F.I.F.A. – Dispute Resolution Chamber / Camera di Risoluzione delle Controversie – labour disputes / controversie di lavoro (2018-2019) – fifa.com – atto non ufficiale – Decision 25 October 2018
Decision of the
Dispute Resolution Chamber
passed in Zurich, Switzerland, on 25 October 2018,
in the following composition:
Geoff Thompson (England), Chairman
Stefano La Porta (Italy), member
Muzammil Bin Mohamed (Singapore), member
Tomislav Kasalo (Croatia), member
Joaquim Evangelista (Portugal), member
on the claim presented by the player,
Player A, Country B,
as Claimant
against the club,
Club C, Country D,
as Respondent
regarding an employment-related dispute
between the parties
I. Facts of the case
1. On 25 January 2016, the Player from Country B, Player A (hereinafter: the player or Claimant) and the Club from Country D, Club C (hereinafter: the club or Respondent) signed an employment contract (hereinafter: the contract) valid as from 25 January 2016 until 31 December 2016.
2. According to the schedule of the contract, the player was entitled, inter alia, to: (i) a “basic salary” in the amount of 350,000 per month.
3. Pursuant to article 8.1 of the contract, “the Footballer shall be paid regularly through bank transfers, a monthly salary as recorded in the schedule to this contract and as stipulated by the Country D Professional Football League rules but not later than the last business day of each month, failure to do this by the Club after 30 days of expiration of the time, will entitle the Footballer to lodge a complaint with the national league management for redress in accordance with the rules of the Country D Professional Football League.”
4. On 6 March 2017, the player put the club in default for half the salary of June 2016 and the full salaries from July until December 2016 in the total amount of 2,275,000.
5. Between 26 April 2017 and 17 April 2018, the player sent ten further default notices, to which the club did not reply.
6. On 9 May 2018, the player lodged a claim against the club in front of FIFA, requesting that the club pay him a total amount of 3,228,750 , corresponding to the following:
- “2,275,000.00 corresponding to half month salary for June 175,000.00 and six months salaries from July 2016 to December 2016”;
- “5% of the outstanding salaries = 116,750.00”
- “January-December 2016 salaries at 4,200,000.00 per annum 20% as compensation 4,200,000.00 @ 20% = 840,000.00”.
7. According to the player, “the Claimant [the player] fully fulfilled his obligations under the employment agreement by attending every training session, conducting himself in a professional manner, staying physically technically and mentality fit, and contributing directly to the Respondent’s [the club] success on the field, yet the Respondent paid only half of his salary in June 2016 then absolutely stopped paying his monthly salaries from July till December 2016.”
8. Furthermore, the player argued that as “there was no pre-agreed compensation contained in the contract, the claimant is seeking a compensation of 20% per annum of the outstanding amount of salaries”.
9. In spite of having been invited to do so, the club did not reply to the claim.
II. Considerations of the Dispute Resolution Chamber
1. First of all, the Dispute Resolution Chamber (hereinafter also referred to as Chamber or DRC) 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 9 May 2018. Consequently, the 2018 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 2018 edition 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 (2018 edition; hereinafter: Regulations) 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 Player from Country B and a Club from Country D.
3. Furthermore, the Chamber analysed which regulations should be applicable as to the substance of the matter. In this respect, it confirmed that in accordance with art. 26 par. 1 and 2 of the Regulations on the Status and Transfer of Players (2018 edition), and considering that the present claim was lodged on 9 May 2018, the 2018 edition of said regulations is applicable to the matter at hand as to the substance.
4. The competence of the DRC and the applicable regulations having been established, the Chamber entered into the substance of the matter. In doing so, the Chamber started by acknowledging the abovementioned facts of the case as well as the documentation contained in the file. However, the Chamber emphasised that in the following considerations it will refer only to the facts, arguments and documentary evidence, which it considered pertinent for the assessment of the matter at hand.
5. In this respect, the DRC acknowledged that the parties to the dispute had signed a valid employment contract on 25 January 2016, in accordance with which the Respondent would pay the Claimant a monthly salary in the amount of 350,000.
6. Subsequently, the Chamber noted that the Respondent failed to present its response to the claim of the Claimant, in spite of having been invited to do so. By not presenting its position to the claim, the Chamber was of the opinion that the Respondent renounced its right of defence and, thus, accepted the allegations of the Claimant.
7. Furthermore, as a consequence of the aforementioned consideration, the Chamber concurred that in accordance with art. 9 par. 3 of the Procedural Rules, the Chamber shall take a decision upon the basis of the documentation already on file; in other words, upon the statements and documents presented by the Claimant.
8. In continuation, the DRC acknowledged that, in accordance with the employment contract provided by the Claimant, the Respondent was obliged to pay to the Claimant a monthly salary of 350,000.
9. In this respect, the DRC took into consideration that according to the Claimant, the Respondent had failed to pay his remuneration in the total amount of 2,275,000, corresponding to half the salary of June 2016 and the full salaries from July until December 2016. Consequently, the Claimant requested to be awarded with the payment of the total amount of 2,275,000.
10. In addition, taking into account the Claimant’s request as well as the constant practice of the Dispute Resolution Chamber, the DRC decided that the Respondent must pay to the Claimant interest of 5% p.a. on the amount of 2,275,000 as from 9 May 2018 until the date of effective payment.
11. Finally, and with regard to the claimed compensation in the amount of 20% of the outstanding remuneration, the Chamber observed that the contract expired naturally. Furthermore, the Chamber concluded that there was no legal or regulatory basis for granting the player the requests amount of compensation and decided to reject his request in this regard.
III. Decision of the Dispute Resolution Chamber
1. The claim of the Claimant, Player A, is partially accepted.
2. The Respondent, Club C, has to pay to the Claimant within 30 days as from the date of notification of this decision, the amount of 2,275,000, plus 5% interest p.a. as from 9 May 2018 until the date of effective payment.
3. In the event that the amount due to the Claimant in accordance with the above-mentioned number 2. is not paid by the Respondent within the stated time limit, the present matter shall be submitted, upon request, to the FIFA Disciplinary Committee for consideration and a formal decision.
4. Any further claim lodged by the Claimant is rejected.
5. The Claimant is directed to inform the Respondent immediately and directly of the account number to which the remittance is to be made and to notify the Dispute Resolution Chamber of every payment received.
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Note relating to the motivated decision (legal remedy):
According to art. 58 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
For the Dispute Resolution Chamber:
Omar Ongaro
Football Regulatory Director
Encl. CAS directives