1. The subject of the dispute is the inaction of the military unit regarding the failure to accrue and pay the plaintiff compensation for the loss of part of income due to violation of the terms of payment of indexation of monetary allowance.
2. The court of cassation established that the dispute concerns the payment of compensation, which is a component of wages, therefore, Article 233 of the Labor Code of Ukraine (hereinafter – LC) as amended at the time the right to this compensation arose must be applied to the disputed legal relations. The court noted that the court of appeal erroneously applied the version of Article 233 of the LC, which entered into force on July 19, 2022, since it does not have retroactive effect and cannot be applied to legal relations that arose earlier. The court also indicated that the right to compensation arises regardless of the prior accrual and payment of indexation, but from the moment of delay in payment of income.
3. The Supreme Court overturned the appellate court’s decision and remanded the case for a new trial to the appellate instance.
