The importance of clear contracts - A reminder for employers

Our employment law experts look into a recent case that enforces the importance of having clear contracts, highlighting what employers need to do to avoid own goals like this.

The Employment Tribunal’s decision in Hagan v The Millwall Football and Athletic Company reminds employers of the importance of clarity in contracts of employment, protection of whistleblowers, and statutory compliance.

The case

Mr Hagan, a part-time youth coach at Millwall FC, brought claims for:

• unlawful detriment due to whistleblowing
• breach of contract
• failure to provide compliant written particulars.

While the tribunal dismissed the whistleblowing claim, it upheld the breach of contract and statutory non-compliance claims, awarding Mr Hagan damages and four weeks’ pay under section 38 of the Employment Act 2002.

The issues

Whistleblowing protections

Mr Hagan made two disclosures concerning player welfare – one physical, one mental – which were accepted as protected disclosures under the Employment Rights Act 1996. However, the tribunal found that the non-renewal of Mr Hagan’s contract of employment was due to performance concerns and a breakdown in relationships, not the disclosures.

Practical implications

Even if a whistleblowing claim fails, the tribunal will scrutinise the employer’s motives and processes. For this reason, employers should document performance concerns and ensure decisions are not tainted by prior disclosures.

Contractual clarity

Mr Hagan’s contract of employment lacked termination provisions and was ended via a phone call without the required 28 days’ written notice.

Practical implications

Contracts must clearly outline notice periods, termination procedures, and duration.

Written particulars compliance

Millwall failed to provide a compliant statement of employment particulars under section 1 ERA 1996, missing key details like holiday entitlement and termination terms.

Practical implications

All workers, including casual and part-time staff, are entitled to statutory written particulars from day one. Non-compliance can trigger automatic compensation awards (up to four weeks’ pay).

Action points for employers

Review contracts regularly

• Ensure all employment contracts, especially fixed term contracts, include:
  • clear notice periods
  • termination procedures
  • duration and renewal terms.

Comply with Section 1 ERA 1996

• Provide written particulars that include:
  • job title and duties
  • pay and working hours
  • holiday entitlement
  • termination notice periods.

Handle whistleblowing carefully

• Train managers to recognise and respond appropriately to protected disclosures
• Avoid any action that could be perceived as retaliatory
• Keep clear records of performance issues and decision-making processes.

Use written communication for terminations

• Avoid informal or verbal dismissals
• Provide written notice in line with contractual and statutory obligations.

We are here to help

At Willans we can assist you on all areas of employment, including drafting contracts of employment, advising on whistleblowing and managing dismissals.

If you and your business require expert guidance on anything discussed in this article, please do not hesitate to get in touch with our team – we will be happy to help.

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