Monthly Bulletin – July 2025 – Practical Perspectives

Independent investigators not liable for whistleblowing dismissal

When handling high-stakes disciplinary or grievance matters – particularly involving senior staff – many businesses sensibly turn to external HR consultants or investigators to ensure objectivity, professionalism, and compliance. A recent Employment Appeal Tribunal (EAT) decision will come as welcome news for those operating in this space: unless they take an active role in making the actual decision to dismiss, external investigators cannot be held personally liable for alleged discrimination or whistleblowing-related dismissal.

In Handa v The Station Hotel and others, the Claimant brought a claim of automatic unfair dismissal and whistleblowing detriment. He attempted to argue that two external HR consultants – Mr Duncan and Ms McDougall – were personally liable as “agents” of the employer, on the basis that their investigation reports had influenced the dismissal decision.

Mr Duncan had investigated a grievance against the Claimant and found parts of it substantiated. Ms McDougall subsequently conducted a disciplinary investigation and produced a report suggesting dismissal for gross misconduct would be appropriate. The employer, The Station Hotel, relied on that report to make its decision to dismiss.

The EAT rejected the argument that the consultants should be personally liable. It ruled:

• External consultants can, in theory, be agents, but they must carry out a causative act or omission linked to the dismissal to attract liability.
• Neither consultant made nor implemented the dismissal decision – this remained with the employer.
• Even if the employer influenced their work, that alone did not amount to agency or legal liability.

The claims against both consultants were struck out for having no reasonable chance of success.

This decision will bring relief to independent HR professionals and investigators. But it also underscores the need for clear engagement terms. These should clearly define roles, confirm that decision-making rests solely with the employer, and ideally include an indemnity clause in case of future legal claims. Independent support remains a valuable tool – but boundaries must be clear.

Avoiding compulsory redundancies: creative alternatives for HR to consider

Making compulsory redundancies is rarely a simple business decision. Letting go of valuable talent can leave skills gaps just when the business may need to pivot or recover. Redundancy payments add up quickly, and the wider impact on staff morale, engagement and employer brand can be hard to repair.

HR professionals are often tasked with finding solutions that preserve headcount while also delivering the savings needed. Below are some practical alternatives to explore before moving to compulsory redundancies:

1. Voluntary redundancy schemes
   Inviting employees to step forward voluntarily can soften the blow. This gives people more control over their exit and often helps retain those most committed to staying. Be clear about the terms and retain the right to decline volunteers in business-critical roles.
2. Changes to Terms and Conditions
   Consider amending hours, pay, or duties by agreement to reduce costs. Where agreement isn’t possible and the business case is compelling, the “fire and rehire” route may be a last resort- but tread carefully. There is a Statutory Code of Practice in this area now. Non-compliance could lead to tribunal claims and compensation uplifts. The Employment Rights Bill proposes to outlaw the practice, save where the business’s imminent survival is at stake.
3. Unpaid Sabbaticals or Career Breaks
   In areas of low demand, offering short-term unpaid leave can provide breathing space without permanent job loss. Frame it as a development opportunity or reset.
4. Job sharing or reduced hours
   Offering part-time working or job shares can achieve cost savings while retaining talent and flexibility. These options often suit those seeking better work-life balance.
5. Freeze recruitment and reduce use of contractors
   Sometimes cost savings can be achieved without affecting current staff—pause new hiring and consider trimming contractor use first.

By thinking creatively and engaging early with employees, HR can often find workable alternatives that protect both people and the business.

How employers should deal with summer heatwaves

As UK summers get hotter, employers must take steps to protect staff from the risks of working in extreme heat. Heatwaves can affect productivity, comfort, and health.

All employers are under a general duty under Health and Safety at Work Act 1974 to provide a safe working environment. This incorporates working at safe temperatures. There is no legal maximum temperature set out in UK law. However, the Workplace (Health, Safety and Welfare) Regulations 1992 say that workplace temperatures must be “reasonable”.

If you don’t already have one, a warm weather risk assessment should be carried out and maintained. This will help you to identify any particular risk areas and steps that can be taken to minimise those risks. These are often common-sense: fans, ventilation, relaxed dress codes, shaded areas for outdoor workers and access to water.

Employers should be mindful that some employees face higher risks associated with heat. For example:

• Outdoor workers (e.g. construction, delivery): need shade, sun protection, hydration.
• Pregnant employees: may be more vulnerable to overheating.
• Disabled employees: certain conditions may make temperature regulation harder. Reasonable adjustments may be needed under the Equality Act 2010.

Employers have a clear duty to take heat seriously. It is important to be pro-active and have a warm weather plan in place which is clearly communicated to staff before a heatwave hits. Small adjustments can often make a big difference.

Fixed-Term Contracts: Key Issues for Employers

Fixed-term contracts are useful for temporary roles – such as maternity cover, project-based work or seasonal demand. But they come with risks that HR should manage carefully.

Legal rights and protections

Employees on fixed-term contracts are protected under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002. From day one, they have the right not to be treated less favourably than comparable permanent staff. That includes equal access to pay, conditions, training, and benefits – pro-rated if needed. You can only justify differences if you have good business reasons and the overall package is of equal value.

After four years on successive fixed-term contracts, an employee may automatically become permanent – unless there’s a strong business reason not to. Employers must also notify them of suitable permanent roles.

Tricky areas to watch

1. Pro-rata benefits: You don’t have to offer every benefit, like a company car for a short-term hire – but you’ll need to explain why and offer something equivalent if challenged.
2. Ending the contract: Simply letting a fixed-term contract expire still counts as a dismissal. You’ll need a fair reason if the employee has 2+ years’ service – usually redundancy or “some other substantial reason” (e.g. the return of the employee they were covering).
3. Early termination: Unless the contract allows for early termination with notice, ending it early may amount to wrongful dismissal. Include clear early termination clauses.
4. Funding uncertainty: If you rely on external funding, you may be able to justify continued use of fixed-term contracts – but be prepared to defend this at tribunal if necessary.
5. Permanent roles: If you make the fixed-term role permanent but don’t offer it to the postholder, be cautious. Fixed-term employees should, at the very least, be offered the opportunity to apply for the vacancy. If you don’t want to offer the role to the temp, then you should try and make it as different as possible from the temporary position.
6. Pregnancy or maternity: Not renewing a contract during pregnancy or maternity leave isn’t unlawful in itself, but a fair process is essential. Offer priority access to suitable vacancies and provide clear, written reasons for dismissal.

Fixed-term contracts can be practical, but they’re not risk-free. A proactive, fair and transparent approach will help you stay compliant – and avoid costly claims.

No need to make changes that won’t help: A reminder on Reasonable Adjustments

Under the Equality Act 2010, employers must make reasonable adjustments for disabled employees. These changes are meant to remove or reduce any disadvantage the employee faces due to their disability. Adjustments might include things like flexible working, special equipment, or changes to how tasks are done.

Employers should think about making adjustments when:

• They know (or should know) that an employee is disabled;
• The employee is struggling at work because of their disability;
• The employee asks for support; or
• A delay in returning to work or long sickness absence seems linked to a disability.

But there’s a limit. Employers only have to make changes if they will actually help. If a change won’t reduce the disadvantage, it might not count as a reasonable adjustment.

This was made clear in the case of Hindmarch v North East Ambulance NHS Foundation Trust. Mr Hindmarch, a non-emergency ambulance driver, had severe anxiety and was too anxious to attend work during the COVID-19 pandemic. Emergency staff got higher-grade masks (FFP3), while he and other non-emergency drivers were given a lower-grade one (FFP2). He argued that if he’d been given an FFP3 mask, he might have returned to work. He was later dismissed and claimed that the Trust failed to make a reasonable adjustment.

The Employment Appeal Tribunal disagreed. They said that giving him an FFP3 mask would not have changed the situation – he still wouldn’t have returned to work. So, it wasn’t reasonable to expect the Trust to make that change.

What this means for HR:
Reasonable adjustments must be practical, realistic, and likely to help. If a change won’t remove or reduce the disadvantage a disabled employee faces, then the employer isn’t required to make it.