Lessons From Sam Allardyce's Departure
This week we saw Sam Allardyce leave his job as England manager by mutual agreement after an undercover Telegraph reporter unveiled allegations.
It was allegated that he had abused his position and made suggestions that it was possible to circumvent the FA's rules on player transfers.
Whilst a disciplinary investigation into Sam Allardyce's conduct is currently underway, his departure raises some interesting employment issues.
Comments Made By an Employee Outside of Work
Employees can be dismissed or disciplined for conduct occurring outside of work. In the case of Sam Allardyce, he was recorded during his meeting with the undercover journalist making disparaging comments about his predecessor Roy Hodgson, former England assistant Gary Neville and the FA's president Prince William (amongst others) as well as suggesting he could circumvent FA rules. Whilst Sam Allardyce's comments were made during a private meeting, the nature of the disparaging comments, and the seniority of his position, clearly had an impact on his employment relationship with the FA when brought to their attention.
The Implied Terms of Trust and Confidence and of Fidelity
Employment contracts contain an implied term of mutual trust and confidence which encompasses a range of types of conduct. An employer or employee must not (without reasonable and proper cause) conduct themselves in a manner that is likely to destroy or seriously damage the relationship of trust and confidence between employer or employee. This term is most commonly cited against employers, however this case is a good example of a scenario where an employer might want to consider whether this term has been breached by the employee.
This case is also an example of where the implied duty of fidelity (to act in good faith) may have been breached. This duty extends to the employee's conduct outside of working hours.
Reputational Issues
Reputational issues are a valid consideration for employers in deciding whether to dismiss or discipline employees for misconduct. Clearly this is an issue in the Allerdyce case. We can only speculate as to whether any specific clauses relevant to these issues were built into his contract of employment.
Practical Points to Consider
- Consider whether contracts of employment for senior staff should contain detailed provisions about outside interests and duties.
- Review policies and procedures to check if they are clear about the type of conduct (both in and out of work) which may lead to disciplinary action.
- Review disciplinary policies to make sure that the list of examples of gross misconduct is sufficient (for example does it cover issues such as reputational damage).