[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “expectation of renewal (extension of childcare leave).” Date of Decision: 2026-06-29 · Decision Body: Gyeonggi Regional Labor Relations Commission · Case No.: 2026Buhae1603 Summary of Key Issue: The employee argued that, because the employer approved childcare leave extending beyond the term of the employment contract, the employer thereby consented to an extension of the employment contract and an expectation of renewal should be recognized. However, (i) the employment contract clearly indicated “fixed term” for the contract period, and expressly provided that the contract would expire absent mutual consent to extend, (ii) the employer’s act of specifying and confirming only the childcare leave period appears to distinguish between approval of childcare leave and expiration of the employment contract… 1. Legal Implications This unfair dismissal case was contested before the Gyeonggi Regional Labor Relations Commission and is a case in which the Commission focused on whether a fixed-term employee’s expectation of renewal should be recognized. In particular, the issue was whether, where childcare leave has been approved for a period extending beyond the contractual term stated in the employment contract, that fact alone gives rise to an expectation of renewal. This type of dispute is one that Labor Law Firm Law& frequently encounters in practice, which makes the case especially significant. Ⅰ. Case Overview The employee entered into a fixed-term employment contract and, while working under that contract, applied for childcare leave. The employer approved childcare leave for a period extending beyond the contract term stated in the employment contract. Thereafter, the employer notified the employee that the employment contract would terminate upon expiration of the contract term. The employee filed an application for remedy with the Labor Relations Commission, asserting that she had an expectation of renewal and that the notice of expiration of the contract term therefore constituted a de facto unfair dismissal. Ⅱ. Issues The issue in this case is whether “a fixed-term employee, who has obtained approval for childcare leave extending beyond the term of the employment contract, thereby acquires a legitimate expectation of renewal of the employment contract.” In other words, the question was whether the act of approving childcare leave can be viewed as creating reliance on an extension of the employment contract itself or continued employment, or whether it should be regarded as merely approval of a leave period. Ⅲ. Summary of the Labor Relations Commission’s Reasoning The panel in this case found that: the employer had explicitly checked “fixed term” for the contract period in the employment contract and stipulated that the contract would expire absent a separate agreement between the parties to extend it; the childcare leave approval document specified only the leave period and contained no terms indicating agreement to extend the employment contract; after being notified of the contract’s expiration, the employee responded to the effect that it was acceptable so long as there was no issue with the childcare leave benefits; and there was a practice whereby the employment relationships of a significant number of comparable employees ended upon expiration of their contract terms. In light of the wording of the employment contract and its actual operation, the panel held that it was difficult to find that a relationship of trust had been formed between the parties to the effect that “the contract would naturally be renewed upon satisfaction of certain conditions.” Accordingly, the panel determined that the termination at issue constituted an automatic termination due to expiration of the contract term, and that, in the absence of an expectation of renewal on the part of the employee, it could not be regarded as an unfair dismissal. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s standpoint, it should be noted that approval of childcare leave or extension of a leave period does not, in itself, mean an extension of the employment contract or conversion to regular employment. To have an expectation of renewal recognized, the employee should prepare evidence capable of proving a “legitimate expectation of continued employment,” such as repeated contract renewals, explicit provisions or practices regarding criteria and procedures for renewal, and the actual status of re-contracting of comparable employees. In addition, when receiving notice of expiration of the contract term, if the employee responds by text, email, or otherwise in a manner that effectively accepts the termination, such responses may work to the employee’s disadvantage in any future dispute. If the employee objects, it is advisable to clearly record that objection. Ⅴ. Practical Points (From the Employer’s Perspective) From the employer’s standpoint, it is important to clearly set out in fixed-term employment contracts the contract period, whether renewal is possible, and that the contract will automatically terminate upon expiration, and to operate in practice in a manner consistent with that wording. In particular, when applying protective provisions such as childcare leave or maternity leave, it is helpful for preventing disputes to clearly distinguish in writing between “approval of a leave period” and “extension of the employment contract,” and, where no renewal or re-contracting will occur, to specifically notify the employee of the reason and timing of contract expiration. Furthermore, if most comparable fixed-term employees are re-contracted while only some are terminated upon expiration of their contract terms, and if a long-term and repeated renewal practice accumulates, an expectation of renewal may be recognized. Employers should therefore establish staffing policies and criteria for re-contracting in advance and apply them consistently. 2. Matters Decided a. Case Overview and Procedural History A case in which it was decided that the employee did not have an expectation of renewal. 3. Summary of the Decision a. Summary of the Labor Relations Commission’s Reasoning The employee argued that, because the employer approved childcare leave extending beyond the term of the employment contract, the employer thereby consented to an extension of the employment contract and an expectation of renewal should be recognized. However, (i) the employment contract indicated “fixed term” for the contract period, and expressly provided that the contract would expire absent mutual consent to extend; (ii) the fact that the employer specified and confirmed only the childcare leave period appears to show that the employer treated approval of childcare leave and expiration of the employment contract separately, and it is difficult to regard this as encompassing approval of an extension of the employment contract; (iii) when the employer notified the employee of termination of the employment contract due to expiration of the contract term, the employee responded to the effect that it was acceptable so long as there was no issue with the childcare leave benefits; and (iv) considering that the employment relationships of many employees who had entered into employment contracts with the employer had ended due to expiration of the contract term or other reasons, it cannot be said that an expectation of renewal of the employment relationship had been formed between the parties. [See More Related Decisions] - “Expectation of Employment Succession (Logistics Center Competitive Bidding)” Unfair Dismissal Decision - “Interest in Relief · Refusal to Rehire (Post-Retirement Fixed-Term Employment)” Unfair Dismissal Decision - “Business Necessity (Reassignment of Cleaning Staff)” Unfair Dismissal Decision [Tags] Unfair dismissal, expectation of renewal (extension of childcare leave), 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, “Legal Coverage Limitation (Fewer than 5 Regular Employees)” Unfair Dismissal Decision, can be viewed in a new window. ※ A list of decisions related to expectation of renewal (extension of childcare leave) can be found in the “Expectation of Renewal (Extension of Childcare Leave) Related Decisions” list. ※ Korean version of this case: Korean article