Nadine Fallone received an award of nearly £65,000 from an employment tribunal for unfair dismissal after reporting drug use among staff at the bar she managed. However, over a year has passed, and she has not received any payment despite utilizing a government scheme designed to address employment tribunal non-payments. Nearly 5,000 of the 7,000 individuals who have used this scheme also reported not receiving payment, according to data from a BBC investigation.
After her tribunal, in which she was awarded for detrimental treatment, unfair dismissal, and a compensatory award, Fallone found herself unable to recover her funds as Peckham Levels Ltd., her former employer, entered administration. The former director of the company, Preston Benson, expressed regret over the distress caused but noted his inability to pay the award once the business was in administration.
The Employment Tribunal Penalty Enforcement and Naming Scheme, established in 2016, was meant to mitigate issues of unpaid awards. However, a Freedom of Information request reveals that, despite 4,800 penalties issued totaling over £9 million, only 109 have been paid, with not a single employer named for non-payment, despite approximately 4,000 requests.
Rosie Davies, another claimant, won £6,000 for unpaid wages following her job loss in motorsports but also reported not receiving any payment 18 months later. Although she pursued various enforcement options, her employer declared insolvent and was not further pursued by enforcement officers. Davies voiced frustration at the tribunal system, stating that she regretted her decision to pursue the case.
Employment tribunal cases are common, yet many settle or are withdrawn before reaching a hearing. According to the Ministry of Justice, over 491,000 claims were open as of March 2025. The Federation of Small Businesses highlighted that insolvency is a frequent reason awards go unpaid, particularly after the pandemic’s impact on businesses. The government acknowledged the need for improved enforcement and intends to strengthen the system further.
Source: https://www.bbc.com/news/articles/cvgjk8qnx2yo?at_medium=RSS&at_campaign=rss