Past Two Years on a Fixed-Term Contract, You Are Treated as Permanent: Exceptions, Renewal Expectation, and What to Check After a Non-Renewal Notice

Fixed-term workers can be used for two years at most

Article 4 of the Act lets an employer use fixed-term workers only within a two-year limit. Time is counted by adding up the period you worked at the same workplace, not by how many separate contracts were signed.
Renew a one-year contract once and you are at two years; keep the worker on after that and the limit is exceeded. The end date written in the contract does not change how long you have actually worked at the same place.

Past two years, the worker is treated as permanent

If an employer uses a fixed-term worker for more than two years without an exception, that worker is treated as a worker with no fixed term. This is how the law views it; no extra paperwork or company acknowledgment is needed for it to take effect.
It holds even if the contract still shows an end date. Ending the job at the contract's end date can then amount to a dismissal, which is the key point.
This does not mean regular-employee treatment, though. Pay and benefits often continue under the existing work rules or contract terms.

Exceptions that allow more than two years

The exceptions in the proviso to Article 4(1) are roughly these.

• A period set for the completion of a project or a specific task
• Filling in for a vacancy caused by leave, dispatch or similar
• A period needed to complete schooling or vocational training
• Contracting with a person aged 55 or older
• Jobs needing specialized knowledge or skills, or jobs provided under government welfare or unemployment programs (the Enforcement Decree sets the detailed standards)

The common reading is that the 55-or-older exception applies only if the worker is already 55 when the contract is made. Many explanations say a person hired at 53 who turns 55 during employment is not covered by the same exception, so if this applies to you, confirm with the labor office.

When you can expect renewal even before two years

The Supreme Court has held that falling under a statutory exception does not by itself rule out a renewal expectation (Case 2016Du50563, decided February 2017). A renewal expectation is recognized when there are circumstances that reasonably lead a worker to expect the contract to continue after it ends.
Courts look at whether the contract or work rules set renewal conditions and procedures, whether renewal has actually been the practice, and whether the work is ongoing in nature. No single factor decides it.
For example, if the same job has been renewed for several years and the contract spells out a renewal procedure, that is counted as a circumstance that helps a claim of renewal expectation.

If you get a non-renewal notice

If you are told your contract will not be renewed, first ask for the reason in writing and list the dates showing which renewal this was.
If a renewal expectation exists and the refusal has no justifiable reason, you can consider filing an unfair dismissal remedy application. There is a deadline, so do not delay. The difference between dismissal and a recommended resignation is in our recommended resignation article, and cases where dismissal notice is not required are in our dismissal notice pay article.

If you were treated worse because you are fixed-term

The Act bans treating fixed-term workers less favorably than permanent workers doing the same work. If pay, bonuses or benefits are lower without a reasonable reason, you can ask a labor relations commission to correct the discrimination, and the filing period is short; the common explanation is six months from the day of the discrimination.
The rules that apply differ by workplace size, so check with the Ministry of Employment and Labor before filing. If you never received a written contract, start with the written-statement duty in our article on missing employment contracts.

Do not forget the final settlement

With one year or more of continuous service you are owed severance pay, and the service period is counted continuously even when the contract is renewed. For how it is calculated, start with average wage in our severance pay calculation article.

Steps to take

1. Sort your hire date and renewed contracts by date and add up the period you worked at the same workplace.
2. If it is past two years, check the contract and job posting for an exception such as filling a vacancy or hiring at 55 or older.
3. If there is no exception, ask HR in writing, citing the rule that you are treated as permanent.
4. If you get a non-renewal notice, record the reason and date in writing and check the deadline for a remedy application with the labor relations commission.
5. If you suspect discrimination, compare your treatment with permanent workers doing the same work and consider a correction request.

The Act and court decisions lead to different results on different facts, so this article is not legal advice. If you have a case, consult the Ministry of Employment and Labor (dial 1350 with no area code) or a nearby labor office.