F.I.F.A. – Camera di Risoluzione delle Controversie (2013-2014) – controversie di lavoro – ———- F.I.F.A. – Dispute Resolution Chamber (2013-2014) – labour disputes – official version by www.fifa.com – Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 7 February 2014, in the following composition: Thomas Grimm (Switzerland), Deputy Chairman Philippe Diallo (France), member Mohamed Mecherara (Algeria), member John Bramhall (England), member Santiago Nebot (Spain), member on the claim presented by the player, Player G, from country N as Claimant against the club, Club C, from country S as Respondent regarding an employment-related dispute arisen between the parties

F.I.F.A. - Camera di Risoluzione delle Controversie (2013-2014) - controversie di lavoro - ---------- F.I.F.A. - Dispute Resolution Chamber (2013-2014) - labour disputes – official version by www.fifa.com – Decision of the Dispute Resolution Chamber passed in Zurich, Switzerland, on 7 February 2014, in the following composition: Thomas Grimm (Switzerland), Deputy Chairman Philippe Diallo (France), member Mohamed Mecherara (Algeria), member John Bramhall (England), member Santiago Nebot (Spain), member on the claim presented by the player, Player G, from country N as Claimant against the club, Club C, from country S as Respondent regarding an employment-related dispute arisen between the parties I. Facts of the case 1. On 3 July 2012, Club V, from country S (hereinafter: the Respondent), and Player G, from country N (hereinafter: the Claimant), concluded an employment contract (hereinafter: the contract) valid as from 3 July 2012 until 3 July 2014. 2. According to the contract, the Claimant was entitled to a yearly remuneration of EUR 135,000 net, payable as follows: - EUR 20,000 payable between 15 and 25 July 2012 and EUR 9,583.33 payable each month; - “for the second year of the Contract”, EUR 20,000 payable until the end of August 2013 and EUR 9,583.33 payable each month. 3. On 18 October 2013, the Claimant lodged a claim in front of FIFA against the Respondent, explaining that for the first 6 months of the contract he was entitled to the amount of EUR 77,500, however, he had only received the amount of EUR 66,575.35, leaving a balance of EUR 10,924.65. 4. Equally, the Claimant indicated that the Respondent had not paid the salary for January, June and July 2013, reason for which he sent a default letter to the club on 31 July 2013, 16 August 2013 and 28 August 2013. Nevertheless, the Claimant indicated that no payment was received and argues that, since 3 months of salaries were not paid, the contract should be considered terminated as from 28 August 2013. 5. To its claim, the Claimant enclosed a letter of the Respondent dated 17 July 2013 by means of which the latter informed an agency that the Claimant “does not start with sports training with [the Respondent]. He can look for another club to continue career, and in the case that he found another club, [the Respondent] will not require compensation for transfer. This document is valid until 18 July 2013.” 6. On account of all the above, the Claimant requested to be awarded with the total amount of EUR 165,090.98, specified as follows: - EUR 10,924.65 as outstanding remuneration corresponding to the period July 2012 – December 2012; - EUR 28,749.66 as outstanding remuneration corresponding to the months of January 2013, June 2013 and July 2013; - EUR 125,416.67 as compensation for breach of contract. 7. Equally, the Claimant requested 5% interest as from the respective due dates as well as to impose sporting sanctions on the Respondent. 8. Although having been invited to submit its reply in respect of the claim lodged by the Claimant, the Respondent never replied to the claim of the Claimant. 9. Upon request of FIFA, the Claimant confirmed that he had entered into an employment contract with Club L, from country C, valid as from 7 January 2014 until 31 May 2014, in accordance with which he would be entitled to a monthly remuneration of EUR 1,500. II. Considerations of the Dispute Resolution Chamber 1. First of all, the Dispute Resolution Chamber (hereinafter also referred to as DRC or Chamber) analysed whether it was competent to deal with the case at hand. In this respect, the Chamber took note that the present matter was submitted to FIFA on 18 October 2013. Consequently, the 2012 edition of the Rules Governing the Procedures of the Players’ Status Committee and the Dispute Resolution Chamber (hereinafter: the Procedural Rules) is applicable to the matter at hand (cf. art. 21 of the Procedural Rules). 2. Subsequently, the members of the Chamber referred to art. 3 par. 1 of the Procedural Rules and confirmed that in accordance with art. 24 par. 1 in combination with art. 22 lit. b) of the Regulations on the Status and Transfer of Players (edition 2012), the Dispute Resolution Chamber is competent to deal with the matter at stake, which concerns an employment-related dispute with an international dimension between a country N player and a country S club. 3. Furthermore, the Chamber analysed which regulations should be applicable as to the substance of the matter. In this respect, the Chamber confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players (edition 2012), and considering that the claim was lodged in front of FIFA on 18 October 2013, the 2012 edition of the aforementioned regulations (hereinafter: the Regulations) is applicable to the matter at hand as to the substance. 4. The competence of the Chamber and the applicable regulations having been established, and entering into the substance of the matter, the Chamber started by acknowledging the above-mentioned facts as well as the documentation contained in the file. 5. First of all, the members of the Chamber acknowledged that, on 3 July 2012, the Claimant and the Respondent had concluded an employment contract valid as from 3 July 2012 until 3 July 2014. As to the financial terms of said employment contract, the Chamber took note that it had been agreed upon between the parties that the Respondent would remunerate the Claimant with a monthly salary of EUR 9,583.33. Furthermore, the Chamber duly noted that the Respondent would pay the Claimant twice the amount of EUR 20,000; the first time between 16 and 25 July 2012 and the second time until the end of August 2013. 6. The Chamber further observed that the Claimant lodged a claim in front of FIFA against the Respondent seeking payment of the amount of EUR 39,674.31 corresponding to his outstanding remuneration as well as the amount of EUR 125,416.67 as compensation for breach of contract, asserting that the Respondent had not fulfilled its contractual obligations towards him. More specifically, the Claimant indicated that the Respondent had neither paid him his salaries for the months of January, June and July 2013, nor the outstanding amounts for the period as from July 2012 until December 2012 in the amount of EUR 10,924.65. 7. Equally, the members of the Chamber noted that, following two default letters dated 31 July 2013 and 16 August 2013 in which the Claimant requested the Respondent to pay him his outstanding salaries and which remained unanswered, the Claimant sent another letter to the Respondent on 28 August 2013 by means of which he informed the Respondent that he terminated the contract. 8. Furthermore, the Chamber observed that the Respondent failed to present its response to the claim of the Claimant, despite having been invited to do so. In this way, so the Chamber deemed, the Respondent renounced its right of defence and, thus, accepted the allegations of the Claimant. 9. As a consequence of the preceding consideration, the Chamber established that in accordance with art. 9 par. 3 of the Procedural Rules, it shall take a decision upon the basis of the documents on file. 10. Having taken into consideration all the previous considerations, the Chamber decided that it could be established that the Respondent had seriously neglected its contractual obligations towards the Claimant in a continuous and constant manner, i.e. the Respondent had failed to remunerate the Claimant for a substantial period of time. Therefore, the Chamber considered that the Respondent was found to be in breach of the employment contract and that the breach was of such seriousness that, in line with the Chamber’s long-standing and well-established jurisprudence, the Claimant had a just cause to unilaterally terminate the contractual relationship with the Respondent on 28 August 2013, having previously put the Respondent in default of payment of the outstanding amounts. 11. On account of the above, the Chamber established that the Claimant had terminated the employment contract with just cause on 28 August 2013 and that, consequently, the Respondent is to be held liable for the early termination of the employment contact with just cause by the Claimant. 12. Bearing in mind the previous considerations, the Chamber went on to deal with the consequences of the early termination of the employment contract with just cause by the Claimant. 13. First of all, the members of the Chamber concurred that the Respondent must fulfill its obligations as per employment contract in accordance with the general legal principle of “pacta sunt servanda”. Consequently, the Chamber decided that the Respondent is liable to pay to the Claimant the remuneration that was outstanding at the time of the termination i.e. the amount of EUR 39,674.31, consisting of the three monthly salaries of January, June and July 2013, as well as of the amount of EUR 10,924.65 corresponding to the remaining payments between July and December 2012. 14. In continuation, the Chamber decided that, taking into consideration art. 17 par. 1 of the Regulations, the Claimant is entitled to receive from the Respondent compensation for breach of contract in addition to any outstanding salaries on the basis of the relevant employment contract. 15. In this context, the Chamber outlined that, in accordance with said provision, the amount of compensation shall be calculated, in particular and unless otherwise provided for in the contract at the basis of the dispute, with due consideration for the law of the country concerned, the specificity of sport and further objective criteria, including, in particular, the remuneration and other benefits due to the Claimant under the existing contract and/or the new contract, the time remaining on the existing contract up to a maximum of five years, and depending on whether the contractual breach falls within the protected period. 16. In application of the relevant provision, the Chamber held that it first of all had to clarify whether the pertinent employment contract contained any clause, by means of which the parties had beforehand agreed upon a compensation payable by the contractual parties in the event of breach of contract. In this regard, the Chamber established that no such compensation clause was included in the employment contract at the basis of the matter at stake. 17. Subsequently and prior to assessing the relevant criteria in determining the amount of compensation due to the Claimant by the Respondent, the Chamber first of all recalled that the Claimant is claiming the amount of EUR 125,416.67 as compensation, corresponding to the remaining value of the employment contract, i.e. eleven monthly salaries amounting to EUR 9,583.33 each and the payment due until the end of August 2013 in the amount of EUR 20,000. 18. Having recalled the aforementioned, and in order to evaluate the compensation to be paid by the Respondent, the members of the Chamber took into account the remuneration due to the Claimant in accordance with the employment contract as well as the time remaining on the same contract, along with the professional situation of the Claimant after the early termination occurred. In this respect, the Chamber pointed out that at the time of the termination of the employment contract, the contract would run for another eleven months. Consequently, the Chamber concluded that the remaining value of the contract as from its early termination by the Claimant until the regular expiry of the contract amounts to EUR 125,416.63 and that such amount shall serve as the basis for the final determination of the amount of compensation for breach of contract. 19. In continuation, the Chamber remarked that the Claimant had found new employment with a club from Club L, from country C, as from January 2014 until May 2014. In accordance with the employment contract signed between the Claimant and Club L, the Claimant was entitled to a monthly salary of EUR 1,500. Consequently, in accordance with the constant practice of the Dispute Resolution Chamber and the general obligation of the Claimant to mitigate his damages, such remuneration under the new employment contract shall be taken into account in the calculation of the amount of compensation for breach of contract. 20. In view of all of the above, the Chamber decided that the Respondent must pay the amount of EUR 117,916.63 to the Claimant, which is considered by the Chamber to be reasonable and justified amount as compensation for breach of contract. 21. As a consequence, the DRC decided that the Respondent is liable to pay the total amount of EUR 157,590.94 to the Claimant, consisting of the amount of EUR 39,674.31 corresponding to the Claimant’s outstanding remuneration at the time of the unilateral termination of the contract by the Claimant and the amount of EUR 117,916.63 corresponding to compensation for breach of contract. 22. In continuation and with regard to the Claimant's request for interest, the Chamber decided that the Claimant is entitled to receive interest at the rate of 5% p.a. on the amount of EUR 39,674.31 as from the respective due dates and on the amount of EUR 117,916.63 as from 18 October 2013. 23. The Dispute Resolution Chamber concluded its deliberations in the present matter by establishing that any further claim lodged by the Claimant is rejected. ***** III. Decision of the Dispute Resolution Chamber 1. The claim of the Claimant, Player G, is partially accepted. 2. The Respondent, Club V, has to pay to the Claimant, within 30 days as from the date of notification of this decision, outstanding remuneration in the amount of EUR 39,674.31, plus 5% interest until the date of effective payment as follows: a. 5% p.a. as of 1 January 2013 on the amount of EUR 10,924.65; b. 5% p.a. as of 1 February 2013 on the amount of EUR 9,583.33; c. 5% p.a. as of 1 July 2013 on the amount of EUR 9,583.33; d. 5% p.a. as of 1 August 2013 on the amount of EUR 9,583. 3. The Respondent has to pay to the Claimant, within 30 days as from the date of notification of this decision, compensation for breach of contract in the amount of EUR 117,916.63 plus 5% interest p.a. on said amount as from 18 October 2013 until the date of effective payment. 4. In the event that the amounts due to the Claimant in accordance with the abovementioned numbers 2. and 3. are not paid by the Respondent within the stated time limits, the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision. 5. Any further claim lodged by the Claimant is rejected. 6. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittances are to be made and to notify the Dispute Resolution Chamber of every payment received. ***** Note relating to the motivated decision (legal remedy): According to art. 67 par. 1 of the FIFA Statutes, this decision may be appealed against before the Court of Arbitration for Sport (CAS). The statement of appeal must be sent to the CAS directly within 21 days of receipt of notification of this decision and shall contain all the elements in accordance with point 2 of the directives issued by the CAS, a copy of which we enclose hereto. Within another 10 days following the expiry of the time limit for filing the statement of appeal, the appellant shall file a brief stating the facts and legal arguments giving rise to the appeal with the CAS (cf. point 4 of the directives). The full address and contact numbers of the CAS are the following: Court of Arbitration for Sport Avenue de Beaumont 2 1012 Lausanne Switzerland Tel: +41 21 613 50 00 / Fax: +41 21 613 50 01 e-mail: info@tas-cas.org www.tas-cas.org For the Dispute Resolution Chamber: Jérôme Valcke Secretary General Encl. CAS directives