Yes, seems like it puts your boss back in total control and opens up a huge opportunity on their part for gamesmanship.
Another point I didn't see, but may have been mentioned by others is that here in teh USA you have to be paid for accrued but unused vacation time if you leave in your last/severance pay.
Well, this just eliminated that.
Most of my bosses I would be OK with this policy, but there have been a few.....