In a case that is proving pivotal for HR professionals across the UK, the Employment Tribunal’s 2025 ruling in Mr. A. Handa v The Station Hotel (Newcastle) Ltd and Others offers a timely warning about the legal exposure of external HR consultants, but also a degree of reassurance.
While the tribunal ultimately struck out the claims against the HR consultants, their initial inclusion highlights a growing trend that tribunals are willing to scrutinise and, where appropriate, involve third-party professionals in employment disputes when they are seen to have played a key role in the decision-making process.
Background of the Case
Mr. Handa brought claims of unfair dismissal and whistleblowing detriment under the Employment Rights Act 1996. Alongside his employer, external HR professionals engaged by The Station Hotel (Newcastle) Ltd were also named. He alleged their advice contributed materially to his dismissal. However, the Tribunal found that the consultants’ involvement did not meet the legal threshold for liability, and the claims were struck out.
Why Were the HR Consultants Named?:
The consultants were included because:
- They were involved in key advisory and procedural roles.
- The claimant alleged that they shaped the dismissal process.
- The tribunal was asked to consider whether their involvement made them personally liable.
Key Legal Outcome:
- Claims against the consultants were found legally insufficient.
- Their involvement did not amount to unlawful detriment.
- The claims were formally struck out before a full hearing.
Implications for UK HR Consultants:
Even if you are not liable, HR consultants can still be named in a claim, which in itself poses a risk. The advice given by HR Consultants, particularly in sensitive situations such as whistleblowing or grievance matters, may come under scrutiny. While it is possible for such claims to be stuck out, as in the case of Handa, there is no guarantee that this will happen.
What can HR Consultants do to protect themselves?
Ensure that written engagement letters are in place, which clearly define the scope of your involvement. Always document the advice you provide alongside the legal rationale behind it, ensuring there is a clear record of your reasoning. Avoid directing outcomes, as doing so can compromise your objectivity and create potential liability. Maintaining independence is essential to uphold professional integrity and reduce risk. Additionally, ensure that appropriate insurance is in place to provide protection in the event of a claim against you.
Final Thoughts:
The Handa ruling should refocus attention on the legal risks external HR professionals face and their potential liability in employment disputes. The Employment Tribunal acknowledged that external HR consultants can, in certain contexts, be considered agents of the employer, especially when engaged in tasks closely tied to the employment relationship, such as conducting grievance or disciplinary processes. To mitigate potential liability, HR consultants should ensure their roles are clearly defined in engagement letters, specifying their roles and responsibilities and the extent of their authority. The ruling underscores the importance for HR consultants to clearly delineate their advisory roles and avoid overstepping into decision making territory that could expose them to liability.
Comment
The Dispute Resolution team at FJG has a strong background in all aspects of employment law and are well placed to provide tailored advice on how this ruling might affect your business. If you are an HR consultant and would like further advice on how you can mitigate your potential risk, or if you are an individual who has been dismissed and you would like further advice on bringing a claim against you employer please do not hesitate to contact us.
How can we help?
Hannah Steenkamp is a Solicitor Apprentice.
If you would like any further information or assistance in preparing your business for the upcoming changes, or if after the implementation of the regulations you feel that your rights have been breached and would like further advice please contact Hannah on 01245 584523 or complete our online enquiry form.