FA kick in the balls a warning to businesses

Law firm DWF advises companies to consider the termination of contracts when drawing them up
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Businesses must take heed when drawing up new employment contracts of the costly sacking of former England coach Steve McClaren if they want to avoid incurring similar expenses should the need to sack a senior member of staff arise, according to a report released yesterday by law firm DWF.

It said that the £2.5 million reportedly paid to the former manager must serve as a warning to businesses of all sizes that the time to consider the implications of sacking a senior member of staff is not after an incident has occurred, but when the contract is being drawn up.

Speaking about the ramifications for businesses, Clare Young, a solicitor at DWF, said: "When negotiating appointments with any key individual, companies should bear in mind what the implications would be if they decided to terminate the individual's contract early.

"Amongst other things they should calculate how much they would have to pay the executive on termination, assess his or her pension rights and the position in respect of share options."

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