Jess JohnsonAnge Postecoglou became one of the most scrutinised football managers in the world over the past two years — winning Tottenham Hotspur's first major trophy in 17 years, only to be sacked weeks later. He was then dismissed by Nottingham Forest after just 39 days and eight games. In April 2026, he remains out of a management role and is linked to several Premier League clubs. His journey raises a question that applies far beyond elite sport: what does Australian employment law say about contracts, severance, and being dismissed despite delivering results?
A Trophy, a Sacking, and a £4 Million Payout
Postecoglou signed a four-year contract with Tottenham Hotspur in July 2023. He led the club to the Europa League title in 2025 — its first silverware since 2008. Within weeks of that triumph, Tottenham sacked him. The reported severance cost the club approximately £4 million, based on the remaining term of his contract.
He was then appointed at Nottingham Forest. Six losses from eight games later, he was gone again. Two high-profile sackings in a single year, both under contracts he had not seen out.
To the general public, the situation appears contradictory: a manager wins a major trophy, gets sacked, receives a multi-million pound payout, and is back on the job market within months. To an employment lawyer, it is a straightforward — if expensive — exercise of contractual rights.
How Employment Contracts Work in Australia
While Postecoglou's contracts were governed by English law, the underlying principles map closely to Australian employment law, particularly for fixed-term and senior employment arrangements.
In Australia, the Fair Work Act 2009 governs most employment relationships. Key provisions relevant to dismissal include:
Fixed-term contracts: If an employer terminates a fixed-term contract before its expiry without a valid reason provided in the contract, the employee is generally entitled to compensation for the remaining contract period. This is what produced Postecoglou's reported £4 million payment — not a bonus or goodwill gesture, but a contractual obligation.
Severance and redundancy: For ongoing employment (not fixed-term), genuine redundancy or termination without cause typically triggers notice entitlements and, for longer-serving employees, redundancy pay calculated under the National Employment Standards (NES).
Performance-based dismissal: Employers can dismiss an employee for performance reasons — but they must follow procedurally fair processes. This includes notifying the employee of concerns, giving them an opportunity to respond, and giving them a reasonable chance to improve. Dismissal without these steps can constitute unfair dismissal under Australian law.
Senior executive contracts: For high-earning executives and senior employees — analogous to elite football managers — contracts often include specific termination clauses, notice periods, and post-employment restrictions such as non-compete clauses. These are negotiated individually rather than governed solely by the NES.
The Lesson for Australian Workers: Your Contract Terms Matter
Postecoglou's situation illustrates something that applies at every level of the workforce: the terms of your employment contract — not just the salary — determine your rights if things go wrong.
Many Australian workers sign contracts without carefully reviewing key clauses, or accept verbal assurances that are never reduced to writing. Common areas where workers find themselves unprotected include:
Termination clauses: Some contracts specify notice periods shorter than the statutory minimums under the NES. While the NES minimum always applies, additional protections are only available if they are written into your contract.
Performance management procedures: If your contract specifies a performance improvement process, an employer who bypasses it may be in breach of contract — even if their underlying concerns about performance are legitimate.
Redundancy payments: Employees of small businesses (fewer than 15 employees) are generally exempt from redundancy pay obligations under the NES. If this applies to your employer, negotiating redundancy entitlements into your contract is the only way to secure them.
Post-employment restrictions: Non-compete and non-solicitation clauses are increasingly common in Australian contracts, including for roles well below executive level. Australian courts will enforce these clauses if they are reasonable in scope and duration — but many are drafted more broadly than courts will uphold. Legal review before signing can reveal which restrictions are enforceable and which are not.
What to Do If You Face Dismissal
If you are an Australian worker facing dismissal — whether for performance, redundancy, or end of a fixed-term contract — the following steps protect your position:
Get everything in writing. Request written confirmation of the reason for dismissal, the effective date, and any entitlements being paid. Verbal-only communications are harder to act on.
Check your notice entitlement. Under the NES, notice periods range from one week (less than one year of service) to five weeks (more than five years). Your contract may provide longer notice. You are entitled to be paid for the full notice period even if asked to leave immediately.
Consider whether the process was fair. Unfair dismissal claims can be made to the Fair Work Commission within 21 days of dismissal taking effect. The Commission will assess whether the dismissal was harsh, unjust, or unreasonable.
Understand your redundancy rights. Genuine redundancy requires the employer to consult with you before the decision is finalised (not after) and to explore redeployment options. A failure to consult can convert a genuine redundancy into an unfair dismissal.
According to the Fair Work Ombudsman, employees have clear legal entitlements when employment ends — regardless of the reason. Understanding these rights before a dismissal occurs, rather than after, puts workers in a far stronger position.
When to Consult an Employment Lawyer
Postecoglou's contracts were negotiated by agents and reviewed by specialist sports and employment lawyers. The result was that when Tottenham exercised their right to terminate, the financial consequences were already defined — and substantial.
For Australian workers, the equivalent protection is a legal review of your employment contract before you sign it, not after a dispute has arisen. An employment lawyer can identify clauses that fall short of legal minimums, negotiate improvements before the contract is executed, and advise on your options if an employer acts outside the agreed terms.
Whether you are a football manager in the Premier League or an employee starting a new role in Melbourne, the principle is the same: understand what you have agreed to before you need to enforce it.
Legal disclaimer: This article provides general legal information only and does not constitute legal advice. For guidance specific to your employment circumstances, consult a qualified employment lawyer.
