The CEO and shareholder of a company who signed a compromise agreement which included a general waiver of his rights in exchange for various compensations, sought to claim the labor protective rights due to an employee and which he did not expressly waive as part of the compromise agreement, due to the thwarting of part of the agreement by the other parties.
The Labor Court rejected the claim due to the extreme lack of good faith that was at the core of its filing. As a general rule, an employee cannot waive the labor protective rights he is entitled to and signing a waiver of these rights will have very little ramifications. However, in a situation of extreme bad faith, that is when the employee was well aware of the rights he waived, and then requests to withdraw from the waiver, he will not be entitled to the labor protective rights and the waiver of the labor protective rights will be valid. Here, it is a detailed agreement, which was concluded after a lengthy negotiation between the parties during which the plaintiff's rights were checked by his lawyer before being recorded in the waiver agreement. In addition, this is not a simple employee but rather the CEO of the company who was well aware of the framework of his employment there, the payment or non-payment of his rights, including the pension rights for which he is responsible as an office holder. Thus, the employee cannot withdraw from the waiver.