When workers who are covered by the pension system of this Act and whose seniority is applicable after this Act is implemented, are terminated by labor contract in accordance with Article 11, the proviso of Article 13, Article 14 and Article 20 of the Labor Standards Act or Article 23 and Article 24 of Protection of Workers Suffering from Occupational Injuries and Diseases Act, they shall have their severance pay paid by the employer based on their seniority: an amount equal to half a month of average wages for every full year of employment, and in proportion for a period of employment lasting less than one full year; the foresaid severance shall not exceed more than six months of average wages, and is not covered by Article 17 of the Labor Standards Act.
Severance pay calculated pursuant to the preceding paragraph shall be paid within 30 days after the termination of a labor contract.
Workers choosing to continue to be covered by the pension regulations of the Labor Standards Act shall have their severance paid in accordance with Article 17, Article 55 and Article 84 of the Labor Standards Act.