| Sack the senior team
at your peril! John
Arnold of Cullimore Dutton
 |
When the Football Association
(FA) decided to dispense with the services of manager,
Steve McClaren, it was a costly exercise with McClaren
receiving a reported payoff of £2.5m.
This serves as a stark reminder to organisations when
appointing key personnel, to consider what would happen
if the relationship goes wrong.
Solicitor John Arnold of Cullimore Dutton says that when
negotiating the terms of a contract, companies should
consider the implications if the individual
underperformed and had to be removed from the post.
John added: “McClaren’s pay-out is likely to include a
payment in lieu of notice and to compensate him
financially in respect of any other breaches of contract
caused by the FA's early termination”.
“When negotiating appointments with key individuals,
companies should bear in mind the implications if they
decide to terminate the contract early. Amongst other
things they should calculate is how much they would have
to pay the executive on termination, what his or her
pension rights are and the position in respect of share
options.”
Guidance on employment contacts is available from
Cullimore Dutton who also operates an employer’s legal
scheme. Anyone interested should telephone 01244 321066
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