[Plaintiffs, Appellants] Plaintiff 1 and 6 others (Attorney Kwon Doo-seob, Counsel for the plaintiffs)
[Defendant, Appellee] Chairman of the National Labor Relations Commission
[Defendant's Assistant Intervenor] Seoul Metropolitan Facilities Management Corporation (Law Firm Hwawoo, Attorneys Jang Ji-won and 1 other, Counsel for the intervenor)
[Lower Court Decision] Seoul High Court Decision 2005Nu17722 decided December 19, 2006
[Order]
The part of the lower court's judgment concerning the retrial decision on unfair dismissal is reversed, and this part of the case is remanded to the Seoul High Court. The remainder of the appeal is dismissed.
[Reasoning]
The grounds of appeal are examined.
1. Regarding the Part on Unfair Dismissal
A. Even where a labor contract with a fixed term has been executed in writing, if it is recognized—upon comprehensive consideration of the contents of the contract, the motive and circumstances leading to the conclusion of the labor contract, the purpose of fixing the term and the parties' genuine intent, the practice regarding the manner of concluding the same type of labor contract, and worker protection statutes, etc.—that the fixing of the term is merely nominal, such as where, for example, a short-term labor contract has been repeatedly renewed over a long period such that the fixed term became merely a formality, then, notwithstanding the language of the contract, the employer's refusal to conclude a renewal contract without justifiable grounds in such a case is null and void in the same manner as a dismissal. However, absent such special circumstances showing that the fixing of the labor contract term is merely nominal as described above, the labor relationship between the parties to the labor contract naturally terminates upon the expiration of the term, without the need to await any separate measure such as dismissal by the employer (see, e.g., Supreme Court Decision 2005Du5673 decided February 24, 2006).
According to the first instance judgment cited by the lower court, the first instance court, having found the facts as stated in its reasoning, determined that the fixing of the term in this contract could not be deemed merely nominal, in light of the following: ① around the end of October 2002, the Defendant's Assistant Intervenor (hereinafter referred to as the "Intervenor") publicly solicited applications for entrustment in a daily newspaper, setting the entrustment period as one year from December 2002 to December 2003, and executed entrustment contracts with 100 drivers selected from among the applicants, setting the entrustment period from December 9, 2002 to December 31, 2003; ② the disabled persons' call taxi program is a project with a public-interest special purpose being implemented under financial support funded by, among other things, the budget of the Seoul Metropolitan Government, and matters such as whether to continue the project, the form of its operation, and the selection of entrustees are determined based on policy considerations; ③ pursuant to the "Seoul Metropolitan Government Ordinance on the Management and Operation of Call Taxis for the Disabled" (hereinafter referred to as the "Ordinance"), the Seoul Metropolitan Government is permitted to entrust the management and operation of disabled persons' call taxis and the call center to a corporation or organization other than the Intervenor, and where the entrusted institution re-entrusts to a third party, the contract term is to be set on a one-year basis; and ④ according to the contract in this case, the contract term was set from December 9, 2002 to December 31, 2003, and it provided that if either party to the contract has circumstances during the term of the contract that make it impossible to maintain the contract, the contract may be terminated mid-term by giving written notice to the other party 30 days in advance, and that the contract terminates upon expiration of the entrustment period or mid-term termination of the contract.
Upon examining the record in light of the legal principles set forth above, this determination by the lower court is justified and may be upheld.
The lower court's judgment does not contain any error, as alleged in the grounds of appeal, of misunderstanding the legal principles concerning fixed-term labor contracts and unfair dismissal.
B. In the case of a worker who has entered into a fixed-term labor contract, the principle is that the worker's status as an employee naturally terminates upon expiration of the term, and if the labor contract is not renewed, the worker is deemed to have retired as a matter of course, even absent an expression of intent to refuse renewal. However, where the labor contract, work rules, collective agreement, etc. contain provisions to the effect that the labor contract in question will be renewed if certain requirements are satisfied notwithstanding the expiration of the term, or even absent such provisions, where, upon comprehensive consideration of various circumstances surrounding the labor relationship in question—such as the contents of the labor contract, the motive and circumstances leading to the conclusion of the labor contract, whether and how requirements or procedures concerning renewal, such as renewal standards, have been established and the actual practice thereof, and the content of the duties performed by the worker—a relationship of trust has been formed between the parties to the labor contract such that the labor contract will be renewed if certain requirements are satisfied, thereby recognizing the worker's legitimate expectation that the labor contract will be renewed accordingly, then the employer's unjust refusal to renew the labor contract in violation thereof has no effect whatsoever, in the same manner as an unfair dismissal, and in such a case, the labor relationship after the expiration of the term shall be deemed identical to a renewal of the previous labor contract.
According to the reasoning of the lower court's judgment, the lower court, having found the facts as stated in the first instance judgment, determined that a legitimate expectation that the contract in this case would be renewed at the time of its expiration could not be recognized as to the Plaintiffs, in light of the following: ① the circumstance that neither the contract in this case nor the relevant statutes, etc. impose upon the Intervenor an obligation to conclude a renewal contract with the Plaintiffs, etc. whose contract terms had expired, nor do they contain any provisions concerning the specific renewal procedures or requirements; ② the circumstance that, pursuant to the above Ordinance, the Seoul Metropolitan Government may entrust the management, etc. of disabled persons' call taxis to a corporation or organization other than the Intervenor, and where the entrusted institution re-entrusts to a third party, the contract term is to be set on a one-year basis, and the contract in this case provides that if the entrustment contract concluded between the Intervenor and the Seoul Metropolitan Government terminates due to mid-term termination or other grounds, the contract in this case may likewise be terminated mid-term, making it difficult to conclude that the continued maintenance of the contract in this case was guaranteed; and ③ the circumstance that, in the case of the Plaintiffs, not a single renewal of the contract had ever been made.
The lower court further determined, on the premise that even though there was somewhat of an imbalance in the scoring intervals of the evaluation items on the evaluation criteria table in this case, and that, among the evaluation items, complaints received by telephone were excluded from the subject of evaluation under the "complaint-inducing" item without sufficient review, such circumstances and the evidence submitted by the Plaintiffs were insufficient to recognize that the evaluation items on the evaluation criteria table in this case lacked the reasonableness and clarity that would be deemed reasonable under generally accepted social norms, and that there was no evidence to recognize that the Intervenor's application of the evaluation items in this case to the drivers involved a violation impermissible under the principle of good faith to such an extent, that the Intervenor's refusal to renew the contracts of the Plaintiffs, who failed to obtain the renewal standard score of 70 total points as a result of the evaluation conducted pursuant to the evaluation criteria table in this case, had a reasonable basis, and that, accordingly, the refusal to renew in this case could not be deemed an unfair dismissal.
However, the lower court's determination is difficult to uphold as is, for the following reasons.
First, in light of the circumstances recognized from the reasoning of the lower court's judgment and the record, namely: ① although the above Ordinance provides that where an entrustee entrusted by the Seoul Metropolitan Government with the management, etc. of disabled persons' call taxis re-entrusts this to a third party, the contract term is to be set on a one-year basis, and the contract in this case accordingly set its term at one year, the Seoul Metropolitan Government's operational plan for disabled persons' call taxis explicitly states that the purpose of requiring the contract term to be renewed on a one-year basis is the replacement of unqualified persons; ② the disabled persons' call taxi program at issue in this case needs to be continuously operated to secure means of transportation for persons with severe disabilities, and thus cannot be regarded as a temporary or provisional project, and it can be seen that the Seoul Metropolitan Government itself is considering the expanded operation of the project in the above operational plan; ③ the Intervenor included a provision in the entrustment contracts with drivers, including the contract in this case, to the effect that the entrustment period may be extended when deemed necessary in consideration of the drivers' operational performance, etc. during the contract term, and that the contract shall be automatically extended under the same conditions if neither party raises a written objection to the other by 30 days prior to the expiration of the contract term; ④ accordingly, around November 2003, when the entrustment period for its affiliated drivers was about to expire, the Intervenor established the evaluation criteria table in this case, including evaluation items, scoring, and the renewal standard score, and evaluated the drivers, extending the contract terms for all those who obtained a total score of 70 points or more, the renewal standard score, and the evaluation criteria established by the Intervenor consisted of matters such as the number of calls per day and traffic law violations, which leave no room for the evaluator's subjective judgment to intervene, such that it can be seen that a relationship of trust had been formed among the drivers affiliated with the Intervenor to the effect that, absent special circumstances, the contract would be renewed if a score above the renewal standard score was obtained as a result of the evaluation conducted pursuant to the above evaluation criteria—comprehensively considering the foregoing, it is reasonable to view that an agreement was formed between the Intervenor and its affiliated drivers to the effect that the contract would be renewed if a score above a certain standard was obtained through the prescribed evaluation procedure, or, at the very least, that a legitimate expectation that the fixed-term labor contract would be renewed is to be recognized as to the drivers affiliated with the Intervenor, including the Plaintiffs.
Next, as to whether the refusal to renew in this case was justified, according to the reasoning of the first instance judgment and the record, it can be seen that: ① the "Disabled Persons' Call Taxi Status Log," which the Intervenor used as evaluation material to assess whether to renew the contracts of the drivers, including the Plaintiffs, records the overall operational status, including drivers' operational performance, violations of call dispatch procedures, and matters raised in complaints, but a substantial portion of the records in the above status log for a considerable period were omitted, and the Intervenor conducted its evaluation based on the status log with such omissions; ② as to the "call dispatch violation" item among the evaluation items in this case, the Intervenor asserts that it included in call dispatch violations only acts of intentionally refusing calls for the purpose of unauthorized (private) operation, excluding simple call refusals, but the entries in the above status log alone make it practically difficult to distinguish between simple call refusals and intentional call refusals, and this may in some cases provide room for arbitrary interpretation of the entries in the status log; moreover, in Exhibit A No. 44, which appears to have been prepared by the Intervenor, a certain non-party is recorded as having committed two call dispatch violations, namely call refusal and suspension of operation, whereas in the "2003 Call Taxi Individual Operation Entrustee Scoring Sheet (Exhibit B No. 12)," the same non-party is recorded as having committed only one call dispatch violation, which raises doubts as to whether the Intervenor's evaluation process concerning call dispatch violations can be fully trusted; ③ as to the "complaint-inducing" item among the evaluation items in this case, the Intervenor asserts that complaints recorded in the above status log were uniformly excluded from evaluation on the ground that they were difficult to substantiate, and that only complaints received via the Internet were made the subject of evaluation, but the above status log specifically records the content of complaints raised by passengers, the drivers' explanations, and the surrounding circumstances at the time, such that it does not appear to differ significantly from the handling of complaints received via the Internet, and there does not appear to be any reasonable ground for treating the two differently; and ④ it can be seen that, in applying the "traffic law violations and vehicle accidents attributable to the driver" and "negligence in call taxi operation and management" items among the evaluation items in this case, the Intervenor omitted the violations of some drivers—in light of these circumstances, doubts arise as to whether the evaluation in this case was conducted based on objective and accurate data, and it can be seen that some of the evaluation items in this case left room for arbitrary evaluation by the evaluator, lacking objectivity and fairness, and that some evaluation items were not applied uniformly to all persons subject to evaluation, resulting in an inequitable outcome.
Given that the refusal to renew in this case was made against the Plaintiffs on the ground that they had scored below the renewal standard score through an evaluation process lacking fairness and objectivity as described above, it must be said that the refusal to renew in this case lacked justification, and therefore, the refusal to renew in this case cannot be recognized as effective.
Accordingly, the lower court's judgment, which determined to the contrary that the refusal to renew in this case could not be deemed an unfair dismissal and was therefore effective, contains an error of misunderstanding the legal principles concerning fixed-term labor contracts and unfair dismissal, which affected the judgment.
The grounds of appeal pointing this out are with merit.
2. Regarding the Part on Unfair Labor Practices
The lower court, citing the first instance judgment, having found the facts as stated in its reasoning, determined that the refusal to renew in this case could not be recognized as having been substantially made on the ground of the Plaintiffs' labor union activities.
Upon examining the record, the above determination by the lower court is justified.
The lower court's judgment does not contain any error, as alleged in the grounds of appeal, of misunderstanding the legal principles concerning unfair labor practices that affected the outcome of the judgment.
3. Conclusion
Therefore, the part of the lower court's judgment concerning the retrial decision on unfair dismissal is reversed, and this part of the case is remanded to the lower court for further hearing and determination, and the remainder of the appeal is dismissed. This Judgment is rendered by the unanimous opinion of the Justices participating in the deliberation, as set forth in the Order.
Justice Yang Chang-soo (Presiding Justice), Kim Ji-hyung (Justice in Charge), Jeon Su-an, Lee Sang-hoon