Ruling on whether foreign instructors with a limited stay period became employees without a fixed term

Who this helps

This may help people looking at a situation where a foreign worker with a stay limit kept renewing yearly contracts and then was refused renewal. It reflects only the facts of this case.

Case overview

Case number

2024가합41227

Court

Seoul Central District Court

Posted on original board

Oct 24, 2025 (Fri)

Topic

Employment & Labor Unions

Original title (Korean)

출입국관리법상 체류기간의 제한을 받는 외국인이 기간제 및 단시간근로자 보호 등에 관한 법률 규정에 따라 '기간의…

Two foreigners who taught English and handled related administrative work at a corporation kept working under 1-year employment contracts that were renewed. Renewal was then refused and their employment was ended. They sued, claiming they had become employees without a fixed term, so the termination was unfair dismissal. They also claimed unpaid wages and unpaid holiday bonuses.

Can a foreigner with a stay limit be treated as an employee without a fixed term?

Two foreign workers handled English teaching and related administrative work at a company. They renewed one-year contracts, were then refused renewal and treated as having left. They sued, claiming unfair dismissal. The dispute was whether the stay limit in the immigration law changed how the fixed-term work law applies. The court viewed the stay limit as a tool for managing stays, not a cap on employment length.

How the court ruled

The court held that the maximum period of stay under the Immigration Act is for managing foreigners' stay, not a limit on the employment period. Therefore the two were deemed employees who concluded employment contracts without a fixed term under the Fixed-Term Act, and termination based on expiry of the contract period was void as unfair dismissal. The company was found obliged to pay an amount equivalent to wages until the date of reinstatement. For holiday bonuses, the court held that the company's rules of employment and pay regulations apply to the period after they were deemed employees without a fixed term.

What to check in a similar situation

In a similar situation, an immigration or foreigner office can confirm the status of stay and stay period on record. A court can confirm how disputes over employment contracts and dismissal are handled.

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

Terms explained

employee without a fixed term

A worker whose contract has no set end date. In this case the court deemed the two plaintiffs to be such workers.

unfair dismissal

Ending a worker's job without a justified reason. Here the court held the termination based on contract expiry void as unfair dismissal.

stay period

The time a foreigner may remain in Korea. The court saw its limit as a tool for managing stays.

rules of employment

Company rules that set working conditions. Here they and the pay rules applied to the holiday bonus claim.

More rulings on this topic

• Court upholds corrective order and fine in foreign trainee training fee case · Ulsan 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
• 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

Who brought the lawsuit?

Two foreign workers who handled English teaching and related administrative work at a company. One is a British national with an F-2 status. The other is a US national whose F-6 status changed to F-5.

How did the court decide?

It deemed both to be employees without a fixed term. It held the termination void as unfair dismissal and found the company owed wages up to the day of reinstatement.

Does this result apply as is to similar cases?

It is the decision in that case and does not apply as is to other cases.