Labor Pension Act Article 11

Employees, who were covered by the Labor Standards Act prior to the enforcement of the Act, but still work for the same business entity after the enforcement of the Act and choose to be covered by the pension system of the Act, their seniority prior to their application to the Act shall be reserved.When a labor contract is terminated in accordance with Article 11, the proviso of Article 13, Article 14, Article 20, Article 53 and Article 54 of the Labor Standards Act or Article 23 and Article 24 of the Protection for Workers Incurring Occupational Accidents Act, an employer shall in accordance with the foresaid statutes use the average wage at the time of the labor contract’s termination to calculate the severance or retirement payment for an employee’s reserved seniority referred to in the preceding paragraph, and the severance or retirement payment shall be paid within 30 days upon the termination of the labor contract.During the continuing period of a labor contract, when an employer and an employee mutually agree to provide payment based on an employee's calculated seniority, as referred to in Paragraph 1, such a payment shall amount to no less than the payment prescribed by Article 55 or Article 84-2 of the Labor Standards Act, and such an agreement shall be upheld.A civil servant also with employee status shall on the date of privatization claim retirement payments for their seniority prior to the privatization in accordance with relevant statutes and regulations covered by retirement prior to the privatization. However, the remaining civil servants shall suspend their monthly pension payments and related rights until they leave the privatized enterprise.