2022-UNAT-1214, Afm Badrul Alam
UNAT granted the appeal in part. UNAT held that UNDT erred by failing to implement its mandatory obligation to award an amount of compensation in lieu of rescission. UNAT held that there was no error in the UNDT’s finding that the Appellant had not discharged his burden of proof that the contested decision caused a loss of income due to loss of career opportunity. UNAT held that the Appellant did not discharge his onus to show that UNDT erred as the first instance trier of fact with regard to the issue of moral damages, and therefore accepted the UNDT’s findings on compensation for moral damages. UNAT awarded USD 10,350 as in lieu compensation.
Before UNDT, the Applicant contested his non-selection for a position. UNDT found that the Appellant’s application did not receive full and fair consideration. UNDT rescinded the contested decision, but did not order in lieu or moral compensation due to lack of supporting evidence. The Appellant appeals the lack of a compensation award.
The purpose of in lieu compensation is to place the staff member in the same position he or she would have been in had the unlawful decision not been made. Compensation must be set by the UNDT following a principled approach and on a case-by-case basis. The determination of the quantum of in lieu compensation will depend on the circumstances of each case, but some relevant factors that can be considered are, among others, the nature of the post formerly occupied, the remaining time to be served by a staff member on his or her appointment, and his or her expectancy of renewal. A loss of opportunity can be compensated for but the harm should be directly caused by the contested decision, supported by evidence, and may not be duplicative. UNAT should give deference to UNDT in the exercise of its discretion and UNDT is best placed to conclude from the evidence whether a claim for moral damages is established and if so, its quantum.