Can external HR Consultants be held responsible for dismissals?

Understanding the Handa v Station Hotel Case

Background

In the recent case of Handa v The Station Hotel (Newcastle) Ltd and Others [2025] EAT 62, the Employment Appeal Tribunal (EAT) examined whether external HR consultants could be held legally responsible for an employee’s dismissal.

The Situation

Mr Handa, a director at The Station Hotel, faced allegations of bullying and harassment. To address these concerns, the company engaged two independent HR consultants.

• One to investigate the grievances raised against Mr Handa

• Another to conduct the subsequent disciplinary hearing.

Following these processes, Mr Handa was dismissed for gross misconduct.

Mr Handa claimed that the HR consultants acted as agents of the employer and should therefore share liability for his dismissal.

The Tribunal’s Decision

The Employment Tribunal initially struck out Mr Handa’s claims against the HR consultants, stating there was no reasonable prospect of success.

Upon appeal, the EAT upheld this decision, clarifying:

• External HR consultants can, in some circumstances, be considered agents of an employer.

• However, in this case, the consultants did not make or implement the decision to dismiss Mr Handa.

• Their roles were limited to investigation and recommendation.

Therefore, they could not be held personally liable for the dismissal itself.

Key Takeaways

• Employers: Engaging external HR consultants for investigations or disciplinary hearings does not transfer liability for dismissal decisions to those consultants.

• HR Consultants: Providing independent services, such as investigations or hearings, does not make you legally responsible for the employer’s ultimate decisions.

Final Thoughts

This case provides clarity on the roles and responsibilities of external HR consultants in disciplinary processes. It underscores the importance of clearly defined roles and responsibilities when engaging external professionals.

If you have questions about engaging external HR consultants or need advice on managing disciplinary processes, mlplaw is here to help. Our employment law experts provide clear, practical guidance tailored to your needs.