UNDT/2011/131, Applicant
There may be cases that take longer to be heard by the UNDT and that this may provide a reason justifying compensation beyond the two-year limit. This was such a case. Compensation in lieu of rescission was set at two years and 2 months’ net-base salary. The Applicant’s claim for compensation was excessive. It equated to over 13 years of net-base salary plus payment of a number of entitlements. Apart from being well outside the scope of compensation that might properly be ordered by the Tribunal, the Applicant’s claim was predicated on the mistaken belief that but for the unlawful dismissal he would have remained in his position until his retirement some 10 years into the future. That prediction was unsubstantiated by the Applicant. The Applicant’s claim for future losses was rejected. The breaches of natural justice and the effects of these breaches on the Applicant were evident. These cumulative effects warranted an award of compensation for moral damages even though that award meant that the total amount of compensation would exceed the 2 year limit for compensation set by Article 10(5). They were sufficiently serious to be regarded as an exceptional case. Compensation for moral damages was set at 3 months’ net base salary.
The Applicant contested the decision to summarily dismiss him for serious misconduct.
The very purpose of compensation is to place the staff member in the same position he or she would have been in had the Organization complied with its contractual obligations. Article 10(5) of the UNDT Statute limits the total of all compensation under sub paragraphs (a) and (b) to the equivalent of two years’ base salary except in exceptional cases. The tenor of Article 10(5) of the statute is that compensation should be calculated in terms of the net base salary. It does not specifically refer to entitlements over and above the salary.
Compensation in lieu of rescission is set at two years and 2 months net-base salary. Compensation for moral damages is set at 3 months net-base salary.