Corporate trends / Performance record
Unfair Dismissal Decision Related to “Exception for Fixed-Term Workers (Demonstration Plant)” (Unfair Dismissal 416)
- Date2026/04/30 04:05
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of the “exception for fixed-term workers (demonstration plant).”
Decision body: Jeonbuk Regional Labor Relations Commission 2026 Unfair Dismissal 33 ○○○ Application for Remedy for Unfair Dismissal
2026.04.13 · Case result: Dismissed
Key issue summary:
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Therefore …
1. Legal Implications
Ⅰ. Case Overview
In this case, fixed-term workers hired for a demonstration plant project expected to continue working after the expiry of their employment contracts. When the company refused to renew their contracts on the ground that the contract terms had expired, the workers filed applications with the Labor Relations Commission, claiming unfair dismissal.
The Jeonbuk Regional Labor Relations Commission focused on whether the employment contracts in question were in fact contracts with no fixed term, and whether the workers could be recognized as having a legitimate expectation of contract renewal (a “right to expect renewal”). It ultimately rejected the workers’ claim of unfair dismissal.
Ⅱ. Issues
The issue in this case is:
“In a temporary project such as a demonstration plant, where an exception to the statutory maximum period of use for fixed-term workers under the Act on the Protection, etc. of Fixed-Term and Part-Time Employees (the ‘Fixed-Term Act’) is recognized, whether the employment contracts have in substance been converted into contracts with no fixed term, or whether the workers have acquired a legitimate expectation of contract renewal.”
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel found that the demonstration plant project is merely a “technological bridge” that accumulates process data and verifies stability before commercializing 2,3-BDO production technology, and that it is a temporary project with a clearly defined end point, terminating once the process data necessary for commercial facilities to produce 2,3-BDO products are secured.
It further held that extensions of the employment contract terms merely adjusted the expected project completion date in line with extensions of the project period, and that termination of the employment contracts upon final project completion was consistent with the original intent of the contracts. In addition, all 24 fixed-term employees had their employment relationships terminated upon expiry of their contract terms, and there was no practice of contract renewal that could give rise to a legitimate expectation of renewal.
Accordingly, the Commission held that the “dismissal” in this case should be regarded as an automatic termination upon expiry of the contract term, and that it did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, where one is hired for a temporary project with a clearly defined end point—such as “until the end of the project”—it should be noted that even if one works for more than two years, as stipulated in the Fixed-Term Act, this does not automatically result in conversion to a contract with no fixed term or recognition of a legitimate expectation of renewal.
It is important to secure objective materials in advance, such as whether the employment contract contains any promise regarding renewal or conversion to regular employment after project completion, and whether there has been a practice of repeated renewals or conversions to regular employment for workers in comparable positions.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s perspective, when using fixed-term workers for temporary projects such as demonstration plants, research and development, or specific process tests, it is necessary to clearly specify the project’s purpose, duration, and end point in the employment contract and recruitment notice, and to consistently operate in practice on the basis that the employment contracts terminate upon project completion.
If only some workers are selectively renewed or repeatedly converted to regular employment, a legitimate expectation of renewal may arise. Therefore, employers should establish written policies in advance on the use of fixed-term workers and the criteria for renewal and conversion, and strictly adhere to those criteria in HR practice.
This decision illustrates how, in unfair dismissal disputes, the Labor Relations Commission comprehensively assesses the nature of temporary projects, the applicability of exceptions under the Fixed-Term Act, and the existence of any practice of renewal. To prevent similar disputes over collective redundancies or contract expiry, both employees and employers are advised to seek advice from experts such as Labor Law Firm Law& from the contract stage.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Accordingly, the workers’ contract terms fall under the exception to the limitation on the period of use under Article 4(1)1 of the Fixed-Term Act.
B. Whether there is a legitimate expectation of renewal
The demonstration plant project has the characteristics of a temporary project with an objectively clear end point. The extensions of the employment contract terms appear to have been no more than reflecting the extended expected project completion date following extensions of the project period, and termination of the workers’ employment contracts upon final project completion is consistent with the original intent of the employment contracts. The workers’ employment contracts do not contain any provision to the effect that the contracts will be renewed after final project completion, and there is no practice of contract renewal, as all 24 fixed-term employees had their employment contracts terminated upon expiry of their contract terms. It is therefore difficult to find that a legitimate expectation of renewal was formed.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Accordingly, the workers’ contract terms fall under the exception to the limitation on the period of use under Article 4(1)1 of the Fixed-Term Act.
B. Whether there is a legitimate expectation of renewal
The demonstration plant project has the characteristics of a temporary project with an objectively clear end point. The extensions of the employment contract terms appear to have been no more than reflecting the extended expected project completion date following extensions of the project period, and termination of the workers’ employment contracts upon final project completion is consistent with the original intent of the employment contracts. The workers’ employment contracts do not contain any provision to the effect that the contracts will be renewed after final project completion, and there is no practice of contract renewal, as all 24 fixed-term employees had their employment contracts terminated upon expiry of their contract terms. It is therefore difficult to find that a legitimate expectation of renewal was formed. /
[Further Related Decisions]
- “Unfair Dismissal Decision Related to ‘Expression of Intent to Resign (Resignation Statement in Telephone Call)’”
- “Unfair Dismissal Decision Related to ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’”
- “Unfair Dismissal Decision Related to ‘Non-Formation of Hiring Commitment (Absence of Offer Letter)’” – Date of decision: – Case result: First-instance decision upheld
[Tags]
Unfair dismissal, exception for fixed-term workers (demonstration plant), 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.
※ The previous article, “Unfair Dismissal Decision Related to ‘Withdrawal of Remedy Application (Non-Appearance at Hearing)’,” can be viewed in a new window.
※ A list of decisions related to the exception for fixed-term workers (demonstration plant) can be found under “List of Decisions Related to Exception for Fixed-Term Workers (Demonstration Plant).”
※ Korean version of this case: Korean article
This case is a decision in which the employer prevailed (application dismissed) on the issue of the “exception for fixed-term workers (demonstration plant).”
Decision body: Jeonbuk Regional Labor Relations Commission 2026 Unfair Dismissal 33 ○○○ Application for Remedy for Unfair Dismissal
2026.04.13 · Case result: Dismissed
Key issue summary:
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Therefore …
1. Legal Implications
Ⅰ. Case Overview
In this case, fixed-term workers hired for a demonstration plant project expected to continue working after the expiry of their employment contracts. When the company refused to renew their contracts on the ground that the contract terms had expired, the workers filed applications with the Labor Relations Commission, claiming unfair dismissal.
The Jeonbuk Regional Labor Relations Commission focused on whether the employment contracts in question were in fact contracts with no fixed term, and whether the workers could be recognized as having a legitimate expectation of contract renewal (a “right to expect renewal”). It ultimately rejected the workers’ claim of unfair dismissal.
Ⅱ. Issues
The issue in this case is:
“In a temporary project such as a demonstration plant, where an exception to the statutory maximum period of use for fixed-term workers under the Act on the Protection, etc. of Fixed-Term and Part-Time Employees (the ‘Fixed-Term Act’) is recognized, whether the employment contracts have in substance been converted into contracts with no fixed term, or whether the workers have acquired a legitimate expectation of contract renewal.”
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The decision panel found that the demonstration plant project is merely a “technological bridge” that accumulates process data and verifies stability before commercializing 2,3-BDO production technology, and that it is a temporary project with a clearly defined end point, terminating once the process data necessary for commercial facilities to produce 2,3-BDO products are secured.
It further held that extensions of the employment contract terms merely adjusted the expected project completion date in line with extensions of the project period, and that termination of the employment contracts upon final project completion was consistent with the original intent of the contracts. In addition, all 24 fixed-term employees had their employment relationships terminated upon expiry of their contract terms, and there was no practice of contract renewal that could give rise to a legitimate expectation of renewal.
Accordingly, the Commission held that the “dismissal” in this case should be regarded as an automatic termination upon expiry of the contract term, and that it did not constitute unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, where one is hired for a temporary project with a clearly defined end point—such as “until the end of the project”—it should be noted that even if one works for more than two years, as stipulated in the Fixed-Term Act, this does not automatically result in conversion to a contract with no fixed term or recognition of a legitimate expectation of renewal.
It is important to secure objective materials in advance, such as whether the employment contract contains any promise regarding renewal or conversion to regular employment after project completion, and whether there has been a practice of repeated renewals or conversions to regular employment for workers in comparable positions.
Ⅴ. Practical Points (From the Employer’s Perspective)
From the employer’s perspective, when using fixed-term workers for temporary projects such as demonstration plants, research and development, or specific process tests, it is necessary to clearly specify the project’s purpose, duration, and end point in the employment contract and recruitment notice, and to consistently operate in practice on the basis that the employment contracts terminate upon project completion.
If only some workers are selectively renewed or repeatedly converted to regular employment, a legitimate expectation of renewal may arise. Therefore, employers should establish written policies in advance on the use of fixed-term workers and the criteria for renewal and conversion, and strictly adhere to those criteria in HR practice.
This decision illustrates how, in unfair dismissal disputes, the Labor Relations Commission comprehensively assesses the nature of temporary projects, the applicability of exceptions under the Fixed-Term Act, and the existence of any practice of renewal. To prevent similar disputes over collective redundancies or contract expiry, both employees and employers are advised to seek advice from experts such as Labor Law Firm Law& from the contract stage.
2. Matters Decided
A. Case Overview and Procedural History
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Accordingly, the workers’ contract terms fall under the exception to the limitation on the period of use under Article 4(1)1 of the Fixed-Term Act.
B. Whether there is a legitimate expectation of renewal
The demonstration plant project has the characteristics of a temporary project with an objectively clear end point. The extensions of the employment contract terms appear to have been no more than reflecting the extended expected project completion date following extensions of the project period, and termination of the workers’ employment contracts upon final project completion is consistent with the original intent of the employment contracts. The workers’ employment contracts do not contain any provision to the effect that the contracts will be renewed after final project completion, and there is no practice of contract renewal, as all 24 fixed-term employees had their employment contracts terminated upon expiry of their contract terms. It is therefore difficult to find that a legitimate expectation of renewal was formed.
3. Summary of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
A. Whether the employment contracts in this case are employment contracts with no fixed term
Considering that the demonstration plant project serves as a technological bridge before commercializing 2,3-BDO products and production technology, by verifying stability and reliability and accumulating process data to minimize risks upon commercialization, the demonstration plant project is a temporary project with a clearly defined end point, lasting only until the process data necessary for commercial facilities to produce 2,3-BDO products are secured. Accordingly, the workers’ contract terms fall under the exception to the limitation on the period of use under Article 4(1)1 of the Fixed-Term Act.
B. Whether there is a legitimate expectation of renewal
The demonstration plant project has the characteristics of a temporary project with an objectively clear end point. The extensions of the employment contract terms appear to have been no more than reflecting the extended expected project completion date following extensions of the project period, and termination of the workers’ employment contracts upon final project completion is consistent with the original intent of the employment contracts. The workers’ employment contracts do not contain any provision to the effect that the contracts will be renewed after final project completion, and there is no practice of contract renewal, as all 24 fixed-term employees had their employment contracts terminated upon expiry of their contract terms. It is therefore difficult to find that a legitimate expectation of renewal was formed. /
[Further Related Decisions]
- “Unfair Dismissal Decision Related to ‘Expression of Intent to Resign (Resignation Statement in Telephone Call)’”
- “Unfair Dismissal Decision Related to ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’”
- “Unfair Dismissal Decision Related to ‘Non-Formation of Hiring Commitment (Absence of Offer Letter)’” – Date of decision: – Case result: First-instance decision upheld
[Tags]
Unfair dismissal, exception for fixed-term workers (demonstration plant), 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.
※ The previous article, “Unfair Dismissal Decision Related to ‘Withdrawal of Remedy Application (Non-Appearance at Hearing)’,” can be viewed in a new window.
※ A list of decisions related to the exception for fixed-term workers (demonstration plant) can be found under “List of Decisions Related to Exception for Fixed-Term Workers (Demonstration Plant).”
※ Korean version of this case: Korean article
