Expiration of Contract More Than 1 Month After Notification by the Company of Non-Renewal: Is it Permissible?

My labor contract expired on January 24, but the company did not mention anything about my resignation or the renewal of a new labor contract, so I continued to work. Today, February 26, the HR department informed me that the contract would not be renewed. Is the company acting correctly?

Based on the provisions at Point b, Clause 1, Article 20 of the Labor Code 2019:

A fixed-term labor contract is a contract in which the two parties determine the term and the end date of the contract within a period not exceeding 36 months from the effective date of the contract.

Point a, Point b, Clause 2 of this Article also states:

- Within 30 days from the expiration date of the labor contract, the two parties must sign a new labor contract; during the period that there is no new labor contract, the rights, obligations, and benefits of the two parties are to be executed according to the already signed contract.

- If, after 30 days from the expiration date of the labor contract, the two parties do not sign a new labor contract, the already signed contract as per Point b, Clause 1 of this Article becomes an indefinite-term labor contract.

Thus, according to this provision, after the fixed-term labor contract expires, the two parties have a period of 30 days thereafter to decide whether to sign a new labor contract or not. If they wish to terminate and not sign a new contract, both parties must resolve this within this period.

After 30 days from the contract's expiration date, if both parties remain silent and the employee continues to work, the fixed-term labor contract becomes an indefinite-term labor contract.

Therefore, in the case where your company's contract expired, and you continued to work for more than a month after which the company announced not to renew the contract with you, it is a violation of the law. You may file a complaint to the company's director for resolution.

Respectfully!

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