Pertemps chairman Tim Watts has been awarded £100,000 in costs after a former employee made false claims of sexual harassment, discrimination and victimisation against him.

The allegations, made by Debbie Smith, who was dismissed after P Investments, the Pertemps subsidiary she was running, made a loss of £250,000, were ruled totally unfounded following an employment tribunal earlier this year.

The tribunal accepted Watts’ evidence that the assertions were a “pack of lies”.

According to Pertemps, Smith has agreed to pay £100,000 in costs.

During the case, which first went to a hearing in September 2010, Watts spoke of how he always felt there were two Debbie Smiths “a Ms Jekyll and a Ms Hyde”.

“Like many others, Debbie Smith no doubt thought she could secure an easy bung,” says Watts.

“Not me. I have never taken a backward step in my life. My reputation means everything to me … and I wasn’t having it. I wanted the truth to come out. And it did.

“These vexatious spongers have to be taught a lesson. And she has been … big time.”

She was foolish enough to take me on … and lost. I don’t take prisoners.”