Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Avoiding an expensive way out.

03 June 2010 #Employment

It has been reported that Liverpool FC has allegedly offered Manager Rafa Benitez a £3 million pound sum to leave his employment with the club.


Mr Benitez had been employed on a fixed term contract which still has over 4 years left to run. The contract allegedly contained a clause stating that if his employment was terminated early he would receive £16 million in compensation.


The decision to terminate his employment came after it was alleged that his poor management performance led to Liverpool finishing only 7th in the Premier League and losing 19 matches in the 2009/2010 season.


Football clubs have the finances to pay huge amounts in compensation to underperforming employees in return for them vacating their positions.


Employers with less money in the pot should firstly ensure that all CV`s are thoroughly vetted and that there is a rigorous selection and interview process prior to employment commencing to ensure that employees are up to the job in the first place. Buddy has a helpful guidance note on recruitment and selection here Recruitment guidance note


If employees begin to underperform part way into their employment then it is likely to be an unfair dismissal (if the employee has a years` service) if the employer decides just to terminate their contract. Instead the Employer should firstly invite the employee to an informal meeting to discuss their performance concerns and allow the employee sufficient time to improve. Should the employee still fail to perform then a formal process should be followed, for example warnings given and potentially dismissal. At each stage of the process the employee must be set clear targets for improvement and given support and adequate time to meet these. Employers must also ensure that the ACAS disciplinary code is complied with.


Employmentbuddy has a helpful Capability Policy and Guidance Note along with a guidance note on Managing Poor Performance.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

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