Judgment No. 849
THE COMPLAINT IS ALLOWED.
1. THE DECISION OF 13 OCTOBER 1986 IS QUASHED.
2. THE ORGANIZATION SHALL PAY THE COMPLAINANT A SUM EQUIVALENT TO THE NET ANNUAL SALARY AND ALLOWANCES HE WOULD HAVE RECEIVED HAD HIS CONTRACT BEEN EXTENDED FOR ONE YEAR, TOGETHER WITH INTEREST THEREON AT 8 PER CENT A YEAR FROM 15 APRIL 1987 UNTIL THE DATE OF PAYMENT.
3. THE ORGANIZATION SHALL PAY THE COMPLAINANT THE SUM OF 6,000 SWISS FRANCS TOWARDS COSTS.
"It appears from the evidence as a whole that the Director General's decision was not based on any inability of the complainant to carry out his duties, nor on the unsatisfactory performance by him of those duties, nor on any considerations relating to the necessities of the service or the interests of the organization. It is clear that the Director General's conclusion [...] that the complainant was guilty of serious misconduct constituted the sole and underlying reason for exercising his discretion as he did. The Tribunal has quashed that decision in Judgment 848 and holds that the impugned decision in the present proceedings, based solely on a conclusion which is wrong in law, constitutes an abuse of authority and cannot be allowed to stand."
ILOAT Judgment(s): 848
grounds; nationality; misrepresentation; contract; fixed-term; non-renewal of contract; serious misconduct; misuse of authority; abuse of power
"The case law of the Tribunal supports the principle that when the Director General is granted authority not to renew a fixed-term appointment, and to do so without notice or indemnity, his power is discretionary and is subject to the implied condition that his authority must be exercised only for the good of the service and in the interests of the organization. The Tribunal has held that a decision not to renew a fixed-term contract taken in the exercise of this discretion is subject to review, but the consistent case law is that the Tribunal will interfere with the decision only if it was taken without authority, [...]".
contract; fixed-term; non-renewal of contract; judicial review; discretion