Corporate trends / Performance record
‘Non-Existence of Expectation of Renewal (One-Year Service Contract)’ Unfair Dismissal Decision (Unfair Dismissal 494)
- Date2026/06/04 04:04
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of expectation of renewal (one-year service contract).”
Decision body: Gyeonggi Regional Labor Relations Commission 2026Buhae89 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.03.18 · Case result: Dismissed
Summary of key issues: (1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) In 202…
1. Legal Implications
Ⅰ. Case Overview
In this case, a fixed-term employee filed an application for remedy with the Labor Relations Commission, claiming unfair dismissal after the employment contract was not renewed upon its expiration. The Gyeonggi Regional Labor Relations Commission focused its determination on whether an expectation of renewal could be recognized, taking into account the employment contract, the rules of employment, and the structure of the workplace’s underlying service (outsourcing) contract. The employee alleged unfair dismissal, but the final outcome was in favor of the employer.
Ⅱ. Issues
The issue in this case is whether “an employee can be recognized as having a legitimate expectation of renewal of the employment contract where the contract period and automatic termination clause are expressly stated in the employment contract and there has been only one renewal.” In other words, the core question is whether the failure to renew the contract after the contract period expired can be regarded as an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case found as follows: the employment contract clearly provides for “automatic termination upon expiration of the contract period,” and the rules of employment contain only a clause that employees may be retired “when the employment contract expires and is not renewed,” with no provision guaranteeing renewal; the first contract is understood as a probationary contract and the second as the main contract, so it is difficult to view a single renewal as having formed an expectation of renewal; there are work performance evaluation sheets for the employee, showing that the company has determined renewal at its discretion; and the workplace itself is structured around a one-year service (outsourcing) contract period.
In light of these factors, the Commission held that the employment relationship in this case did not end by way of redundancy dismissal or disciplinary dismissal, but rather by the expiration of the originally agreed fixed-term employment contract.
Applying the legal principles on recognition of an expectation of renewal for fixed-term employees, the Commission pointed out that there were no rules of employment or collective agreements stipulating an obligation or procedure for renewal, that no practice of repeated or long-term renewals had been established, and that renewals for employees in similar positions were not made mechanically but instead were determined in consideration of evaluations, the duration of the service contract, and other circumstances. On this basis, the Commission held that the dismissal measure in this case did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If you are working as a fixed-term employee, you should be aware that an expectation of renewal is unlikely to be recognized merely because “there was one renewal” or “many colleagues have had their contracts renewed.” You should check for yourself whether the employment contract contains an automatic termination clause upon expiration of the contract period; whether the rules of employment or collective agreements include mandatory language such as “the contract shall be renewed if certain conditions are met”; and whether there has in fact been a long-term practice of repeated renewals.
If you are considering applying for a remedy for unfair dismissal after receiving notice of non-renewal, you should first secure as much objective evidence as possible to support an expectation of renewal—such as the number of times your contract has been renewed, renewal practices for comparable employees, evaluation criteria and how they have actually been applied—and then consult with an expert such as Labor Law Firm Law&.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s standpoint, when using fixed-term employment contracts, it is necessary to clearly state the contract period and method of termination (automatic termination upon expiration) in the employment contract, and to provide in the rules of employment for retirement upon contract expiration. At the same time, you should consistently maintain work evaluation sheets, personnel records, and similar documents so that it is apparent that renewal decisions have been made individually based on reasonable criteria such as performance evaluations, manpower needs, and the duration of the underlying service contract.
Conversely, broad promises such as “we will keep you on as long as you work diligently,” de facto long-term practices of repeated renewal, and operating renewal criteria and procedures as if they were mandatory rules without documenting them, all increase the risk that an expectation of renewal will be recognized. To prevent disputes from escalating into redundancy or unfair dismissal issues, employers should regularly review their fixed-term employment management guidelines and actual HR practices, and, where necessary, seek advice from experts such as Labor Law Firm Law&.
2. Matters Decided
A. Case Overview and Procedural History
(1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) Although there was a first employment contract in March 2025 followed by one renewal, the first contract is understood as a probationary contract and the second as the main contract, and this cannot be regarded as forming an expectation of renewal; (3) there are work performance evaluation sheets for the employee in this case; and (4) the service (outsourcing) contract period for this workplace is one year. Considering these factors comprehensively, it cannot be said that an expectation of renewal was formed for this employee, and therefore the employment relationship in this case terminated upon expiration of the employment contract period.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
(1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) Although there was a first employment contract in March 2025 followed by one renewal, the first contract is understood as a probationary contract and the second as the main contract, and this cannot be regarded as forming an expectation of renewal; (3) there are work performance evaluation sheets for the employee in this case; and (4) the service (outsourcing) contract period for this workplace is one year. Considering these factors comprehensively, it cannot be said that an expectation of renewal was formed for this employee, and therefore the employment relationship in this case terminated upon expiration of the employment contract period. /
[See More Related Decisions]
- ‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Decision – Date of decision: - Case number: First-instance decision upheld
- ‘Expression of Intent to Resign (Resignation Statement in Telephone Call)’ Unfair Dismissal Decision
- ‘Dismissal of Application (Non-Appearance at Hearing)’ Unfair Dismissal Decision – Date of decision: - Case number: Dismissed
[Tags]
Unfair dismissal, non-existence of expectation of renewal (one-year service contract), refusal to renew fixed-term contract, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is one of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Scope of Legal Application (Number of Regular Employees at Three Stores)’ Unfair Dismissal Decision,” in a new window.
※ You can also view the list of decisions related to non-existence of expectation of renewal (one-year service contract) at the “Non-Existence of Expectation of Renewal (One-Year Service Contract) Related Decisions List.”
※ Korean version of this case: Korean article
This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of expectation of renewal (one-year service contract).”
Decision body: Gyeonggi Regional Labor Relations Commission 2026Buhae89 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.03.18 · Case result: Dismissed
Summary of key issues: (1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) In 202…
1. Legal Implications
Ⅰ. Case Overview
In this case, a fixed-term employee filed an application for remedy with the Labor Relations Commission, claiming unfair dismissal after the employment contract was not renewed upon its expiration. The Gyeonggi Regional Labor Relations Commission focused its determination on whether an expectation of renewal could be recognized, taking into account the employment contract, the rules of employment, and the structure of the workplace’s underlying service (outsourcing) contract. The employee alleged unfair dismissal, but the final outcome was in favor of the employer.
Ⅱ. Issues
The issue in this case is whether “an employee can be recognized as having a legitimate expectation of renewal of the employment contract where the contract period and automatic termination clause are expressly stated in the employment contract and there has been only one renewal.” In other words, the core question is whether the failure to renew the contract after the contract period expired can be regarded as an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case found as follows: the employment contract clearly provides for “automatic termination upon expiration of the contract period,” and the rules of employment contain only a clause that employees may be retired “when the employment contract expires and is not renewed,” with no provision guaranteeing renewal; the first contract is understood as a probationary contract and the second as the main contract, so it is difficult to view a single renewal as having formed an expectation of renewal; there are work performance evaluation sheets for the employee, showing that the company has determined renewal at its discretion; and the workplace itself is structured around a one-year service (outsourcing) contract period.
In light of these factors, the Commission held that the employment relationship in this case did not end by way of redundancy dismissal or disciplinary dismissal, but rather by the expiration of the originally agreed fixed-term employment contract.
Applying the legal principles on recognition of an expectation of renewal for fixed-term employees, the Commission pointed out that there were no rules of employment or collective agreements stipulating an obligation or procedure for renewal, that no practice of repeated or long-term renewals had been established, and that renewals for employees in similar positions were not made mechanically but instead were determined in consideration of evaluations, the duration of the service contract, and other circumstances. On this basis, the Commission held that the dismissal measure in this case did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If you are working as a fixed-term employee, you should be aware that an expectation of renewal is unlikely to be recognized merely because “there was one renewal” or “many colleagues have had their contracts renewed.” You should check for yourself whether the employment contract contains an automatic termination clause upon expiration of the contract period; whether the rules of employment or collective agreements include mandatory language such as “the contract shall be renewed if certain conditions are met”; and whether there has in fact been a long-term practice of repeated renewals.
If you are considering applying for a remedy for unfair dismissal after receiving notice of non-renewal, you should first secure as much objective evidence as possible to support an expectation of renewal—such as the number of times your contract has been renewed, renewal practices for comparable employees, evaluation criteria and how they have actually been applied—and then consult with an expert such as Labor Law Firm Law&.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s standpoint, when using fixed-term employment contracts, it is necessary to clearly state the contract period and method of termination (automatic termination upon expiration) in the employment contract, and to provide in the rules of employment for retirement upon contract expiration. At the same time, you should consistently maintain work evaluation sheets, personnel records, and similar documents so that it is apparent that renewal decisions have been made individually based on reasonable criteria such as performance evaluations, manpower needs, and the duration of the underlying service contract.
Conversely, broad promises such as “we will keep you on as long as you work diligently,” de facto long-term practices of repeated renewal, and operating renewal criteria and procedures as if they were mandatory rules without documenting them, all increase the risk that an expectation of renewal will be recognized. To prevent disputes from escalating into redundancy or unfair dismissal issues, employers should regularly review their fixed-term employment management guidelines and actual HR practices, and, where necessary, seek advice from experts such as Labor Law Firm Law&.
2. Matters Decided
A. Case Overview and Procedural History
(1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) Although there was a first employment contract in March 2025 followed by one renewal, the first contract is understood as a probationary contract and the second as the main contract, and this cannot be regarded as forming an expectation of renewal; (3) there are work performance evaluation sheets for the employee in this case; and (4) the service (outsourcing) contract period for this workplace is one year. Considering these factors comprehensively, it cannot be said that an expectation of renewal was formed for this employee, and therefore the employment relationship in this case terminated upon expiration of the employment contract period.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
(1) The employment contract states, “As a rule, the employment relationship shall automatically terminate upon expiration of the contract period,” and the rules of employment merely provide that an employee may be retired “when the employment contract expires and is not renewed.” There is no provision guaranteeing renewal after the expiration of the employment contract period, nor is there any basis or circumstance to find that trust was given that the employment contract would be renewed upon fulfillment of certain conditions; (2) Although there was a first employment contract in March 2025 followed by one renewal, the first contract is understood as a probationary contract and the second as the main contract, and this cannot be regarded as forming an expectation of renewal; (3) there are work performance evaluation sheets for the employee in this case; and (4) the service (outsourcing) contract period for this workplace is one year. Considering these factors comprehensively, it cannot be said that an expectation of renewal was formed for this employee, and therefore the employment relationship in this case terminated upon expiration of the employment contract period. /
[See More Related Decisions]
- ‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Decision – Date of decision: - Case number: First-instance decision upheld
- ‘Expression of Intent to Resign (Resignation Statement in Telephone Call)’ Unfair Dismissal Decision
- ‘Dismissal of Application (Non-Appearance at Hearing)’ Unfair Dismissal Decision – Date of decision: - Case number: Dismissed
[Tags]
Unfair dismissal, non-existence of expectation of renewal (one-year service contract), refusal to renew fixed-term contract, Labor Law Firm Law&, large labor law firm, Samseong-dong labor law firm, Samseong Station labor law firm, Gangnam labor law firm
※ This article is one of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Scope of Legal Application (Number of Regular Employees at Three Stores)’ Unfair Dismissal Decision,” in a new window.
※ You can also view the list of decisions related to non-existence of expectation of renewal (one-year service contract) at the “Non-Existence of Expectation of Renewal (One-Year Service Contract) Related Decisions List.”
※ Korean version of this case: Korean article
