The max option turns the (internally set) well bc into a hydraulic-head bc if the head exceeds the maximum. So if your head would be above 0.5m, the well would be replaced by a head bc of 0.5m. If your well is meant to start pumping at head values of higher than 0.5m, then 0.5 will have to be set as the min constraint.
Please note: At levels below 0.5m the will will NOT be turned off, but converted into a head bc. If factors other than the well cause the lowering of the water table, the well may even start infiltrating water to keep up the 0.5m level.