30 June, 2010
The disappointing performance of the England football team in the World Cup has left many people calling for the dismissal of the Team Manager, Fabio Capello. Whilst many may view this as desirable, and perhaps necessary, employers should be aware that in practice, dismissal of any employee, especially someone with such a high profile position, is not a decision to take lightly.
Jonathan Holden, Employment Law Solicitor at Forbes Solicitors comments, "The dismissal of any employee, in whatever position, is always something to consider carefully. Employers must have a fair reason for dismissal in order to prevent against the possibility of Tribunal claims. In these circumstances, it could be argued that Mr Capello is not capable of doing the job - however, any employer when faced with a capability situation must normally give the employee time to improve."
In practice, many employers will seek to secure the termination of an employee in these circumstances by using a Compromise Agreement. Such an agreement will ensure that the employee in question, in return for an agreed termination package, will not bring a claim against the company.
Payments made under Compromise Agreements can often be made tax free; provided they are less than £30,000. An added advantage is that under a Compromise Agreement the employee will often give an assurance to keep the terms of termination confidential. In these circumstances, this is likely to be in the FA's interest; although with Mr Capello's contract being rumoured to be worth £6 million a year, it may be rather expensive for them to dispose of his services.
For assistance in relation to any employment law related issues, including the negotiation and drafting of Compromise Agreements, please contact Jonathan Holden at Forbes Solicitors on 01254 222399.