'I won £65,000 at an employment tribunal – but I've yet to see a penny'
Nadine Fallone was awarded nearly £65,000 by an employment tribunal for unfair dismissal after reporting staff drug use at the bar she managed. However, more than a year later, she has yet to receive any of the money, despite using a government scheme designed to address employment tribunal non-payments. This issue is widespread, with a significant percentage of those using the scheme still awaiting their payments.
Image caption: Nadine Fallone was awarded nearly £65,000 for unfair dismissal. Image source: Katia Pirnak.
The Tribunal Case and Its Aftermath
Nadine Fallone took her former employer, Peckham Levels Ltd, to a tribunal, describing it as "probably the worst experience of my life." While both parties explored settlement offers, the case proceeded to a full hearing. Nadine was awarded £28,750 for detrimental treatment, £35,250 for unfair dismissal, and £915 as a compensatory award.
Unfortunately, weeks after the judgment, Peckham Levels Ltd entered administration, effectively preventing Nadine from recovering her awarded compensation. She expressed feeling a loss of joy, stating that the inability to receive the money despite the tribunal's ruling made the situation worse. Preston Benson, the former director of Peckham Levels and currently a director of 12 businesses, acknowledged the distress caused to Nadine but cited "no legal ability" to pay the award after the company went into administration.
The Employment Tribunal Penalty Enforcement and Naming Scheme
The Employment Tribunal Penalty Enforcement and Naming Scheme was established in 2016 by the Conservative government to address the issue of unpaid tribunal awards. The scheme allows companies to face penalties for non-payment within 28 days, and since 2018, they can be publicly named. However, a Freedom of Information request revealed that over 5,000 out of approximately 7,000 users of the scheme have not received their payment or settlement.
Despite over 4,800 penalties issued, totaling over £9 million, the government has only recorded 109 payments. Furthermore, no employers have been publicly named for non-payment, despite nearly 4,000 requests. This highlights significant flaws in the scheme's effectiveness.
Personal Impact and System Failures
Rosie Davies, another claimant, was awarded £6,000 for unpaid wages and breach of contract after losing her job in motorsports. Eighteen months later, she is still awaiting payment. Like Nadine, Rosie's experience highlights the shortcomings of the system. She also pursued her award through the High Court but without success, illustrating the difficulties claimants face in receiving their due compensation.
Image caption: Rosie Davies now wishes she 'hadn't bothered' with the tribunal system.
Rosie states that the financial strain of not receiving the money "tipped things over the edge," forcing her to move back in with her mother. She now regrets engaging with the tribunal system, expressing a lost faith in its ability to deliver justice. Christian Elvidge, Rosie's employer and director of Motorflix Ltd, did not respond to requests for comment.
Calls for Reform and Government Response
With 491,000 claims open as of March 2025, Citizens Advice has described the employment tribunal system as "completely broken." Emer Sheehy, policy manager, finds it "frankly scandalous" that awards remain unpaid after claimants navigate the system. The Federation of Small Businesses (FSB) is advocating for an "overhaul" of the system, citing costly tribunals for both businesses and employees.
Tina McKenzie, policy director at the FSB, notes that company insolvency is a common reason for non-payment, particularly in the post-pandemic period. She suggests a "central UK pot" to compensate those owed tribunal awards when companies become insolvent. A government spokesperson acknowledged the need for improvement and stated the intention to strengthen enforcement of unpaid awards as part of the "Plan for Change."
