Hennigh Berg v Blackburn Rovers Football Club
Football players and company directors are notorious for having long notice periods. When the new manager of Blackburn Rovers accepted his new job, in November 2012, his contract said he would be employed until June 2015 - nearly three years. It also said that if he was dismissed earlier, he would be paid his salary until June 2015.
Less than two months later, he was dismissed. He sued for the rest of his salary, a measly £2.25 million. Blackburn Rovers argued that he was not entitled to the salary as a fixed sum, and he had to give credit for anything else he earned between 2012 and 2015. The High Court said that the contract was plain - the club had agreed to pay any salary which would have fallen due, and Mr Berg was awarded £2.25m for about six weeks work.
The lesson? Make sure your termination clauses are well drafted. It is rarely advantageous to have long fixed term contracts; standard notice periods are almost always better.
Football players and company directors are notorious for having long notice periods. When the new manager of Blackburn Rovers accepted his new job, in November 2012, his contract said he would be employed until June 2015 - nearly three years. It also said that if he was dismissed earlier, he would be paid his salary until June 2015.
Less than two months later, he was dismissed. He sued for the rest of his salary, a measly £2.25 million. Blackburn Rovers argued that he was not entitled to the salary as a fixed sum, and he had to give credit for anything else he earned between 2012 and 2015. The High Court said that the contract was plain - the club had agreed to pay any salary which would have fallen due, and Mr Berg was awarded £2.25m for about six weeks work.
The lesson? Make sure your termination clauses are well drafted. It is rarely advantageous to have long fixed term contracts; standard notice periods are almost always better.
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