[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “refusal to renew (two-year cumulative work evaluation index).” Decision date: 2026-09-04 · Decision body: Jeonnam Regional Labor Relations Commission · Case No.: 2026부해683 Key issue summary: A. Whether an expectation of renewal exists The employer has regularly conducted work performance evaluations of fixed-term employees in order to decide whether to renew their employment contracts. In light of the fact that fixed-term employment contracts have been repeatedly renewed, a relationship of trust has been formed between the parties to the employment contract that the contract will be renewed when certain conditions are satisfied. Accordingly, the employee has an expectation of renewal of the employment contract. 1. Legal Implications This unfair dismissal case concerns a refusal to renew a fixed-term employment contract that was disputed before the Jeonnam Regional Labor Relations Commission. The Commission recognized the existence of an expectation of renewal, but nevertheless found that there was a reasonable ground for the refusal to renew. As Labor Law Firm Law& frequently handles disputes related to expectations of renewal for fixed-term employees, this decision is a useful reference for examining the criteria for lawful refusal to renew based on work evaluations. Ⅰ. Case Overview In this case, a fixed-term employee had worked under several successive contract renewals. The employer, relying on the results of a work performance evaluation, decided not to renew the contract further, which gave rise to the dispute. The employee argued that, in light of the repeated renewals and the employer’s established practice, he/she had an expectation of renewal of the employment contract, and that the refusal to renew in this instance constituted an unfair dismissal. On this basis, the employee filed an application for relief with the Labor Relations Commission. Ⅱ. Issues The issue in this case is whether, in circumstances where a fixed-term employee is recognized as having an expectation of renewal of the employment contract, there is a reasonable ground for refusing to renew based on the cumulative work evaluation index for the most recent two years. Ⅲ. Summary of the Labor Relations Commission’s Decision The panel in this case found that the employer had regularly conducted work performance evaluations of fixed-term employees, that fixed-term employment contracts had been repeatedly renewed on the basis of those evaluations, and that, in light of these circumstances, a relationship of trust had been formed that the employment contract would be renewed when certain conditions were satisfied. Accordingly, the panel held that the employee had an expectation of renewal. Furthermore, the panel held that there was a reasonable ground for the employer to use the cumulative index for the most recent two years as the evaluation period, in order to reflect business performance over the medium to long term. It also found that, during the evaluation period, there were significant grounds attributable to the employee—such as work attitude and performance issues—that justified refusal to renew the contract. Taking into account the Supreme Court’s position that the “reasonable ground” required for refusal to renew is a less stringent standard than the “just cause” required for dismissal, while the burden of proof lies with the employer, the panel concluded that, although this case falls within a situation where an expectation of renewal is recognized, the employer had substantiated the employee’s performance-related problems based on objective work evaluations and cumulative indices. Therefore, the refusal to renew met the standard of social reasonableness and was not found to be unfair. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s standpoint, if a fixed-term employment contract has been renewed multiple times and there is a regular work evaluation system and corresponding practice, an expectation of renewal may be recognized. However, even where an expectation of renewal exists, if the recent work evaluation results objectively show consistent underperformance, negligence, or other grounds attributable to the employee, a reasonable ground for refusal to renew may be acknowledged. It is therefore important to consistently build and maintain records of diligent work and rebuttal materials covering the entire evaluation period. Ⅴ. Practical Points (From the Employer’s Perspective) From the employer’s standpoint, where fixed-term employees’ contracts are repeatedly renewed and regular work evaluations are conducted, HR and evaluation systems should be designed on the premise that, in effect, an expectation of renewal may be formed. In particular, to justify a refusal to renew, employers should clearly establish evaluation criteria and procedures in advance, and maintain objective records of cumulative indices over a certain period (e.g., the most recent two years), so that they can specifically prove grounds attributable to the employee, such as lack of job competence or negligence. This decision illustrates once again that, even in the case of refusal to renew an individual fixed-term employee’s contract—as opposed to collective redundancies—where an expectation of renewal has already been formed, the employer must clearly demonstrate reasonable grounds and fair procedures in order to exclude that expectation. 2. Matters Decided A. Case overview and procedural history A case in which the Labor Relations Commission found that, although an expectation of renewal of the employment contract existed, there was a reasonable ground for refusal to renew. 3. Summary of Decision A. Summary of the Labor Relations Commission’s reasoning (1) Whether an expectation of renewal exists The employer has regularly conducted work performance evaluations of fixed-term employees in order to decide whether to renew their employment contracts. In light of the fact that fixed-term employment contracts have been repeatedly renewed, a relationship of trust has been formed between the parties to the employment contract that the contract will be renewed when certain conditions are satisfied. Accordingly, the employee has an expectation of renewal of the employment contract. (2) Whether there is a reasonable ground for refusal to renew There appears to be a reasonable ground for the employer to use the cumulative index for the most recent two years as the evaluation period, and it was confirmed that, during the evaluation period, there were significant grounds attributable to the employee that justified refusal to renew the employment contract. Therefore, there is a reasonable ground for the refusal to renew the employment contract. [See More Related Decisions] - “Unfair Dismissal Case Concerning ‘Relief Interest · Refusal to Rehire (Post-Retirement Fixed-Term Employment)’” - “Unfair Dismissal Case Concerning ‘Non-Formation of Hiring Commitment (Absence of Offer Letter)’” – Decision date: – Case No.: Original decision upheld - “Unfair Dismissal Case Concerning ‘Expectation of Succession of Employment (Competitive Bidding for Logistics Center)’” [Tags] Unfair dismissal, refusal to renew (two-year cumulative work evaluation index), refusal to renew fixed-term contract, personnel evaluation · poor performance, 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, “Unfair Dismissal Case Concerning ‘Expression of Intention Not Genuine (Voluntary Resignation After Notice of Removal from Team Leader Position)’,” in a new window. ※ A list of decisions related to refusal to renew (two-year cumulative work evaluation index) can be found under “List of Decisions Related to Refusal to Renew (Two-Year Cumulative Work Evaluation Index).” ※ Korean version of this case: Korean article