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    Non-Existence of Renewal Expectation Right (Fixed-Term Contract Following Request for Contract Extension) – Unfair Dismissal Decision (Unfair Dismissal 398)
    • Date2026/04/24 04:04
    • Read 164
    [Case Information]

    This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of renewal expectation right (fixed-term contract following request for contract extension).”

    Decision Body: Gyeonggi Regional Labor Relations Commission
    2025 Unfair Dismissal 9962 ○ ○ ○ Application for Remedy for Unfair Dismissal
    Decision date: 2026.02.11 · Case result: Dismissed

    Summary of Key Issues: The employee argued that, because the employment contract had been customarily renewed, a renewal expectation right should be recognized. However, in light of (i) the fact that, after being notified of the expiration of the employment contract, the employee personally requested an extension of the contract, (ii) the fact that, accordingly, a separate fixed-term employment contract was newly concluded, (iii) the fact that, based on the content of telephone calls with the person in charge at the workplace, the employee likewise clearly recognized the contract termination date, and (iv) the fact that the employer proposed continued employment before the expiration of the contract term but the employee …

    1. Legal Implications

    Ⅰ. Case Overview

    In this case, a fixed-term employee, after receiving notice of the expiration of the employment contract, filed an application with the Labor Relations Commission seeking a remedy for unfair dismissal. The application was dismissed by the Gyeonggi Regional Labor Relations Commission. The employee argued that, because the employment contract had been customarily renewed, a renewal expectation right should be recognized and that the refusal to renew constituted an unfair dismissal.

    The employer maintained that the employment relationship had simply ended upon the expiration of the contract term specified in the employment contract, and that, even in light of the relevant case law principles organized by Labor Law Firm Law&, this did not constitute an unfair dismissal.

    Ⅱ. Summary of Issues

    The issue in this case is whether, in a situation where, after being notified of the expiration of the contract term, the employee personally requested a temporary extension and a separate short-term contract was concluded, the employee can still be deemed to have a renewal expectation right and thereby assert unfair dismissal (having an effect similar to a redundancy dismissal).

    Ⅲ. Summary of the Labor Relations Commission’s Reasoning

    The panel in this case found that, after receiving the initial notice of contract termination, the employee personally requested an extension of the contract, and, accordingly, a separate fixed-term employment contract was newly concluded; that, based on the content of telephone calls with the person in charge at the workplace, the employee likewise clearly recognized the contract termination date; that the employer proposed continued employment before the expiration of the contract term but the employee declined; and that the employment contract provided that “renewal shall be made only where there is an express agreement between the parties.”

    In light of the wording of the employment contract, the circumstances of its conclusion, and the parties’ actual conduct, the Commission held that it was difficult to find that a relationship of trust had been formed to the effect that the contract would naturally be renewed upon satisfaction of certain conditions. There was no repeated practice of automatic renewal, nor any internal rules that could be interpreted as imposing an obligation to re-contract. Accordingly, the Commission found it difficult to recognize that the employee had a renewal expectation right.

    Ⅳ. Practical Points (From the Employee’s Perspective)

    A renewal expectation right is not recognized merely because “the contract has been renewed several times.” The key question is whether, considering the contract terms, work rules/internal guidelines, and actual renewal practices in a comprehensive manner, there existed a relationship of trust that the contract would naturally be renewed upon satisfaction of certain conditions. In particular, as in this case, if, after receiving notice of contract expiration, you personally request a “temporary extension,” or if you decline an offer of continued employment from the employer, your conduct may be evaluated as having been premised on contract termination, which can significantly weaken any claim to a renewal expectation right.

    Therefore, if you are contemplating a dispute over unfair dismissal, when you receive notice of contract expiration you should preserve evidence—such as text messages, emails, or recordings—showing that the employer guaranteed renewal or had a practice of automatic renewal. At the same time, you should carefully organize whether your own responses were “premised on continued employment” or “premised on termination.”

    Ⅴ. Practical Points (From the Employer’s Perspective)

    From the company’s perspective, it is important to clearly state in fixed-term employment contracts the contract period, whether renewal is possible, and the conditions and procedures for renewal, and to consistently adhere in practice to a clause stating that “renewal shall be made only where there is an express agreement between the parties.” If the criteria and practices for determining renewal are ambiguous, courts are more likely to recognize a renewal expectation right. Accordingly, you should document in advance evaluation criteria, re-contracting thresholds, and grounds for non-renewal, and, when refusing renewal, keep records that enable you to objectively explain the reasons.

    As in this decision, where the employee, fully aware of the contract expiration, newly concludes a separate fixed-term contract, clearly notifying in writing and through explanation that “once the final contract ends, there will be no further re-contracting” can serve as a powerful basis supporting the employer’s position if a dispute over unfair dismissal or renewal expectation right later arises before the Labor Relations Commission.

    2. Matters Decided

    A. Case Overview and Procedural History

    The employee argued that, because the employment contract had been customarily renewed, a renewal expectation right should be recognized. However, in light of (i) the fact that, after being notified of the expiration of the employment contract, the employee personally requested an extension of the contract, (ii) the fact that, accordingly, a separate fixed-term employment contract was newly concluded, (iii) the fact that, based on the content of telephone calls with the person in charge at the workplace, the employee likewise clearly recognized the contract termination date, (iv) the fact that the employer proposed continued employment before the expiration of the contract term but the employee declined, and (v) the fact that the employment contract provided that contract renewal would be made only where there is an express agreement between the parties, the Commission found it difficult to recognize that the employee had a renewal expectation right.

    3. Gist of the Decision

    A. Summary of the Labor Relations Commission’s Reasoning

    The employee argued that, because the employment contract had been customarily renewed, a renewal expectation right should be recognized. However, in light of (i) the fact that, after being notified of the expiration of the employment contract, the employee personally requested an extension of the contract, (ii) the fact that, accordingly, a separate fixed-term employment contract was newly concluded, (iii) the fact that, based on the content of telephone calls with the person in charge at the workplace, the employee likewise clearly recognized the contract termination date, (iv) the fact that the employer proposed continued employment before the expiration of the contract term but the employee declined, and (v) the fact that the employment contract provided that contract renewal would be made only where there is an express agreement between the parties, the Commission found it difficult to recognize that the employee had a renewal expectation right. /

    [See More Related Decisions]

    - “Expression of Intent to Resign (Resignation Remark During Telephone Call)” – Unfair Dismissal Decision
    - “Non-Formation of Hiring Decision (Absence of Offer Letter)” – Unfair Dismissal Decision – Decision date: – Case number: First-instance decision upheld
    - “Dismissal (Non-Appearance at Hearing)” – Unfair Dismissal Decision – Decision date: – Case number: Dismissed

    [Tags]
    Unfair dismissal, non-existence of renewal expectation right (fixed-term contract following request for contract extension), 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, “‘Violation of Work Orders (Refusal of On-Call Duty and Holiday Work)’ – Unfair Dismissal Decision,” in a new window.
    ※ A list of decisions related to non-existence of renewal expectation right (fixed-term contract following request for contract extension) can be found under “List of Decisions Related to Non-Existence of Renewal Expectation Right (Fixed-Term Contract Following Request for Contract Extension).”

    ※ Korean version of this case: Korean article