Corporate trends / Performance record
Non-Existence of Legitimate Expectation of Renewal (Expiry of Fixed Term) in Unfair Dismissal Case (Unfair Dismissal 530)
- Date2026/07/08 04:08
- Read 31
This case on the issue of “non-existence of legitimate expectation of renewal (expiry of fixed term)” ended with a decision in favor of the employer (dismissal of the application).
[Case Information]
Decision body: Gyeongnam Regional Labor Relations Commission, 2026 Unfair Dismissal 342 ○○○ Application for Remedy for Unfair Dismissal
2026-06-01 · Case outcome: Dismissed
Summary of key issue: As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period.
1. Legal Implications
Ⅰ. Case Overview
In this application for remedy for unfair dismissal, a fixed-term employee claimed that she was entitled to continue working even after the expiry of the contract period and filed for remedy for unfair dismissal with the Labor Relations Commission. The application was dismissed by the Gyeongnam Regional Labor Relations Commission. The Commission held that there was no provision in either the employment contract or the rules of employment stating that the employment contract would be renewed upon satisfaction of certain conditions, and that, even in light of the specific circumstances, it was difficult to find that a legitimate expectation of renewal had been formed. Accordingly, it found that the employment relationship had terminated upon expiry of the contract period.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where there is no renewal clause in the employment contract or rules of employment and no clear separate practice, a fixed-term employee can be recognized as having a “legitimate expectation” of renewal of the employment contract.
Ⅲ. Gist of the Labor Relations Commission’s Decision
The panel in this case noted that there was no mandatory provision in the employment contract or rules of employment requiring renewal of the employment contract upon satisfaction of certain conditions; that it was difficult to find, from the criteria and procedures for renewal or from the actual operation thereof, that an objective practice of renewal had been established; and that, even when considering various circumstances such as how contracts were operated for comparable employees, it could not be said that the employee had acquired a legitimate expectation of renewal.
Accordingly, the Commission determined that the employer’s action was not an unfair dismissal by way of refusal to renew the contract, but merely a natural termination of the fixed-term employment contract upon expiry of the agreed period.
Ⅳ. Practical Points (From the Employee’s Perspective)
Fixed-term employees should first be aware that, as a rule, where the term is specified in the employment contract, the employment relationship terminates upon expiry of that term. Statements such as “if you work diligently, we will keep you on,” or a few instances of renewal alone, do not easily lead to recognition of a legitimate expectation of renewal. It is therefore important to secure objective grounds, such as a regular practice of renewal, specific criteria and procedures for re-contracting, and provisions in the rules of employment or internal guidelines imposing an obligation to renew.
Ⅴ. Practical Points (From the Employer’s (Company’s) Perspective)
From the employer’s standpoint, when using fixed-term employment contracts, the contract period and a clause on automatic retirement upon expiry should be clearly stipulated in the contract. The rules of employment and HR guidelines should also clearly distinguish whether renewal is merely “possible” or “mandatory” upon satisfaction of certain conditions. In addition, where there is a large-scale refusal to renew at a level comparable to a collective redundancy, or where a practice of repeatedly renewing contracts over a long period for work that is in substance regular and continuous has developed, the likelihood of recognition of a legitimate expectation of renewal increases. Employers should therefore review in advance their workforce management methods and documentation.
In this type of case, both employees and employers should accurately understand the legal principles governing the termination of fixed-term contracts and legitimate expectation of renewal, and be mindful that the outcome before the Labor Relations Commission may differ depending on how they prepare evidence concerning contracts, rules of employment, and actual operational practices that support their respective positions.
2. Matters Decided
A. Case Overview and Procedural History
As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract in question would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period.
3. Gist of the Decision
A. Gist of the Labor Relations Commission’s Decision
As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract in question would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period. /
[See More Related Decisions]
- “Non-Formation of Hiring Decision (Absence of Offer Letter)” Related Unfair Dismissal Decision – Date of decision: - Case number: Initial decision upheld
- “Expression of Intention to Resign (Resignation Remark in Telephone Call)” Related Unfair Dismissal Decision
- “Dismissal (Non-Appearance at Hearing)” Related Unfair Dismissal Decision – Date of decision: - Case number: Dismissed
[Tags]
Unfair dismissal, non-existence of legitimate expectation of renewal (expiry of fixed term), 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 part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ The previous article, “Expression or Non-Expression of Intention to Resign (Farewell upon Resignation · Leaving Group Chat)” Related Unfair Dismissal Decision, can be viewed in a new window.
※ A list of decisions related to non-existence of legitimate expectation of renewal (expiry of fixed term) can be found under “List of Decisions Related to Non-Existence of Legitimate Expectation of Renewal (Expiry of Fixed Term).”
※ Korean version of this case: Korean article
[Case Information]
Decision body: Gyeongnam Regional Labor Relations Commission, 2026 Unfair Dismissal 342 ○○○ Application for Remedy for Unfair Dismissal
2026-06-01 · Case outcome: Dismissed
Summary of key issue: As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period.
1. Legal Implications
Ⅰ. Case Overview
In this application for remedy for unfair dismissal, a fixed-term employee claimed that she was entitled to continue working even after the expiry of the contract period and filed for remedy for unfair dismissal with the Labor Relations Commission. The application was dismissed by the Gyeongnam Regional Labor Relations Commission. The Commission held that there was no provision in either the employment contract or the rules of employment stating that the employment contract would be renewed upon satisfaction of certain conditions, and that, even in light of the specific circumstances, it was difficult to find that a legitimate expectation of renewal had been formed. Accordingly, it found that the employment relationship had terminated upon expiry of the contract period.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where there is no renewal clause in the employment contract or rules of employment and no clear separate practice, a fixed-term employee can be recognized as having a “legitimate expectation” of renewal of the employment contract.
Ⅲ. Gist of the Labor Relations Commission’s Decision
The panel in this case noted that there was no mandatory provision in the employment contract or rules of employment requiring renewal of the employment contract upon satisfaction of certain conditions; that it was difficult to find, from the criteria and procedures for renewal or from the actual operation thereof, that an objective practice of renewal had been established; and that, even when considering various circumstances such as how contracts were operated for comparable employees, it could not be said that the employee had acquired a legitimate expectation of renewal.
Accordingly, the Commission determined that the employer’s action was not an unfair dismissal by way of refusal to renew the contract, but merely a natural termination of the fixed-term employment contract upon expiry of the agreed period.
Ⅳ. Practical Points (From the Employee’s Perspective)
Fixed-term employees should first be aware that, as a rule, where the term is specified in the employment contract, the employment relationship terminates upon expiry of that term. Statements such as “if you work diligently, we will keep you on,” or a few instances of renewal alone, do not easily lead to recognition of a legitimate expectation of renewal. It is therefore important to secure objective grounds, such as a regular practice of renewal, specific criteria and procedures for re-contracting, and provisions in the rules of employment or internal guidelines imposing an obligation to renew.
Ⅴ. Practical Points (From the Employer’s (Company’s) Perspective)
From the employer’s standpoint, when using fixed-term employment contracts, the contract period and a clause on automatic retirement upon expiry should be clearly stipulated in the contract. The rules of employment and HR guidelines should also clearly distinguish whether renewal is merely “possible” or “mandatory” upon satisfaction of certain conditions. In addition, where there is a large-scale refusal to renew at a level comparable to a collective redundancy, or where a practice of repeatedly renewing contracts over a long period for work that is in substance regular and continuous has developed, the likelihood of recognition of a legitimate expectation of renewal increases. Employers should therefore review in advance their workforce management methods and documentation.
In this type of case, both employees and employers should accurately understand the legal principles governing the termination of fixed-term contracts and legitimate expectation of renewal, and be mindful that the outcome before the Labor Relations Commission may differ depending on how they prepare evidence concerning contracts, rules of employment, and actual operational practices that support their respective positions.
2. Matters Decided
A. Case Overview and Procedural History
As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract in question would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period.
3. Gist of the Decision
A. Gist of the Labor Relations Commission’s Decision
As neither the employment contract nor the rules of employment contained any provision to the effect that the employment contract in question would be renewed upon satisfaction of certain conditions, and it was difficult to find that a legitimate expectation of renewal of the employment contract had been formed, the employment relationship between the employee and the employer was deemed to have terminated upon expiry of the contract period. /
[See More Related Decisions]
- “Non-Formation of Hiring Decision (Absence of Offer Letter)” Related Unfair Dismissal Decision – Date of decision: - Case number: Initial decision upheld
- “Expression of Intention to Resign (Resignation Remark in Telephone Call)” Related Unfair Dismissal Decision
- “Dismissal (Non-Appearance at Hearing)” Related Unfair Dismissal Decision – Date of decision: - Case number: Dismissed
[Tags]
Unfair dismissal, non-existence of legitimate expectation of renewal (expiry of fixed term), 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 part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ The previous article, “Expression or Non-Expression of Intention to Resign (Farewell upon Resignation · Leaving Group Chat)” Related Unfair Dismissal Decision, can be viewed in a new window.
※ A list of decisions related to non-existence of legitimate expectation of renewal (expiry of fixed term) can be found under “List of Decisions Related to Non-Existence of Legitimate Expectation of Renewal (Expiry of Fixed Term).”
※ Korean version of this case: Korean article
