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UNAT held that the consideration of transferable skills as a criterion for future permanent appointment for staff members serving in a downsizing entity is a relevant factor and a legitimate consideration because the finite mandate of the International Criminal Court for the Former Yugoslavia (ICTY) meant that such staff members had no realistic career prospects in that entity. UNAT held that there was a rational basis for the denial of permanent appointments for the language staff (professional and general service) given the winding down of ICTY and the diminishing need for Bosnian, Croatian, and Serbian language skills. UNAT held that the contested decisions pertaining to language staff were not therefore arbitrary, capricious, irrational, actuated by an ulterior or improper purpose, illegal or unreasonable. As for the staff members who were denied permanent appointments due to their local recruitment (general service staff), UNAT held that it was rational for the Organisation to determine that it was not in its interests to grant the locally recruited Appellants a permanent appointment given the significant cost that would be incurred in converting them to international status, and that, accordingly, the contested decisions in relation to these staff were in accordance with the staff rules and the Secretary-General properly took into account the relevant financial considerations in the reasonable exercise of his discretion. UNAT dismissed the appeal and affirmed the UNDT judgment.