Bar manager awards £33,000 for unfair dismissal after colleagues discovered drug use

On By Pranco

An ex-bar manager has £33,080 in compensation after an employment tribunal ruled their dismissal was unfair, following its decision to report allegations of workplace misconduct, including alcohol and drug use by colleagues.

The South London Tribunal ruled that Nadine Fallone’s dismissal by the Peckham Levels bar in February 2023 was unfair and highlighted the negative impact it had on her mental health.

Fallone had reported to the owner, Preston Benson, that the staff was stealing alcohol, drinking during their shifts and using cocaine at parties. She was subsequently fired for “business reasons.”

Codes of conduct for employers on drugs and alcohol

Dealing with drug use or sexual assault at after-work events

What do employers need to know to implement drug testing in the workplace?

Benson accused Fallone of skipping shifts, being a “troublemaker” and spreading “hurtful and false rumors about other staff”. He instructed an HR consultant to fire Fallone, claiming he had “had enough” of her and considered her a “pain in his side.”

In its May 2024 ruling, the tribunal found that Fallone’s whistleblowing was the main reason for Fallone’s dismissal because it had “rocked the boat at a stressful time.”

Background

Nadine Fallone joined Peckham Levels as Duty Manager on 8 August 2022.

On December 10, 2022, Peckham Levels hosted an event in line with a football match between England and France. During the shift that day, staff reported to Fallone that event managers Maysoon Matthysen and Yahya Amal were helping themselves to bottles of wine and drinking during their shift. Fallone later saw them drunk and acting in an “inappropriate and potentially dangerous” manner.

On December 31, 2022, Fallone saw Matthysen removing “no smoking” signs from the bar’s patios and confronted her. Matthysen admitted to removing the signs.

Initially, Fallone raised these concerns with her line manager, Rosie McGregor, and Anisa Morgan Howell, but nothing was done. As a result, she escalated the matter to Jess Lambourne, an external HR consultant from Bespoke HR, on January 10, 2023, as the desk did not have an HR department.

On January 11, 2023, Fallone discussed the matter with Benson by telephone, describing the alcohol theft, staff drunkenness and smoking problems.

Two days later, Howell informed Fallone that one of the bar employees, James Davies, had offered her cocaine at a party the night before. Fallone reported the incident to Davies’ manager, Dee Stewart, even though Howell asked her not to. Stewart later admitted to using cocaine with Davies on New Year’s Eve.

Howell was angry that Fallone reported this and messaged her about it. During the conversation, Fallone wrote: “I can’t work like this so I’m not coming back.”

On January 16, Fallone spoke with Benson again, bringing up the cocaine issue and her concerns that Stewart would not properly investigate the situation.

Bespoke HR conducted a survey on January 25, with employees confirming rumors of drug use during shifts and highlighting “blurred lines” around alcohol and drug use after work.

Fallone felt like she was being ignored by her colleagues and left out of conversations or group chats. The tribunal heard she was already vulnerable due to a history of mental health problems, and this sidelining was significant.

Later in January, Howell told Stewart that Fallone had resigned and was not showing up for shifts. Stewart then removed her from the roster.

As a result of this treatment, the tribunal heard that Fallone’s mental health deteriorated and on February 6 she informed colleagues via the working group chat that she had been dismissed by her GP for nine days.

Howell replied, “You’ll have to come and take over tonight’s shift. There’s no one else.’ Three minutes later she sent another message: “Okay. Because you ignore me. No problem. I will cover this service. Thank you. Get better soon…”

In February, Benson discussed the termination of Fallone’s employment with Bespoke HR’s Nicola Mori, who testified that Benson had expressed frustration with Fallone and wanted to let her go for “business reasons.”

Fallone was immediately fired, and when she appealed, Mori responded that “this cannot be appealed,” calling it a “business decision.”

This abuse caused Fallone’s mental health to deteriorate and she was prescribed antidepressants.

Commentary from the panel

Employment Judge L Clarke ruled that Fallone believed it was in the public interest to make the drinking and drug use public.

“The use or potential use of drugs on site and a culture of acceptance of drugs can lead to unacceptable sexual or violent behavior under the influence of alcohol and/or drugs. There was also a risk to the health and safety of the staff members and persons involved,” the judge said.

They ruled that a “very unpleasant environment” had been created for Fallone, which had a “significant impact on her mental health”.

The tribunal heard that Stewart and Matthysen showed clear hostility towards Fallone in their evidence, suggesting she was spreading rumors and was responsible for “unrest among staff”.

Her treatment also had “real world consequences,” as she received no services and was unable to challenge her dismissal.

The tribunal concluded that “business reasons” as a reason for her dismissal were “so vague as to be meaningless”.

Comments from lawyers

Musab Hemsi, employment law partner at Anderson Strathern, said this decision is the latest “remarkable lesson” for companies to have a clear and thoughtful case for any proposed reorganization.

He said: “Employees who raise concerns have significant legal protection so that these concerns can be taken seriously and addressed through formal processes.

“Inadequate whistleblowing or complaints frameworks and unreasonable or short-sighted investigations will all fall foul of the tribunal judges.

“Even if employees themselves tread the line of unreasonable behavior, employers (particularly larger employers) will be held to the highest standards when assessing their legal obligations and meeting the various burdens of proof that may fall on them in employment-related claims.”

He warned that HR and managers must “treat each complaint in proportion to its substance”.

“If potentially serious issues have been raised, don’t prejudge them,” he said. “Ensure you have and follow compliant, robust procedures that managers are trained to apply with confidence.”

Katherine Cooke, senior associate at Higgs, said employers should take whistleblower disclosures seriously, investigate them and take corrective action where necessary.

“Ignoring revelations of misconduct can have catastrophic consequences. Whistleblower claims can provide unlimited damages, providing an incentive for employers to avoid claims and take disclosures seriously,” she added.

For more information about drug and alcohol use at work, please visit: read the CIPD guide for people managers