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- Reasons for employment relationship terminations comprise retirements intended or approved by the employee, dismissal unilaterally determined by the employer and against the employee’s will, and automatic extinction, etc. regardless of the employer and employee’s intention (refer to the Supreme Court’s Judgement 2014다9632 announced on May 30, 2018).

- If the employment period is not indicated on the employment contract, the party concerned (employer or employee) may notify contract cancelation anytime (Article 660, Paragraph 1 of the “Civil Law”).

- The effectiveness of retirement shall apply to any following case (Article 660, Paragraph 2 of the “Civil Law” and the “Retirement Effectiveness Period”).

- However, if the employer pays the employee wages at a fixed, regular basis, the retirement shall come into effect after the next wage date after the employee notifies his/her expression of retirement expression to the employer (Article 660, Paragraph 3 of the “Civil Law” and the “Retirement Effectiveness Period).

- “Voluntary Resignation” refers to terminating the employment relationship by the parties’consent. The employee submits the voluntary resignation application to the employer for the employer to screen whether or not the employee meets the qualifications. If the employee fulfills the qualifications, the employer approves it accordingly, leading to voluntary resignation(refer to the Supreme Court’s Judgement 98다42172 announced on July 7, 2002)

- After the parties reach an agreement, neither party may withdraw the agreed matter. The employee shall retire on the planned voluntary resignation date, and the employer shall be obliged to pay the voluntary retirement package (refer to the Supreme Court’s Judgement 98다42172 announced on July 7, 2002, 2000다60890 announced on August 23, 2002, etc.).

- "Dismissal" means that the employer terminates the work relationship unilaterally regardless of the worker's intention, regardless of the name or procedure it is actually called in the workplace (see Supreme Court Decision, Oct. 26, 1993, 92 Da 54210).

- According to the “Civil Law,” the employment contract may be freely canceled premised on certain conditions or compensation of damages (from Articles 658 to 663 of the “Civil Law”) under the liberty of contract. However, since the employer is in a dominant position economically and socially, contract cancelation by free will may be unfavorable to the employee. The employee will provide labor in a unsteady condition of possibly being dismissed anytime.

- Therefore, in this case, the “Labor Standards Act” requires the discharge reason (Article 23, Paragraph 1, Article 24 of the “Labor Standards Act”), period (Article 23, Paragraph 2 of the “Labor Standards Act,” and procedure (Articles 26 and 27 of the “Labor Standards Act”) to restrict the employer from dismissing the employee unilaterately.

- If the employment expiration period is determined on the employment contract, the employee’s term will be automatically terminated on the specified expiration date, unless special circumstances occur and without taking special measures, such as the employee’s dismissal, etc. (refer to the Supreme Court’s Judgement 95다5783 announced on August 29, 1996, and 2010두17205 announced on August 23, 2002, etc.).

- “Regular Retirement” means the employment contract termination after the employee reaches the age prescribed on employment regulations or collective agreement, regardless of the employee’s intention or ability.

- If the employer or employee passes away, the rights and obligations on the employment contract will automatically expire without inheritance since the employment relationship has exclusivity of rights and duties (refer to Article 657 of the “Civil Law”).

- If the company, non-profit corporation, or foundation’s liquidation procedure comes to an end, the corresponding institution’s juristic personality dissipates, and the related company, non-profit corporation, or foundation and the employee’s employment relationship extinguishes accordingly.

- If the company, non-profit corporation, or foundation goes bankrupt, the relevant institution shall file for bankruptcy. If the institution’s bankruptcy ends, the employment relationship between the company, non-profit corporation, or foundation and the employee shall extinguish.