Legal Updates

A severance grant may be conditioned on signing a waiver of claims

August 18, 2019

An employer offered an employee a severance grant if no other position will be available for him. When none was available, the employee was terminated and only then required to sign a waiver of claims as a pre-condition for receiving the grant.
The Court rejected the employee's demand for the retirement grant. There is no lawful obligation to pay a severance grant, which is a mere benefit to the employee, and therefore the employer is entitled to condition it at any stage. The fact that the condition was raised only after the termination is irrelevant and the employee is not entitled to the benefit if he refused to sign the waiver.