Abstract: The study aims to reveal some considerations regarding the extent of the obligation to repay the compensation payments in the situation of annulment of the dismissal decision. Despite the special labour regulation, the restitution obligation is not a consequence of the employee’s liability, but is caused by an undue payment. If dismissal decision is cancelled, the reason of compensation payments is eliminated. Updating with the inflation rate and the amount of legal interests have different legal nature and, therefore, both of them may be added. Thus, the employee will have to repay the net amount received updated with the inflation rate and the interest rate. These will be calculated considering the date of the Court's decision of annulling dismissal (the date of chargeability) and until full refund.

Keywords: dismissal decision, compensation payments, undue payment, inflation rate, interest rate