The term vested describes a right, interest, or title that is absolute, fixed, and not subject to being taken away or “divested.” When a right is vested, the person with the right has a guaranteed legal claim or entitlement that can be enforced now, in the future, or both.
The critical characteristics of vested rights are their certainty, the protection they afford, and their enforceability. Regarding certainty, vested rights are not contingent on future events or conditions; they are certain and fixed. Regarding protection, vested rights are protected by law and cannot be taken away without due process. Regarding enforceability, holders of vested rights are not just entitled but empowered to enforce their rights in a court of law.
The concept of being vested is used in many areas of law.
- In property law, vested future interests entitle the right holders to enjoin the current tenant from changing the property in a way that would affect their enjoyment of it in the future.
- In employment law, a company may offer a pension plan where benefits become vested after a certain period of employment, which entitles the employee to receive the benefits even if they leave the company.
- In constitutional law, the vested rights doctrine protects the rights that become vested under the law from being retroactively changed by legislation.
Contrast with: Contingent
[Last updated in July of 2024 by the Wex Definitions Team]