batleyrhino wrote:
The two years is certainly a thing for regular contracted employees, you can be let go at any point within that 2 years without reason and without recourse. You do have to receive your notice period pay. I don't know of any reason that this wouldn't apply to sporting contracts, however the notice period pay may be the entire contract value. Depends how the contract is written I suppose.
I'd like to state that I personally wouldn't do this (to anyone) but know it happens.
So as others have said you are confusing a fixed term contract with a permanent contract of employment. A fixed term contract is essentially a purchase of goods for a defined price. In the case of Rugby players, the fixed term contract will have a sum total and an agreed payment time table (aka the salary, with any bonuses or changes etc) in exchange for being available to play for the team in question. The contract may stipulate certain health factors (reaching periodic fitness regimes, dietary regimes, rehabilitation terms for injuries) or anything at all really - the key is that the terms are at the discretion of the purchasing party and not limited by protected characteristics (which is why a player could be sacked for returning from the off season 20stone heavier, but you couldn't do that in a permanent job of employment). How widely used these rules are, I have no idea. If one party wants to terminate the fixed term contract before running to completion, the full value of the contract is due. The value of the contract is easy to calculate, as its defined in monetary terms for the player.
If Leeds wanted to terminate the contract with Tetevano, they are well within their rights to do so. However, they would owe Tetevano the full value of his contract and thus need to include a pay off equivalent to the final years salary. The key is "equivalent" though, as often a penny today is worth a pound tomorrow, and if Leeds let him go at a time where he could sign a new contract, the pay off may not be the full sum. Whatever payoff they did give however would be included in cap calculations.
There is a reputational factor to consider in enforcing this though. Terminating a contract because the player isnt playing well isnt a great look, and may do more long term damage reputationally than is gained short term by removing them.
Just as an O/T point, you can't just "be let go at any point within that 2 years without reason and without recourse". Within the first two years, employees have no right to employment tribunal, which is the most usual method protecting employees rights to reasonable protection to long term employment. However, if the employer acts in an illegal or immoral way in sacking people, employees can still enforce their rights through the courts. Civil Courts don't have the right to enforce organisations to rehire people like employment tribunals do but can still cost the employer for a range of things, including emotional distress, cost of relocation, continued salary until a new job was found etc. Its a lot more costly to do this however, and thus much less common. This is why most employment contracts also include probation periods as well, which is another degree of protection for employers should they terminate early.
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