Furlough Scheme Abuse Whistleblower Receives Substantial Compensation

Every right-thinking person would agree that workplace whistleblowers deserve not retaliation but praise. However, the opposite sadly happened in the case of a public-spirited factory worker who expressed deep ethical concern about his employer’s criminal abuse of the COVID-19 furlough…

Mar 15, 2022

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Every right-thinking person would agree that workplace whistleblowers deserve not retaliation but praise. However, the opposite sadly happened in the case of a public-spirited factory worker who expressed deep ethical concern about his employer’s criminal abuse of the COVID-19 furlough scheme.

The man, who had a vulnerable daughter at particular risk from COVID-19, complained to management that self-isolation rules were not being followed after one of his co-workers tested positive for the virus. He also objected fiercely after discovering that the company for which he worked had wrongfully continued to claim government furlough support at a time when its employees had returned to full-time work.

After the first disclosure, he was threatened with disciplinary action and subjected to extensive negative comments by management and colleagues. For months, he was singled out and ostracised, being categorised as lazy and pathetic. Following the second disclosure, his integrity was questioned by managers who knew full well that his concerns regarding the furlough scheme were justified. He eventually resigned and launched Employment Tribunal (ET) proceedings.

In upholding his claim of automatic unfair constructive dismissal, the ET found that the company had shown a cynical disregard for his employment rights. Unbeknown to him, the company had misrecorded and declared his earnings to HM Revenue and Customs, utilising the manufactured figures for the purpose of claiming furlough support. In doing so, the company was acting in breach of its statutory obligations and participating in a number of criminal and fiscal offences.

In also upholding his claims of wrongful dismissal and unlawful detriment for whistleblowing, the ET found that the treatment to which he was subjected was inextricably linked to disclosures he made in good faith and in the public interest. The impact of the serious and sustained detriments could not be overstated: they deprived him of his congenial employment and his formerly good relationship with colleagues. The company was ordered to pay him a total of £18,291 in compensation, including £7,000 for injury to his feelings and £5,000 in aggravated damages.

Victim of Workplace Race-Related Harassment Receives Compensation

Victims of workplace harassment sadly often fear the consequences of rocking the boat, but there are very good reasons why they should consult a solicitor straight away. The point was made by the case of an administrative assistant who took action after a colleague denigrated her Chinese heritage. After she mentioned her grandmother’s Chinese descent in the office, her colleague responded with the words: ‘Does she own a chip shop? All Chinese own chip shops.’ She was embarrassed, upset and…

Employment Dispute Settlement Precludes Subsequent Victimisation Claim

The vast majority of employment cases end in compromise, thus doing away with the need for a public hearing. As a Court of Appeal ruling made plain, however, great professional care is required in drafting settlement agreements in order to ensure that they do not themselves become the focus of further dispute. The case concerned a man whose race discrimination complaint against a company for which he worked for about a month was compromised on confidential terms. He accepted a sum of money in…

Decision-Maker’s Knowledge is Key in Whistleblowing Claim

Where an employee who has made a protected disclosure is dismissed, can the dismissal be unfair if the decision-maker is merely aware that the employee has made a disclosure, or is some understanding of the details of the disclosure required? That question was answered in an Employment Appeal Tribunal (EAT) ruling. A man had raised various concerns relating to the management style of his employer’s CEO. A meeting took place in which he claimed that issues raised in another employee’s exit…