Supreme Court dismisses cassation, allowing employer's contractual severance pay clause despite 'payment for no work' argument.
Poland (PL)
Legislator summary
AI generatedThe Supreme Court dismissed the cassation appeal filed by the employer against a labor court judgment awarding severance pay to the former CEO. The court held that a contractual clause granting severance upon termination by the employer does not violate public policy, even if the employee performed no work. The decision emphasizes that such clauses are valid market standards for corporate officers and do not constitute unjust enrichment or a breach of the principle of equivalence.
Legislator headnote
AI generatedArt. 58 § 2 k.c.; Art. 13 k.p.; Art. 197 k.h.; Art. 367 k.h.; Art. 393 § 1 k.p.c.: A contractual provision granting severance pay upon termination by the employer does not violate public policy or the principle of equivalence, as it represents a voluntary agreement acceptable in the market economy for corporate officers.