Section 2: Individual Labor Relations
Chapter 8: Expiration of Employment Contract
3. Fixed-Term Employee's Right to Expect Contract Renewal and His(Her) Right to Expect Conversion to Non-fixed Term Employment Contract
3.7 Denial of Right to Expect Conversion to Non-fixed Term Employment Contract in Consideration of All Circumstances surrounding the Employment Relation
| Supreme Court Decision on April 11, 2008, Case 2012du28913 | |||||
| * Plaintiff, Appellant: A
* Defendant, Appellee: Chairman of the National Labor Relations Commission 1. Facts: a. Soshin Passenger Transportation explicitly stipulated in the employment contract that upon expiration of the contract period, the employee would automatically retire, with the contract duration set for one year. The contract also stated that Soshin Passenger Transportation could reconsider re-contracting with the plaintiff based on performance evaluations and other assessments, but it did not obligate the company to renew the contract if certain conditions were met. Additionally, the employment rules did not impose an obligation to renew the contract upon meeting specific conditions, nor did they specify any criteria or procedures for renewal. b. When hiring new drivers, Soshin Passenger Transportation employed them on fixed-term contracts for one year, after which the decision to hire them as permanent staff was based on their suitability for the job and the company's manpower needs. Although more than 90% of the workers whose one-year contracts had expired were hired as permanent staff, several employees were not hired each year from 2005 to 2008, with as many as 12 not being hired in 2011. c. The plaintiff submitted a resignation at the request of Soshin Passenger Transportation as his one-year work period was about to expire. Soshin Passenger Transportation then processed his employment insurance, national pension, and industrial accident compensation insurance, citing the expiration of the employment contract period, and paid the plaintiff his severance. 2. Court Judgment: a. The principle is that an employee whose fixed-term employment contract is not renewed automatically retires, even if there is no explicit refusal to renew. However, if employment contracts, employment rules, or collective agreements specify that the contract will be renewed if certain conditions are met at the end of the term, or if the circumstances surrounding the employment relationshipincluding the motivations and conditions under which the contract was made, the criteria for renewal, and whether procedures for renewal have been establishedsuggest that a trust relationship has been formed indicating that the contract will be renewed if certain conditions are met, then an employee has a legitimate expectation of renewal. If an employer unjustly refuses to renew the contract in violation of this expectation, it is tantamount to unfair dismissal and has no effect. b. The contract period between the plaintiff and Soshin Passenger Transportation was set for one year, with no mandatory rules for renewal upon meeting certain conditions, nor were criteria or procedures for renewal stipulated. The decision to hire as permanent staff after the one-year contract period was based on job suitability and the company's manpower needs. Given that several employees were not hired as permanent staff after their contracts ended each year, it cannot be said that the plaintiff had a legitimate expectation of being hired as a permanent employee. |
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| Download : 대법 2012두28913.pdf | |||||
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