Corporate trends / Performance record
‘Expectation of Contract Renewal (Failure to Meet Performance Evaluation Standards)’ Unfair Dismissal Decision (Unfair Dismissal 206)
- Date2026/02/16 04:04
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[Case Information]
This case concerns an unfair dismissal decision in which the employer prevailed (application dismissed) on the issue of “expectation of contract renewal (failure to meet performance evaluation standards).”
Decision Committee: Gyeonggi Regional Labor Relations Commission 2025 Unfair Dismissal 9003 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2025.12.11 · Case result: Dismissed
Summary of key issues: Although the employee was recognized as having an expectation of renewal of the fixed-term employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its internal rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period.
1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns a decision by the Labor Relations Commission on whether an employer’s refusal to renew a fixed-term employee’s contract, based on the results of a performance evaluation, was lawful in circumstances where the employee was recognized as having an expectation of contract renewal. The Gyeonggi Regional Labor Relations Commission examined interview records, performance evaluation sheets, and prior consultation details with the labor union submitted during the proceedings, and reviewed whether the employer’s refusal to renew the contract was justified. Labor Law Firm Law& wishes to emphasize that, in this type of collective redundancy/contract renewal dispute, the objectivity of the performance evaluation and compliance with prescribed procedures are the core issues.
Ⅱ. Summary of Issues
The issue in this case is whether, in circumstances where the employee is recognized as having an expectation of renewal of the employment contract, the employer’s refusal to renew the contract based on the results of a pre-established performance evaluation and key manager interview constitutes an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Decision
The decision panel in this case noted that the employer conducted a key manager interview and performance evaluation in accordance with its rules; that during the interview, specific work-related problems such as mishandling of the console and inadequate radio communication were pointed out; and that inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period.
In addition, the panel found that, based on the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the pre-set minimum score required for renewal; that the evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union; and that, under relevant case law, even where an expectation of renewal is recognized, the employer may refuse renewal if there is a socially accepted, reasonable ground for doing so.
Accordingly, the panel held that the employer’s action in this case—refusing to renew the employment contract based on the performance evaluation results—was supported by objective and reasonable grounds from the standpoint of social norms, and that the procedures also appear to have been conducted fairly. Therefore, the disposition was not found to be unfair.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even fixed-term employees may be recognized as having an expectation of renewal if there is a practice of repeated renewals or agreed standards between labor and management. However, once such an expectation exists, you must be aware that your performance evaluation and interview results will, in practice, determine whether your contract is renewed. In particular, if there are specific and repeatedly raised work-related deficiencies—such as console operation errors, radio communication issues, or attitude problems—these may be recognized as reasonable grounds for refusing renewal. Accordingly, at the evaluation and interview stages, you should obtain written confirmation of any points raised and leave a record of your efforts to improve.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the company’s perspective, it is important to clearly document in advance, preferably through consultation with the labor union, the criteria and procedures for renewing fixed-term employees’ contracts, and to conduct performance evaluations and interviews consistently in accordance with those criteria. Evaluation items should be designed to be as specific and measurable as possible, and factual records and feedback histories should be kept regarding issues such as console mishandling, inadequate communication, and work attitude. Doing so will make it easier to prove, before the Labor Relations Commission, the social and objective reasonableness of any collective redundancies or refusals to renew contracts.
2. Matters Decided
a. Case Overview and Procedural History
Although the employee was recognized as having an expectation of renewal of the employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period. Furthermore, as a result of the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the minimum score required for renewal. The evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union. Accordingly, the employer’s refusal to renew the employment contract based on the performance evaluation results is deemed to have been supported by socially accepted, reasonable grounds.
3. Summary of the Decision
a. Summary of the Labor Relations Commission’s Reasoning
Although the employee was recognized as having an expectation of renewal of the employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period. Furthermore, as a result of the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the minimum score required for renewal. The evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union. Accordingly, the employer’s refusal to renew the employment contract based on the performance evaluation results is deemed to have been supported by socially accepted, reasonable grounds. /
[See More Related Decisions]
- ‘Dismissal of Application (Non-Appearance at Hearing)’ Unfair Dismissal Decision – Decision date: - Case result: Application dismissed
- ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ Unfair Dismissal Decision
- ‘No Formation of Hiring Commitment (Absence of Offer Letter)’ Unfair Dismissal Decision – Decision date: - Case result: Initial decision upheld
[Tags]
Unfair dismissal, expectation of renewal (failure to meet performance evaluation standards), refusal to renew fixed-term contract, performance 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 Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “‘Existence of Dismissal (KakaoTalk·Messages)’ Unfair Dismissal Decision,” in a new window.
※ A list of decisions related to expectation of renewal (failure to meet performance evaluation standards) can be viewed together at “List of Decisions on Expectation of Renewal (Failure to Meet Performance Evaluation Standards).”
※ Korean version of this case: Korean article
This case concerns an unfair dismissal decision in which the employer prevailed (application dismissed) on the issue of “expectation of contract renewal (failure to meet performance evaluation standards).”
Decision Committee: Gyeonggi Regional Labor Relations Commission 2025 Unfair Dismissal 9003 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2025.12.11 · Case result: Dismissed
Summary of key issues: Although the employee was recognized as having an expectation of renewal of the fixed-term employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its internal rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period.
1. Legal Implications
Ⅰ. Case Overview
This unfair dismissal case concerns a decision by the Labor Relations Commission on whether an employer’s refusal to renew a fixed-term employee’s contract, based on the results of a performance evaluation, was lawful in circumstances where the employee was recognized as having an expectation of contract renewal. The Gyeonggi Regional Labor Relations Commission examined interview records, performance evaluation sheets, and prior consultation details with the labor union submitted during the proceedings, and reviewed whether the employer’s refusal to renew the contract was justified. Labor Law Firm Law& wishes to emphasize that, in this type of collective redundancy/contract renewal dispute, the objectivity of the performance evaluation and compliance with prescribed procedures are the core issues.
Ⅱ. Summary of Issues
The issue in this case is whether, in circumstances where the employee is recognized as having an expectation of renewal of the employment contract, the employer’s refusal to renew the contract based on the results of a pre-established performance evaluation and key manager interview constitutes an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Decision
The decision panel in this case noted that the employer conducted a key manager interview and performance evaluation in accordance with its rules; that during the interview, specific work-related problems such as mishandling of the console and inadequate radio communication were pointed out; and that inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period.
In addition, the panel found that, based on the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the pre-set minimum score required for renewal; that the evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union; and that, under relevant case law, even where an expectation of renewal is recognized, the employer may refuse renewal if there is a socially accepted, reasonable ground for doing so.
Accordingly, the panel held that the employer’s action in this case—refusing to renew the employment contract based on the performance evaluation results—was supported by objective and reasonable grounds from the standpoint of social norms, and that the procedures also appear to have been conducted fairly. Therefore, the disposition was not found to be unfair.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even fixed-term employees may be recognized as having an expectation of renewal if there is a practice of repeated renewals or agreed standards between labor and management. However, once such an expectation exists, you must be aware that your performance evaluation and interview results will, in practice, determine whether your contract is renewed. In particular, if there are specific and repeatedly raised work-related deficiencies—such as console operation errors, radio communication issues, or attitude problems—these may be recognized as reasonable grounds for refusing renewal. Accordingly, at the evaluation and interview stages, you should obtain written confirmation of any points raised and leave a record of your efforts to improve.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the company’s perspective, it is important to clearly document in advance, preferably through consultation with the labor union, the criteria and procedures for renewing fixed-term employees’ contracts, and to conduct performance evaluations and interviews consistently in accordance with those criteria. Evaluation items should be designed to be as specific and measurable as possible, and factual records and feedback histories should be kept regarding issues such as console mishandling, inadequate communication, and work attitude. Doing so will make it easier to prove, before the Labor Relations Commission, the social and objective reasonableness of any collective redundancies or refusals to renew contracts.
2. Matters Decided
a. Case Overview and Procedural History
Although the employee was recognized as having an expectation of renewal of the employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period. Furthermore, as a result of the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the minimum score required for renewal. The evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union. Accordingly, the employer’s refusal to renew the employment contract based on the performance evaluation results is deemed to have been supported by socially accepted, reasonable grounds.
3. Summary of the Decision
a. Summary of the Labor Relations Commission’s Reasoning
Although the employee was recognized as having an expectation of renewal of the employment contract, the employer conducted a key manager interview and performance evaluation pursuant to its rules. During the interview, work-related problems such as mishandling of the console and inadequate radio communication were pointed out, and inappropriate conduct relating to work attitude was also confirmed during the section certification practical training period. Furthermore, as a result of the performance evaluation conducted to determine whether the employment contract should be renewed, the employee failed to achieve the minimum score required for renewal. The evaluation appears to have been conducted in accordance with criteria and procedures established in advance through consultation with the labor union. Accordingly, the employer’s refusal to renew the employment contract based on the performance evaluation results is deemed to have been supported by socially accepted, reasonable grounds. /
[See More Related Decisions]
- ‘Dismissal of Application (Non-Appearance at Hearing)’ Unfair Dismissal Decision – Decision date: - Case result: Application dismissed
- ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ Unfair Dismissal Decision
- ‘No Formation of Hiring Commitment (Absence of Offer Letter)’ Unfair Dismissal Decision – Decision date: - Case result: Initial decision upheld
[Tags]
Unfair dismissal, expectation of renewal (failure to meet performance evaluation standards), refusal to renew fixed-term contract, performance 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 Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “‘Existence of Dismissal (KakaoTalk·Messages)’ Unfair Dismissal Decision,” in a new window.
※ A list of decisions related to expectation of renewal (failure to meet performance evaluation standards) can be viewed together at “List of Decisions on Expectation of Renewal (Failure to Meet Performance Evaluation Standards).”
※ Korean version of this case: Korean article
