Corporate trends / Performance record
Non-Existence of Expectation of Renewal (Termination upon Expiration of Fixed Term) – Unfair Dismissal Decision (Unfair Dismissal 460)
- Date2026/05/18 04:12
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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 expectation of renewal (termination upon expiration of fixed term).”
Decision body: Seoul Regional Labor Relations Commission
2026Buhae117 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2026.03.24 · Result: Dismissed
Key issues in summary: (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) the employee’s employment contract had never been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract. In light of these points, it was difficult to recognize that the employee had an expectation of renewal of the employment contract, and therefore the employment relationship between the parties was deemed to have ended upon expiration of the fixed term of the employment contract…
1. Legal Implications
Ⅰ. Overview of the Case
In this case, a fixed-term employee expected to continue working after the expiration of the employment contract. However, when the company did not renew the contract and treated the relationship as terminated, the employee filed an application with the Labor Relations Commission for a remedy, claiming unfair dismissal.
The Seoul Regional Labor Relations Commission focused its review on whether the expiration of the employment contract constituted a dismissal and whether the employee could be recognized as having an expectation of renewal of the employment contract. The Commission dismissed the application for remedy for unfair dismissal.
Ⅱ. Summary of the Issues
The issue in this case is whether, for a fixed-term employee whose contract period is expressly stated in the employment contract, notification of expiration of the contract period—where there are no separate provisions or established practices on renewal—constitutes unfair dismissal, that is, whether the employee can be recognized as having an expectation of renewal of the employment contract.
Ⅲ. Gist of the Labor Relations Commission’s Decision
The panel in this case considered the following: there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; there was no record of the employee’s employment contract ever having been renewed in the past, making it difficult to find that a practice of repeated renewals had been established; and there were no specific circumstances confirming that a relationship of trust had been formed between the parties to the effect that the contract would be renewed if certain conditions were satisfied.
Taking these factors together, the panel determined that it was difficult to recognize that the employee had an expectation of renewal of the employment contract.
The termination in this case was held to constitute automatic retirement due to expiration of the fixed term of the employment contract, and, absent any recognized expectation of renewal, it did not amount to unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If the employment contract clearly specifies a fixed term and there are no concrete provisions in the rules of employment, collective agreements, HR guidelines, etc. stating that “if certain conditions are met, the contract will be renewed or extended,” you should be aware that a mere subjective expectation of continued employment is not sufficient to have an expectation of renewal recognized.
It is advisable to check for yourself whether there has actually been repeated renewal in the past, whether comparable employees have been continuously re-contracted without special circumstances, and whether evaluation/renewal criteria and procedures are set out in writing. Based on such materials, you should assert your expectation of renewal before the Labor Relations Commission or the courts.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s standpoint, when entering into a fixed-term employment contract, it is important to clearly state the contract period and end date in the employment contract, and to make it clear in the rules of employment and HR regulations that renewal is entirely at the company’s discretion. In actual operation as well, care should be taken to avoid forming a practice of repeated automatic renewals.
Conversely, if, for workforce management reasons, you plan to renew contracts when certain conditions are met, you should clearly set out those conditions, evaluation criteria, and procedures in writing and operate them fairly. Doing so will help reduce future disputes over unfair dismissal (including disputes similar to collective redundancies).
Finally, in disputes related to the termination of fixed-term employment contracts, the outcome can vary significantly depending on detailed facts such as the wording of the employment contract, the content of the rules of employment, and actual renewal practices. Therefore, if a similar issue arises, it is advisable to consult at an early stage with experts such as Labor Law Firm Law& to develop a case strategy.
2. Matters Decided
A. Case Overview and Procedural History
Considering that (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) there was no record of the employee’s employment contract ever having been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract, it was deemed difficult to recognize that the employee had an expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was held to have ended upon expiration of the fixed term of the employment contract.
3. Gist of the Decision
A. Gist of the Labor Relations Commission’s Decision
Considering that (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) there was no record of the employee’s employment contract ever having been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract, it was deemed difficult to recognize that the employee had an expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was held to have ended upon expiration of the fixed term of the employment contract. /
[See More Related Decisions]
- “Expression of Intent to Resign (Resignation Remark in Telephone Call)” – Unfair Dismissal Decision
- “Non-Formation of Hiring Commitment (Absence of Offer Letter)” – Unfair Dismissal Decision – Decision date: – Case number: First-instance decision upheld
- “Justifiability of Transfer (Transfer of Security Guard under the Security Services Act)” – Unfair Dismissal Decision
[Tags]
Unfair dismissal, non-existence of expectation of renewal (termination upon expiration of fixed 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 one of Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “Unfair Dismissal Decision on Justifiability of Transfer (Organizational Restructuring) and Determination of Pay Cut (KakaoTalk Insults),” in a new window.
※ A list of decisions related to non-existence of expectation of renewal (termination upon expiration of fixed term) can be found in the “List of Decisions on Non-Existence of Expectation of Renewal (Termination upon Expiration of Fixed Term).”
※ 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 expectation of renewal (termination upon expiration of fixed term).”
Decision body: Seoul Regional Labor Relations Commission
2026Buhae117 ○ ○ ○ Application for Remedy for Unfair Dismissal
Decision date: 2026.03.24 · Result: Dismissed
Key issues in summary: (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) the employee’s employment contract had never been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract. In light of these points, it was difficult to recognize that the employee had an expectation of renewal of the employment contract, and therefore the employment relationship between the parties was deemed to have ended upon expiration of the fixed term of the employment contract…
1. Legal Implications
Ⅰ. Overview of the Case
In this case, a fixed-term employee expected to continue working after the expiration of the employment contract. However, when the company did not renew the contract and treated the relationship as terminated, the employee filed an application with the Labor Relations Commission for a remedy, claiming unfair dismissal.
The Seoul Regional Labor Relations Commission focused its review on whether the expiration of the employment contract constituted a dismissal and whether the employee could be recognized as having an expectation of renewal of the employment contract. The Commission dismissed the application for remedy for unfair dismissal.
Ⅱ. Summary of the Issues
The issue in this case is whether, for a fixed-term employee whose contract period is expressly stated in the employment contract, notification of expiration of the contract period—where there are no separate provisions or established practices on renewal—constitutes unfair dismissal, that is, whether the employee can be recognized as having an expectation of renewal of the employment contract.
Ⅲ. Gist of the Labor Relations Commission’s Decision
The panel in this case considered the following: there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; there was no record of the employee’s employment contract ever having been renewed in the past, making it difficult to find that a practice of repeated renewals had been established; and there were no specific circumstances confirming that a relationship of trust had been formed between the parties to the effect that the contract would be renewed if certain conditions were satisfied.
Taking these factors together, the panel determined that it was difficult to recognize that the employee had an expectation of renewal of the employment contract.
The termination in this case was held to constitute automatic retirement due to expiration of the fixed term of the employment contract, and, absent any recognized expectation of renewal, it did not amount to unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
If the employment contract clearly specifies a fixed term and there are no concrete provisions in the rules of employment, collective agreements, HR guidelines, etc. stating that “if certain conditions are met, the contract will be renewed or extended,” you should be aware that a mere subjective expectation of continued employment is not sufficient to have an expectation of renewal recognized.
It is advisable to check for yourself whether there has actually been repeated renewal in the past, whether comparable employees have been continuously re-contracted without special circumstances, and whether evaluation/renewal criteria and procedures are set out in writing. Based on such materials, you should assert your expectation of renewal before the Labor Relations Commission or the courts.
Ⅴ. Practical Points (From the Employer/Company’s Perspective)
From the employer’s standpoint, when entering into a fixed-term employment contract, it is important to clearly state the contract period and end date in the employment contract, and to make it clear in the rules of employment and HR regulations that renewal is entirely at the company’s discretion. In actual operation as well, care should be taken to avoid forming a practice of repeated automatic renewals.
Conversely, if, for workforce management reasons, you plan to renew contracts when certain conditions are met, you should clearly set out those conditions, evaluation criteria, and procedures in writing and operate them fairly. Doing so will help reduce future disputes over unfair dismissal (including disputes similar to collective redundancies).
Finally, in disputes related to the termination of fixed-term employment contracts, the outcome can vary significantly depending on detailed facts such as the wording of the employment contract, the content of the rules of employment, and actual renewal practices. Therefore, if a similar issue arises, it is advisable to consult at an early stage with experts such as Labor Law Firm Law& to develop a case strategy.
2. Matters Decided
A. Case Overview and Procedural History
Considering that (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) there was no record of the employee’s employment contract ever having been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract, it was deemed difficult to recognize that the employee had an expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was held to have ended upon expiration of the fixed term of the employment contract.
3. Gist of the Decision
A. Gist of the Labor Relations Commission’s Decision
Considering that (i) there was no provision in the employment contract or rules of employment to the effect that, even after the employment period expires, the employment contract will be renewed if certain conditions are met; (ii) there was no record of the employee’s employment contract ever having been renewed; and (iii) there were no circumstances indicating that a relationship of trust had been formed between the parties regarding renewal of the employment contract, it was deemed difficult to recognize that the employee had an expectation of renewal of the employment contract. Accordingly, the employment relationship between the parties was held to have ended upon expiration of the fixed term of the employment contract. /
[See More Related Decisions]
- “Expression of Intent to Resign (Resignation Remark in Telephone Call)” – Unfair Dismissal Decision
- “Non-Formation of Hiring Commitment (Absence of Offer Letter)” – Unfair Dismissal Decision – Decision date: – Case number: First-instance decision upheld
- “Justifiability of Transfer (Transfer of Security Guard under the Security Services Act)” – Unfair Dismissal Decision
[Tags]
Unfair dismissal, non-existence of expectation of renewal (termination upon expiration of fixed 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 one of Labor Law Firm Law&’s “Unfair Dismissal Decisions” series.
※ You can view the previous article, “Unfair Dismissal Decision on Justifiability of Transfer (Organizational Restructuring) and Determination of Pay Cut (KakaoTalk Insults),” in a new window.
※ A list of decisions related to non-existence of expectation of renewal (termination upon expiration of fixed term) can be found in the “List of Decisions on Non-Existence of Expectation of Renewal (Termination upon Expiration of Fixed Term).”
※ Korean version of this case: Korean article
