Last month we saw Sam Allardyce leave his job as England manager by mutual agreement after an undercover Telegraph reporter unveiled allegations that he had abused his position and suggested that it was possible to circumvent the FA’s rules on player transfers.

Whilst a disciplinary investigation into his conduct is currently under way, his departure raises some interesting employment issues for all Watford bosses.

Employees can be dismissed or disciplined for conduct occurring outside of work which amounts to gross misconduct.

Sam Allardyce was recorded during his meeting with the undercover journalist making disparaging comments about Roy Hodgson, Gary Neville and the FA’s president Prince William as well as suggesting he could circumvent FA rules and potentially bringing the employer into disrepute if true.

Whilst the alleged comments were made during a private meeting, the nature of the comments, and the seniority of his position, clearly impacted his employment relationship with the FA.

All employment contracts contain an implied term of mutual trust and confidence which exists between the employer and employee and requires an employer or employee not (without reasonable and proper cause) to conduct themselves in a manner that is likely to destroy or seriously damage the relationship of trust and confidence between the parties.

This term is most commonly cited against employers, but it works both ways.

This case is also an example of where the implied duty of fidelity (to act in good faith) may have also been breached. This duty extends to the employee’s conduct outside of working hours.

Employers should examine whether their contracts of employment for senior key staff contains detailed provisions about outside interests and duties.

It is also good practice to make sure that policies and procedures are clear about the type of conduct (both in and out of work) which may lead to disciplinary action.