Remuneration for Board Members: Analysis of Judgment No. 8754 of 2024

The recent judgment No. 8754 of April 3, 2024, from the Court of Cassation has had a significant impact on the issue of remuneration for board members of provincial consortia for waste disposal. The Court established that the right to remuneration for such members is not subject to reduction, but rather to total suppression, according to current legislation. This decision raises relevant questions regarding the application of legislative provisions concerning public administration and the management of public services.

The Regulatory Context

The central issue of the judgment concerns the interpretation of Decree-Law No. 78 of 2010, particularly Articles 5 and 6. Article 5, paragraph 7, clearly states that the right to remuneration for members of the board of directors of a consortium of local authorities for urban waste disposal is suppressed. In contrast, Article 6, paragraph 3, provides for a mere reduction of remuneration, but only under specific circumstances. The Court therefore emphasized how Article 5 represents a special rule that prevails over the more general provision of Article 6.

Summary of the Judgment

Right to fixed remuneration - Members of the board of directors of a provincial consortium for urban waste disposal - Reduction of remuneration pursuant to Article 6, paragraph 3, of Decree-Law No. 78 of 2010, converted with amendments into Law No. 122 of 2010 - Inapplicability - Suppression of remuneration pursuant to Article 5, paragraph 7, of the same Decree-Law - Applicability - Reasons. The right to remuneration of members of the board of directors of a consortium of local authorities for urban waste disposal must be considered suppressed by Article 5, paragraph 7, last sentence, of Decree-Law No. 78 of 2010, converted with amendments by Law No. 122 of 2010, a provision that does not apply solely to holders of political offices and is special compared to Article 6, paragraph 3, of the same Decree-Law, which provides for mere reduction of remuneration, also because the principle of gratuitousness of the administration of associated forms of management of services and public functions by local authorities is stated with the aim of reducing the burdens on public finance.

The Implications of the Judgment

The Court's decision has various practical implications:

  • Suppression of remuneration: The Court clarified that there is no form of remuneration for members of the board of directors of consortia for waste disposal, in line with the goal of reducing public expenditure.
  • Principle of gratuitousness: The principle is reaffirmed that public positions, especially those related to the management of services, should be held free of charge.
  • Regulatory clarity: The judgment offers an important interpretation of the rules, helping to clarify the legal debate on the issue of remuneration for public officials.

Conclusions

In conclusion, judgment No. 8754 of 2024 represents a fundamental reference point in the regulation of remuneration for members of the boards of directors of consortia for waste disposal. The Court not only confirmed the suppression of remuneration but also reiterated the importance of gratuitousness in public administration. These indications may influence future legal interpretations and administrative practices, emphasizing the commitment to a more efficient and sustainable management of public resources.

Bianucci Law Firm