The case before the Court of Arbitration for Sport (CAS) involved a dispute between Football Club Volyn Lutsk (FC Volyn) and a professional player regarding the termination of the player's employment contract due to unpaid wages. The player signed a contract with FC Volyn in June 2012, which stipulated payments in both Ukrainian Hryvnias and US dollars. However, the club failed to pay the player's salaries for February, March, and April 2013, despite repeated warnings. The player sent multiple letters requesting payment and issued a final warning on 14 May 2013, stating the contract would be terminated if the unpaid amounts were not settled by the following day. Although the club made partial payments, significant arrears remained, leading the player to terminate the contract on 19 June 2013.
The case was initially heard by the Dispute Resolution Chamber (DRC) of the Football Federation of Ukraine, which ruled in favor of the player, declaring the contract terminated due to the club's breach and awarding compensation. FC Volyn appealed to CAS, arguing against the termination and the compensation. The CAS panel, composed of arbitrators José María Alonso Puig, François Klein, and Massimo Coccia, examined whether the player had just cause to terminate the contract under FIFA regulations and CAS precedent. The panel upheld the DRC's decision, ruling that persistent non-payment of salaries constituted just cause for termination, as it undermined the trust between the parties. The club's financial difficulties were deemed irrelevant to the player's right to terminate the contract.
The procedural history of the case revealed several complexities. FC Volyn filed its appeal and nominated an arbitrator, while the player objected to consolidating the case with other related appeals. The CAS granted the player time to submit an answer after the club paid the advance on costs. The hearing was initially scheduled for February 2014 but was postponed due to political unrest in Ukraine. It was later rescheduled for March 2014 in Lausanne, with videoconferencing options for participants in Ukraine. Despite the club's absence, the hearing proceeded, and the panel issued its award.
The club argued that the player improperly terminated the contract under Ukrainian labor law and abused his rights by filing the claim. The player countered that the club's consistent failure to meet payment obligations justified the termination. The CAS confirmed its jurisdiction and applied relevant regulations, including those of the Football Federation of Ukraine and FIFA. The panel emphasized that repeated financial breaches by an employer, particularly non-payment of wages, entitle the employee to terminate the contract. The player had provided multiple warnings and extensions, demonstrating good faith efforts to resolve the issue.
The CAS dismissed the club's appeal, upholding the DRC's decision and confirming the player's right to terminate the contract due to unpaid wages. The ruling reinforced the principle that employers must fulfill financial commitments to maintain contractual integrity in professional sports. The case serves as a precedent for similar disputes, highlighting the importance of timely salary payments in employment contracts. The panel also rejected the club's procedural arguments, stating that the player's notices were sufficient and no formal club decision was required for termination. The decision underscored the player's right to terminate the contract when fundamental obligations are unmet, ensuring fairness in employer-employee relationships in sports.