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Retaining Money for Severance Pay

Shalom,

I worked in a small (Jewish) company where I was named the Chief Financial Officer (CFO) and I was in charge of ALL money decisions.

This company was not honest with their investors or merchants (telling them they make a lot of money when they were actually going bankrupt. They said this so that the investors would invest money. They also didn’t pay their employees or business merchants in a timely manner or some people – at all.) Checks were also always getting bounced etc…

There were times when they asked me to work for free since they had no money. I verbalized I was not happy about it because I also have a family to feed. I told them I would help them out and so there were little spots where I did it for free (as a chesed.)

Since they weren’t making money they had to down-size and had to “let me go.” Since I was working for them for over a year on the books (legally,) I told my boss that I should get a severance package to where he laughed and facetiously made several remarks. (Note: There were a couple employees he owed money to for working but refused to pay the full amount.)

When I was working for them, I knew I would some how get messed over (because of their dishonestly) so I put some extra money aside. Please note, having cash on hand was normal since I always had to have money (cash) on hand to pay merchants who complain over and over again that we owe them money. (I was instructed not to pay unless they threatened.) Anyways, I am no longer working for the company and have about 2000 shekels which was kept on the side – am I able to keep that money as my severance package? Legally I should have a severance package. I don’t know what that entitles but I was working on the books; legally.

Thank you.

Answer:

If you have no doubt as to the fact that you are owed the money in severance, and the amount is certainly in excess of the 2,000 shekels that you have of the company’s, you can retain the money as payment of the debt. This is known as tefisah: For a certain debt, which is not in question, it is permitted to retain money of the party in debt.

Note that this only applies to money, and not to other property, which requires the evaluation of beis din.

Of course, you have to make sure that you won’t be paid twice.

Best wishes.

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