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Bar manager awarded £33k for unfair dismissal after revealing colleagues’ drug use

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Bar manager awarded £33k for unfair dismissal after revealing colleagues’ drug use

Former bar manager awarded £33,080 people received compensation after an employment tribunal ruled their dismissal was unfair following a colleague’s decision to report allegations of workplace misconduct, including alcohol and drug use.

south london court It ruled that Nadine Fallone’s dismissal by Peckham Levels bar association in February 2023 was unfair and highlighted the negative impact it had on her mental health.

Fallone had reported to the facility’s owner, Preston Benson, that staff members were stealing alcohol, drinking during their shifts, and using cocaine at parties. He was later fired “for business reasons”.

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Benson accused Fallone of skipping shifts, being a “troublemaker” and Spreading “hurtful and unfounded rumors about other staff.” He instructed an HR consultant to fire Fallone, claiming that he was “fed up” with Fallone and found her “a pain in his side”.

In its decision published in May 2024, the court determined that Fallone’s notice was the primary reason behind Fallone’s termination because he “rocked the boat during a stressful time.”

Background

Nadine Fallone He joined Peckham Levels as duty manager on 8 August 2022.

On 10 December 2022, Peckham Levels hosted an event to match the England-France football match. On shift that day, staff reported to Fallone that event managers Maysoon Matthysen and Yahya Amal offered them bottles of wine and liquor while on shift. Fallone later saw them acting drunk and in an “inappropriate and potentially dangerous” manner.

On December 31, 2022, Fallone noticed Matthysen removing ‘no smoking’ signs from the bar’s terraces and confronted him. Matthysen admitted to removing the signs.

Fallone initially voiced these concerns to episode managers Rosie McGregor and Anisa Morgan Howell, but nothing was done about it. As a result, on January 10, 2023, she escalated the matter to Jess Lambourne, an external HR consultant at Bespoke HR, as the pub did not have an HR department.

On January 11, 2023, Fallone discussed the issue with Benson over the phone, detailing alcohol theft, staff drunkenness, and smoking problems.

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

Howell was upset that Fallone reported this and texted him. During the conversation, Fallone wrote: “I can’t work this way so I won’t be coming back.”

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

Bespoke HR conducted an investigation on January 25 in which employees confirmed rumors of on-shift drug use and highlighted the “blurred lines” surrounding drinking and taking drugs after work.

Fallone began to feel ignored by her colleagues and not included in conversations or group chats. The court heard he was already vulnerable due to past mental health issues and the removal was significant.

In late January, Howell told Stewart that Fallone had resigned and was not showing up for shifts. Stewart then pulled him off course.

As a result of this treatment, the court heard Fallone’s mental health deteriorated and on February 6 he informed colleagues via working group chat that his GP was taking leave of work for nine days.

Howell responded: “You’ll have to come in and cover tonight’s shift. There’s no one else, honey.” Three minutes later, she sent another message: “Okay fine. Since you’re ignoring me. Don’t worry. I’ll handle this shift. Thank you. Get well soon…”

In February, Benson discussed Fallone’s termination with Bespoke HR’s Nicola Mori; Mori testified that Benson expressed disappointment in Fallone and wanted to let him go for “business reasons.”

Fallone was immediately dismissed, and when he asked to appeal, Mori responded with “no objection to that”, labeling it a “business decision”.

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

Comments from the panel

Employment judge L Clarke ruled that Fallone believed it was in the public interest to disclose his drink and drug use.

“The use or potential use of drugs on the premises and the culture of drug acceptance can lead to unacceptable sexual or violent behavior under the influence of alcohol and/or drugs. The judge also noted that there was a risk to the health and safety of staff and those involved.”

They decided that a “very unpleasant environment” had been created for Fallone and that it had a “significant impact on his mental health”.

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

His treatment also had “real world consequences” as he was not given shifts and could not appeal his dismissal.

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

Comments of lawyers

Musab Hemsi, employment law partner at Anderson Strathern, said the decision was the latest “remarkable lesson” for businesses to have a clear and thoughtful justification for any proposed restructuring.

He said: “Employees who raise concerns have significant legal protection in ensuring that they are taken seriously and addressed through formal processes.

“Inadequate reporting or complaint frameworks and unreasonable or short-sighted investigations will all play into the hands of trial judges.

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

He warned that HR and managers should “address each complaint in a manner commensurate with its content.”

“If potentially serious issues have arisen, do not prejudge them,” he said. “Make sure you have and follow compliant, robust procedures where managers are trained to be confident in implementing them.”

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

“Ignoring disclosures of wrongdoing can lead to disastrous consequences. Whistleblowing claims can attract captive damages to encourage employers to avoid allegations and take disclosures seriously,” he added.

For more detailed information on drug and alcohol use in the workplace, Read the CIPD’s guidance for people managers

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