Football Clubs are increasingly vulnerable to unfair dismissal claims

Clubs are more vulnerable to unfair dismissal claims after changes to employment law. Premier League and Football League clubs will be more vulnerable to unfair dismissal claims from sacked managers and released players from next year after changes to employment law.

Under the Employment Rights Act (ERA), which comes into effect on 1 January, employees will gain protection from unfair dismissal after six months rather than two years of service.

In another significant change, the cap on compensation awards of £118,223 will be removed, giving dismissed managers and players a far greater incentive to bring a claim. A combination of the need for two years’ service and contract payouts have protected clubs from claims, but that could change from next year.