Whistleblower dismissed in flawed redundancy process: ACAS uplift adds 25% to compensation
A former employee was unfairly dismissed after making a protected disclosure about health and safety. The tribunal awarded over £50,000, including a 25% uplift for the employer's failure to follow the ACAS Code of Conduct.
1 min read · Last updated 19 May 2026
Case details
Key facts
- The claimant was employed by Areaworks Group Ltd from 14 May 2018 until 14 May 2021.
- The claimant made a protected disclosure (disclosure 4) regarding health and safety concerns.
- The claimant was dismissed on 14 May 2021, which the tribunal found to be unfair.
- The respondent failed to follow a fair procedure and breached the ACAS Code of Conduct.
- The claimant was awarded compensation for unfair dismissal, wrongful dismissal, and protected disclosure detriments.
- The tribunal applied an 80% Polkey reduction for redundancy risk after two months.
Timeline
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Employment started
Claimant began employment with Areaworks Group Ltd.
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Unpaid wages for work
Claimant worked on 24, 25, and 31 March 2021 but was not paid.
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Dismissal
Claimant was dismissed from employment.
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Polkey cut-off date
After two months from dismissal, tribunal found 80% chance of fair redundancy dismissal.
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Hearing start
Substantive hearing began at London Central Employment Tribunal.
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Oral reasons given
Tribunal gave oral reasons for its decision.
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Judgment issued
Written judgment was issued with detailed remedy.
The legal issue
The tribunal had to decide whether the claimant was unfairly dismissed, whether he suffered detriments for making protected disclosures, and whether he was owed unpaid wages and bonuses.
The outcome
The tribunal upheld the claim for ordinary unfair dismissal, wrongful dismissal, and some protected disclosure detriments. It found that the employer had breached the ACAS Code of Conduct, leading to a 25% uplift on the compensatory award and on the injury to feelings award.
Compensation breakdown:
- Basic award: £2,448
- Compensatory award (unfair dismissal): £12,495.86 (after 80% Polkey reduction and 25% ACAS uplift)
- Wrongful dismissal: £10,874.11
- Unauthorised deductions (unpaid wages and bonus): £5,712.62
- Injury to feelings and aggravated damages: £25,000 (after 25% uplift)
- Interest: £3,671.90
- Total: £50,312.41
Lessons & takeaways
- If you make a protected disclosure about health and safety, you are protected from detriment and dismissal — but you must show the disclosure was a material reason for the treatment.
- Employers who fail to follow a fair redundancy procedure risk a finding of unfair dismissal, and a Polkey reduction may still apply if redundancy was likely.
- A failure to follow the ACAS Code of Conduct can lead to a 25% uplift on compensation for unfair dismissal and discrimination or detriment claims.
- Claims for unpaid wages and bonuses can be brought as unauthorised deductions from wages, even if the employer is in liquidation.
- Injury to feelings awards can be increased by aggravated damages where the employer's conduct is particularly high-handed or oppressive.
A whistleblower's redundancy that went wrong
This case shows what can happen when an employer dismisses a whistleblower without following a fair process. The claimant, who had three years' service, raised health and safety concerns (a protected disclosure) and was later dismissed on the grounds of redundancy. The tribunal found that the dismissal was procedurally unfair — the employer had not followed a proper selection process or consulted adequately.
What the employer could have done differently
The employer, Areaworks Group Limited (now in voluntary liquidation), could have avoided much of the compensation by following a fair redundancy procedure. The tribunal applied an 80% Polkey reduction, meaning it found that after two months there was an 80% chance the claimant would have been fairly dismissed for redundancy anyway. But the failure to follow the ACAS Code led to a 25% uplift on the compensatory award, and the employer's conduct also attracted aggravated damages of £5,000 for the way it treated the claimant after the protected disclosure.
Why this matters for similar claims
This case is a reminder that even where a redundancy is genuine, a flawed process can lead to a finding of unfair dismissal. The ACAS uplift is a powerful tool for claimants where the employer has unreasonably failed to comply with the Code. The award of £15,000 for injury to feelings, plus £5,000 aggravated damages, shows that tribunals can award significant sums for the distress caused by whistleblower detriment. However, the Polkey reduction also shows that a claimant's compensation may be limited if the employer can show that a fair dismissal was likely in any event.
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