Reply To: Closing academy

Iron Bru Forums Blast Furnace Closing academy Reply To: Closing academy

#259061
PaulSanfran49
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Registered On: December 23, 2013
Topics: 103

In terms of redundancy cost, a lot will depend on how they employed the services of the academy staff.

It is common in sport for organisations to engage the services through a PSC (limited company), and give them yearly contracts through their limited company (I’ve worked that way for many years with England Athletics). If the academy staff were employed that way then there will be zero cost to the football club. If however, they are contracted employees of Scunthorpe United then undoubtedly there will be significant redundancy costs.

A few years ago a company in Hull used to end every contract after a year. Then gave them another 1 yr contract. This was done to disenfranchise them under employment laws, you needed 2 years to gain your rights.

Someone challenged it and at tribunal they won their case and the firm had no alternative but to accept they lost the loophole. Possibly same here if that is the way they operate.