A British woman has successfully won a redundancy payment after losing her job as a direct result of the economic fallout precipitated by the ongoing conflict in Ukraine. The legal ruling awarded her just over £2,000, following the termination of her employment due to company struggles linked to Russian sanctions.
Ellina Spallo, aged 48, had been an employee at Alfaparcel Limited since June 2022. Alfaparcel, a modestly sized business situated in Suffolk, predominantly specialised in the export of goods to Russia. However, the company’s operations faced exceptional challenges following the introduction of strict economic sanctions on Russia, implemented by the UK and numerous other nations in response to the Russian invasion of Ukraine.
According to evidence presented at the employment tribunal, convened in Bury St Edmunds, Alfaparcel’s business activities suffered a sharp decline as sanctions took hold. As a result, the firm was compelled to undertake sweeping redundancies, dismissing all members of staff as trade with Russia became increasingly unviable.
Ms Spallo’s redundancy took effect in August 2024. Having lost her source of income after just over two years of service, she found herself ineligible for an immediate redundancy payment from her employer at the time of dismissal. She chose to challenge this outcome through the tribunal system, seeking redress under employment law.
The tribunal’s decision hinged on her length of service and age, factors which directly influence statutory redundancy entitlement in the UK. Employees over the age of 41 are entitled to a minimum of 1.5 weeks’ pay per year of continuous service when made redundant. For Ms Spallo, who had accrued over two years at Alfaparcel, this amounted to a financial entitlement of three weeks’ pay. The tribunal established her weekly rate as £675.83, leading to the award of £2,027.49.
This case serves to highlight the broader economic ramifications experienced by businesses and workers since the start of the Ukraine conflict. In efforts to stymie Russia’s war effort, Western governments have enacted a robust suite of sanctions, targeting sectors ranging from banking to physical goods. While such measures aim to exert political and economic pressure on Russia, they have also produced challenging side effects for UK exporters deeply embedded in those markets, often exposing employees to redundancy and uncertainty.
Commentators note that employment tribunals, such as the one Ms Spallo attended, have become an increasingly important arena for resolving such disputes. Workers affected by global events outside their control frequently turn to these legal routes to enforce their rights and secure compensation where statutory entitlements are overlooked or unpaid.
The case underscores the need for businesses heavily reliant on international trade, particularly with sanctioned countries, to reassess risk and compliance frameworks. For affected employees, meanwhile, it offers a salutary reminder of the statutory protections provided under UK employment law—protections that endure, even in the turbulent wake of international conflict.
In awarding Ms Spallo her redundancy payment, the tribunal not only recognised her individual circumstances but also drew attention to the wider network of UK workers whose livelihoods have been disrupted by geopolitically driven market changes. The outcome illustrates the continued responsibility of companies to honour redundancy obligations, regardless of how sudden or unforeseen their commercial challenges may become.
For individuals facing similar disruption, this ruling stands as a testament to the support available through the legal system, and the importance of understanding one’s employment rights—particularly in a global marketplace where instability can have immediate, personal consequences.