GM Packaging v Haslem

In this case the Employment Appeal Tribunal (“EAT”) held it was fair for an employer to dismiss an employee on the recommendation of an external HR consultant.

GM Packaging was a small employer with just 9 employees. Its managing director became aware of conduct by the Claimant, a senior manager, engaging in sexual activity with a member of his staff on company premises after hours. He delegated an external HR consultant to advise on whether dismissal should take place. Following an investigation the HR consultant recommended dismissal and the managing director accepted this recommendation.

The employment tribunal held it was fair and reasonable to delegate matters to an HR consultant, but found that the principal reason for dismissal was the sexual activity on company premises, was not gross misconduct and that dismissal was outside the band of reasonable responses and therefore unfair.

The EAT overturned the decision. First, the HR consultant, whose recommendation was relied on, had taken into account derogatory remarks made by the Claimant about his employer. Secondly, dismissal for sexual activity with a member of staff on the company's premises after hours accompanied by a conversation which revealed a complete lack of respect for the employer, was within the band of reasonable responses. The employment tribunal had erred by substituting its own view for that of the employer.

In Practice

Employment Associate Paul Burton says “This case will be of some comfort to many small employers who do not have the management resources to conduct a full disciplinary procedure. Many of them will turn to external consultants to come in and carry out a disciplinary investigation and process and this case confirms that it is reasonable to follow the consultant’s recommendations, including dismissal.”