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Judgment No. 2782

Decision

1. The impugned decision is quashed.
2. The Organisation shall pay the complainant interest at the rate of 8 per cent per annum on the amount corresponding to the adjustment which he received for the period 1 July 2003 to 30 June 2004.
3. It shall also pay him 2,000 euros in costs.
4. All other claims are dismissed.

Consideration 5

Extract:

In order to execute Judgment 2560 the Organisation paid salary arrears not only to the officials who had filed the complaints that led to that judgment, but also to all other members of staff and to all former members of staff in receipt of a retirement pension.
"It is not disputed that only the parties to the proceedings leading to the delivery of Judgment 2560 could seek its enforcement. But this does not mean that that judgment remains without effect for staff members who, although they did not participate in those proceedings, are de facto in a situation identical to that of colleagues who did. It is clear from Judgment 2560 that the Organisation breached the provisions of the Staff Regulations by not taking any measure to adjust salaries and pensions for the period under consideration. Staff members who were not party to the proceedings are entitled, for the same reasons as those stated in the judgment, to receive the salary arrears paid to the staff members who participated in those proceedings, provided that they are in the same situation.
Consequently, in deciding to extend the scope of Judgment 2560 to all serving or retired members of staff, the Organisation [...] perform[ed] a legal obligation."

Reference(s)

ILOAT Judgment(s): 2560

Keywords

complaint allowed; complaint allowed in part; grounds; complainant; res judicata; same cause of action; execution of judgment; organisation's duties; staff regulations and rules; breach; salary; adjustment; retirement; pension; limits; effect; payment; purport; right; same

Consideration 6

Extract:

In order to execute Judgment 2560 the Organisation paid salary arrears not only to the officials who had filed the complaints that led to that judgment, but also to all other members of staff and to all former members of staff in receipt of a retirement pension. However, interest on arrears was paid only to the members of staff who had filed a complaint with the Tribunal; the complainant was not among them. He is consequently challenging the decision not to pay him interest on arrears.
"(a) In the absence of any particular rule requiring the Organisation to pay interest on arrears to a staff member where a benefit due to that person is paid belatedly, such interest is not in principle due until the creditor - i.e. the staff member to whom the benefit is owed - has served notice on the Organisation to pay. This apparently harsh solution is justified because no particular formalities are required for the service of such notice, it being sufficient for the creditor to request payment of the amount due. [...]
(b) However, this rule does not apply where the debt is one which falls due on a fixed date. In such a case the due date is equivalent to the service of notice (dies interpellat pro homine). The debtor owes interest on arrears as from that date, without any need for the creditor to establish that he or she has requested payment of the due sum. The same applies where the debt falls due periodically at a fixed date, as in the case of a salary.
The salary adjustment at issue forms an integral part of the salary. Moreover, the salary, plus increments, is due on precise dates at the end of every month. In the instant case the payment of the staff member's salary, including the adjustment thereto, did not depend on a request from that person. The claim for interest on arrears is therefore well founded."

Reference(s)

ILOAT Judgment(s): 2560

Keywords

complaint allowed; complaint allowed in part; complainant; formal requirements; delay; exception; amount; interest on damages; execution of judgment; general principle; organisation's duties; no provision; salary; adjustment; retirement; insurance benefit; date; debt; increase; payment; request by a party



 
Last updated: 12.03.2009 ^ top