Corporate trends / Performance record
Unfair Dismissal Case Concerning “Expectation Right to Conversion to an Indefinite-Term Contract (Failure to Reach 70-Point Evaluation Score)” (Unfair Dismissal 707)
- Date2026/09/13 00:00
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[Case Information]
This case is a decision in which the employer prevailed (application dismissed) on the issue of the “expectation right to conversion to an indefinite-term contract (failure to reach 70-point evaluation score).”
Decision Committee: Chungnam Regional Labor Relations Commission 2026Buhae794 ○ ○ ○ Application for Remedy for Unfair Dismissal
2026-08-11 · Case Result: Dismissed
Summary of key issue: While the employee in this case was recognized as having an expectation right to conversion to a regular (indefinite-term) position, there was a clear and undisputed fact that the employee failed to reach the absolute passing score (70 points) in an objective evaluation that had been announced in advance.
1. Legal Implications
Ⅰ. Case Overview
In this case, a fixed-term employee underwent a screening process for conversion to a regular (indefinite-term) position but failed that screening, and the employment contract was consequently terminated. The issue was whether this constituted an unfair dismissal. The Chungnam Regional Labor Relations Commission examined the employer’s evaluation criteria and the actual evaluation results related to conversion to regular employment, as well as whether the employee’s expectation right to conversion to regular status should be recognized, in order to determine the unfair dismissal remedy application.
Ⅱ. Summary of Issues
The issue in this case is:
“Where a fixed-term employee, who is recognized as having an expectation right to conversion to a regular position, fails to reach the passing score (70 points) in an evaluation that was announced in advance, does the employer’s refusal to convert the employee to regular status and termination of the employment contract on the basis of that evaluation result constitute an unfair dismissal?”
Ⅲ. Summary of the Labor Relations Commission’s Reasoning
The panel in this case found that: the employee did have an expectation right to conversion to an indefinite-term contract; the evaluation criteria and the absolute passing score (70 points) for conversion to regular status had been announced in advance; in the actual evaluation, the employee clearly failed to reach this passing score; and it was difficult to regard these evaluation criteria as arbitrary or discriminatory.
Accordingly, the Commission held that the employer’s refusal to convert to regular status an employee who failed to meet the established objective evaluation criteria should be viewed as a reasonable decision within the scope of the employer’s managerial prerogative.
The dismissal in this case was therefore held not to constitute an unfair dismissal infringing the employee’s expectation right to conversion to an indefinite-term contract.
Ⅳ. Practical Points (From the Employee’s Perspective)
From the employee’s perspective, even if an expectation right to conversion to regular status or to an indefinite-term contract is recognized, refusal of conversion may be justified if the employee fails to meet the objective evaluation criteria and absolute passing score that were announced in advance. Accordingly, as with collective redundancies or refusals to renew fixed-term contracts, it is important to confirm in detail, prior to the conversion screening, the evaluation items and criteria, passing score, and evaluation procedures, and to proactively accumulate and manage one’s own performance appraisals and performance data.
Ⅴ. Practical Points (From the Employer’s (Company’s) Perspective)
From the employer’s perspective, when establishing criteria for converting fixed-term employees to regular positions, it is necessary to clearly set in advance the evaluation items, methods, and passing score (e.g., 70 points), notify employees of these, and then apply them consistently. In addition, to minimize evaluator subjectivity in the evaluation process, employers should retain basic explanatory materials and apply identical procedures to all candidates under review, so that the rationality of the decision can be recognized by the Labor Relations Commission or the courts at a level comparable to that required for collective redundancies or refusals to renew fixed-term contracts.
2. Decision
A. Case Overview and Procedural History
Although the employee in this case was recognized as having an expectation right to conversion to regular status, there was a clear and undisputed fact that the employee failed to reach the absolute passing score (70 points) in an objective evaluation that had been announced in advance. The employer’s refusal to convert to regular status an employee who failed to meet such established evaluation criteria was recognized as a legitimate exercise of managerial prerogative supported by reasonable grounds and therefore did not constitute an unfair dismissal.
3. Gist of the Decision
A. Summary of the Labor Relations Commission’s Reasoning
Although the employee in this case was recognized as having an expectation right to conversion to regular status, there was a clear and undisputed fact that the employee failed to reach the absolute passing score (70 points) in an objective evaluation that had been announced in advance. The employer’s refusal to convert to regular status an employee who failed to meet such established evaluation criteria was recognized as a legitimate exercise of managerial prerogative supported by reasonable grounds and therefore did not constitute an unfair dismissal. /
[See More Related Decisions]
- “Unfair Dismissal Decision Concerning ‘Disciplinary Sanction Level (Prolonged Workplace Harassment)’”
- “Unfair Dismissal Decision Concerning ‘Failure to Meet Requirements for Collective Redundancy (Workout Company)’”
- “Unfair Dismissal Decision Concerning ‘Existence of Dismissal (Voluntary Resignation Letter Submitted After Suspension)’”
[Tags]
Unfair dismissal, expectation right to conversion to an indefinite-term contract (failure to reach 70-point evaluation score), refusal to renew fixed-term contract, performance evaluation · poor performance, 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.
※ You can view the previous article, “Unfair Dismissal Decision Concerning ‘Disciplinary Sanction Level (Prolonged Workplace Harassment)’,” in a new window.
※ The list of decisions related to the expectation right to conversion to an indefinite-term contract (failure to reach 70-point evaluation score) can be viewed together on the page titled “List of Decisions Related to Expectation Right to Conversion to an Indefinite-Term Contract (Failure to Reach 70-Point Evaluation Score).”
※ Korean version of this case: Korean article
