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Severance pay is calculated based on an average wage of 30 days or more per year of 'continuous employment period.' The continuous employment period, which serves as an important variable in calculating severance pay, refers to the period during which labor was continuously provided, that is, the period from the conclusion of the employment contract until its termination.
Therefore, the continuous employment period includes all periods during which an employee was registered with the business or workplace, regardless of actual working period, attendance rate, or perfect attendance. Accordingly, leave periods are included in the continuous employment period as long as the employment relationship was continuously maintained, regardless of the reason for leave or whether compensation was paid. This includes periods of workplace suspension, leave or absence due to personal illness, periods served as a full-time labor union official, periods worked as a daily laborer before becoming a regular employee (including the daily laborer period), detention periods due to criminal cases, vocational training periods and probationary or trial employment periods, periods of industrial action, periods of unfair dismissal, absenteeism periods, overseas study periods related to one's primary duties, and more.
However, there is a Supreme Court precedent stating that military service periods are not included in the continuous employment period. Additionally, in cases where, due to business circumstances, company mergers, splits, business transfers, or personnel transfers between affiliated companies occur, and even though the employee continuously worked in substance, formal procedures of resignation (such as submitting a resignation letter, processing resignation from the four major insurances, etc.) and re-employment were followed, resulting in an apparent interruption of continuous employment, if the resignation or re-employment procedures were not voluntary actions by the employee due to personal reasons but were carried out regardless of the employee's will due to the company's business reasons, the employment relationship is not considered interrupted, and the entire period must be aggregated to calculate the continuous employment period. [Related Precedent] (Supreme Court Ruling 93Da26168, pronounced on July 11, 1995): Even in cases where there is a change in the form of labor provision during the service period, such as being hired as a temporary employee and then later hired as a regular employee with no gap in employment and continuing to work, the period worked as a temporary employee and the period as a regular employee are aggregated and recognized as the continuous employment period serving as the basis for severance pay calculation.