Blog
Kevin Keegan 2,000,000 - Newcastle United 0
7th October 2009
Psst! Your super-sleuth tutor2u undercover reporter has managed to get his hands on the full judgement of the Industrial Tribunal decision to award Kevin Keegan £2million (plus interest!) as a result of his claim for Constructive Dismissal against Newcastle United
Industrial Tribunals are independent judicial bodies who determine disputes between employers and employees over employment rights. They hear claims about a wide range of matters to do with employment, including unfair dismissal, redundancy payments and discrimination. Generally the parties at Industrial Tribunals are employers and employees from smaller organisations, and the proceedings only take a day or two. Keegan v Newcastle United was heard within the Premier League Managers’ Arbitration Tribunal, which although slightly different to a “normal” Tribunal serves the same purpose and function. The hearing took almost two weeks, and involved some of the big guns of the legal profession, particularly as the stakes were so high.
Although the judgement document itself is long (23 pages) it’s written in non-legal jargon, and as well as covering some of the crucial factors in any employment contract, it also offers a fascinating insight into the running of a Premier League Football Club.
To whet your appetite, the Tribunal Case covers:
• Keegan’s claim for constructive dismissal through breach of agreement that he would have the final say as to transfers of players into Newcastle United
• His claim that his forced resignation lost him his salary and other benefits (amounting in total to £8,607,534)
• His additional claim for “stigma damages” on the basis that he will continue to find it difficult, if not impossible, to obtain work again as a top flight manager as a result of which he will lose up to a further £16.5m (the income which he would have expected to receive up to his 65th birthday.)
• Newcastle United’s denial that it was a term of his Contract that he would have the final say on transfers of players into the Club. They also denied that he was justified in resigning.
• Keegan’s appointment as the Manager of the Club at an initial salary of £3million per annum.
• The bizarre case of Keegan and Dennis Wise arguing over You Tube videos of whether Ignacio Gonzalez was worth signing.
Clearly there’s plenty of scope in the tribunal judgement to cover a wide range of HR related issues, from remuneration and reward, to employer/employee relations and the legal framework of the employment contract