X v Secretary-General of the OEEC (Decision No 22)

• Jurisdiction: European Union
• Court: Appeals Board (Organization for European Economic Cooperation)
• Date: 01 August 1955

Appeals Board of the Organization for European Economic Co-operation.

Decision No. 22.

International organization — Officials — Termination of contract — Measure of damages.

The Facts.—On June 7, 1955, the Appeals Board annulled an administrative decision terminating the claimant's contract.2 On June 17, 1955, the Secretary-General informed the Chairman of the Board that he had decided, for practical reasons, to exercise the right conferred on him by Staff Rule 72 (b) (ii)3 and to maintain the termination of Mrs. X.'s contract. He therefore asked the Board to assess damages.

Held: that damages must be fixed at an amount equivalent to one and a half years of the claimant's emoluments.

The Board said: “During the oral arguments, Mrs. X. assessed the damage caused to her by the termination of her contract, at six years' salary. On the other hand, the Administration's representative submitted that contracts of indeterminate duration may be

terminated by the Secretary-General without paying compensation when it appears to the Secretary-General that the interests of the Organization so require. The Board must consequently fix the amount of compensation, and, in order to do so, must assess not only the damage suffered by Mrs. X., but also the reasons for the termination of her contract, since the compensation must vary in proportion to the fault imputable to her and to the Organization

“The loss of the position held by Mrs. X. is the result of an evolution which took place in the Organization's activities. The Organization's tasks became more and more technical, required increasingly specialized knowledge on the part of its officials, and necessitated an internal reorganization. Mrs. X'.s work may have given satisfaction, in the grade which she held, before the internal reorganization of the Organization's services; but, as a result of the evolution which had taken place, her qualifications had less and less in common with the increased requirements of technical knowledge and experience which members of the senior staff must demonstrate in order to be able to discharge efficiently the international duties entrusted to them.

“However, no fault can be imputed to Mrs. X., who, by the force of circumstances, was obliged to assume tasks for which she was apparently insufficiently qualified, and who today finds herself deprived, not only of the possibility of pursuing a career in the Organization which began more than seven years ago, but also of the security on...