In Latvia, in the sports industry an employment contract can be terminated by either the club (the employer) or the athlete / a coach (the employee), but certain procedures must be followed.
Most often, a mutual termination agreement is signed due to the procedural requirements and their complexity for a termination by one party.
Termination by the club
A sports team or a club, being an employer, may terminate an employment contract of an athlete for one of the following reasons:
- If the employee has not performed their work duties properly or has not followed the employer’s instructions.
- If the employee’s work performance or skills does not meet the requirements of the job.
- If the employee has been absent from work without a valid reason.
- If the employee has been convicted of a crime that is related to their job duties.
- If the employee’s health condition permanently (long term) prevents them from performing their job duties.
- If the employee’s position has been eliminated or the company has gone bankrupt.
- other situations – depending on circumstances.
Athlete’s right to terminate contract
As per the Labor Law, an employee may terminate their employment contract for any reason, but they must give at least months’ notice.
A Party may also terminate an employment contract immediately, with a notice, if the other has committed a serious breach of their contract, where in all good faith and truth the relation cannot continue.
For sportsmen and sportswomen, the individual rules of each sports association or governing body also must be consulted before terminating, as thos eprovide many limitations compared to the national Law.
In any case, both the employer and the employee must follow the procedures set out in the Labor Law and the employment contract. This includes providing written notice and following any applicable severance pay provisions. In sports frequently there is a “buy-out” clause agreed, which is not something the nationla Law recognises for normal workers.