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Conflict of Interest Warranted Summary Dismissal
The Fair Work Commission (“FWC”) has found that when an employee of Northern NSW Football Limited (“NNSWF”) accepted another role as the Head Coach of a Premier Club, this conflict of interest warranted summary dismissal.
Background
NNSWF is the governing body of football for northern NSW. NNSWF is responsible for the governance and conduct of premier football competitions in northern NSW, including the NPL. It has an operating budget of about $10 million. NNSWF is responsible for the Premier Clubs and is directly responsible for the administration and regulation of the regional Premier Competitions.
In 2017, Mr B was employed by NNSWF as a Technical Advisor. On 2 December 2019 Mr B was appointed acting Technical Director for a fixed period to March 2020. This was a full-time position. The role reported to the NNSWF Head of Football and his duties included providing advice and recommendations which directly influence “strategy, policy and regulations pertaining to the conduct of the Premier Competitions.”
On 3 December 2019 Mr B told the Head of Football that he had been offered and had accepted the role of Head Coach at Weston Football Club (“Weston FC”). Mr B explained that NNSWF would remain his priority and that Weston FC were willing to accommodate him fulfilling his duties with NNSWF. In particular, Mr B said that he would be available in the evening on Monday, Wednesday and Friday for NNSWF and would train with Weston FC on Tuesday, Wednesday and late Friday evenings.
Conflict of interest
NNSWF took the view that it would not be logistically workable for Mr B to be unavailable two weeknights and one weekend afternoon. Notwithstanding the time constraints, NNSWF also believed there was risk of a perceived or real conflict of interest.
On 17 December 2019 a meeting was held with the CEO of NNSWF, the Head of Football and Mr B to discuss NNSWF’s concerns around the conflict of interest. The CEO then sent an email to Mr B setting out NNSWF’s view that holding both roles was untenable. In early January 2020 the CEO came to hear that Mr B had accepted the role of Head Coach. Mr B had not advised the CEO or the Head of Football of his decision.
On 6 January 2020 Mr B was stood down by NNSWF. On 10 January 2020 Mr B was sent a show cause letter and invited to attend a meeting on 14 January 2020. Mr B stated that there was no significant issue or conflict with him being Head Coach and his role with NNSWF. Mr B asked the CEO to at least allow him a trial period to see if he could manage both roles.
Dismissal for serious misconduct
On 15 January 2020 NNSWF informed Mr B that his employment had been terminated for serious misconduct in that, he had:
- failed to disclose his acceptance of the role of Head Coach of Weston FC; and
- accepted the role and disregarded NNSWF advice about the conflict.
Mr B brought an unfair dismissal claim in the FWC.
Fair Work Commission
Mr B argued that he obtained the job as Head Coach of Weston FC as a step to advance his career and apply the additional knowledge and experience to the benefit of NNSWF. This was accepted by the Commission however NNSWF were entitled to consider whether the benefits were outweighed by the detriment associated with Mr B holding both positions.
In essence, in finding that the conflict of interest warranted summary dismissal, the FWC agreed with the employer that by holding the position of Head Coach of a Premier Club it would undermine the integrity and independence of the NNSWF. As the acting Technical Director, Mr B was involved in decision making which impacted players, coaches and clubs which included recommending candidates for the Jets Academy, Talented Player Pathway, Emerging Jets Program, Skills Development Program and Talent Support Program.
While NNSWF was not opposed to Mr B having a second job, the Head Coach role would have encroached on the times he was required to be available for his role as acting Technical Director. Mr B was not upfront with NNSWF when he finally decided to accept the role with Weston. In these circumstances, the conflict of interest warranted dismissal.
The Commissioner commented that Mr B’s personal ambition had clouded his judgment. Indeed, Mr B appeared to be naïve to have held the view that he could have performed both roles.
People + Culture Strategies