Ruling: Employment contract ends if only the contract is renewed without an extension of the employment permit period

Who this helps

This may help people who work under, or hire with, a foreign worker employment permit and wonder how a contract renewal relates to a permit period extension.

Case overview

Case number

2017구합6765

Court

Ulsan District Court

Posted on original board

Apr 6, 2018 (Fri)

Topic

Employment & Labor Unions

Original title (Korean)

사업장 변경 불허 처분 취소 사건(울산지방법원 2017구합6765)

The case concerned a situation where an employer obtained an employment permit for foreign workers, hired a foreign worker, and then renewed the employment contract. A lawsuit was filed to cancel a decision refusing to permit a change of workplace.

What happens to an employment contract if it is only renewed and the employment permit period is not extended?

A lawsuit asked the court to cancel a decision that refused a workplace change. The case involved a foreign worker who was hired and whose contract was then renewed. The court found that without an extension of the employment permit period, the contract ended once the original permit date passed, even though it had been renewed.

How the court ruled

The court held that even if the employment contract was renewed, without an extension permit for the employment permit period, the employment contract ended once the date of the original employment permit passed.

What to check in a similar situation

Whether a permit period extension was granted can be checked with official bodies such as immigration and foreigner offices. Procedures tied to a workplace change decision can be checked in the same places.

• Unpaid wages and work injuries
• Minimum wage calculator
• Contacts: Ministry of Employment and Labor helpline 1350

Terms explained

Employment permit

A permit the state issues so that a foreign worker can be hired. The period in which hiring is possible is set from the day the permit is granted.

Extension of the employment permit period

A separate permit that lengthens the period of the first employment permit. It is different from renewing the labor contract.

Denial of workplace change

A decision by an administrative body that does not allow a foreign worker to change the workplace where they worked.

More rulings on this topic

• Court upholds corrective order and fine in foreign trainee training fee case · Ulsan District Court
• Ruling on whether foreign instructors with a limited stay period became employees without a fixed term · Seoul Central District Court
• Court rules that renewing an employment contract without approval of an extension of the employment permit period does not keep the contract going · Ulsan District Court

See all 5 rulings on Employment & Labor Unions →

Frequently asked questions

Who filed what kind of lawsuit?

A lawsuit was filed asking the court to cancel a decision that refused a workplace change. The case involved a foreign worker who was hired with an employment permit and whose contract was renewed.

How did the court rule?

The court found that if the employment permit period was not extended, the contract ended once the original permit date passed, even though it had been renewed.

Does this result apply as it is to every similar case?

No. It is the court's decision in this case and cannot be seen as applying as it is to other cases.