[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “expiration of a fixed-term (3-year) contract.” Decision date: 2026-07-01 · Decision body: Gyeonggi Regional Labor Relations Commission · Case No.: 2026Buhae2578 Key issue summary: ① The employee’s employment contract specified a 3-year term (from 2023. 1. Legal Implications Ⅰ. Case Overview In this case, an executive-level employee filed an application for relief with the Labor Relations Commission, alleging unfair dismissal after the employer declined to renew his fixed-term employment contract upon the expiry of its 3-year term. The Gyeonggi Regional Labor Relations Commission conducted hearings focusing on whether the employee had an expectation of renewal of the employment contract, and ultimately found in favor of the employer, holding that there was no unfair dismissal. The employment contract specified a 3-year term and included a proviso that, if the contract was to be extended, the parties were to notify each other of their intention at least 30 days prior to the end of the term. The employer notified the employee in writing, immediately before the expiry of the contract, of its intention to terminate the employment relationship upon expiration, and argued that there was no prior history of contract renewal with this employee and no uniform practice of re-contracting executive-level employees upon expiry of their 3-year terms. Ⅱ. Issues The issue in this case is whether an executive-level employee who has entered into a 3-year fixed-term employment contract can be deemed to have an expectation of renewal of the employment contract, even in the absence of a separate renewal agreement or a repeated renewal practice. More specifically, where the employment contract contains language such as “30 days’ prior notice in the event of extension,” the question was whether the employee could reasonably expect continued employment on that basis, and, if not, whether termination upon expiry of the contract term could nonetheless be regarded as an unfair dismissal. Ⅲ. Summary of the Labor Relations Commission’s Reasoning The panel in this case found that, given that the employer clearly specified a 3-year term in the employment contract, that the contract merely provided that, “in the event of extension,” notice was to be given 30 days prior to the end of the term and did not stipulate automatic renewal, and that the employer notified the employee in writing on 29 April 2026, the day before expiry, of its intention to terminate the employment contract, and further considering that there was no prior history of renewal of the employment contract between the parties, that there was no evidence that the employer had promised continued employment to this employee, that there were no provisions in the work rules or personnel regulations specifying criteria or procedures for renewal, and that there was no confirmed practice whereby executive-level employees were repeatedly and uniformly re-contracted upon expiry of their 3-year terms, it would be difficult, in light of the wording of the contract and the relevant case law, to recognize an expectation of renewal on the part of the employee. Accordingly, applying the principle that, absent special circumstances, a fixed-term employment contract terminates automatically upon expiry of its term, the Commission held that the employment contract in this case lawfully terminated upon expiration. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s perspective, a vague expectation such as “the contract states a term, but in reality I will keep working” is generally insufficient to establish an expectation of renewal. The current trend is that the Labor Relations Commission and the courts recognize an expectation of renewal only where there are objective grounds, such as a repeated practice of renewal, renewal criteria set out in work rules or collective agreements, or an explicit promise of continued employment by the employer. Therefore, if you are considering filing an application for relief from unfair dismissal, it is important to gather concrete evidence as to whether your contract has in practice been operated in a manner equivalent to regular employment, what the renewal practices have been for comparable employees, and whether there are any provisions in personnel regulations or internal guidelines relating to renewal. Ⅴ. Practical Points (From the Employer’s Perspective) From the employer’s perspective, when entering into a fixed-term employment contract, it is crucial for dispute prevention to clearly specify in writing the contract term, whether the contract may be renewed, and the criteria and procedures for renewal, and to operate the contract consistently with those written terms. If discretionary repeated renewals are made or if, in practice, the contract is operated as if it were automatically renewed, an expectation of renewal may be recognized for the employee, increasing the risk that termination upon expiry will be deemed an unfair dismissal. In addition, where the employer intends to terminate the employment relationship upon expiry of the contract term, it should notify the employee in advance and in writing of the termination date and its refusal to renew, and HR personnel should be properly trained and managed to understand that such cases are distinct from redundancy dismissals, which require just cause and compliance with dismissal procedures. This decision of the Gyeonggi Regional Labor Relations Commission once again demonstrates that the most efficient way to prevent unfair dismissal disputes is to review and manage expectation-of-renewal risks from the employment contract drafting stage, with the assistance of a specialized institution such as Labor Law Firm Law&. 2. Matters Decided A. Case Overview and Procedural History A case in which it was held that, because there was no expectation of renewal of the employment contract, the employment relationship terminated upon expiry of the contract term. 3. Summary of Decision A. Summary of the Labor Relations Commission’s Reasoning ① The employee’s employment contract specified a term of 3 years (1 May 2023 to 30 April 2026), and the proviso stated that “in the event of extension of the contract, the parties shall notify each other of their intention at least 30 days prior to the end of the term,” but there was no evidence that the parties expressed any intention to extend the contract prior to expiry; ② the employer notified the employee in writing on 29 April 2026, prior to expiry of the contract term, of its intention to terminate the employment contract; ③ there was no history of renewal of the employment contract between the parties, and there was no evidence that the employer had agreed to continued employment for the employee or that the work rules specified criteria and procedures for contract renewal; and ④ there were no other circumstances confirming that it had become a repeated and uniform practice for executive-level employees to be re-contracted upon expiry of their 3-year contract terms. In light of all of the above, the Commission held that the employee did not have an expectation of renewal of the employment contract and that the employment relationship therefore terminated upon expiry of the contract term. [See More Related Decisions] - “Expectation of Succession of Employment (Logistics Center Competitive Bidding)” in Unfair Dismissal Decision - “Non-Formation of Hiring Commitment (Absence of Offer Letter)” in Unfair Dismissal Decision – Decision date: – Case No.: Initial decision upheld - “Interest in Relief · Refusal to Rehire (Post-Retirement Fixed-Term Employment)” in Unfair Dismissal Decision [Tags] Unfair dismissal, expiration of contract term (3-year 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 part of the “Unfair Dismissal Decisions” series by Labor Law Firm Law&. ※ You can view the previous article, “‘Excessive Disciplinary Measure (Use of Ice Machine for Company Dinner Expenses)’ in Unfair Dismissal Decision,” in a new window. ※ A list of decisions related to expiration of contract term (3-year fixed-term) can be found under “List of Decisions Related to Expiration of Contract Term (3-Year Fixed-Term).” ※ Korean version of this case: Korean article