The Court of Arbitration for Sport (CAS) ruled on October 20, 2021, in a dispute between Mauritanian footballer Yaly Mohammed Dellah and Algerian club Difaa Riadhi Tadjenanet over unpaid salaries and contract termination. Dellah signed a contract with the club on January 1, 2019, with a monthly salary of 1,500,000 Algerian dinars (DZD). However, the club failed to pay his wages for April and May 2019, prompting Dellah to issue formal demands. The club only settled the March salary while imposing a disciplinary fine of 2,000,000 DZD for his absence from a match. On July 1, 2019, Dellah terminated the contract, citing unpaid wages and the club’s relegation, which prevented his registration for the next season. Later that month, the parties signed an agreement stating no financial disputes existed, though Dellah later claimed he signed it involuntarily.
The CAS addressed several legal issues. It ruled that clubs cannot offset disciplinary fines against unpaid wages, as prohibited by Article 14bis of the FIFA Regulations on the Status and Transfer of Players (RSTP). While Swiss law prevents employees from waiving mandatory employment claims during or shortly after a contract, the tribunal noted mutual concessions in a settlement could still be valid. Regarding compensation under Article 17 RSTP, the tribunal clarified that the total value of a subsequent contract—not just amounts received—must be deducted when calculating damages for early termination. The tribunal also examined whether unpaid wages constituted "particularly serious circumstances" justifying higher compensation. It found that while unpaid wages warrant additional compensation (typically three months' salary), they do not automatically qualify as "particularly serious" to justify six months' compensation.
Dellah sought unpaid wages for April, May, and June 2019 (4,500,000 DZD plus interest) and compensation of 34,652,599 DZD for unilateral termination, calculated based on the residual contract value minus earnings from his new club, NAHD. He argued the July 2019 agreement was invalid due to lack of reciprocity, as it released the club from paying owed salaries while the club received a transfer fee from NAHD. The club countered that Dellah had unjustifiably absented himself, leading to fines and withheld salaries, and violated FIFA regulations by joining his national team without permission. The FIFA Dispute Resolution Chamber initially ruled in favor of the club on July 2, 2020, but Dellah appealed to CAS on August 31, 2020.
The CAS partially upheld Dellah’s claims, ruling he validly terminated the contract due to unpaid salaries. It invalidated the waiver of claims in the July 2019 agreement under Swiss law, as the club offered no concessions, rendering it one-sided. The tribunal ordered the club to pay outstanding wages for April, May, and June 2019 (1,500,000 DZD each with 5% annual interest from their due dates) and additional compensation of three months' salary (4,500,000 DZD) for premature termination. However, it rejected Dellah’s claim for reduced compensation, as the value of his new contract with NAHD exceeded the residual value of the terminated contract. The final decision annulled the FIFA ruling and underscored the enforceability of labor protections in sports contracts, emphasizing the importance of reciprocal concessions in settlement agreements and adherence to contractual and regulatory procedures.