Corporate trends / Performance record
Unfair Dismissal Precedent on “Employee Status · Indefinite-Term Contract (Refusal to Renew Freelancer Contract)” (Unfair Dismissal 400)
- Date2026/04/24 04:13
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[Case Information]
This case is a precedent in which the employee prevailed in full (all claims upheld) on the issues of “employee status · indefinite-term contract (refusal to renew freelancer contract).”
Adjudicating body: Gyeonggi Regional Labor Relations Commission 2025Buhae9958 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.02.11 · Result: All claims upheld
Summary of key issues:
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker was deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and thus qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it was held that, under the Act on the Protection, etc. of Fixed-Term and Part-Time Employees, the worker must be regarded as having been deemed an employee under an employment contract with no fixed term from 16 September 2022, the date on which the total period exceeded two years.
[…truncated in original…]
1. Legal Implications
Ⅰ. Case Overview
In this case, a worker who had been working under a freelance-type service consignment agreement had the contract expire and then faced a refusal of renewal. The worker filed an application with the Labor Relations Commission, claiming that this constituted an unfair dismissal. The Gyeonggi Regional Labor Relations Commission comprehensively reviewed the worker’s status, whether the worker was a fixed-term employee, and whether the employer’s notice of contract expiration was justified, and rendered a decision fully upholding the worker’s claims. In doing so, it整理ed typical issues that arise in unfair dismissal cases, Labor Relations Commission proceedings, and matters handled by Labor Law Firm Law&.
Ⅱ. Summary of Issues
The issues in this case are: “Whether a person is an employee under the Labor Standards Act where, despite the use of the form of a freelance service consignment agreement, the person in substance continuously worked under the employer’s direction and supervision; whether a fixed-term employment contract that has been renewed or extended for more than two years is in effect converted into an employment contract with no fixed term; and, in that state, whether refusing to renew the contract on the ground of contract expiration constitutes a dismissal and, if so, an unfair dismissal.”
Ⅲ. Summary of the Labor Relations Commission’s Findings
The adjudicating panel in this case found that, although the formal arrangement was a freelance service consignment agreement, the worker continuously provided certain labor under the employer’s direction and supervision for the purpose of receiving wages; that the period of employment continued without interruption from 16 September 2020 to 15 September 2025, and therefore, under the Fixed-Term and Part-Time Employees Act, the worker must be deemed an employee with no fixed term from the point in time when the two-year period was exceeded (16 September 2022); that, in this state, the employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration, notwithstanding the form, in substance constituted a dismissal; and that the employer violated Article 27 of the Labor Standards Act by failing to notify the reasons for and timing of the dismissal in writing.
Accordingly, the Commission held that the dismissal in this case constituted an unfair dismissal lacking just cause and lawful procedure.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even if forms such as freelance, consignment, or service contracts are used, if in reality you are working continuously at a fixed time and place under the employer’s direction and supervision, you may be recognized as an employee under the Labor Standards Act. In addition, if you have continued to work for the same employer in a fixed-term capacity for more than two years, you are, in principle, deemed under the Fixed-Term and Part-Time Employees Act to be on an indefinite-term contract (an employment contract with no fixed term). In such a case, mere notification of contract expiration will generally not suffice to establish a legitimate redundancy dismissal or ordinary dismissal.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
When using freelance or consignment-type arrangements, you should design your HR and labor-management structure on the premise that, where in actual operation there is strong evidence of designated working hours and workplace, concrete direction and supervision, exclusivity, and continuity, there is a very high likelihood that employee status will be recognized. If you repeatedly renew or extend the contracts of fixed-term employees and use them for more than two years, they may be deemed employees with no fixed term. At that stage, refusing to renew the contract on the ground of contract expiration in substance constitutes a dismissal. Therefore, unless you thoroughly establish just cause for dismissal and comply with procedures such as written notice, there is a high risk that the action will be found to be an unfair dismissal.
Finally, when managing freelancers and fixed-term personnel, you should periodically review the substantive relationship of subordination, the duration of use, and renewal practices, rather than focusing solely on the contractual form. Where necessary, you should consult experts such as Labor Law Firm Law& in advance to prepare lawful workforce adjustment measures, including conversion to regular employment or redundancy dismissals.
2. Matters Adjudicated
A. Case Overview and Procedural History
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker is deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and therefore qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it must be held, under the Fixed-Term and Part-Time Employees Act, that the worker was deemed an employee with no fixed term from 16 September 2022.
C. Whether the dismissal was justified
The employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration constitutes a dismissal, and, because the employer failed to notify the reasons for and timing of the dismissal in writing, it constitutes an unfair dismissal.
3. Summary of Findings
A. Summary of the Labor Relations Commission’s Findings
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker is deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and therefore qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it must be held, under the Fixed-Term and Part-Time Employees Act, that the worker was deemed an employee with no fixed term from 16 September 2022.
C. Whether the dismissal was justified
The employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration constitutes a dismissal, and, because the employer failed to notify the reasons for and timing of the dismissal in writing, it constitutes an unfair dismissal.
/
[See More Related Precedents]
- “Unfair Dismissal Precedent on ‘Extinction of Interest in Relief (Order of Reinstatement to Original Position)’”
- “Unfair Dismissal Precedent on ‘Non-Existence of Legitimate Expectation of Renewal (Fixed-Term Contract after Request for Renewal)’”
- “Unfair Dismissal Precedent on ‘Failure to Satisfy Requirements for Redundancy Dismissal (Workout Company)’”
[Tags]
Unfair dismissal, employee status · indefinite-term contract (refusal to renew freelancer contract), refusal to renew fixed-term contract, others, 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 one of the “Unfair Dismissal Precedent” series by Labor Law Firm Law&.
※ You can view the previous article, “Unfair Dismissal Precedent on ‘Extinction of Interest in Relief (Order of Reinstatement to Original Position)’,” in a new window.
※ The list of precedents related to employee status · indefinite-term contract (refusal to renew freelancer contract) can be viewed together on the “Employee Status · Indefinite-Term Contract (Refusal to Renew Freelancer Contract) Related Precedent List” page.
※ Korean version of this case: Korean article
This case is a precedent in which the employee prevailed in full (all claims upheld) on the issues of “employee status · indefinite-term contract (refusal to renew freelancer contract).”
Adjudicating body: Gyeonggi Regional Labor Relations Commission 2025Buhae9958 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026.02.11 · Result: All claims upheld
Summary of key issues:
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker was deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and thus qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it was held that, under the Act on the Protection, etc. of Fixed-Term and Part-Time Employees, the worker must be regarded as having been deemed an employee under an employment contract with no fixed term from 16 September 2022, the date on which the total period exceeded two years.
[…truncated in original…]
1. Legal Implications
Ⅰ. Case Overview
In this case, a worker who had been working under a freelance-type service consignment agreement had the contract expire and then faced a refusal of renewal. The worker filed an application with the Labor Relations Commission, claiming that this constituted an unfair dismissal. The Gyeonggi Regional Labor Relations Commission comprehensively reviewed the worker’s status, whether the worker was a fixed-term employee, and whether the employer’s notice of contract expiration was justified, and rendered a decision fully upholding the worker’s claims. In doing so, it整理ed typical issues that arise in unfair dismissal cases, Labor Relations Commission proceedings, and matters handled by Labor Law Firm Law&.
Ⅱ. Summary of Issues
The issues in this case are: “Whether a person is an employee under the Labor Standards Act where, despite the use of the form of a freelance service consignment agreement, the person in substance continuously worked under the employer’s direction and supervision; whether a fixed-term employment contract that has been renewed or extended for more than two years is in effect converted into an employment contract with no fixed term; and, in that state, whether refusing to renew the contract on the ground of contract expiration constitutes a dismissal and, if so, an unfair dismissal.”
Ⅲ. Summary of the Labor Relations Commission’s Findings
The adjudicating panel in this case found that, although the formal arrangement was a freelance service consignment agreement, the worker continuously provided certain labor under the employer’s direction and supervision for the purpose of receiving wages; that the period of employment continued without interruption from 16 September 2020 to 15 September 2025, and therefore, under the Fixed-Term and Part-Time Employees Act, the worker must be deemed an employee with no fixed term from the point in time when the two-year period was exceeded (16 September 2022); that, in this state, the employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration, notwithstanding the form, in substance constituted a dismissal; and that the employer violated Article 27 of the Labor Standards Act by failing to notify the reasons for and timing of the dismissal in writing.
Accordingly, the Commission held that the dismissal in this case constituted an unfair dismissal lacking just cause and lawful procedure.
Ⅳ. Practical Points (From the Employee’s Perspective)
Even if forms such as freelance, consignment, or service contracts are used, if in reality you are working continuously at a fixed time and place under the employer’s direction and supervision, you may be recognized as an employee under the Labor Standards Act. In addition, if you have continued to work for the same employer in a fixed-term capacity for more than two years, you are, in principle, deemed under the Fixed-Term and Part-Time Employees Act to be on an indefinite-term contract (an employment contract with no fixed term). In such a case, mere notification of contract expiration will generally not suffice to establish a legitimate redundancy dismissal or ordinary dismissal.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
When using freelance or consignment-type arrangements, you should design your HR and labor-management structure on the premise that, where in actual operation there is strong evidence of designated working hours and workplace, concrete direction and supervision, exclusivity, and continuity, there is a very high likelihood that employee status will be recognized. If you repeatedly renew or extend the contracts of fixed-term employees and use them for more than two years, they may be deemed employees with no fixed term. At that stage, refusing to renew the contract on the ground of contract expiration in substance constitutes a dismissal. Therefore, unless you thoroughly establish just cause for dismissal and comply with procedures such as written notice, there is a high risk that the action will be found to be an unfair dismissal.
Finally, when managing freelancers and fixed-term personnel, you should periodically review the substantive relationship of subordination, the duration of use, and renewal practices, rather than focusing solely on the contractual form. Where necessary, you should consult experts such as Labor Law Firm Law& in advance to prepare lawful workforce adjustment measures, including conversion to regular employment or redundancy dismissals.
2. Matters Adjudicated
A. Case Overview and Procedural History
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker is deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and therefore qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it must be held, under the Fixed-Term and Part-Time Employees Act, that the worker was deemed an employee with no fixed term from 16 September 2022.
C. Whether the dismissal was justified
The employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration constitutes a dismissal, and, because the employer failed to notify the reasons for and timing of the dismissal in writing, it constitutes an unfair dismissal.
3. Summary of Findings
A. Summary of the Labor Relations Commission’s Findings
A. Whether the worker falls under the definition of “employee” under the Labor Standards Act
Although a freelance service consignment agreement was executed, the worker is deemed to have provided certain labor under the employer’s direction and supervision for the purpose of receiving wages, and therefore qualifies as an employee under the Labor Standards Act.
B. Whether the worker is in fact an employee under an employment contract with no fixed term
Since the worker, after joining on 16 September 2020, continued to provide labor without any interruption in the period up to 15 September 2025, it must be held, under the Fixed-Term and Part-Time Employees Act, that the worker was deemed an employee with no fixed term from 16 September 2022.
C. Whether the dismissal was justified
The employer’s termination of the employment relationship by refusing to renew the contract on the ground of contract expiration constitutes a dismissal, and, because the employer failed to notify the reasons for and timing of the dismissal in writing, it constitutes an unfair dismissal.
/
[See More Related Precedents]
- “Unfair Dismissal Precedent on ‘Extinction of Interest in Relief (Order of Reinstatement to Original Position)’”
- “Unfair Dismissal Precedent on ‘Non-Existence of Legitimate Expectation of Renewal (Fixed-Term Contract after Request for Renewal)’”
- “Unfair Dismissal Precedent on ‘Failure to Satisfy Requirements for Redundancy Dismissal (Workout Company)’”
[Tags]
Unfair dismissal, employee status · indefinite-term contract (refusal to renew freelancer contract), refusal to renew fixed-term contract, others, 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 one of the “Unfair Dismissal Precedent” series by Labor Law Firm Law&.
※ You can view the previous article, “Unfair Dismissal Precedent on ‘Extinction of Interest in Relief (Order of Reinstatement to Original Position)’,” in a new window.
※ The list of precedents related to employee status · indefinite-term contract (refusal to renew freelancer contract) can be viewed together on the “Employee Status · Indefinite-Term Contract (Refusal to Renew Freelancer Contract) Related Precedent List” page.
※ Korean version of this case: Korean article
