UNDT/2010/011, Castelli
Outcome: The respondent is to pay interest from the date the payment of the relocation grant became due, namely 4 May 2008, and until payment at the rate of 8 per cent per annum.
The applicant sought payment of the relocation grant on 31 March 2008. The Organization’s obligation to pay the relocation grant was triggered by the completion of a year’s continuous service by the applicant on 4 April 2008. The Tribunal gave judgment for the applicant on 13 November 2009 and ordered the respondent to pay him the relocation grant as applicable at the time of the applicant’s relocation, including interest.
Interest is payable on a debt owed by the UN as part of the award of compensation under art 10.5 of the Statute in order to place the staff member in the same position as would have been if the debt had been paid when it was due. Various modes of calculation discussed. The applicable rate is 8 per cent per annum from the date upon which the debt was due to be paid, namely (applying conventional terms of agreement) thirty days after accrual.