Court rules that renewing an employment contract without approval of an extension of the employment permit period does not keep the contract going

Who this helps

This may help people who hold or have used a foreign worker employment permit and wonder how a contract renewal relates to approval of an extension of the permit period.

Case overview

Case number

2017구합6765

Court

Ulsan District Court

Posted on original board

Apr 12, 2018 (Thu)

Topic

Employment & Labor Unions

Original title (Korean)

사업장 변경 불허 처분 취소 사건(울산지방법원2017구합6765)

A lawsuit was filed seeking to cancel a decision that did not allow a change of workplace. The case involved a foreign worker who was hired with an employment permit for foreign workers. The employment contract had been renewed, but the issue was whether approval to extend the employment permit period had been obtained.

What happens to a renewed employment contract if the employment permit period was not extended?

This case was a lawsuit to cancel a decision that refused a workplace change. It involved an employer who hired a foreign worker under an employment permit. The employment contract had been renewed. The question was whether an extension of the permit period had been approved. The court found that without that approval, the contract ended once the original employment permit date passed.

How the court ruled

The court held that even if the employment contract was renewed, if approval to extend the employment permit period was not obtained, the employment contract ended when the date of the original employment permit passed.

What to check in a similar situation

Whether an extension of the employment permit period was approved, and what the workplace change decision said, can be checked with official bodies such as immigration and foreigner offices. Court procedure can be checked with the court.

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Terms explained

Employment permit

This is the permission to employ a foreign worker. In this case it served as the reference point for when the employment contract ended.

Extension of the employment permit period

This is a permission that lengthens the period of the first employment permit. In this case, without it the contract was treated as ended even though it had been renewed.

Decision refusing a workplace change

This is a decision by an administrative body that does not allow a foreign worker to change the workplace where they work.

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
• Ruling: Employment contract ends if only the contract is renewed without an extension of the employment permit period · Ulsan District Court

See all 5 rulings on Employment & Labor Unions →

Frequently asked questions

What was disputed in this lawsuit?

It was a lawsuit to cancel a decision that refused a workplace change. The contract had been renewed, but the question was whether an extension of the employment permit period had been approved.

How did the court rule?

The court found that even if the employment contract was renewed, it ended once the original employment permit date passed, if no extension of the permit period had been approved.

Does this result apply as is to similar cases?

No. This finding concerns that case and does not apply as is to other cases. The case concerned hiring a foreign worker under an employment permit.