Outstanding salaries under a player contract: termination under FIFA rule 14bis

When a club fails to pay salaries on time, the issue is not limited to an outstanding claim. The arrears may also raise the question whether the player can terminate the contract early without becoming the party in breach.

For international professional contracts, Article 14bis of the FIFA Regulations on the Status and Transfer of Players provides a specific framework. It does not replace a review of the contract or the applicable national employment law. Due dates, the amount owed, written default, the cure period and the form of termination all matter.

Under Article 14bis paragraph 1 of the FIFA Regulations on the Status and Transfer of Players, a player may have just cause to terminate where the club unlawfully fails to pay at least two monthly salaries on their due dates. Before doing so, the player must put the club in default in writing and grant at least 15 days for full compliance with the financial obligations.

This is a framework for assessment, not an automatic right for every unpaid item. The exact due date, contractual amount, partial payments and whether the arrears are unlawful must be established. A disagreement with an account statement does not by itself establish just cause.

For salaries that are not due monthly, Article 14bis paragraph 2 refers to the pro-rata value corresponding to two months. A delayed amount equal to at least two months may therefore be relevant. With bonuses, benefits in kind or expense items, the first question is whether and when the contract makes them payable.

Article 12bis FIFA concerns overdue payables and possible sporting sanctions against the club. It addresses, among other things, a payment delayed for more than 30 days without a prima facie contractual basis and a written default notice granting at least ten days. That is not the same as the 15-day requirement under Article 14bis for early termination by the player.

Meeting the ten-day period under Article 12bis does not automatically satisfy Article 14bis. Conversely, a termination that may be available under Article 14bis does not mean that sanctions under Article 12bis will automatically be imposed in the same proceeding. The claim, the termination right and the sporting sanction must be assessed separately.

A proceeding before the FIFA Football Tribunal also does not automatically answer every question of Austrian employment law. In an international contract, FIFA regulations, the contract, national law and the competent forum must be considered together.

The notice should itemise the open amounts and their due dates. Base salary, bonuses, benefits in kind and other items should not disappear into an unexplained total. Refer to the relevant contractual clause and demand payment of the amounts that are actually due.

Article 14bis requires at least 15 days. Receipt by the club and the exact calculation of the deadline must be provable. Email, registered mail or a communication system specified in the contract may raise different evidentiary questions. Keep the sent version, attachments, delivery evidence and replies.

A cure period is not a substitute for the ongoing contract review. Until the position has been assessed, players should not simply stop performing their duties, and clubs should not treat a disputed account as resolved by an unexplained refusal. The communication should identify the payment requested and the rights being considered.

For an Austrian employment relationship, section 26 AngG must also be considered. Under item 2, an important reason for an employee’s immediate resignation may in particular exist where the employer improperly reduces or withholds the remuneration due or breaches other essential contractual provisions. Whether this threshold is met depends on the contract, the arrears, the account and the circumstances of the individual case.

FIFA Article 14bis and section 26 AngG are not interchangeable alternatives. Article 14bis provides a sporting-law framework for international football; section 26 AngG concerns the Austrian employment-law termination. Applicable law, the club structure, contractual clauses and the competent forum must be identified first.

Waiting too long can complicate the assessment of whether continuation was still reasonable and how the important reason was handled. This is not a fixed general deadline. It means that a known salary arrear should be reviewed promptly with complete documents before a termination notice is sent.

A payment demand, a default notice and an early termination are different statements. The termination must be addressed to the correct contracting party, at the correct time and in the form required by the contract and applicable law. Ambiguous wording can later create a dispute over whether the contract was terminated or negotiations merely continued.

A party that terminates without sufficient just cause may face compensation or sporting consequences. Article 17 FIFA deals with the consequences of termination without just cause and contains special compensation rules where termination is due to overdue payables. This does not mean that every alleged payment delay is automatically protected.

Before sending a termination notice, prepare a claim table showing due date, amount, payment, notice and expiry of the cure period. Also consider a possible transfer, pending proceedings, registration and whether a new contract has already been signed.

Secure the signed player contract and all amendments, account statements, bank records, payment confirmations and club messages. For each month, mark the contractual due date, amount owed, payment received and any outstanding balance.

Variable remuneration may include appearance and points bonuses, bonus conditions, benefits in kind, accommodation, a vehicle or other contractual benefits. Record the performance triggering the payment and the contractual calculation. An item is not a monthly salary merely because it appears on a monthly statement.

Keep the written default notice and proof of receipt with the payment records. A short chronology of the contract, due date, arrears, notice, deadline, partial payment and subsequent communication is more useful than unstructured screenshots. The remuneration check can help organise the first overview.

Can a player terminate immediately when one monthly salary is unpaid?
Not automatically. Article 14bis FIFA uses at least two due monthly salaries as its specific example, together with written default and a cure period of at least 15 days. The contract, applicable law and due dates still require review.

Is a ten-day cure period enough?
Not automatically. The ten days in Article 12bis concern overdue payables and possible sanctions. For termination under Article 14bis, the rule generally provides for at least 15 days.

Do bonuses count as two monthly salaries?
Not without further analysis. Article 14bis includes a pro-rata rule for salaries not due monthly. For a bonus, entitlement, calculation, due date and contractual wording must first be established.

Does Article 14bis apply to every player contract?
The answer depends on the professional status, the applicable FIFA regulations, the contract and the proceeding. Collective bargaining agreements and alternative provisions in existing contracts may also be relevant.

What should a club do if the payment is disputed?
The club should disclose the contractual basis, due date and calculation, pay undisputed amounts on time and document the communication. A blanket refusal can intensify the dispute.

Start with a complete claim table. Separate monthly salaries, bonuses, benefits in kind and partial payments by due date and contractual basis. Then check whether at least two monthly salaries, or an equivalent amount, remain unpaid and whether Article 14bis FIFA applies to the contract.

Next, secure the written default notice, proof of receipt and expiry of the 15-day minimum cure period. At the same time, review section 26 AngG, contractual clauses, applicable law and the competent forum. Do not rely on a rough calculation when declaring early termination.

Contact the firm
If salaries, bonuses or benefits under a player contract remain unpaid and termination is being considered, provide the contract and amendments, the claim table and the complete payment and communication chronology. Mag. Bernhard Brandauer, Rechtsanwalt, will discuss the next sensible steps with you.