South London's 'Peckham Levels' To Pay Over £33K To Ex-Manager Fired For Exposing Staff Theft And On-Shift Drinking

A former bar manager dismissed after blowing the whistle on workplace misconduct, including on-shift drug use and staff theft, has been awarded £33,080 in compensation. A South London employment tribunal ruled that Peckham Levels unfairly dismissed Nadine Fallone, finding her whistleblowing disclosures to be the primary reason for her termination. The tribunal also highlighted the detrimental impact on Fallone's mental health, stemming from a toxic work environment and retaliatory actions by senior staff.

Whistleblower Retaliation Leads to Legal Battle

The legal dispute began after Fallone, employed as duty manager at Peckham Levels from August 2022, reported incidents of staff consuming alcohol on shift, stealing, and using cocaine at work parties. Despite raising her concerns with her line manager, Rosie McGregor, and other senior staff, her complaints were met with indifference.

Feeling unsupported, Fallone escalated her concerns to Jess Lambourne, an external HR consultant, and eventually to Peckham Levels owner, Preston Benson. Her disclosures included staff removing safety signage, consuming alcohol while on duty, and using recreational drugs during shifts. Instead of addressing the issues, Benson and other managers sought to isolate Fallone, labelling her a "troublemaker" and spreading rumours about her among colleagues, per a report from Daily Mail.

By February 2023, Fallone's mental health had significantly deteriorated. The toxic work environment, coupled with retaliatory actions from her colleagues and senior staff, forced her to take a medical leave. Despite her efforts to address the misconduct, Benson abruptly dismissed her under the guise of "business reasons."

The Origins of the Conflict

The issues began to surface during a football event on 10 December 2022, when Fallone observed staff consuming alcohol on duty. Later that month, she caught an employee, Matthysen, removing "no smoking" signs from the premises.

On New Year's Eve, the situation escalated when another staff member, James Davies, offered cocaine to a colleague, a fact that was later confirmed by Davies' manager, Dee Stewart. Fallone reported the incident, but her concerns were dismissed by management, prompting her to contact Lambourne and Benson directly.

In January 2023, an external HR investigation corroborated Fallone's claims, exposing a culture of recreational drug and alcohol use during work hours. Instead of addressing these findings, Benson and other managers began excluding Fallone from work communications and assigned her fewer shifts, as detailed in a tribunal decision published by the UK government.

A Toxic Workplace

The tribunal found that Fallone was subjected to significant hostility from her colleagues after making her disclosures. She was ostracised by staff and managers, removed from group chats, and denied opportunities to address her grievances. Her mental health suffered greatly, requiring her to take a nine-day medical leave.

During her absence, senior manager Anisa Morgan Howell pressured Fallone to cover shifts despite her condition, further exacerbating her struggles. When Fallone announced her leave, Howell responded dismissively, saying, "No worries. I'll cover this shift. Thanks. Get better soon," before removing her from the rota altogether.

In February 2023, Benson instructed external HR consultant Nicola Mori to dismiss Fallone, citing vague "business reasons." The tribunal later ruled that this explanation was "meaningless" and found that Fallone's dismissal was motivated by her whistleblowing.

Tribunal Findings and Compensation

Employment Judge L Clarke ruled in May 2024 that Fallone's disclosures were made in the public interest, as the issues she raised posed significant health and safety risks. The tribunal noted that the presence of drugs and alcohol in the workplace created the potential for unacceptable behaviour, including violence or harassment, and endangered both staff and customers.

The tribunal also criticised senior managers Stewart and Matthysen for displaying hostility towards Fallone and attempting to discredit her during the proceedings. Their actions were described as contributing to a "very unpleasant environment."

The judge concluded that Fallone's dismissal was retaliatory and that her allegations were credible. As a result, Peckham Levels was ordered to pay over £33,000 in compensation to Fallone, covering lost wages and the psychological harm caused by her treatment, per People Management.

Lessons for Employers

This ruling highlights the importance of employers addressing workplace misconduct transparently and protecting employees who raise legitimate concerns. Musab Hemsi, an employment law partner at Anderson Strathern, emphasised that businesses must carefully consider and justify dismissals to avoid claims of retaliation or unfair treatment.

"Employers must ensure their actions are proportionate and justified, particularly when dealing with whistleblowers," Hemsi said. "Failure to do so can lead to costly legal battles and reputational damage."

For Fallone, the tribunal's decision represents a vindication of her actions and a stark reminder of the challenges faced by whistleblowers in toxic workplace environments. As Peckham Levels seeks to move forward, the case underscores the importance of fostering a culture of accountability and respect in the workplace.