ECC 4314/2000

This case involved an allowance which had been authorised and paid to employees by a broad of directors but had then been stopped. A Ministerial Decision was required for this allowance to be paid to specific professions and had not been issued in this case so the board had not right to authorise its payment.

Background

Some employees filed a case against a company before the court requesting the validation of their right to receive an allowance stipulated by the decision of the board of directors. The employees also requested the dismissal of a decision issued by the board of directors on 05/06/1986. The employees said that the company had paid the allowance from January 1980 to January 1981 but it then stopped paying the allowance.

The court dismissed the case.

The employees appealed the ruling before the court of appeal. The court dismissed the appealed ruling and ruled that the employee should receive the allowance.

Decision