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If an employee continuously works for 1 year or more, the employer must pay severance pay to the retiring employee in an amount equivalent to 30 days or more of the employee's average wage per year of continuous service. It is permissible under a collective bargaining agreement or employment rules to pay an amount exceeding 30 days of average wage, but paying less than 30 days is not allowed. Severance pay is a mandatory provision that applies to all types of workers, including daily workers, regular employees, and temporary workers, regardless of job type, in businesses with 5 or more regular employees, provided the continuous service period is 1 year or more. In such cases, it must be calculated and paid down to the month and day worked. However, if the service period is less than 1 year, there is no obligation to pay severance pay. Here, the continuous service period includes periods of employment even for temporary or daily workers where hiring is repeated short-term, and even if there are slight gaps in between, it can qualify if the total period exceeds 1 year. Additionally, even if employment contracts are made on a yearly basis and repeated over multiple times, they are included in the continuous service period, and slight gaps during contract renewals can still be recognized as continuous employment. Severance pay is calculated based on the average wage, which includes bonuses, annual leave allowances, meal allowances, and the like. The principle is to pay it at the time of retirement, but upon the employee's request, it can be settled and paid in advance or settled and paid annually.