law of the People's Republic of China* to ensure that the professional quality of the insurance agent met the requirements. "Liu represented the company in signing insurance contracts with external parties and received commissions from the insurance company. The legal liabilities arising from the agency actions are borne by the insurance company, which formally meets all the of a civil agency relationship," Sun Ke said. The insurance agent relies entirely on commissions for income, has an autonomous working model without the need for office attendance or fixed working hours, the management is limited to compliance supervision of business standards and industry regulatory requirements, lacking the personal subordination characteristic of a labor relationship. The two parties remain mutually independent civil subjects, which not meet the constituent elements of a de facto labor relationship. Ultimately, the court ruled that the relationship between the two parties is an entrusted agency relationship. "It should be noted that adjudication of such cases requires a comprehensive evaluation," Sun Ke told reporters. The Jilin Provincial Higher People's Court once overturned a ruling in a similar case where the party had also an agency contract with the insurance company and possessed an insurance sales qualification certificate. However, after joining, the individual had always been engaged in internal office work and had never sold insurance., the court ruled in favor of the worker's claim to confirm a labor relationship. Sun Ke stated that if an insurance company uses an "agency contract" in name but as an employer in practice—imposing strict attendance, fixed base salaries, and mandatory office attendance on practitioners—judicial rulings should look beyond the formal contract and recognize a de facto labor. The key is to substantively review the employment facts. In addition to insurance brokers and insurance customer service, practitioners in emerging professions such as stand-up comedians, internet, and independent designers also face the difficulty of determining whether their relationship is a "cooperation relationship" or a "labor relationship.

Labor disputes in the stand-up comedy industry are highly representative. According to a typical case released by the Nanjing Intermediate Peoples Court, Chen worked in stand-up comedy performance and management at a media company. The two parties signed a labor contract valid until June 30, 2024, with a salary consisting of a fixed wage plus performance fees, and the company withheld and paid social security on his behalf. From July to December 2023, the company only paid performance fees and to pay the fixed wage, claiming that Chen had voluntarily resigned in July 2023 and that the two parties only had a performance contract relationship. After applying for arbitration, Chen filed a lawsuit the company pay the unpaid wages and other entitlements. The court ruled that Chen had signed a labor contract with the media company, provided labor, and the company had paid his social security monthly wages, which met the characteristics of establishing a labor relationship. The evidence submitted by the media company was insufficient to prove that the labor relationship with Chen had been terminated in July 023, nor did it submit evidence to prove the existence of a performance agreement or other civil agreements between the parties during this period. Therefore, the company had to bear the consequences to meet the burden of proof and was ordered to pay the fixed wage difference. "If a stand-up comedian signs a 'Performance Cooperation Agreement' with a club, agreeing to profits based on the number of performances, independently create jokes, and flexibly participate in shows, the two parties are in an equal civil cooperative relationship. The comedian has the right to decide on the performance and timing, while the club only provides the performance platform and business coordination. Such situations are generally not recognized as a labor relationship," said Sun Ke. "The key is to substantively the actual employment facts, which is the 'golden key' to solving the problem of identifying employment relationships." Regarding the identification of labor relationships for workers in new forms of employment, as internet streamers, designated drivers, and online delivery workers, the Supreme People's Court released the first batch of guiding cases on labor disputes in new forms of employment at the end of2024. It clearly stated that whether a labor relationship is established between platform enterprises and internet streamers or designated drivers depends on whether there is an actual employment fact and whether it constitutes labor management. Even if it does not constitute dominant labor management and a labor relationship cannot be recognized, if the enterprise exercises a certain degree of labor management, it should still protect the legitimate rights interests of workers in accordance with laws and regulations. "The typical significance of the Liu case lies in clarifying the judicial orientation of 'substantive examination': it neither blindly denies the of civil agency and cooperative relationships to protect the freedom of business for market entities, nor tolerates employers evading employment responsibilities under the guise of 'cooperation'. For those the requirements of a labor relationship, it resolutely recognizes the factual labor relationship," Sun Ke said, believing that future judicial practice will continue to refine the rules, allowing workers to practice their with peace of mind and defend their rights with confidence. (Outlook New Era)

Edit:Linian Responsible editor:Chenjie

Source:https://www.workercn.cn/

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