Premier League clubs face sacking manager nightmare with major law change

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Premier League and Football League clubs could find it much harder to sack managers and release players after a landmark change to the Employment Rights Act (ERA) - which will take effect from January next year.

Individuals will have greater protection from unfair dismissal at six months of employment, rather than two years as it stands currently. The cap on compensation claims, which currently stands at £118,223, will be removed, thus giving axed employees more scope when it comes to claims.

Professional Footballers’ Association have already discussed the potential benefits of the ERA in meetings with the leagues and clubs. Football clubs could be among those hit hardest by the law change with the turnover of personnel a common part of the game.

Nottingham Forest , for example, are already on their fourth manager of the season. Ange Postecoglou and Sean Dyche were both axed inside months, or weeks in the case of the Australian. That type of upheaval will be far harder to oversee once the rights of employees changes.

Joe McMorrow, a partner in the employment law practice at Pinsent Masons, told the Guardian that the ERA would have major consequences for football clubs. He said: “Historically, nearly all disputed manager or player exits, other than transfers, have been resolved through arbitration or settlement agreements, rather than through an employment tribunal. This is where we may see a fundamental shift.

“It will be much harder for clubs to avoid unfair dismissal rights being pursued through a tribunal. The government has talked about the ERA as a once-in-a-generation change to employment rights, and it could have big implications for football.”

Antonio Conte won a claim of unfair dismissal case against Chelsea when he was sacked in 2018, just months after winning the FA Cup . The Italian was awarded £85,000 by the London employment tribunal as well as of the £26.6m the club had paid Conte and his coaching staff in compensation, which was written into their contracts.

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As well as managers being able to sue for unfair dismissal if sacked, the removal of the cap could lead to claims from players released at the end of their contracts. Under the terms of the ERA, any employers must give a fair reason and follow a fair process to dismiss staff, even at the end of a fixed-term contract.

So even players who leave once their contracts expire would still have certain employment rights. Players released without a club to go to receive one month’s severance pay, which clubs may come under pressure to increase given the greater threat of being taken to an employment tribunal.

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