[Case Information] This case is a decision that was concluded with the first-instance decision being upheld, concerning the issue of “expectation of renewal rights (water meter reading workers).” Decision Committee: Central Labor Relations Commission 2026Buhae99 ○ ○ ○ Application for Re‑examination of Remedy for Unfair Dismissal 2026-07-03 · Case Result: First-Instance Decision Upheld Summary of Key Issues: a. Existence of voluntary intention to resign Since the worker’s intention to resign was not confirmed, the termination of the employment relationship was deemed to have occurred by notice of expiration of the fixed term. b. Existence of expectation of renewal rights In light of the provisions of the rules of employment and the fact that some workers continued to work after entering into renewed fixed-term contracts, there were grounds and practices sufficient to recognize an expectation of renewal right. c. Justifiability of refusal to renew The worker had significant attendance and conduct issues, such as entering arbitrary figures during re‑reading after a water meter reading error was pointed out, thereby causing further errors, and most of the worker’s performance evaluations were rated “insufficient.” Accordingly, there were reasonable grounds for refusing to renew the contract. 1. Legal Implications Ⅰ. Case Overview This case concerns whether the notice of expiration of an employment contract and refusal to renew a fixed-term contract for a water meter reading worker constituted an unfair dismissal. The worker filed an application with the Labor Relations Commission for remedy for unfair dismissal, arguing that they had not voluntarily resigned but that the employer had unjustly refused to renew the contract. The employer prevailed both at first instance and upon re‑examination before the Central Labor Relations Commission. Ⅱ. Summary of Issues The issue in this case is: “In circumstances where a fixed-term worker performing water meter reading duties has an expectation of renewal right, whether the refusal to renew the contract by the Labor Relations Commission on the grounds of poor attendance and inadequate performance evaluation constitutes an unfair dismissal.” Ⅲ. Summary of the Labor Relations Commission’s Reasoning The decision panel in this case found that the worker’s voluntary intention to resign could not be confirmed by any objective evidence, and therefore viewed the termination of the employment relationship not as a resignation but as a termination by notice of expiration of the fixed term. Furthermore, in light of the content of the rules of employment and the practice whereby some fixed-term workers continued to work after entering into renewed fixed-term contracts, the panel assumed that a certain expectation of renewal right could also be recognized for this worker. Nevertheless, the worker had significant issues with attendance and conduct, such as entering arbitrary figures during re‑reading even after a water meter reading error had been pointed out, thereby causing further errors, and most of the worker’s performance evaluations were at the “insufficient” level. Taking these factors together, the panel held that there were reasonable grounds for the refusal to renew the contract in this case, and thus it could not be regarded as an unfair dismissal. Ⅳ. Practical Points (From the Worker’s Perspective) Even fixed-term workers may be recognized as having an expectation of renewal right depending on the content of the rules of employment and contracts, and on repeated renewal practices. In such cases, the employer’s refusal to renew will be reviewed in a manner similar to an unfair dismissal. However, even where an expectation of renewal right is recognized, if objectively demonstrable reasons such as poor attendance or insufficient work performance accumulate, they may be accepted as reasonable grounds for refusal to renew. It is therefore crucial to make efforts to improve work attitude and performance evaluation results. Ⅴ. Practical Points (From the Employer’s Perspective) From the employer’s standpoint, it is necessary to define as clearly as possible in the rules of employment and contracts the standards for managing fixed-term workers and the conditions for renewal, and to maintain actual operational practices consistently in line with those standards. In addition, attendance issues or performance evaluation results that may serve as grounds for refusal to renew should be supported by specific records and documentation of warnings and guidance, so that the employer can prove “reasonable grounds” before the Labor Relations Commission. As in this case, the Labor Relations Commission, irrespective of whether an expectation of renewal right is recognized, closely examines the specific circumstances of each worker’s work attitude and performance evaluations to determine the reasonableness of a refusal to renew. To prevent similar disputes, both workers and employers need to understand accurately the legal principles governing fixed-term contracts and to establish and maintain robust HR and performance management systems. 2. Matters Decided a. Case Overview and Procedural History a. Existence of voluntary intention to resign Since the worker’s intention to resign was not confirmed, the termination of the employment relationship was deemed to have occurred by notice of expiration of the fixed term. b. Existence of expectation of renewal rights In light of the provisions of the rules of employment and the fact that some workers continued to work after entering into renewed fixed-term contracts, there were grounds and practices sufficient to recognize an expectation of renewal right. c. Justifiability of refusal to renew Despite the pointing out of errors in water meter readings, the worker entered arbitrary figures again during re‑reading, thereby causing further errors, which gave rise to significant attendance and conduct issues. In addition, most of the worker’s performance evaluations were rated “insufficient.” Accordingly, there were reasonable grounds for refusing to renew the contract. 3. Summary of Decision a. Summary of the Labor Relations Commission’s Reasoning a. Existence of voluntary intention to resign Since the worker’s intention to resign was not confirmed, the termination of the employment relationship was deemed to have occurred by notice of expiration of the fixed term. b. Existence of expectation of renewal rights In light of the provisions of the rules of employment and the fact that some workers continued to work after entering into renewed fixed-term contracts, there were grounds and practices sufficient to recognize an expectation of renewal right. c. Justifiability of refusal to renew Despite the pointing out of errors in water meter readings, the worker entered arbitrary figures again during re‑reading, thereby causing further errors, which gave rise to significant attendance and conduct issues. In addition, most of the worker’s performance evaluations were rated “insufficient.” Accordingly, there were reasonable grounds for refusing to renew the contract. / [See More Related Decisions] - “Unfair Dismissal Decision on ‘Failure to Meet Requirements for Redundancy Dismissal (Workout Company)’” - “Unfair Dismissal Decision on ‘Expression of Intention to Resign (Resignation Remark in Telephone Call)’” - “Unfair Dismissal Decision on ‘Dismissal (Non‑appearance at Hearing)’” – Date of Decision: – Case Number: Dismissal [Tags] Unfair dismissal, expectation of renewal rights (water meter reading workers), refusal to renew fixed-term contract, performance evaluation · poor performance, violation of company policy · non‑compliance with work instructions, 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, “Unfair Dismissal Decision on ‘Denial of Employee Status (Registered Executive Director)’,” in a new window. ※ The list of decisions related to expectation of renewal rights (water meter reading workers) can be viewed together at “List of Decisions on Expectation of Renewal Rights (Water Meter Reading Workers).” ※ Korean version of this case: Korean article