Corporate trends / Performance record
Non-Existence of Legitimate Expectation of Renewal (Participation in Temporary Project) – Unfair Dismissal Decision (Unfair Dismissal 421)
- Date2026/05/01 04:13
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of legitimate expectation of renewal (participation in temporary project).”
Decision body: Gyeongnam Regional Labor Relations Commission 2026 Unfair Dismissal 128 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.04.03 · Case result: Dismissed
Summary of key issue: The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the fixed-term employment contract would be renewed.
1. Legal Implications
Ⅰ. Case Overview
This application for remedy for unfair dismissal concerned a fixed-term employee who had participated in a temporary/one-off project and whose contract was not renewed upon expiry of the contract term. The issue was whether this could be regarded as an unfair dismissal.
The Gyeongnam Regional Labor Relations Commission examined the employment contract, the work rules, the nature of the project, and any renewal practices, and focused its analysis on whether a legitimate expectation of renewal (갱신기대권) could be recognized. It ultimately found in favor of the employer.
Ⅱ. Summary of Issues
The issue in this case was whether, in circumstances where the contract term was clearly specified in the employment contract, the project in question had a temporary/one-off nature, and there were no provisions or practices concerning contract renewal in the work rules or otherwise, the employee could be recognized as having a legitimate expectation of renewal of the employment contract (갱신기대권).
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case noted that the employment contract clearly specified the term of employment and that it was clear from the structure of the contract that the employment relationship would end upon expiry of the contract term; that there were no provisions in the work rules or any collective agreement setting out the requirements or procedures for renewal; that the project in which the employee participated was, by its nature, a temporary/one-off project and could not readily be regarded as a continuous or ongoing business; and that there were no confirmed cases of repeated renewals of similar contracts or any practice from which it could be inferred that “the term was merely a formality.”
In light of the content and background of the employment contract, the nature of the project, and the actual operation of renewals, the panel found it difficult to conclude that a relationship of trust had been formed to the effect that “the contract will naturally be renewed if certain conditions are met,” and held that the employee did not have a legitimate expectation of renewal of the employment contract.
The panel held that the termination in this case constituted automatic retirement due to expiry of the contract term, and that the refusal to renew could not be deemed an unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If you are working as a fixed-term employee and wish to allege unfair dismissal, you must first objectively examine whether a “legitimate expectation of renewal” (갱신기대권) can be recognized in your case.
Where the contract term is clearly stated in the employment contract, the project itself is temporary/one-off, and there are no elements in the company’s rules or actual practices that would give rise to an expectation of repeated renewal or conversion to permanent employment, a purely subjective belief that “I thought I would continue working” will generally not be sufficient to obtain relief from the Labor Relations Commission.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, when hiring fixed-term employees for temporary/one-off projects, it is advisable to clearly state in the employment contract the contract term and the structure that “the contract automatically terminates upon expiry of the term.”
In addition, in your work rules and internal guidelines, avoid unnecessarily framing renewal requirements or procedures as “obligations,” and in actual HR operations, ensure that practices of repeated renewal do not develop to the point where the contracts are effectively operated as open-ended contracts.
This decision of the Gyeongnam Regional Labor Relations Commission is of considerable practical significance in that it reconfirms that, for a legitimate expectation of renewal to be recognized, an “objective relationship of trust” must have been formed based on a comprehensive consideration of the wording of the employment contract, internal rules, the nature of the project, and renewal practices; and that, absent such a foundation, refusal to renew upon expiry of the contract term does not constitute unfair dismissal.
2. Matters Decided
A. Case Overview and Procedural History
The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the employment contract would be renewed.
3. Summary of Decision
A. Summary of the Labor Relations Commission’s Reasoning
The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the employment contract would be renewed. /
[See More Related Decisions]
- ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ – Unfair Dismissal Decision
- ‘Non-Formation of Hiring Commitment (Absence of Offer Letter)’ – Unfair Dismissal Decision – Date of decision: – Case number: First-instance decision upheld
- ‘Lawful Union Activity (Encouraging Participation in General Meeting of Union Members)’ – Unfair Dismissal Decision
[Tags]
Unfair dismissal, non-existence of legitimate expectation of renewal (participation in temporary project), 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, “Lawful Union Activity (Encouraging Participation in General Meeting of Union Members) – Unfair Dismissal Decision,” in a new window.
※ A list of decisions related to non-existence of legitimate expectation of renewal (participation in temporary project) can be found under “List of Decisions Related to Non-Existence of Legitimate Expectation of Renewal (Participation in Temporary Project).”
※ Korean version of this case: Korean article
This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of legitimate expectation of renewal (participation in temporary project).”
Decision body: Gyeongnam Regional Labor Relations Commission 2026 Unfair Dismissal 128 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.04.03 · Case result: Dismissed
Summary of key issue: The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the fixed-term employment contract would be renewed.
1. Legal Implications
Ⅰ. Case Overview
This application for remedy for unfair dismissal concerned a fixed-term employee who had participated in a temporary/one-off project and whose contract was not renewed upon expiry of the contract term. The issue was whether this could be regarded as an unfair dismissal.
The Gyeongnam Regional Labor Relations Commission examined the employment contract, the work rules, the nature of the project, and any renewal practices, and focused its analysis on whether a legitimate expectation of renewal (갱신기대권) could be recognized. It ultimately found in favor of the employer.
Ⅱ. Summary of Issues
The issue in this case was whether, in circumstances where the contract term was clearly specified in the employment contract, the project in question had a temporary/one-off nature, and there were no provisions or practices concerning contract renewal in the work rules or otherwise, the employee could be recognized as having a legitimate expectation of renewal of the employment contract (갱신기대권).
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case noted that the employment contract clearly specified the term of employment and that it was clear from the structure of the contract that the employment relationship would end upon expiry of the contract term; that there were no provisions in the work rules or any collective agreement setting out the requirements or procedures for renewal; that the project in which the employee participated was, by its nature, a temporary/one-off project and could not readily be regarded as a continuous or ongoing business; and that there were no confirmed cases of repeated renewals of similar contracts or any practice from which it could be inferred that “the term was merely a formality.”
In light of the content and background of the employment contract, the nature of the project, and the actual operation of renewals, the panel found it difficult to conclude that a relationship of trust had been formed to the effect that “the contract will naturally be renewed if certain conditions are met,” and held that the employee did not have a legitimate expectation of renewal of the employment contract.
The panel held that the termination in this case constituted automatic retirement due to expiry of the contract term, and that the refusal to renew could not be deemed an unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If you are working as a fixed-term employee and wish to allege unfair dismissal, you must first objectively examine whether a “legitimate expectation of renewal” (갱신기대권) can be recognized in your case.
Where the contract term is clearly stated in the employment contract, the project itself is temporary/one-off, and there are no elements in the company’s rules or actual practices that would give rise to an expectation of repeated renewal or conversion to permanent employment, a purely subjective belief that “I thought I would continue working” will generally not be sufficient to obtain relief from the Labor Relations Commission.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, when hiring fixed-term employees for temporary/one-off projects, it is advisable to clearly state in the employment contract the contract term and the structure that “the contract automatically terminates upon expiry of the term.”
In addition, in your work rules and internal guidelines, avoid unnecessarily framing renewal requirements or procedures as “obligations,” and in actual HR operations, ensure that practices of repeated renewal do not develop to the point where the contracts are effectively operated as open-ended contracts.
This decision of the Gyeongnam Regional Labor Relations Commission is of considerable practical significance in that it reconfirms that, for a legitimate expectation of renewal to be recognized, an “objective relationship of trust” must have been formed based on a comprehensive consideration of the wording of the employment contract, internal rules, the nature of the project, and renewal practices; and that, absent such a foundation, refusal to renew upon expiry of the contract term does not constitute unfair dismissal.
2. Matters Decided
A. Case Overview and Procedural History
The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the employment contract would be renewed.
3. Summary of Decision
A. Summary of the Labor Relations Commission’s Reasoning
The term of the employment contract was specified in the employment contract, there were no provisions on renewal in the work rules, the project in which the employee participated had the nature of a temporary/one-off project, and there were no cases or practices of contract renewal. Accordingly, there was no legitimate expectation that the employment contract would be renewed. /
[See More Related Decisions]
- ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’ – Unfair Dismissal Decision
- ‘Non-Formation of Hiring Commitment (Absence of Offer Letter)’ – Unfair Dismissal Decision – Date of decision: – Case number: First-instance decision upheld
- ‘Lawful Union Activity (Encouraging Participation in General Meeting of Union Members)’ – Unfair Dismissal Decision
[Tags]
Unfair dismissal, non-existence of legitimate expectation of renewal (participation in temporary project), 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, “Lawful Union Activity (Encouraging Participation in General Meeting of Union Members) – Unfair Dismissal Decision,” in a new window.
※ A list of decisions related to non-existence of legitimate expectation of renewal (participation in temporary project) can be found under “List of Decisions Related to Non-Existence of Legitimate Expectation of Renewal (Participation in Temporary Project).”
※ Korean version of this case: Korean article
