Judicial principles and studies

End-of-Service Reward — Custom and the Obligation to Pay

The study examines custom as a legal source in employment and the conditions under which it gives rise to a vested right to an end-of-service reward. It outlines the elements of custom and the types of evidence that may establish it.

Updated: 10 September 2026

Editorial summary of a judicial principle or decision; consult the source below and do not treat the firm as the author of the decision.

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Instant summary

The study examines custom as a legal source in employment and the conditions under which it gives rise to a vested right to an end-of-service reward. It outlines the elements of custom and the types of evidence that may establish it.

Key points

  • Subject
  • Summary
  • Practical significance

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01

Subject

This summary addresses custom as a source of law within employment relations. Custom relies on two elements: a material element (habitual conduct regulating interactions) and a moral element (the belief that the conduct is binding). Custom is categorized as professional or local.

02

Summary

When a claimant bases a demand for an end-of-service reward on an employer's custom — shown to have been paid over time to a specific group, supported by a written statement from the employer and by personal evidence demonstrating generality, continuity and a fixed formula — the reward is treated as a vested right obliging the employer to pay it even absent an explicit grant. This is an educational summary only; it is not a judicial text or legal advice.

03

Practical significance

Practically, establishing the customary elements together with the cited evidence (an employer-issued written statement and personal testimony proving generality, continuity and a fixed scheme) can give rise to a right to payment of the reward against the employer.

Frequently asked questions

Subject?

This summary addresses custom as a source of law within employment relations. Custom relies on two elements: a material element (habitual conduct regulating interactions) and a moral element (the belief that the conduct is binding). Custom is categorized as professional or local.

Summary?

When a claimant bases a demand for an end-of-service reward on an employer's custom — shown to have been paid over time to a specific group, supported by a written statement from the employer and by personal evidence demonstrating generality, continuity and a fixed formula — the reward is treated as a vested right obliging the employer to pay it even absent an explicit grant. This is an educational summary only; it is not a judicial text or legal advice.

Practical significance?

Practically, establishing the customary elements together with the cited evidence (an employer-issued written statement and personal testimony proving generality, continuity and a fixed scheme) can give rise to a right to payment of the reward against the employer.

Notice: this article is general educational information and does not constitute legal advice or a final assessment of any matter.

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