If You Need Help Reporting Unpaid Compensation as a Freelancer and Seeking Assistance from the Labor Office, Read This Carefully
Why Is Unpaid Compensation So Common for Freelancers?
One of the most frequent problems freelancers face is the non-payment of service fees or compensation.
Phrases such as “Let’s settle everything next month,” “The client hasn’t paid us yet,” or “The performance is unclear, so it’s hard to finalize the amount” come up repeatedly.
Payment responsibility is often postponed on the grounds that the individual is “not an employee,” or work proceeds without a clearly defined payment structure from the outset.
The absence of employment insurance or coverage under the four major social insurance schemes, combined with an environment where it feels difficult to raise issues about non-payment, makes freelancers even more vulnerable.
At this stage, however, one point must be clearly understood.
The root of the problem is not the freelancer’s status itself, but contracts and compensation structures that were disadvantageously designed from the beginning.
Being a Freelancer Does Not Mean “Wages” Are Never Protected
Many freelancers facing unpaid compensation conclude, “I’m not an employee, so I’m not protected.”
However, legal determinations are not based on the title of the contract, but on the actual nature of the work relationship.
Courts consider factors such as whether the user determined the content of the work and exercised substantial direction and supervision during its performance, whether working hours and locations were designated and binding, and whether the individual could independently operate a business—for example, by owning equipment or hiring third parties to perform the work.
They also assess whether the compensation constitutes payment for the labor itself, whether a base or fixed salary was set, and whether there was continuity in the work relationship and exclusivity toward the user.
When these elements are recognized, there are many cases where, despite a “freelancer” contract, worker status is acknowledged and the issue of unpaid service fees is treated as unpaid wages under the Labor Standards Act.
Even if worker status is ultimately denied, that does not mean there is no way to respond.
Claims can still be pursued as civil claims for unpaid service fees or compensation.
The most dangerous decision is to prematurely rule out these possibilities on your own.
Why Handling the Issue Alone Often Makes Things Worse for Freelancers
When payment is withheld, emotions can easily take over.
However, a single hastily sent message can put the entire response to unpaid freelancer compensation at a disadvantage.
Such messages are often used to justify non-payment or are exploited as evidence to evade responsibility.
Outcomes vary significantly depending on whether a payment date was specified, how performance-based clauses are interpreted, and what legal meaning is attributed to verbal agreements or messenger conversations.
If handled incorrectly, freelancers may be directly exposed to arguments such as “the compensation was never agreed upon,” “performance was insufficient,” or “there is no obligation to pay due to contract termination.”
This is not an issue an individual should be expected to endure alone.
Without reassessing the underlying structure, unpaid compensation issues for freelancers tend to become prolonged.
Decent Law Firm’s Approach to Handling Unpaid Compensation for Freelancers
Decent Law Firm does not view unpaid freelancer compensation as a simple matter of payment demands.
From the initial stage, we review both the contract and the actual work performed to conduct a detailed analysis of potential worker status.
We systematically organize messenger records, emails, and past payment practices to prevent the formation of justifications for refusing payment.
Where worker status is recognized, we pursue claims that include unpaid wages, severance pay, and statutory late payment interest (20% per annum under Article 37(1) of the Labor Standards Act and Article 17 of its Enforcement Decree).
Where worker status is denied, we shift strategy to claims for unpaid service fees or damages under civil law.
There is only one guiding principle.
Whether the chosen approach makes it realistically possible to recover the money.
If you are a freelancer losing sleep over this issue, remember clearly that you are not alone.
If, on the other hand, you treat this matter lightly, even amounts that could have been recovered may be lost, and unpaid compensation can solidify into irreversible financial damage.
