Corporate trends / Performance record
Non-Existence of Expectation of Renewal (Expiry of Contract Term) in Unfair Dismissal Decisions (Unfair Dismissal 429)
- Date2026/05/05 04:08
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This case concerns an unfair dismissal decision in which the employer prevailed (application dismissed) on the issue of “non-existence of an expectation of renewal (expiry of contract term).”
Adjudicating body: Gyeongnam Regional Labor Relations Commission
2026Buhae108 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2026.03.31 · Result: Application dismissed
Summary of key issue: As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any “expectation of renewal” on the part of the employee. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term.
1. Legal Implications
Ⅰ. Case Overview
In this case, a fixed-term employee expected to continue working after the expiry of the contract term, but the contract was not renewed. The employee then filed an application with the Labor Relations Commission, claiming unfair dismissal. The Gyeongnam Regional Labor Relations Commission examined the employment contract, the rules of employment, and the actual operational practices, and viewed the central issue as whether the employment relationship between the parties had ended due to simple expiry of the contract term, rather than constituting an unfair dismissal.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where there are no provisions on contract renewal in the employment contract or the rules of employment, an employee can be recognized as having an “expectation of renewal” of the employment contract such that the expiry of the contract term can be regarded as an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case noted that there were no provisions anywhere in the employment contract or the rules of employment regarding any obligation, requirements, or procedures for contract renewal; that it was difficult to find that the employer, in the course of its personnel management, had formed a relationship of trust such as “automatic renewal upon satisfaction of certain conditions” through separate renewal criteria or practices; and that the employee’s personal circumstances alone could not serve as a legal basis for justifiably expecting renewal in the future.
Therefore, it found it difficult to conclude that any relationship of trust regarding renewal of the employment contract had been formed between the employee and the employer, and accordingly also difficult to recognize any expectation of renewal.
The dismissal disposition in this case was thus deemed to be a termination of the employment relationship due to expiry of the contract term, and was held not to constitute an unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
Fixed-term employees should be aware that a purely subjective expectation such as “I think I will be able to keep working” is generally insufficient for an expectation of renewal to be recognized. For the Labor Relations Commission or the courts to be more likely to find unfair dismissal, there must be objectively formed trust, such as explicit provisions on “requirements and procedures for contract renewal” in the employment contract, rules of employment, collective agreements, or HR guidelines, or a repeated practice of renewals.
Accordingly, if you join a company as a fixed-term employee, you should check in advance how the contract term and renewal-related clauses are stipulated in the contract, and how renewals have actually been carried out within the company (whether renewals have been repeatedly granted, whether there are cases of non-renewal, etc.).
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, it is necessary to clearly state the contract term and end date in the employment contract with fixed-term employees, and to clearly specify in the rules of employment or HR guidelines whether renewal of the contract is “at the employer’s discretion” or “to be renewed upon satisfaction of certain conditions.” In particular, as Labor Law Firm Law& has pointed out in many decisions, if the criteria and procedures for renewal are left ambiguous, there is a greater possibility that employees will assert an expectation of renewal in future unfair dismissal disputes. Employers should therefore systematically establish renewal evaluation criteria and re-contracting procedures in advance.
In addition, upon expiry of the contract term, it is advisable to internally organize the reasons for refusing renewal and the necessity from a personnel management perspective, and to notify the employee in writing, at an appropriate time, of the expiry of the term and the fact of non-renewal, in order to reduce the likelihood of disputes.
Such decisions once again confirm that the criterion distinguishing unfair dismissal from termination due to expiry of the contract term is the “existence or non-existence of an expectation of renewal.” They also suggest that, from the Labor Relations Commission stage, it is important to prepare systematically for collective redundancies and fixed-term contract expiries with the assistance of experts such as Labor Law Firm Law&.
2. Matters Decided
A. Case Overview and Procedural History
As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term.
3. Gist of the Decision
A. Summary of the Labor Relations Commission’s Decision
As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term. /
[See More Related Decisions]
- “‘Expectation of Employment Succession (Change of Service Provider)’ in Unfair Dismissal Decisions”
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ in Unfair Dismissal Decisions” – Decision date: – Case number: Initial decision upheld
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ in Unfair Dismissal Decisions”
[Tags]
Unfair dismissal, non-existence of expectation of renewal (expiry of contract term), 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, “‘Expectation of Employment Succession (Change of Service Provider)’ in Unfair Dismissal Decisions,” can be viewed in a new window.
※ A list of decisions related to non-existence of expectation of renewal (expiry of contract term) can be found under “List of Decisions on Non-Existence of Expectation of Renewal (Expiry of Contract Term).”
※ Korean version of this case: Korean article
Adjudicating body: Gyeongnam Regional Labor Relations Commission
2026Buhae108 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2026.03.31 · Result: Application dismissed
Summary of key issue: As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any “expectation of renewal” on the part of the employee. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term.
1. Legal Implications
Ⅰ. Case Overview
In this case, a fixed-term employee expected to continue working after the expiry of the contract term, but the contract was not renewed. The employee then filed an application with the Labor Relations Commission, claiming unfair dismissal. The Gyeongnam Regional Labor Relations Commission examined the employment contract, the rules of employment, and the actual operational practices, and viewed the central issue as whether the employment relationship between the parties had ended due to simple expiry of the contract term, rather than constituting an unfair dismissal.
Ⅱ. Summary of Issues
The issue in this case is whether, in a situation where there are no provisions on contract renewal in the employment contract or the rules of employment, an employee can be recognized as having an “expectation of renewal” of the employment contract such that the expiry of the contract term can be regarded as an unfair dismissal.
Ⅲ. Summary of the Labor Relations Commission’s Decision
The panel in this case noted that there were no provisions anywhere in the employment contract or the rules of employment regarding any obligation, requirements, or procedures for contract renewal; that it was difficult to find that the employer, in the course of its personnel management, had formed a relationship of trust such as “automatic renewal upon satisfaction of certain conditions” through separate renewal criteria or practices; and that the employee’s personal circumstances alone could not serve as a legal basis for justifiably expecting renewal in the future.
Therefore, it found it difficult to conclude that any relationship of trust regarding renewal of the employment contract had been formed between the employee and the employer, and accordingly also difficult to recognize any expectation of renewal.
The dismissal disposition in this case was thus deemed to be a termination of the employment relationship due to expiry of the contract term, and was held not to constitute an unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
Fixed-term employees should be aware that a purely subjective expectation such as “I think I will be able to keep working” is generally insufficient for an expectation of renewal to be recognized. For the Labor Relations Commission or the courts to be more likely to find unfair dismissal, there must be objectively formed trust, such as explicit provisions on “requirements and procedures for contract renewal” in the employment contract, rules of employment, collective agreements, or HR guidelines, or a repeated practice of renewals.
Accordingly, if you join a company as a fixed-term employee, you should check in advance how the contract term and renewal-related clauses are stipulated in the contract, and how renewals have actually been carried out within the company (whether renewals have been repeatedly granted, whether there are cases of non-renewal, etc.).
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s perspective, it is necessary to clearly state the contract term and end date in the employment contract with fixed-term employees, and to clearly specify in the rules of employment or HR guidelines whether renewal of the contract is “at the employer’s discretion” or “to be renewed upon satisfaction of certain conditions.” In particular, as Labor Law Firm Law& has pointed out in many decisions, if the criteria and procedures for renewal are left ambiguous, there is a greater possibility that employees will assert an expectation of renewal in future unfair dismissal disputes. Employers should therefore systematically establish renewal evaluation criteria and re-contracting procedures in advance.
In addition, upon expiry of the contract term, it is advisable to internally organize the reasons for refusing renewal and the necessity from a personnel management perspective, and to notify the employee in writing, at an appropriate time, of the expiry of the term and the fact of non-renewal, in order to reduce the likelihood of disputes.
Such decisions once again confirm that the criterion distinguishing unfair dismissal from termination due to expiry of the contract term is the “existence or non-existence of an expectation of renewal.” They also suggest that, from the Labor Relations Commission stage, it is important to prepare systematically for collective redundancies and fixed-term contract expiries with the assistance of experts such as Labor Law Firm Law&.
2. Matters Decided
A. Case Overview and Procedural History
As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term.
3. Gist of the Decision
A. Summary of the Labor Relations Commission’s Decision
As there were no provisions in the employment contract or the rules of employment establishing any obligation, requirements, or procedures for renewal of the contract, and as no relationship of trust regarding renewal of the employment contract could be found to have been formed between the employee and the employer, it was difficult to recognize any expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was deemed to have terminated upon expiry of the contract term. /
[See More Related Decisions]
- “‘Expectation of Employment Succession (Change of Service Provider)’ in Unfair Dismissal Decisions”
- “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ in Unfair Dismissal Decisions” – Decision date: – Case number: Initial decision upheld
- “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ in Unfair Dismissal Decisions”
[Tags]
Unfair dismissal, non-existence of expectation of renewal (expiry of contract term), 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, “‘Expectation of Employment Succession (Change of Service Provider)’ in Unfair Dismissal Decisions,” can be viewed in a new window.
※ A list of decisions related to non-existence of expectation of renewal (expiry of contract term) can be found under “List of Decisions on Non-Existence of Expectation of Renewal (Expiry of Contract Term).”
※ Korean version of this case: Korean article
