Corporate trends / Performance record
‘Expectation of Renewal Right (Refusal to Renew Security Guard’s Contract)’ Unfair Dismissal Decision (Unfair Dismissal 203)
- Date2026/02/15 04:04
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of the “expectation of renewal right (refusal to renew a security guard’s contract).”
Decision Committee: Gyeongbuk Regional Labor Relations Commission 2025 Unfair Dismissal Relief Application No. 900 ○ ○ ○
Unfair Dismissal Relief Application
December 12, 2025 · Case result: Dismissed
Summary of Key Issues:
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
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1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns a fixed-term employee working as a security guard, whose contract was not renewed upon expiry of the contract period. The employee filed an application for relief from unfair dismissal with the Labor Relations Commission, claiming an expectation of renewal right based on the provisions in the rules of employment and the employment contract regarding scheduled renewal, as well as the practice of repeated renewals for many security guards. The employer, on the other hand, argued that the refusal to renew was justified due to serious obstacles to organizational operation and personnel management.
Ⅱ. Summary of Issues
The issues in this case are “whether an employee can be deemed to have an expectation of renewal right where the rules of employment and the employment contract contemplate the conclusion of a renewed contract and, in practice, many security guards’ employment contracts have been repeatedly renewed, and, if so, whether there nonetheless exists a reasonable ground for the employer’s refusal to renew.”
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case found that, in light of the fact that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal had been carried out except in exceptional cases, and that many security guards’ employment contracts had actually been repeatedly renewed, a relationship of trust regarding contract renewal had been formed, and therefore the employee had an expectation of renewal right.
Although the employee’s expectation of renewal right was recognized, the panel further found that the employer could have foreseen that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management; that these circumstances were evaluated as rising to a level that would cause substantial disruption to business operations, rather than merely constituting an issue of personnel discretion; and that, under the relevant legal principles, the reasonable ground for refusal to renew is assessed under a less stringent standard than the just cause required for dismissal.
Accordingly, the panel held that, even though the expectation of renewal right was recognized, the employer’s refusal to renew the contract in order to avoid serious obstacles in terms of organizational operation and personnel management constituted a refusal to renew based on reasonable grounds, and therefore it was difficult to regard this dismissal as unfair.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, it is important to understand that an expectation of renewal right may be recognized where the rules of employment and the employment contract contain wording such as “scheduled renewal,” and where colleagues performing the same or similar duties have in fact had their contracts repeatedly renewed. However, even if an expectation of renewal right is recognized, a refusal to renew may still be found justified if the employer proves objective grounds such as serious obstacles to organizational operation, insufficient job performance ability, or repeated conflict-inducing behavior. It is therefore important to consistently manage one’s work attitude, relationship-building, and performance evaluation records.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, where fixed-term security guards and similar employees have been repeatedly renewed, an expectation of renewal right may in effect be formed, and personnel and operational standards should be clearly established on that premise. In particular, where an expectation of renewal right is recognized and the employer intends to refuse renewal, the employer must prove, through objective materials and procedures, grounds such as the business purpose and organizational needs, serious obstacles to personnel management, and reasons attributable to the employee concerned. Accordingly, it is advisable to systematically accumulate and manage evaluation criteria, interview records, complaint records, and similar documentation.
This decision illustrates that, even where a fixed-term employee’s expectation of renewal right is recognized in an unfair dismissal dispute, the refusal to renew will not necessarily be deemed an unfair dismissal if there are reasonable grounds for the employer’s refusal to renew. Both employees and employers are therefore advised to seek prior consultation from a specialized institution such as Labor Law Firm Law& to review the legal structure in advance.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
B. Whether there exists a reasonable ground for refusal to renew
It appears that the employer refused to renew the employment contract because it could foresee that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management, and this is deemed to constitute a reasonable ground for refusal to renew the employment contract.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Decision
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
B. Whether there exists a reasonable ground for refusal to renew
It appears that the employer refused to renew the employment contract because it could foresee that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management, and this is deemed to constitute a reasonable ground for refusal to renew the employment contract. /
[See More Related Decisions]
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Decision” – Date of Decision: - Case Result: Initial Decision Upheld
- “‘Dismissal (Non-Appearance at Hearing)’ Unfair Dismissal Decision” – Date of Decision: - Case Result: Dismissed
- “‘Expression of Intent to Resign (Resignation Remark During Telephone Call)’ Unfair Dismissal Decision”
[Tags]
Unfair dismissal, expectation of renewal right (refusal to renew security guard’s 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 part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Procedural Defect (Failure to Notify Personnel Committee)’ Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to the expectation of renewal right (refusal to renew security guard’s contract) can be viewed together on the “Expectation of Renewal Right (Refusal to Renew Security Guard’s Contract) Related Decisions List” page.
※ Korean version of this case: Korean article
This case is a decision in which the employer prevailed (application dismissed) on the issue of the “expectation of renewal right (refusal to renew a security guard’s contract).”
Decision Committee: Gyeongbuk Regional Labor Relations Commission 2025 Unfair Dismissal Relief Application No. 900 ○ ○ ○
Unfair Dismissal Relief Application
December 12, 2025 · Case result: Dismissed
Summary of Key Issues:
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
---
1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns a fixed-term employee working as a security guard, whose contract was not renewed upon expiry of the contract period. The employee filed an application for relief from unfair dismissal with the Labor Relations Commission, claiming an expectation of renewal right based on the provisions in the rules of employment and the employment contract regarding scheduled renewal, as well as the practice of repeated renewals for many security guards. The employer, on the other hand, argued that the refusal to renew was justified due to serious obstacles to organizational operation and personnel management.
Ⅱ. Summary of Issues
The issues in this case are “whether an employee can be deemed to have an expectation of renewal right where the rules of employment and the employment contract contemplate the conclusion of a renewed contract and, in practice, many security guards’ employment contracts have been repeatedly renewed, and, if so, whether there nonetheless exists a reasonable ground for the employer’s refusal to renew.”
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case found that, in light of the fact that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal had been carried out except in exceptional cases, and that many security guards’ employment contracts had actually been repeatedly renewed, a relationship of trust regarding contract renewal had been formed, and therefore the employee had an expectation of renewal right.
Although the employee’s expectation of renewal right was recognized, the panel further found that the employer could have foreseen that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management; that these circumstances were evaluated as rising to a level that would cause substantial disruption to business operations, rather than merely constituting an issue of personnel discretion; and that, under the relevant legal principles, the reasonable ground for refusal to renew is assessed under a less stringent standard than the just cause required for dismissal.
Accordingly, the panel held that, even though the expectation of renewal right was recognized, the employer’s refusal to renew the contract in order to avoid serious obstacles in terms of organizational operation and personnel management constituted a refusal to renew based on reasonable grounds, and therefore it was difficult to regard this dismissal as unfair.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, it is important to understand that an expectation of renewal right may be recognized where the rules of employment and the employment contract contain wording such as “scheduled renewal,” and where colleagues performing the same or similar duties have in fact had their contracts repeatedly renewed. However, even if an expectation of renewal right is recognized, a refusal to renew may still be found justified if the employer proves objective grounds such as serious obstacles to organizational operation, insufficient job performance ability, or repeated conflict-inducing behavior. It is therefore important to consistently manage one’s work attitude, relationship-building, and performance evaluation records.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, where fixed-term security guards and similar employees have been repeatedly renewed, an expectation of renewal right may in effect be formed, and personnel and operational standards should be clearly established on that premise. In particular, where an expectation of renewal right is recognized and the employer intends to refuse renewal, the employer must prove, through objective materials and procedures, grounds such as the business purpose and organizational needs, serious obstacles to personnel management, and reasons attributable to the employee concerned. Accordingly, it is advisable to systematically accumulate and manage evaluation criteria, interview records, complaint records, and similar documentation.
This decision illustrates that, even where a fixed-term employee’s expectation of renewal right is recognized in an unfair dismissal dispute, the refusal to renew will not necessarily be deemed an unfair dismissal if there are reasonable grounds for the employer’s refusal to renew. Both employees and employers are therefore advised to seek prior consultation from a specialized institution such as Labor Law Firm Law& to review the legal structure in advance.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
B. Whether there exists a reasonable ground for refusal to renew
It appears that the employer refused to renew the employment contract because it could foresee that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management, and this is deemed to constitute a reasonable ground for refusal to renew the employment contract.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Decision
A. Whether there exists an expectation of renewal right under the employment contract
Given that the rules of employment and the employment contract contemplated the conclusion of a renewed contract, that renewal was not concluded only in exceptional cases, and that many security guards’ employment contracts had in fact been renewed, a relationship of trust regarding contract renewal can be deemed to have been formed, and thus an expectation of renewal right under the employment contract exists.
B. Whether there exists a reasonable ground for refusal to renew
It appears that the employer refused to renew the employment contract because it could foresee that renewing the employment contract with the employee would cause serious obstacles to organizational operation and personnel management, and this is deemed to constitute a reasonable ground for refusal to renew the employment contract. /
[See More Related Decisions]
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ Unfair Dismissal Decision” – Date of Decision: - Case Result: Initial Decision Upheld
- “‘Dismissal (Non-Appearance at Hearing)’ Unfair Dismissal Decision” – Date of Decision: - Case Result: Dismissed
- “‘Expression of Intent to Resign (Resignation Remark During Telephone Call)’ Unfair Dismissal Decision”
[Tags]
Unfair dismissal, expectation of renewal right (refusal to renew security guard’s 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 part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&.
※ You can view the previous article, “‘Procedural Defect (Failure to Notify Personnel Committee)’ Unfair Dismissal Decision,” in a new window.
※ The list of decisions related to the expectation of renewal right (refusal to renew security guard’s contract) can be viewed together on the “Expectation of Renewal Right (Refusal to Renew Security Guard’s Contract) Related Decisions List” page.
※ Korean version of this case: Korean article
