Corporate trends / Performance record
Non-Existence of Legitimate Expectation of Renewal (Denial of Fixed-Term Reemployment Practice) in Unfair Dismissal Decisions (Unfair Dismissal 689)
- Date2026/09/05 00:00
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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 legitimate expectation of renewal (denial of fixed-term reemployment practice).”
Decision-making body: Incheon Regional Labor Relations Commission 2026Buhae523 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-06-26 · Case result: Dismissed
Summary of key issue: The employee’s employment contract and the company’s rules of employment did not contain any provisions that contemplated or guaranteed renewal of the contract, and it was difficult to conclude that a reemployment practice for fixed-term workers had been established at the company. Accordingly, the Commission held that the employee did not have a legitimate expectation of renewal.
1. Legal Implications
Ⅰ. Case Overview
This case arose when a fixed-term employment contract expired and was not renewed, and the employee filed an application with the Labor Relations Commission claiming unfair dismissal. The Incheon Regional Labor Relations Commission examined, focusing on the employment contract, rules of employment, and the company’s reemployment practices, whether a legitimate expectation of renewal existed. It ultimately found in favor of the employer and dismissed the employee’s application for remedy for unfair dismissal.
Ⅱ. Summary of Issues
The issue in this case is whether a fixed-term employee can be recognized as having a legitimate expectation of renewal in circumstances where the employment contract and rules of employment contain no provision guaranteeing renewal, and where there is no clear practice of reemployment.
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case noted that the employee’s employment contract provided only that the employment relationship would automatically terminate upon expiry of the contract term, without any provision contemplating or guaranteeing renewal; that the rules of employment and personnel regulations likewise did not contain any explicit criteria or procedures premised on renewal upon satisfaction of certain conditions; and that, even if some fixed-term employees had been reemployed, it was difficult to regard such reemployment as having been established to the extent of a uniform and mechanical practice.
In light of the overall employment relationship, the panel found it difficult to conclude that a relationship of trust had been formed to the effect that “the contract will naturally be renewed if certain conditions are met,” and therefore held that the employee did not have a legitimate expectation of renewal of the contract.
The panel held that the termination at issue constituted automatic retirement due to expiry of the fixed term of the employment contract, and therefore did not amount to unfair dismissal.
Ⅳ. Practical Points (From the Employee’s Perspective)
For a fixed-term employee to assert unfair dismissal, it is not sufficient merely to show that “I have continued working until now.” It is important to secure specific materials that support the existence of a legitimate expectation of renewal, such as the employment contract, rules of employment, performance evaluations, and evidence of reemployment practices. In particular, it is advisable to ascertain in advance the re-contracting rate of similarly situated employees, instances of refusal to renew, and whether renewal criteria exist, as this will increase the likelihood that the Labor Relations Commission will recognize a legitimate expectation of renewal.
Ⅴ. Practical Points (From the Employer/Company Perspective)
From the employer’s perspective, in order to utilize fixed-term employment contracts while reducing unnecessary disputes over unfair dismissal, it is desirable to clearly stipulate in the employment contract and rules of employment the contract term, grounds for termination, and the conditions for determining whether renewal will occur. In addition, where only some individuals are selectively reemployed, the reasons and procedures should be internally recorded and managed so that, before the Labor Relations Commission or the courts, the company’s personnel management can be shown to be consistent and explainable and not mistakenly perceived as a “mechanical renewal practice.”
(ⓒ2026 copyright. Labor Attorney Youngseop Moon, Labor Law Firm Law&. Unauthorized reproduction and redistribution are prohibited.)
2. Matters Decided
a. Case Overview and Procedural History
The employee’s employment contract and the company’s rules of employment did not contain any provisions that contemplated or guaranteed renewal of the contract, and it was difficult to conclude that a reemployment practice for fixed-term workers had been established at the company. Accordingly, it was determined that the employee did not have a legitimate expectation of renewal.
3. Summary of the Decision
a. Summary of the Labor Relations Commission’s Reasoning
The employee’s employment contract and the company’s rules of employment did not contain any provisions that contemplated or guaranteed renewal of the contract, and it was difficult to conclude that a reemployment practice for fixed-term workers had been established at the company. Accordingly, it was determined that the employee did not have a legitimate expectation of renewal. /
[See More Related Decisions]
- “Unfair Dismissal Decision on Expression of Intent to Resign (Conditional Notice by Text Message)”
- “Unfair Dismissal Decision on Expression of Intent to Resign (Resignation Statement by Telephone Call)”
- “Unfair Dismissal Decision on Non-Formation of Hiring Commitment (Absence of Offer Letter)” – Date of decision: – Case result: First-instance decision upheld
[Tags]
Unfair dismissal, non-existence of legitimate expectation of renewal (denial of fixed-term reemployment practice), 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, “Unfair Dismissal Decision on Expression of Intent to Resign (Conditional Notice by Text Message),” in a new window.
※ A list of decisions related to non-existence of legitimate expectation of renewal (denial of fixed-term reemployment practice) can be found in the “List of Decisions on Non-Existence of Legitimate Expectation of Renewal (Denial of Fixed-Term Reemployment Practice).”
※ Korean version of this case: Korean article
