Fixed-Term Contract Workers in Korea: A Complete Guide to Your Rights and Legal Protections

What Is a Fixed-Term Contract Worker? Start with the Legal Definition

"Contract worker" (계약직) is a commonly used expression, but the official legal term is fixed-term worker (기간제 근로자). Article 2 of the Act on the Protection of Fixed-Term and Part-Time Workers (기간제 및 단시간근로자 보호 등에 관한 법률, hereinafter the "Fixed-Term Act") defines a fixed-term worker as "a worker who has entered into an employment contract with a fixed term." The key difference from regular employment is that the contract specifies an end date.

Note for foreign workers: Your employment contract may set terms above the statutory minimum, but it cannot fall below the protections described in this guide.

The 2-Year Limit and Conversion to an Open-Ended Contract

Article 4 of the Fixed-Term Act prohibits employers from using a fixed-term worker for more than 2 years. If the 2-year limit is exceeded, the worker is deemed to have entered into a contract with no fixed term — i.e., an open-ended contract (무기계약직).

The following exceptions allow use beyond 2 years:

Once converted to an open-ended contract, the employer can no longer terminate employment on the grounds of contract expiry, which significantly improves job security for the worker.

Fixed-Term Workers Have the Right to Equal Treatment

Article 8 of the Fixed-Term Act prohibits employers from unreasonably discriminating against fixed-term workers compared to regular workers performing the same or similar duties. All working conditions are covered, including wages, bonuses, welfare benefits, and training.

If you believe you have been discriminated against, you may file a discrimination correction application (차별시정 신청) with the Labor Relations Commission (노동위원회). The filing deadline is within 6 months of the date the discriminatory treatment occurred.

Severance Pay, Annual Leave, and Social Insurance Apply Equally to Fixed-Term Workers

Withholding severance pay or annual leave simply because someone is on a fixed-term contract is a clear violation of the law.

Dismissal Before Contract Expiry Can Be Challenged as Unfair Dismissal

A unilateral dismissal during the contract period may constitute a dismissal without just cause under Article 23 of the Labor Standards Act (근로기준법 제23조). If you receive a dismissal notice, check whether it was given in writing at least 30 days in advance and whether the stated reason is valid. Consider filing an unfair dismissal (부당해고) relief application with the Labor Relations Commission within 3 months of the date of dismissal.

Calculate Your Severance Pay in Advance

Knowing your estimated severance pay before your contract ends helps when negotiating or asserting your rights. Use the severance pay calculator at workbear.kr — simply enter your start date, end date, and average wage to get an instant estimate. Calculators for annual leave allowance and weekly holiday allowance (주휴수당) are also available, so be sure to use them before your contract ends.

This article is for informational purposes only and does not constitute legal advice. For specific cases, consult a certified labor attorney (노무사) or lawyer.

Frequently Asked Questions

Can fixed-term contract workers receive severance pay?

Yes. Even on a fixed-term contract, if you have worked continuously at the same workplace for 1 year or more and worked 15 hours or more per week, the employer is obligated to pay severance pay under Article 34 of the Labor Standards Act 근로기준법 제34조 and the Act on the Guarantee of Workers' Retirement Benefits 근로자퇴직급여 보장법 . If the contract was renewed multiple times, the continuous service periods are added together for the calculation.

Do I automatically become a regular (permanent) employee after 2 years on a fixed-term contract?

It is not an automatic conversion to regular employment, but under Article 4 of the Act on the Protection of Fixed-Term and Part-Time Workers 기간제 및 단시간근로자 보호 등에 관한 법률 제4조 , if an employer uses a fixed-term worker for more than 2 years at the same workplace, the worker is deemed to have entered into a contract with no fixed term an open-ended contract / 무기계약직 . However, exceptions apply — for example, holders of a doctoral degree working in their field, workers aged 55 or older under the Act on Promoting the Employment of the Aged, and holders of national professional licenses working in the relevant role may remain on fixed-term contracts beyond 2 years.

If my employer refuses to renew my contract after it expires, is that unfair dismissal?

In principle, expiry of a contract term is not a dismissal. However, if repeated renewals have created a legitimate expectation of continued employment, refusal to renew may be treated as equivalent to unfair dismissal 부당해고 under Supreme Court precedent Supreme Court Case No. 2011다4629, etc. . In such cases, the employer must provide a reasonable reason for refusing renewal.

Can fixed-term contract workers use annual paid leave?

Yes. Fixed-term contract workers are entitled to annual paid leave 연차유급휴가 under Article 60 of the Labor Standards Act 근로기준법 제60조 . During the first year of employment, 1 day of leave accrues for each month of perfect attendance, up to a maximum of 11 days. After 1 year of service, 15 days are granted. Any unused annual leave remaining at the end of the contract can be claimed as an annual leave allowance 연차수당 .