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
Prepared and reviewed by: Ashraf Al-Khawaja
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.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.