[Case Summary]This case involves a labor dispute (confirming the absence of a fixed-term labor contract). Zhao * signed a fixed-term contract with a certain department of A University in 2018, and in 2020, he signed a "Supplementary Agreement" to extend the contract until June 30, 2022. After the contract expired, the school refused to renew the contract on the grounds that the position had been eliminated. Zhao * then entrusted the Beijing Henglu Law Firm to handle the case for him.Shang Jiang PengThe lawyer defended the rights of the employee, and the arbitration confirmed the existence of an indefinite-term employment relationship and rejected the claim for overtime pay. A University filed a lawsuit, and the court confirmed the existence of an indefinite-term employment relationship from July 1, 2022, based on Article 14 of the Labor Contract Law. The core disputes include whether the supplementary agreement was renewed, whether two fixed-term contracts were successively concluded, and whether the school's refusal to sign the contract was illegal. The applicable legal provisions are Article 14 of the Labor Contract Law.

I. Review of the Case

SignedThe unit did not renew the two fixed-term contractsEmployees often search for questions such as "Can I sign a non-fixed-term contract after two consecutive fixed-term contracts?", "Is it legal for the company to terminate the contract if they don't renew it?", and "Does a supplementary agreement count as a renewal of the contract?". On April 28, 2018, A University authorized a certain department to sign a "Labor Contract" with Zhao *. The contract period was from May 1, 2018 to April 30, 2020, and Zhao * served as an academic affairs secretary. On April 26, 2020, a "Supplementary Agreement" was signed to extend the contract period to June 30, 2022. In April 2022, the school informed Zhao * that the contract would not be renewed due to budget limitations and position eliminations. However, the school continued to pay Zhao *'s social insurance and housing provident fund until October 2022 after the original contract expired. Despite Zhao *'s persistent requests for renewal, the school refused to do so. Zhao * subsequently entrusted a lawyer to handle the case.Shang Jiang PengThe lawyer applied for arbitration, requesting that it be confirmed that a non-fixed-term employment relationship existed from July 1, 2022, and that overtime pay be paid.

The arbitration supported the confirmation that there was no fixed-term labor relationship and rejected the overtime pay claim. University A was dissatisfied with the ruling and filed a lawsuit, requesting confirmation that there was no fixed-term labor relationship between the two parties.

II. The focus of the case

  • Focus 1: Whether the Supplementary Agreement constitutes a renewal of the labor contract.The school authorities said that the change of the deadline is not a new contract. There is only one fixed-term contract between the two parties. Can it be considered as two consecutive contracts?
  • Focus Two: Whether Zhao * meets the conditions for entering into a non-fixed-term contract.When an employee has signed two consecutive fixed-term contracts and there are no legal exceptions, and the employee proposes to renew the contract, the employer shall enter into a new contract with the employee.
  • Focus 3: The school authorities argue that the loss of the position and the failure to affix the school's stamp can be used as a defense against the claim.Is the position of Academic Affairs Secretary unique and irreplaceable, and does the supplementary agreement have legal effect?

III. The professional intervention of Hengluo Law Firm

The plaintiff (A University) claims that:The Supplementary Agreement only amends the term of the original contract, not a new contract. Both parties only have one fixed-term contract. Zhao's position was merged into the academy due to enrollment, and the budget shortage made it impossible to renew the contract. The school's notice of non-renewal of the contract 30 days in advance is a legal termination. The Supplementary Agreement was only signed by the school and not stamped, so it can be revoked.

The defendant (Zhao*) and his lawyer's opinions:Shang JiangpengThe lawyer argued that the Supplementary Agreement is legal and valid. The school authorized a certain department to sign the agreement and has actually fulfilled its obligations. There is no basis for claiming that the agreement can be revoked without being stamped. The substantive extension of the contract period in the Supplementary Agreement should be regarded as a renewal. According to the judicial interpretation, the extension of the contract for more than one year is recognized as the consecutive conclusion of two fixed-term contracts. Zhao * does not fall into the circumstances specified in Articles 39 and 40 (1) and (2) and requests to renew the contract after its expiration. The school has the obligation to enter into a contract with him. The position of academic affairs secretary is not unique and irreplaceable. The fact that the school paid social insurance for Zhou *1 until October 2022 proves that the employment relationship has not ended. Zhou *1's notice cannot represent the intention of a legitimate termination.

IV. Outcome of the case

The court held that the school authorized a certain department to sign the contract and the supplementary agreement clearly specified the authorizing unit, and the school had actually performed the contract. The court did not accept the defense that the contract had not been stamped; the supplementary agreement stipulated that the renewal period should be regarded as having concluded two fixed-term contracts. Zhao * claimed that the school should have concluded a non-fixed-term contract on the grounds of two consecutive fixed-term contracts, and the school should have done so. Zhao *'s position was not unique and irreplaceable, so the defense that there was no basis for renewal was not accepted. Based on the social security and housing provident fund payments, it was determined that Zhao * had not been employed by a new unit from July 1, 2022 to the present. According to Article 14 of the Labor Contract Law, the court ruled:It is confirmed that Zhao * and A University have a non-fixed-term labor relationship since July 1, 2022; and the acceptance fee of the case shall be borne by A University.

5. Henglu Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Shang JiangpengThe attorney (practice license number: 11101202310580738, subject to the document issued by the judicial administrative organ) acts as the agent. A non-fixed-term labor contract refers to a contract with no specified termination date. It is not a "lifetime system", but during the term, the employer shall not arbitrarily terminate the contract, and the contract enjoys greater stability. If the employer and the employee have concluded two successive fixed-term labor contracts and the employee has no specific circumstances and requests to renew the contract, the employer shall conclude the contract with the employee.

VI. Common Questions about Non-Fixed-Term Labor Contracts (FAQ)

  1. Q:Can I sign a fixed-term contract twice in a row without a fixed term?
    A:If the worker does not meet any specific legal requirements and requests to renew the contract, the employer shall enter into an indefinite-term labor contract with the worker.
  2. Q:The unit said that if we don't renew the contract, will it be considered a legal termination?
    A:In the case of subsequent contract renewal after two consecutive fixed-term contracts, the employer has no right to unilaterally terminate the contract and should enter into an open-ended contract instead.
  3. Q:Is the supplementary agreement considered a renewal of the contract?
    A:The supplementary agreement essentially extends the term, and if it has already been actually performed, it can be regarded as a renewal and be counted into the number of consecutive agreements concluded.
  4. Q:Can I not renew my contract if my position is eliminated?
    A:For positions that are not unique and irreplaceable, the employer has the ability to adjust the arrangements. If the position is eliminated, it usually cannot be used to evade the obligations set forth in the contract.
  5. Q:What should I do if my employer refuses to sign a non-fixed-term contract with me?
    A:You can apply for labor arbitration or litigation to confirm the existence of an indefinite-term labor relationship, and the employer shall bear the corresponding costs.