1. Principle
The term of a labor contract shall not exceed two years, except in cases where no term is fixed or the term is fixed as a necessary measure for the completion of a certain project. When a fixed-term contract is made, the employment relationship under the contract shall be automatically terminated upon maturity of the fixed term. If an employee has been employed for a term exceeding 2 years, the employee shall be treated as if he/she had signed a contract of employment for an indefinite term. However, in cases where an employee is employed for longer than 2 years for the work required to complete a particular project or task, the employee may not be treated as working under a contract of employment for an indefinite term.
2. Exception
Employment contracts for fixed-term employees and the right to anticipate automatic renewal of the employment contract If an employee signs an employment contract for a fixed period, it is a principle that the employment is naturally terminated when the fixed period expires, and if not renewed, the employment contract is complete without the employer’s expression of intent to reject renewal. However, in cases where there is a conditional provision in the employment contract, the rules of employment or the collective agreement that the current employment contract will be renewed if certain conditions are satisfied, despite expiration of the contract period, and those conditions are satisfied, this shall exceptionally apply. In the event there is no such conditional provision, but in collectively considering various situations around the employment relations related to the employment contract and the intention and procedures, the criteria and requirements for renewing the contract, and employee duty types, in cases where the employee could reasonably anticipate having his/her employment contract renewed with the belief of both parties(employee and employer) that the employee would have the employment contract renewed if certain conditions were satisfied, and those conditions were satisfied, it can be accepted as unfair dismissal if his/her employment contract were not renewed.