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Ruling: Severance pay – A kablan, one who is paid by the job rather than the time put in, is not an employee, by law or by Halacha, who receives severance pay. Pl’s salary was calculated along the lines of a kablan, receiving a percentage of incoming revenues for his part in them. However, the overall nature of the work clearly indicates that pl was an employee. His contract linked the two sides for an extended period of time and the nature of pl’s obligation was broad and required availability according to the employer’s needs (see Piskei Din Rabbaniim, vol. III, from p. 272). Additionally, their contract factored in social benefits, which only salaried workers receive. Rather, the unusual mode of calculating the salary was due to def’s specific concerns.
The clause in the contract waiving pl’s rights to severance pay is invalid here for two reasons. The law, which is valid both as dina d’malchuta and as the common practice, nullifies the waiving of severance pay. Secondly, the waiving was done in the framework of a contract that extended pl’s employment into the future. In relation to a situation in which def ends pl’s employment prematurely, any such mechila is invalid mechila b’ta’ut. However, since the question of whether pl deserves severance pay is a valid one, we will not impose a penalty for late payment of the severance pay.
We will continue next time with other elements of the dispute
P'ninat Mishpat (832)
Beit Din Eretz Hemda - Gazit
591 - Was the Renter Normal?
592 - Questionable Firing and its Financial Implications – part I
593 - Questionable Firing and its Financial Implications – part II
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Beit Din Eretz Hemda - Gazit
P'ninat Mishpat Payments after a Gradual End of Employment
(Based on ruling 82024 of the Eretz Hemdah-Gazit Rabbinical Courts
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P'ninat Mishpat P'ninat Mishpat: Multiple Agreements and Parties – part IV
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