The case involves an arbitration dispute between Qingdao Zhongneng Football Club and its former head coach, Blaz Sliskovic, regarding the termination of their employment contract. The dispute arose from allegations by the coach that the club breached the contract by failing to pay salaries on time, provide adequate accommodation, facilitate visa and work permit renewals, and fulfill other contractual obligations. The club, in turn, argued that the coach wrongfully terminated the contract without just cause and sought compensation for his early departure. The case was brought before the Court of Arbitration for Sport (CAS), which examined whether the coach had valid grounds for termination under the FIFA Regulations on the Status and Transfer of Players, supplemented by Swiss law.
The CAS outlined key principles for determining just cause in employment contracts, emphasizing that termination is justified only for serious breaches and as a last resort. Non-payment of salaries for over three months generally constitutes just cause, but delays must be evaluated case by case. The arbitrator found that the coach had received an advance payment of USD 30,000, covering most of his February and March 2012 salaries, leaving only a minor balance unpaid. The 17-day delay in paying the remaining amount was deemed insufficient to justify termination. The club’s failure to assist with visa renewals was considered a breach of its implied duties, but the coach’s immediate termination was premature, as he did not allow the club time to resolve the issue or formally request their cooperation.
The coach also alleged mistreatment and exclusion from training the first team, but these claims lacked compelling evidence. Witness testimonies were inconsistent, and the coach himself conducted training sessions shortly before leaving China, undermining his allegations. The arbitrator concluded that the coach acted prematurely and without just cause, as the club’s breaches were not severe enough to warrant immediate termination. The decision highlighted the importance of clear contractual obligations and the high threshold for proving just cause in employment disputes.
Ultimately, the CAS ruled that the coach was not entitled to compensation for wrongful termination but acknowledged that he was owed USD 12,777.65 in unpaid salaries for work performed. The club sought compensation for the coach’s breach of contract, citing a clause entitling them to 50% of the remaining salary, but they demonstrated good faith by limiting their claim to the outstanding salaries owed to the coach. The arbitrator ordered the coach to compensate the club with the same amount he was owed, effectively offsetting the payments. The final ruling upheld the club’s appeal, set aside the previous FIFA decision, and dismissed all other claims. The case underscores the complexities of employment disputes in international sports and the importance of adhering to contractual terms and good faith in resolving such conflicts.