The Renouncement of Financial Entitlements – An Overview of the Recent Jurisprudence in International Labour Disputes

The Renouncement of Financial Entitlements – An Overview of the Recent Jurisprudence in International Labour Disputes

The present article provides for an overview of the current state of the jurisprudence with regard to the question of waivers of financial entitlements in mutual termination agreements with a particular focus on the validity of such dispositions in a labour relationship context.

Introduction – Background

In most employment relationships, and football is not an exception, there is an inherent power imbalance between the employer and the employee. In football, while also considering additional elements of the FIFA Regulations on the Status and Transfer of Players (RSTP), which make finding new employment difficult for employees, the practical expression of this imbalance can result in a practice of concluding mutual termination agreements containing no actual and/or fair consideration for the player. In other words, it is not uncommon that in professional football, clubs misuse the FIFA RSTP and their bargaining power to get players to sign unbalanced termination agreements or unilateral declarations by means of which no financial entitlement is granted to the player. Too often, past entitlements for the work...

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