Appeal court upholds ruling in state’s pay dispute with ambassador

Iceland’s Court of Appeal has upheld a ruling dismissing a former ambassador’s claim for allegedly unpaid wages from the state, mbl.is reported. He had sought 11.5 million krónur.

The man worked in the foreign service for almost his entire career, including as ambassador in several countries. He argued that he was entitled to salary units for fixed overtime while serving abroad, as he had received when working at the Ministry for Foreign Affairs.

He also challenged a reduction in his salary units when he returned to work at the ministry. He said it was unlawful to base the reduction on his no longer having managerial responsibilities, and argued that the Wage Board’s decision on the pay arrangements was unlawful and unreasonable.

The state argued that he should have understood how pay was calculated for staff required to move and for employees posted abroad. It also said he had not shown that he worked overtime or that any overtime was unpaid in breach of a collective agreement.

The district court found that the pay arrangement was consistent with the Foreign Service Act, had a reasonable basis and reflected differences in ambassadors’ duties. The Court of Appeal agreed, adding that there was no evidence the Wage Board had failed to consider the scope and demands of his work, or that he had requested special overtime payments under Foreign Service rules. The appeal court therefore upheld the district court’s ruling.