[Case Information] This case is a decision in which the employer prevailed (application dismissed) on the issue of “non-existence of renewal expectation right (project-based fixed-term employment).” Decision body: Gangwon Regional Labor Relations Commission 2026Buhae198 ○ ○ ○ Application for Remedy for Unfair Dismissal 2026-07-28 · Case result: Dismissed Summary of key issues: A. Whether the employee had an expectation right to renewal of the employment contract: There were no provisions in the work rules regarding renewal of employment contracts; prior to entering into the second employment contract, there appears to have been an explanation and agreement that the contract term would be set in consideration of the circumstances of the project; the employee appears to have entered into the employment contract after confirming a clause in the contract stating that, absent a separate agreement between the parties, the contract would automatically terminate; and there was no practice of contract renewal or evidence of a relationship of trust premised on long-term employment… 1. Legal Implications Ⅰ. Case Overview In this case, a fixed-term employee hired for a project filed an application for remedy with the Labor Relations Commission, claiming unfair dismissal after the employment contract expired and was not renewed. The Gangwon Regional Labor Relations Commission first examined whether an expectation right to renewal existed by comprehensively reviewing the presence or absence of provisions or practices concerning contract renewal and the circumstances surrounding contract formation, and then reviewed whether unfair dismissal was established. Ⅱ. Summary of Issues The issue in this case is: “In a fixed-term employment contract premised on the progress of a project, can an employee be recognized as having an expectation right to renewal of the employment contract even where there are no separate renewal provisions in the work rules or employment contract, and furthermore, does refusal to renew constitute unfair dismissal (subject to the legal principles restricting dismissal analogous to collective redundancy)?” Ⅲ. Summary of the Labor Relations Commission’s Decision The panel in this case noted that there were no provisions at all in the work rules regarding renewal of employment contracts; that, prior to entering into the second employment contract, there appears to have been an explanation and agreement that the contract term would be determined in light of the project’s progress; that the employee signed the employment contract after confirming a clause stating that “absent a separate agreement, this contract shall automatically terminate upon expiry of the contract term”; and that there was no material to support the existence of a renewal practice or a relationship of trust premised on long-term employment. In light of the above, the panel determined that it was difficult to find that an expectation right to renewal had been formed that would allow the employee to reasonably expect continued employment after expiry of the contract term. Accordingly, the panel held that the “dismissal” in this case should be viewed as an automatic termination upon expiry of the fixed term of the employment contract, and that it did not constitute unfair dismissal. Ⅳ. Practical Points (From the Employee’s Perspective) From the employee’s perspective, you should first check whether the contract contains language such as “automatic termination upon expiry of the contract term,” and whether the work rules or HR regulations specifically set out the conditions and procedures for renewal. You should bear in mind that, where there is no repeated renewal, no promise of conversion to regular employment, and no concrete renewal criteria in HR guidelines, and where the business or project itself is temporary, it is difficult for an expectation right to renewal to be recognized. If you are considering seeking a remedy for unfair dismissal, it is not sufficient merely to assert that “most colleagues around me were re-contracted.” You need to systematically secure documents and examples that can prove the existence of provisions or practices imposing a renewal obligation or providing that renewal will be granted upon satisfaction of certain conditions. Ⅴ. Practical Points (From the Employer’s/Company’s Perspective) From the employer’s side, where employment is temporary and aligned with the duration of a project or business, you should clearly explain at the recruitment stage the principle of “automatic termination upon expiry of the contract term” and the uncertainty of renewal, and reflect this concretely in the employment contract. If you do not provide renewal criteria in your work rules or HR regulations, but in practice form a de facto practice of continuous renewal, an expectation right to renewal may be recognized. It is therefore important to align your personnel management practices with your written rules. In addition, when mentioning the possibility of “conversion to an open-ended contract” or “conversion to regular employment,” you should avoid expressions that merely raise unfounded expectations, and instead manage such possibilities through written documents specifying the conditions and procedures for conversion, thereby preventing unnecessary disputes. (ⓒ2026copyright. Labor Attorney Youngseop Moon, Labor Law Firm Law&.) 2. Matters Decided A. Case Overview and Procedural History A. Whether an expectation right to renewal of the employment contract exists: There were no provisions in the work rules regarding renewal of employment contracts; prior to entering into the second employment contract, there appears to have been an explanation and agreement that the contract term would be set in consideration of the circumstances of the project; the employee appears to have entered into the employment contract after confirming a clause in the contract stating that, absent a separate agreement between the parties, the contract would automatically terminate; and there was no basis to find that there was a practice of contract renewal or that a relationship of trust had been formed. In light of the foregoing, it is difficult to find that there was an expectation right to renewal of the employment contract. B. Whether there was a reasonable ground for refusal to renew … 3. Gist of the Decision A. Summary of the Labor Relations Commission’s Reasoning A. Whether an expectation right to renewal of the employment contract exists: There were no provisions in the work rules regarding renewal of employment contracts; prior to entering into the second employment contract, there appears to have been an explanation and agreement that the contract term would be set in consideration of the circumstances of the project; the employee appears to have entered into the employment contract after confirming a clause in the contract stating that, absent a separate agreement between the parties, the contract would automatically terminate; and there was no basis to find that there was a practice of contract renewal or that a relationship of trust had been formed. In light of the foregoing, it is difficult to find that there was an expectation right to renewal of the employment contract. B. Whether there was a reasonable ground for refusal to renew … / [See More Related Decisions] - “‘Non-Formation of Hiring Decision (Absence of Offer Letter)’ – Unfair Dismissal Decision” – Decision date: – Case result: First-instance decision upheld - “‘Expression of Intent to Resign (Resignation Remark in Telephone Call)’ – Unfair Dismissal Decision” - “‘Non-Satisfaction of Requirements for Collective Redundancy (Workout Company)’ – Unfair Dismissal Decision” [Tags] Unfair dismissal, non-existence of renewal expectation right (project-based fixed-term employment), 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. ※ You can view the previous article, “‘Excessive Disciplinary Measure (Visit to Adult Entertainment Establishment · False Statement)’ – Unfair Dismissal Decision,” in a new window. ※ The list of decisions related to non-existence of renewal expectation right (project-based fixed-term employment) can be viewed together in the “List of Decisions Related to Non-Existence of Renewal Expectation Right (Project-Based Fixed-Term Employment).” ※ Korean version of this case: Korean article