Corporate trends / Performance record
Non-Existence of Renewal Expectation Right (Termination upon Expiry of Fixed Term) – Unfair Dismissal Decision (Unfair Dismissal 535)
- Date2026/07/12 04:05
- Read 14
[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of renewal expectation right (termination upon expiry of fixed term).”
Decision body: Gyeongnam Regional Labor Relations Commission 2026Buhae342 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-06-01 · Case result: Dismissed
Summary of key issue: As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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 case, an employee who had entered into a fixed-term employment contract expected to continue working after the expiry of the contract period. When the employer declined to renew the contract, the employee claimed unfair dismissal and applied to the Labor Relations Commission for a remedy. The Gyeongnam Regional Labor Relations Commission conducted a hearing focusing on whether the expiry of the employment contract period could be regarded as a dismissal and, further, whether the application for remedy for unfair dismissal could be upheld.
The Commission found that there were no provisions in the employment contract, rules of employment, etc. guaranteeing renewal, and that it was difficult to find that any expectation right regarding renewal of the employment contract had been formed. On this basis, it determined that the employment relationship had terminated upon expiry of the contract period and did not accept the employee’s claim of unfair dismissal.
Ⅱ. Summary of Issues
The issue in this case is whether a fixed-term employee can be recognized as having an “expectation right to renewal” to continue working after the expiry of the contract period in circumstances where there is no provision guaranteeing renewal in the employment contract, rules of employment, etc., and no clear separate practice to that effect.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that there was no mandatory provision in either the employment contract or the rules of employment stating that “if certain conditions are met, the employment contract shall be renewed,” that there were no provisions specifically setting out the criteria and procedures for renewal or any corresponding operational practice, and that, based on the circumstances surrounding the employment relationship in question, it was difficult to regard the fixed term as merely a formality.
Accordingly, it held that it was difficult to find that a legitimate expectation right to renewal of the contract had been formed on the part of the employee, and therefore the employment relationship in this case should be deemed to have naturally terminated upon expiry of the contract period without any separate measure equivalent to dismissal under the Labor Standards Act.
In conclusion, as the “dismissal” in this case must be regarded as non-existent, the application for remedy for unfair dismissal was found to be groundless and was dismissed.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, it should be noted that the mere fact that a fixed-term employment contract has been repeatedly renewed, or that the employer has made abstract statements such as “If you work diligently, we will renew your contract,” does not easily lead to recognition of an expectation right to renewal. It is important to secure objective materials showing whether specific renewal criteria and procedures are stipulated in the employment contract, rules of employment, HR guidelines, etc., and how employees in similar positions have typically been renewed.
In addition, to assert that notification of contract expiry constitutes unfair dismissal, it is necessary to prove that a legitimate expectation right to renewal, as recognized by the courts, has been formed, rather than a mere “sense of expectation.” You should therefore carefully review the actual status of your employment relationship in consultation with experts such as Labor Law Firm Law&.
Ⅴ. Practical Points (From the Employer/Company Perspective)
From the employer’s perspective, when hiring fixed-term employees, it is necessary to clearly state the contract period and the end date in the employment contract and to specifically explain and document that “upon expiry of the period, the employment relationship will naturally terminate.” It is also advisable to review and revise rules of employment and HR regulations so as not to include ambiguous wording that could be interpreted as a de facto obligation to renew, rather than merely indicating that “renewal is possible.”
Furthermore, to clearly distinguish a normal termination upon expiry of a fixed term from workforce restructuring at the level of redundancy dismissal, it is advantageous for defense before the Labor Relations Commission and the courts to operate the internal criteria and procedures for determining whether to renew in a consistent manner, and to organize records as to whether there have been cases where renewal was refused for some employees.
In the practical handling of cases by the Labor Relations Commission, claims of unfair dismissal by fixed-term employees are assessed strictly with a focus on whether an expectation right to renewal has been formed. Both employees and employers should therefore review relevant documents and practices in advance. By obtaining advice from experts such as Labor Law Firm Law& and organizing contract structures and regulations in advance, a significant portion of future unfair dismissal disputes can be prevented.
2. Matters Decided
A. Case Overview and Procedural History
As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract in question would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract in question would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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)’ – Unfair Dismissal Decision” – Date of decision: - Case result: Initial decision upheld
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ – Unfair Dismissal Decision”
- “‘Dismissal of Application (Non-Appearance at Hearing)’ – Unfair Dismissal Decision” – Date of decision: - Case result: Dismissed
[Tags]
Unfair dismissal, non-existence of renewal expectation right (termination upon 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&.
※ You can view the previous article, “‘Non-Existence of Renewal Expectation Right (Expiry of Fixed Term)’ – Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to non-existence of renewal expectation right (termination upon expiry of fixed term) can be viewed together under “List of Decisions on Non-Existence of Renewal Expectation Right (Termination upon Expiry of Fixed Term).”
※ 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 renewal expectation right (termination upon expiry of fixed term).”
Decision body: Gyeongnam Regional Labor Relations Commission 2026Buhae342 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-06-01 · Case result: Dismissed
Summary of key issue: As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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 case, an employee who had entered into a fixed-term employment contract expected to continue working after the expiry of the contract period. When the employer declined to renew the contract, the employee claimed unfair dismissal and applied to the Labor Relations Commission for a remedy. The Gyeongnam Regional Labor Relations Commission conducted a hearing focusing on whether the expiry of the employment contract period could be regarded as a dismissal and, further, whether the application for remedy for unfair dismissal could be upheld.
The Commission found that there were no provisions in the employment contract, rules of employment, etc. guaranteeing renewal, and that it was difficult to find that any expectation right regarding renewal of the employment contract had been formed. On this basis, it determined that the employment relationship had terminated upon expiry of the contract period and did not accept the employee’s claim of unfair dismissal.
Ⅱ. Summary of Issues
The issue in this case is whether a fixed-term employee can be recognized as having an “expectation right to renewal” to continue working after the expiry of the contract period in circumstances where there is no provision guaranteeing renewal in the employment contract, rules of employment, etc., and no clear separate practice to that effect.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel in this case noted that there was no mandatory provision in either the employment contract or the rules of employment stating that “if certain conditions are met, the employment contract shall be renewed,” that there were no provisions specifically setting out the criteria and procedures for renewal or any corresponding operational practice, and that, based on the circumstances surrounding the employment relationship in question, it was difficult to regard the fixed term as merely a formality.
Accordingly, it held that it was difficult to find that a legitimate expectation right to renewal of the contract had been formed on the part of the employee, and therefore the employment relationship in this case should be deemed to have naturally terminated upon expiry of the contract period without any separate measure equivalent to dismissal under the Labor Standards Act.
In conclusion, as the “dismissal” in this case must be regarded as non-existent, the application for remedy for unfair dismissal was found to be groundless and was dismissed.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, it should be noted that the mere fact that a fixed-term employment contract has been repeatedly renewed, or that the employer has made abstract statements such as “If you work diligently, we will renew your contract,” does not easily lead to recognition of an expectation right to renewal. It is important to secure objective materials showing whether specific renewal criteria and procedures are stipulated in the employment contract, rules of employment, HR guidelines, etc., and how employees in similar positions have typically been renewed.
In addition, to assert that notification of contract expiry constitutes unfair dismissal, it is necessary to prove that a legitimate expectation right to renewal, as recognized by the courts, has been formed, rather than a mere “sense of expectation.” You should therefore carefully review the actual status of your employment relationship in consultation with experts such as Labor Law Firm Law&.
Ⅴ. Practical Points (From the Employer/Company Perspective)
From the employer’s perspective, when hiring fixed-term employees, it is necessary to clearly state the contract period and the end date in the employment contract and to specifically explain and document that “upon expiry of the period, the employment relationship will naturally terminate.” It is also advisable to review and revise rules of employment and HR regulations so as not to include ambiguous wording that could be interpreted as a de facto obligation to renew, rather than merely indicating that “renewal is possible.”
Furthermore, to clearly distinguish a normal termination upon expiry of a fixed term from workforce restructuring at the level of redundancy dismissal, it is advantageous for defense before the Labor Relations Commission and the courts to operate the internal criteria and procedures for determining whether to renew in a consistent manner, and to organize records as to whether there have been cases where renewal was refused for some employees.
In the practical handling of cases by the Labor Relations Commission, claims of unfair dismissal by fixed-term employees are assessed strictly with a focus on whether an expectation right to renewal has been formed. Both employees and employers should therefore review relevant documents and practices in advance. By obtaining advice from experts such as Labor Law Firm Law& and organizing contract structures and regulations in advance, a significant portion of future unfair dismissal disputes can be prevented.
2. Matters Decided
A. Case Overview and Procedural History
As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract in question would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
As there were no provisions in the employment contract, rules of employment, etc. to the effect that the employment contract in question would be renewed if certain conditions were met, and it was difficult to find that any expectation right regarding 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)’ – Unfair Dismissal Decision” – Date of decision: - Case result: Initial decision upheld
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ – Unfair Dismissal Decision”
- “‘Dismissal of Application (Non-Appearance at Hearing)’ – Unfair Dismissal Decision” – Date of decision: - Case result: Dismissed
[Tags]
Unfair dismissal, non-existence of renewal expectation right (termination upon 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&.
※ You can view the previous article, “‘Non-Existence of Renewal Expectation Right (Expiry of Fixed Term)’ – Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to non-existence of renewal expectation right (termination upon expiry of fixed term) can be viewed together under “List of Decisions on Non-Existence of Renewal Expectation Right (Termination upon Expiry of Fixed Term).”
※ Korean version of this case: Korean article
