Employment Snapshot June 2026
Monday 22nd June 2026
Welcome to Gordons Employment Team’s latest update
This month we cover:
- The proposed change to zero-hours contracts;
- An Employment Appeal Tribunal decision regarding bonuses; and
- The recent outcome at Employment Appeal Tribunal highlighting the effect of contributory conduct on unfair dismissal compensation.
Zero-hours contracts: what are the proposed changes?
On 2 June 2026, the government published a consultation paper on the Regulations needed to bring the zero-hours measures in the Employment Rights Act 2025 (ERA) into force.
The government does not propose to ban zero-hours contracts altogether. Instead, it says the aim is to end “one-sided flexibility”.
Employers cannot “move the goalposts” on bonus schemes
A recent Employment Appeal Tribunal (EAT) decision reminds employers that once bonus terms are set and the relevant criteria have been met, they are likely to be binding.
The effect of contributory conduct on unfair dismissal compensation
In the recent Employment Appeal Tribunal (EAT) case of DHL Services Limited v Pawel Ignatorwicz [2026] EAT 74, the EAT clarified the legal principles for reducing awards for contributory conduct and provided guidance on what employers need to consider when deciding on whether reinstatement is possible.
Plus
Have you checked the holiday pay provisions in your employment contracts for compliance?
We have recently seen something of a surge in employees challenging their employers on how their holiday pay has been calculated. In April 2024 new regulations made clear that when calculating a week’s pay for holiday pay purposes, account needs to be taken of commission and regular overtime. As a result, best practice dictates that employment contracts should be clear about the calculation so as to remove any doubt. This is highly relevant for those who pay regular commissions, overtime and those who employ irregular hours and part-year workers especially.
Contact a member of our team if in doubt and we will audit your contractual terms and recommend any necessary changes.
If you require any further information on the above topics, please do not hesitate to get in contact with a member of the Employment Team.
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