This case concerns an unfair dismissal decision in which the employer prevailed (application dismissed) on the issue of “non-existence of renewal expectation rights (project-based fixed-term employment).” Date of Decision: 2026-07-28 · Decision Body: Gangwon Regional Labor Relations Commission · Case No.: 2026Buhae198 Key Issue Summary: A. Whether the employee had an expectation right to renewal of the employment contract. The Commission noted that there were no provisions in the rules of employment regarding renewal of fixed-term contracts; that, prior to the second employment contract, there appears to have been an explanation and agreement on setting the contract term in light of the circumstances of the project; that the employee appears to have entered into the employment contract after confirming a clause stating that, absent a separate agreement between the parties, the contract would automatically terminate; and that there was no practice or relationship of trust regarding contract renewal... --- 1. Legal Implications This article examines Case No. 2026Buhae198 of the Gangwon Regional Labor Relations Commission, focusing on whether fixed-term employees are recognized as having an expectation right to renewal of their employment contracts—an issue that frequently arises in unfair dismissal disputes. Based on the Commission’s decision, Labor Law Firm Law& summarizes, from a practical perspective, what employees and companies should prepare in similar cases. Ⅰ. Case Overview The employee in this case was a fixed-term worker assigned to a specific project. After the initial contract, a second fixed-term employment contract was concluded, and the employee continued working. When the project ended and the contract term expired, the employer did not renew the contract. The employee then filed an application for relief with the Labor Relations Commission, claiming that this effectively constituted unfair dismissal. Ⅱ. Issues in Dispute The issue in this case is: “In an employment contract concluded for a fixed term on the premise that a project will end, and where there is no practice or rule on renewal, can the employee nonetheless be recognized as having an expectation right to renewal of the employment contract? Furthermore, even if such an expectation right were to be recognized, does the project’s termination constitute a reasonable ground for refusing renewal?” Ⅲ. Summary of the Labor Relations Commission’s Reasoning The panel in this case found that there were no provisions whatsoever in the rules of employment regarding renewal of fixed-term contracts; that, prior to the conclusion of the second employment contract, there had been an explanation and agreement that the contract term would be set in consideration of the progress and circumstances of the project; that the employee had confirmed and signed an employment contract containing a clause stating that, absent a separate agreement, the contract would automatically terminate upon expiry of the contract term; and that there was no evidence of a practice or relationship of trust among similar fixed-term employees, such as repeated renewals or conversion to open-ended contracts. In light of these factors, the panel determined that it was difficult to recognize that the employee had an expectation right to renewal of the employment contract. Furthermore, the panel held that, even assuming that the employee had some degree of expectation right to renewal, the project in question had in fact ended; the new project did not have the capacity to retain the existing fixed-term workforce; and the contracts of other fixed-term employees had also been terminated en masse upon expiry of their respective contract terms. Accordingly, the panel concluded that the refusal to renew in this case was based on reasonable grounds, and therefore the dismissal could not be deemed unfair. Ⅳ. Practical Points (From the Employee’s Perspective) For a fixed-term employee to successfully challenge an unfair dismissal, it is not sufficient merely to assert that “I have been working continuously.” The employee must present concrete materials showing that a relationship of trust regarding renewal has been formed—for example, provisions in the rules of employment, employment contracts, or HR guidelines stating that “if certain conditions are met, the contract will be renewed,” or evidence of a practice of repeated renewals. In particular, it is important to collect objective materials showing whether the work is project-based or temporary in nature, and how comparable employees have actually been treated in terms of renewal or termination (e.g., whether contracts have uniformly expired, or whether most have been renewed). Ⅴ. Practical Points (From the Employer’s/Company’s Perspective) When utilizing project-based fixed-term employees, companies should clearly state in the employment contract a clause such as “automatic termination upon project completion,” as well as the reasons for setting the contract term. The rules of employment and internal guidelines should also be consistently organized to clarify the criteria for renewal and for conversion to open-ended contracts. In actual operation, if only some personnel are selectively renewed repeatedly, or if fixed-term employees are in effect deployed for a long period to perform regular and continuous work, issues may arise regarding expectation rights to renewal or to conversion to open-ended contracts. It is therefore necessary to review in advance the company’s personnel management practices, including whether to hire regular employees and whether alternatives to redundancy (such as restructuring) have been considered. 2. Matters Decided A. Case Overview and Procedural History This is a case in which the Commission held that there was no expectation right to renewal, on the grounds that there were no provisions regarding renewal of employment contracts and no practices from which a relationship of trust concerning renewal could be inferred. 3. Summary of the Decision A. Summary of the Labor Relations Commission’s Reasoning a. Whether an expectation right to renewal of the employment contract existed In light of the facts that there were no provisions in the rules of employment regarding renewal of employment contracts; that, prior to the conclusion of the second employment contract, there appears to have been an explanation and agreement on setting the contract term in consideration of the circumstances of the project; that the employee appears to have entered into the employment contract after confirming a clause stating that, absent a separate agreement between the parties, the contract would automatically terminate; and that there is no basis to find that there was any practice or relationship of trust regarding contract renewal, it is difficult to recognize an expectation right to renewal of the employment contract. b. Whether there were reasonable grounds for refusing renewal Even assuming that an expectation right to renewal is recognized, it is reasonable to find that there were justifiable grounds for refusing renewal, given that the project had ended; that, in the new project, there was no capacity to retain the existing fixed-term employees; and that the employment contracts of other fixed-term employees were also terminated upon expiry of their respective contract terms. [Further Related Decisions] - “Unfair Dismissal Decision on ‘Remedy Interest · Refusal to Rehire (Post-Retirement Fixed-Term Employment)’” - “Unfair Dismissal Decision on ‘Expectation Right to Succession of Employment (Competitive Bidding for Logistics Center)’” - “Unfair Dismissal Decision on ‘Business Necessity (Reassignment of Cleaning Staff)’” [Tags] Unfair dismissal, non-existence of renewal expectation rights (project-based fixed-term), refusal to renew fixed-term contracts, 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 Labor Law Firm Law&’s “Unfair Dismissal Decisions” series. ※ The previous article, “Unfair Dismissal Decision on ‘Excessive Disciplinary Sanction (Visit to Adult Entertainment Establishment · False Statements)’,” can be viewed in a new window. ※ A list of decisions related to non-existence of renewal expectation rights (project-based fixed-term) can be found under “List of Decisions on Non-Existence of Renewal Expectation Rights (Project-Based Fixed-Term).” ※ Korean version of this case: Korean article