Labor Law Q&A details

Chapter 9 Irregular Employee Management

Under which conditions can a fixed-term contract be terminated before the contractual end date?

Article 23(1) (Restriction on Dismissal, etc.), Labor Standards Act, as last amended by Act No. 12325, Jan. 21, 2014

Terminating in the middle of the contract without consent of an employee is considered as a dismissal.
According to LSA, an employer has a just cause to dismiss an employee.
Any justifiable reasons to end the contract early are not stated in the law.


*Labor Standards Act

Article 23 (Restriction on Dismissal, etc.)(1) An employer shall not, without justifiable cause, dismiss, lay off, suspend, or transfer a worker, reduce his/her wages, or take other punitive measures (hereinafter referred to as "unfair dismissal, etc.") against him/her.

(2) An employer shall not dismiss a worker during a period of suspension of work for medical treatment of an occupational injury or disease and within 30 days immediately thereafter, and any woman before and after childbirth shall not be dismissed during a period of suspension of work as prescribed by this Act and for 30 days immediately thereafter: Provided, That this shall not apply where the employer has paid a lump sum compensation as provided for under Article 84 or where the employer may not continue to conduct his/her business.

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