The case involves a legal dispute between Oleksandr Zavarov, a former professional football coach, and FC Arsenal Kiev, a Ukrainian football club, concerning the termination of Zavarov's employment contract. The Court of Arbitration for Sport (CAS) issued a ruling on July 6, 2011, addressing the legality of Zavarov's dismissal and related claims for compensation. Zavarov was dismissed in January 2010 after failing to attend management meetings and training sessions in Kiev, as he remained in Antalya, Turkey, during a break between training camps. The club claimed his absence was unjustified, while Zavarov argued it was a planned vacation. Under Ukrainian labor law, dismissal due to absence is unlawful unless the absence is proven to be the employee's fault. The club documented his absence and terminated his contract, citing a breach of terms.
Zavarov contested the dismissal, filing claims for material and moral damages. The Ukrainian Premier League Disciplinary Committee ruled in his favor, declaring the termination unlawful and awarding compensation. However, the Football Federation of Ukraine (FFU) Supervisory and Appellate Committees partially overturned this decision, rejecting Zavarov's claim under the Extension Agreement, which was set to take effect in June 2010, as it was not yet enforceable at the time of his dismissal. The Appellate Committee upheld the award for moral damages, ordering the club to pay €500,000 and issue a public apology for defamatory statements about Zavarov's alleged alcoholism.
The CAS panel examined the legality of the dismissal, the enforceability of the Extension Agreement, and the appropriateness of the moral damages awarded. It concluded that Zavarov's absence was justified, rendering his dismissal unlawful. The panel clarified that the Extension Agreement would only become enforceable from its effective date, June 30, 2010, meaning Zavarov could not claim damages under it for his early termination. Regarding moral damages, the panel emphasized that compensation should reflect the severity of reputational harm and emotional distress. The club's public defamation of Zavarov warranted significant compensation, and the panel upheld the €500,000 award as reasonable.
The CAS affirmed the FFU Appellate Committee's decision, finding Zavarov's dismissal unlawful but limiting his compensation to the terms of the Employment Agreement. The panel also addressed the validity of the Extension Agreement, determining it was binding from the signing date and entitled Zavarov to a monthly salary of $30,000 from July 2010 to June 2013, totaling $1.08 million, plus 5% annual interest. The club's arguments that the agreement was conditional were rejected, as the panel found no evidence supporting this claim.
Zavarov's claims for additional material and moral damages due to reputational harm were dismissed due to insufficient evidence. The panel noted his continued professional engagements, including an advisory role for UEFA EURO 2012, indicated his reputation remained intact. The final ruling ordered FC Arsenal Kiev to pay the agreed salaries with interest and dismissed all other claims. The case underscores the importance of contractual clarity and adherence to labor laws in employment disputes, particularly in professional sports. The CAS's decision balanced fairness and reasonableness, ensuring Zavarov received redress for wrongful termination while dismissing unsubstantiated claims for further damages.