Corporate trends / Performance record
Unfair Dismissal Decision on “Expectation of Renewal (Convenience Store Contract Expiry)” (Unfair Dismissal 326)
- Date2026/03/29 04:04
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of “expectation of renewal (convenience store contract expiry).”
Decision body: Jeju Regional Labor Relations Commission
2026 Unfair Dismissal Relief Application No. 10 ○○○
Unfair Dismissal Relief Application
Decision date: 2026.03.10 · Case result: Dismissed
Summary of key issues:
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term.
Given that the employment contract period was set at one year, that the employer gave notice of expiry one month in advance in accordance with the contract, that the employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term, and that the employee said to the store manager, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits”…
1. Legal Implications
Ⅰ. Case Overview
This case concerns an employee who worked on a one‑year fixed‑term contract at a convenience store and filed an application with the Labor Relations Commission for relief from unfair dismissal, claiming that the termination of the employment relationship constituted unfair dismissal. The employer argued that the employment relationship simply ended upon expiry of the contract term and submission of the employee’s resignation letter, and the Jeju Regional Labor Relations Commission rendered a decision on this dispute.
In addition to the question of whether there was unfair dismissal, the case also raised the issue of whether a fixed‑term employee could be recognized as having an expectation of renewal of the employment contract (the so‑called “expectation of renewal” right). In this context, the Commission closely examined the relevant case law and legal principles.
Ⅱ. Issues in Dispute
The issues in this case were: “Where a one‑year fixed‑term employment contract comes to an end, and the employer has given notice of expiry of the term and the employee has written ‘resignation due to contract expiry’ as the reason for resignation, can the termination of the employment relationship be regarded as unfair dismissal? Further, can an expectation of renewal be recognized based solely on a single prior renewal?”
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case noted that the employment contract expressly provided for a one‑year term and stipulated automatic termination upon expiry, that the employer gave notice of expiry one month in advance in accordance with the contract, and that the employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation, thereby recognizing that the employment relationship would end upon expiry of the term.
On this basis, the panel held that, regardless of whether the employee’s expression of intent to resign was genuine (i.e., irrespective of any issue of non‑genuineness of intent), the employment relationship ended as a normal termination upon expiry of the contract term, and not as a unilateral dismissal by the employer.
Furthermore, the work rules and employment contract contained no provisions on renewal; rather, the employment contract expressly adopted automatic termination upon expiry of the term as the principle. The decision whether to renew was made individually at the discretion of the store manager. A single renewal alone was insufficient to find that a relationship of trust had been formed between the parties to the effect that “absent special circumstances, the contract will naturally be renewed.” In particular, the fact that the employee personally stated, “If the company does not keep me on, please make it possible for me to receive unemployment benefits,” showed that the employee also recognized that renewal was uncertain.
On these grounds, the Commission held that an expectation of renewal could not be recognized, and therefore the refusal to renew the employment contract after expiry of the term did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
For a fixed‑term employee to assert unfair dismissal, it is not sufficient merely to show that the contract was renewed once. It is necessary to prove, through work rules, the employment contract, and established practice, that there existed a level of trust such that “absent special circumstances, the contract will continue to be renewed.”
When drafting a resignation letter, if you hand‑write phrases such as “resignation due to contract expiry,” or if you make statements premised on receiving unemployment benefits such as “if the company no longer keeps me on…,” these may be used as circumstances indicating that you yourself acknowledged termination upon expiry of the term. Particular caution is therefore required.
If you consider the termination of your contract to be unfair dismissal, it is important to collect as much material as possible related to expectation of renewal—such as the contract, work rules, renewal practices, examples of renewals for comparable employees, and whether the work is of a continuous and ongoing nature—in order to prepare for proceedings before the Labor Relations Commission.
Ⅴ. Practical Points (From the Employer’s Perspective)
When employing fixed‑term workers, it is advisable for companies to clearly stipulate in the employment contract the contract period and the principle of “automatic termination upon expiry of the term,” and to manage consistently, in work rules and HR operation guidelines, the criteria for renewal and the scope of managerial discretion. Repeatedly making oral statements such as “If you work diligently, we will continue to employ you” may, contrary to the written rules, give rise to disputes over expectation of renewal, and should therefore be avoided.
In addition, notices of contract expiry should clearly state the term, reason, and date of termination and be provided in advance. Where an employee prepares a resignation letter, the reason for resignation and the circumstances of departure should be clearly recorded, so that resignation or mutual termination is not confused with dismissal or redundancy dismissal. Careful document management is essential.
By obtaining advice from a specialized labor law firm such as Labor Law Firm Law&, and by reviewing in advance the procedures for managing fixed‑term employees and handling contract expiry, companies can significantly reduce the risk of disputes relating to unfair dismissal and expectation of renewal.
2. Matters Decided
A. Case Overview and Procedural History
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term
The employment contract period was set at one year, and the employer gave notice of expiry one month in advance in accordance with the contract. The employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term. The employee also told the store manager, in substance, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits.” In light of all these circumstances, and leaving aside the separate question of whether the employee’s expression of intent to resign was non‑genuine, it is determined that the employment relationship ended normally upon expiry of the contract period, and not by way of dismissal.
2. Whether an expectation of renewal can be recognized
The work rules and employment contract contain no provisions on renewal; rather, the employment contract adopts automatic termination upon expiry of the term as the principle. The decision whether to renew with employees is made at the discretion of the store manager. It is difficult to conclude that a relationship of trust was formed between the parties to the effect that the contract would naturally be renewed based solely on a single renewal. In particular, in light of the fact that the employee personally mentioned unemployment benefits on the assumption that re‑employment might not occur, it cannot be said that there existed between the parties any relationship of trust regarding renewal. Accordingly, it is difficult to recognize that the employee had an expectation of renewal.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term
The employment contract period was set at one year, and the employer gave notice of expiry one month in advance in accordance with the contract. The employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term. The employee also told the store manager, in substance, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits.” In light of all these circumstances, and leaving aside the separate question of whether the employee’s expression of intent to resign was non‑genuine, it is determined that the employment relationship ended normally upon expiry of the contract period, and not by way of dismissal.
2. Whether an expectation of renewal can be recognized
The work rules and employment contract contain no provisions on renewal; rather, the employment contract adopts automatic termination upon expiry of the term as the principle. The decision whether to renew with employees is made at the discretion of the store manager. It is difficult to conclude that a relationship of trust was formed between the parties to the effect that the contract would naturally be renewed based solely on a single renewal. In particular, in light of the fact that the employee personally mentioned unemployment benefits on the assumption that re‑employment might not occur, it cannot be said that there existed between the parties any relationship of trust regarding renewal. Accordingly, it is difficult to recognize that the employee had an expectation of renewal. /
[See More Related Decisions]
- “Unfair Dismissal Decision on Expression of Intent to Resign (Resignation Remark in Telephone Call)”
- “Unfair Dismissal Decision on Non‑Formation of Hiring Decision (Absence of Offer Letter)” – Decision date: – Case result: First‑instance decision upheld
- “Unfair Dismissal Decision on Dismissal of Application (Non‑Appearance at Hearing)” – Decision date: – Case result: Dismissed
[Tags]
Unfair dismissal, expectation of renewal (convenience store contract expiry), 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 Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “Unfair Dismissal Decision on Existence of Dismissal (Acceptance of Recommendation to Resign),” in a new window.
※ A list of decisions related to expectation of renewal (convenience store contract expiry) can be found under “List of Decisions Related to Expectation of Renewal (Convenience Store Contract Expiry).”
※ Korean version of this case: Korean article
This case is a decision in which the employer prevailed (application dismissed) on the issue of “expectation of renewal (convenience store contract expiry).”
Decision body: Jeju Regional Labor Relations Commission
2026 Unfair Dismissal Relief Application No. 10 ○○○
Unfair Dismissal Relief Application
Decision date: 2026.03.10 · Case result: Dismissed
Summary of key issues:
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term.
Given that the employment contract period was set at one year, that the employer gave notice of expiry one month in advance in accordance with the contract, that the employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term, and that the employee said to the store manager, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits”…
1. Legal Implications
Ⅰ. Case Overview
This case concerns an employee who worked on a one‑year fixed‑term contract at a convenience store and filed an application with the Labor Relations Commission for relief from unfair dismissal, claiming that the termination of the employment relationship constituted unfair dismissal. The employer argued that the employment relationship simply ended upon expiry of the contract term and submission of the employee’s resignation letter, and the Jeju Regional Labor Relations Commission rendered a decision on this dispute.
In addition to the question of whether there was unfair dismissal, the case also raised the issue of whether a fixed‑term employee could be recognized as having an expectation of renewal of the employment contract (the so‑called “expectation of renewal” right). In this context, the Commission closely examined the relevant case law and legal principles.
Ⅱ. Issues in Dispute
The issues in this case were: “Where a one‑year fixed‑term employment contract comes to an end, and the employer has given notice of expiry of the term and the employee has written ‘resignation due to contract expiry’ as the reason for resignation, can the termination of the employment relationship be regarded as unfair dismissal? Further, can an expectation of renewal be recognized based solely on a single prior renewal?”
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case noted that the employment contract expressly provided for a one‑year term and stipulated automatic termination upon expiry, that the employer gave notice of expiry one month in advance in accordance with the contract, and that the employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation, thereby recognizing that the employment relationship would end upon expiry of the term.
On this basis, the panel held that, regardless of whether the employee’s expression of intent to resign was genuine (i.e., irrespective of any issue of non‑genuineness of intent), the employment relationship ended as a normal termination upon expiry of the contract term, and not as a unilateral dismissal by the employer.
Furthermore, the work rules and employment contract contained no provisions on renewal; rather, the employment contract expressly adopted automatic termination upon expiry of the term as the principle. The decision whether to renew was made individually at the discretion of the store manager. A single renewal alone was insufficient to find that a relationship of trust had been formed between the parties to the effect that “absent special circumstances, the contract will naturally be renewed.” In particular, the fact that the employee personally stated, “If the company does not keep me on, please make it possible for me to receive unemployment benefits,” showed that the employee also recognized that renewal was uncertain.
On these grounds, the Commission held that an expectation of renewal could not be recognized, and therefore the refusal to renew the employment contract after expiry of the term did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
For a fixed‑term employee to assert unfair dismissal, it is not sufficient merely to show that the contract was renewed once. It is necessary to prove, through work rules, the employment contract, and established practice, that there existed a level of trust such that “absent special circumstances, the contract will continue to be renewed.”
When drafting a resignation letter, if you hand‑write phrases such as “resignation due to contract expiry,” or if you make statements premised on receiving unemployment benefits such as “if the company no longer keeps me on…,” these may be used as circumstances indicating that you yourself acknowledged termination upon expiry of the term. Particular caution is therefore required.
If you consider the termination of your contract to be unfair dismissal, it is important to collect as much material as possible related to expectation of renewal—such as the contract, work rules, renewal practices, examples of renewals for comparable employees, and whether the work is of a continuous and ongoing nature—in order to prepare for proceedings before the Labor Relations Commission.
Ⅴ. Practical Points (From the Employer’s Perspective)
When employing fixed‑term workers, it is advisable for companies to clearly stipulate in the employment contract the contract period and the principle of “automatic termination upon expiry of the term,” and to manage consistently, in work rules and HR operation guidelines, the criteria for renewal and the scope of managerial discretion. Repeatedly making oral statements such as “If you work diligently, we will continue to employ you” may, contrary to the written rules, give rise to disputes over expectation of renewal, and should therefore be avoided.
In addition, notices of contract expiry should clearly state the term, reason, and date of termination and be provided in advance. Where an employee prepares a resignation letter, the reason for resignation and the circumstances of departure should be clearly recorded, so that resignation or mutual termination is not confused with dismissal or redundancy dismissal. Careful document management is essential.
By obtaining advice from a specialized labor law firm such as Labor Law Firm Law&, and by reviewing in advance the procedures for managing fixed‑term employees and handling contract expiry, companies can significantly reduce the risk of disputes relating to unfair dismissal and expectation of renewal.
2. Matters Decided
A. Case Overview and Procedural History
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term
The employment contract period was set at one year, and the employer gave notice of expiry one month in advance in accordance with the contract. The employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term. The employee also told the store manager, in substance, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits.” In light of all these circumstances, and leaving aside the separate question of whether the employee’s expression of intent to resign was non‑genuine, it is determined that the employment relationship ended normally upon expiry of the contract period, and not by way of dismissal.
2. Whether an expectation of renewal can be recognized
The work rules and employment contract contain no provisions on renewal; rather, the employment contract adopts automatic termination upon expiry of the term as the principle. The decision whether to renew with employees is made at the discretion of the store manager. It is difficult to conclude that a relationship of trust was formed between the parties to the effect that the contract would naturally be renewed based solely on a single renewal. In particular, in light of the fact that the employee personally mentioned unemployment benefits on the assumption that re‑employment might not occur, it cannot be said that there existed between the parties any relationship of trust regarding renewal. Accordingly, it is difficult to recognize that the employee had an expectation of renewal.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
1. Whether the reason for termination of the employment relationship was dismissal or expiry of the fixed term
The employment contract period was set at one year, and the employer gave notice of expiry one month in advance in accordance with the contract. The employee signed the notice of expiry and hand‑wrote “resignation due to contract expiry” as the reason for resignation on the resignation letter, thereby recognizing that the employment relationship would end upon expiry of the term. The employee also told the store manager, in substance, “If the company decides not to keep me on, please at least make it possible for me to receive unemployment benefits.” In light of all these circumstances, and leaving aside the separate question of whether the employee’s expression of intent to resign was non‑genuine, it is determined that the employment relationship ended normally upon expiry of the contract period, and not by way of dismissal.
2. Whether an expectation of renewal can be recognized
The work rules and employment contract contain no provisions on renewal; rather, the employment contract adopts automatic termination upon expiry of the term as the principle. The decision whether to renew with employees is made at the discretion of the store manager. It is difficult to conclude that a relationship of trust was formed between the parties to the effect that the contract would naturally be renewed based solely on a single renewal. In particular, in light of the fact that the employee personally mentioned unemployment benefits on the assumption that re‑employment might not occur, it cannot be said that there existed between the parties any relationship of trust regarding renewal. Accordingly, it is difficult to recognize that the employee had an expectation of renewal. /
[See More Related Decisions]
- “Unfair Dismissal Decision on Expression of Intent to Resign (Resignation Remark in Telephone Call)”
- “Unfair Dismissal Decision on Non‑Formation of Hiring Decision (Absence of Offer Letter)” – Decision date: – Case result: First‑instance decision upheld
- “Unfair Dismissal Decision on Dismissal of Application (Non‑Appearance at Hearing)” – Decision date: – Case result: Dismissed
[Tags]
Unfair dismissal, expectation of renewal (convenience store contract expiry), 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 Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “Unfair Dismissal Decision on Existence of Dismissal (Acceptance of Recommendation to Resign),” in a new window.
※ A list of decisions related to expectation of renewal (convenience store contract expiry) can be found under “List of Decisions Related to Expectation of Renewal (Convenience Store Contract Expiry).”
※ Korean version of this case: Korean article
