How does it work? - in the same way as if GP had been fired for no reason the club would have been in breach of contract and, as you pointed out, been liable to pay the appropriate compensation - If GP had accepted the charge of 'gross misconduct' and had just 'walked' then the club would have...
You ask the question, "Please explain how you think the club should have handled the situation?", without addressing the obvious corollary to that question, "How do you think GP should have handled the situation?" - Accept the sacking was justified and lay himself open to a claim by the club for...
"However don't overlook that Gus was an employee who chose to turn off his mobile phone and appear on national TV on the very weekend both the Albion's and Gus's people have already stated they were dealing with the issue. Gives a good indication of where Gus's priorities were that night."
I...