Foreword
With the rapid development of the internet economy, live streaming and short video platforms Douyin and Kuaishou have attracted massive user bases. According to industry statistics, China now has over 15 million online streamers and more than 25,000 MCN agencies. Labor disputes between streamers and MCN organizations have become increasingly common.
It is of great significance to correctly judge whether there is a labor relationship or cooperative relationship between network anchors and MCN companies for the proper settlement of labor disputes.
1. Network anchors and MCN companies constitute labor relations
Case: First Instance Civil Judgment of Wang Mou and XX Company on Confirmation of Labor Relationship dispute (2023 Hu 0114 Min Chu No.19971)
Case Summary: In March 2023, Wang obtained employment at a media company in Shanghai through BOSS Zhipin as a livestream host. Both parties signed an "Artist Agency Contract", stipulating that Wang entrusted the media company as his exclusive agent, with agency services covering various platforms, film and television performances, advertising activities, vocal performance representation, etc. The media company would collect commissions based on actual agency earnings and pay Wang 50% of the net livestream profits. Wang was required to work full-time for 26 days each month, with the media company guaranteeing a minimum monthly income of 15,000 yuan for three months. Unqualified attendance would result in commission-based wage payments, while other earnings would be determined through mutual agreement. Starting from March 4, 2022, Wang worked as a livestream host at the company, which provided livestreaming venues and equipment. Hosts including the plaintiff utilized the defendants accounts on TikTok and Kuaishou for entertainment livestreaming, with content and timing determined by hosts. The media company paid Wang monthly via bank transfer. On February 2, 2023, the plaintiff ceased livestreaming work due to the defendants delayed salary payments. A dispute arose between Wang and the media company regarding whether their relationship constituted an employment relationship, leading to litigation.
Judicial Summary: According to legal provisions, an employer-employee relationship is established when the employer pays wages, exercises management authority over the employee, or the work constitutes part of the employers business operations. The court determined three key factors: First, Wang Mous live-streaming activities and reward collection through company-provided platforms constituted part of the companys business scope. Second, revenue from live streams was managed by the company for profit distribution, lacking operational autonomy. Third, the companys commitment to providing a "minimum wage" ensured no shared operational risks with Wang Mou. Finally, Wang Mou performed tasks under company directives while being subject to supervision and management. Although the "Artist Management Agency Contract" signed by both parties was not a labor contract, its rights and obligations fulfilled characteristics of personal dependency and financial subordination typical of employment relationships. The court therefore concluded that a labor relationship existed between Wang Mou and Shanghai Media Company.
2. The network anchor and the MCN company form a cooperative relationship
Case: Labor Dispute Case between Wang Mou and Beijing Culture Media Co., LTD. (2023 Jing 03 Min Zhong No.7051), (Guiding Case No.239)
Case Summary: Wang, an online streamer, established and operated a self-media account on digital platforms. In March 2020, he signed an "Exclusive Agency Agreement" with a Beijing-based media company, which stipulated: (1) Wang granted exclusive agency services for text, audio, and video content management on the platform; (2) His primary income was determined by monthly transaction amounts, with guaranteed fees and commissions calculated proportionally after deducting necessary expenses; (3) He retained the right to challenge income distribution arrangements; (4) He was required to arrive at the workplace promptly as scheduled and complete assigned tasks. The agreement was classified as a service contract rather than an employment contract, establishing no labor relationship between the parties. During contract negotiations, Wang made favorable revisions to the revenue-sharing terms. Subsequently, Wang participated in platform operations as agreed, with his monthly income varying based on advertising revenue from the cooperative platform. When disputes arose, Wang sought to establish an employment relationship with the media company, ultimately taking the matter to court.
Key legal conclusions: First, under the brokerage contract, Wang was required to report to the workplace promptly as arranged by a Beijing-based media company and complete assigned tasks. However, the company did not impose operational rules, labor discipline, or reward/punishment measures on Wang. These management practices constituted contractual obligations rather than traditional labor management. Second, Wang maintained substantial negotiation rights regarding profit-sharing arrangements, reflecting an equal partnership relationship distinct from employment terms. Third, the contracts purpose and content demonstrate a collaborative intent to enhance Wangs influence and visibility on relevant platforms for mutual benefit. The agreement specifically addresses brokerage matters, remuneration, profit distribution, and breach liabilities, lacking elements of an employment contract. Therefore, since the company did not exercise dominant labor management over Wang, their relationship constitutes a cooperative partnership rather than an employment relationship.
III. THE LAW
In the booming internet industry with new employment models, many streamers have developed economic dependencies through income ties deeply bound to corporate operations. Some companies use terms "agency contracts" and "cooperation agreements" to mask their employment status, evading legal obligations such as social insurance contributions and work-related injury compensation.
In order to correctly determine the relationship between Internet celebrities and MCN companies: labor or cooperative relationship, combined with the above cases, specifically:
1. The determination of labor relations under the new employment form is based on substantive requirements
An employer pays wages to a worker, the worker is managed and restricted by the employer, or the work is an integral part of the employers business, etc., which can be recognized as the existence of a labor relationship between the two parties. To determine whether there is labor management, three elements should be considered: personality subordination, economic subordination and organizational subordination.
Personality subordination refers to the application and restraint of employer rules and regulations on workers. For example, in case No.19971 of Civil Initial Case (Shanghai 0114) in 2023, Wang stated that "the content and timing of live broadcasts are determined by the host" and "Wang works full-time for 26 days each month."
Economic subordination refers to workers financial dependence on employers, typically through compensation for labor services. Employers provide raw materials and production tools, while workers bear no personal risks and are entitled to remuneration and welfare benefits. Similarly, in the 2023 Hu 0114 Min Chu No.19971 case, Wang received a guaranteed minimum wage without sharing operational risks with the company. In contrast, the 2023 Jing 03 Min Zhong No.7051 case involved proportional profit-sharing arrangements, Wang had the right to challenge income distribution settlements.
Organizational subordination means that workers participate in the relevant business of the employing unit, complete certain tasks alone or with other workers, or carry out work in the name of the employing unit.
2. With formal requirements as a supplement, comprehensively judge the relationship between Internet celebrity anchors and MCN agencies
Formal requirements mainly refer to the external manifestations that can reflect labor relations, such as the signing of labor contracts, wage payment records, social insurance payment records, work certificates or identity marks and other formal requirements.
In judging whether the relationship between Internet celebrity anchors and MCN agencies is labor relationship or cooperative relationship, the substantive elements should be the main and the formal elements are the secondary.
IV. Summary: The distinction between name and reality —— penetrates the form and questions the substance
In practice, many contracts bearing the title "XX Contract" appear legitimate on the surface. However, a closer examination of their terms reveals they are essentially "a wolf in sheeps clothing". This is particularly evident in labor agreements between internet celebrity hosts and MCN companies within the booming platform economy, numerous contracts exist in name only. To better protect both parties rights and obligations,
As an MCN company, it should standardize the contract agreement, establish a labor relationship with Internet celebrity anchors under the framework of the Labor Contract Law of the Peoples Republic of China, or adjust the cooperative relationship between equal subjects according to the Civil Code of the Peoples Republic of China and other laws, and conclude appropriate contracts based on facts.
As an Internet celebrity anchor, improve legal literacy and awareness, fully understand the rights and obligations stipulated in the contract, carefully review the terms of the contract, and seek guidance from professionals when necessary.
